TV

CRTC survey points to strong cable, sat TV growth in Canada

Combined revenues for cable, satellite TV and multipoint distribution companies rose to CDN$12.5 billion for the year to August 31, 2010, against revenues of $11.4 billion for the year-earlier period.
July 15, 2011

No surprise here: cable remains the sweet spot of the Canadian TV industry.

The Canadian Radio-Television and Telecommunications Commission (CRTC) on Thursday unveiled its latest survey of Canadian broadcast distributors, and pointed to strong sector growth as the combined revenues for cable, satellite TV and multipoint distribution companies rose to CDN$12.5 billion for the year to August 31, 2010, against revenues of $11.4 billion for the year-earlier period.

Cable generated the bulk of that business, with the sector’s total revenues rising 9.7% in 2010 to $10.1 billion.

No wonder cable companies, currently serving 8.3 million households nationwide, have been busily buying up conventional broadcast assets.

The cable sector saw operating expenses rise by 9% from $5.1 billion to $5.5 billion, according to the CRTC.

That put pre-interest and tax profits for the cable operators at $2.5 billion, or a corresponding profit margin of 25.3%. The year-earlier 2009 pre-interest and tax profit came in at $2.3 billion and a 25.1% margin.

Even Canadian satellite TV operators, which took over a decade to reach sustained profitability, are flush these days.

The CRTC said total revenues for satellite and multipoint distribution companies jumped 9% from $2.2 billion in 2009 to $2.4 billion in 2010. Operating expenses were also up, by 4% from $1.75 billion to $1.82 billion in 2010.

That allowed satellite and multipoint distribution companies to post a combined profit before interest and taxes of $163.9 million in 2010.

Continued profitability from cable and satellite TV operators fed into indie production, with both sectors contributing $189.1 million to the Canadian Media Fund, and another $52.3 million to independent funds.

(From Playback Daily)

About The Author
Meagan Kashty is an associate editor of realscreen, an international print and online magazine that covers the non-fiction film and television industries. Meagan is an award-winning business journalist. Prior to joining the realscreen team, Meagan was online editor of Canadian Grocer, named Magazine of the Year at the 2015 Canadian Business Media Awards. She can be reached at mkashty@brunico.com, and you can follow her on Twitter @MegKashty

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