CRTC releases financial results for Canadian specialty, pay and pay-per-view television and video-on-demand services

    OTTAWA and GATINEAU, QC, March 26 /CNW Telbec/ - The Canadian
Radio-television and Telecommunications Commission (CRTC) today released
statistical and financial summaries for Canadian specialty, pay, pay-per-view
television and video-on-demand (VOD) services. The report provides information
on the profitability, revenues and expenditures of this sector of the industry
for the broadcast year ending on August 31, 2008.

    Profitability

    This sector enjoyed a solid financial performance in 2008 with total
revenues growing 7.6% to $2.9 billion, up from $2.7 billion reported the
previous year. While profits before interest and taxes (PBIT) rose by 5.9%,
coming in at $686.1 million, the PBIT margin remained consistent, going from
23.7% in 2007 to 23.4% in 2008. Over the last five years, the number of
reporting services climbed from 123 to 182, and total revenues rose by over
$850 million.

    Sources of revenue

    The total revenues of $2.9 billion were generated from the following
sources:

    - $1.3 billion from cable television subscribers
    - $596.5 million from direct-to-home satellite subscribers
    - $1 billion from national advertising
    - $20.6 million from local advertising, and
    - $54.8 million from other sources.

    English-language channels captured $2.4 billion of the total revenues,
while French-language channels brought in $481.3 million.

    Revenue by sector

    The largest share of the total revenues, $2.3 billion, was earned by
specialty television services, including:

    - $2 billion from 49 analog services
    - $88.9 million from 18 Category 1 digital services, and
    - $189.7 million from 78 Category 2 digital services.

    Pay, pay-per-view and VOD services accounted for the remaining $612
million in revenues.

    Canadian programming

    The amount spent on Canadian programming surpassed $1 billion for the
first time in 2008. In total, these services invested $1.1 billion in Canadian
programming, an increase of 11.3% from $954.5 million in 2007. Of the overall
programming expenditures, $362.4 million was paid to independent producers to
acquire Canadian programs.
    Spending on Canadian programming included $146.6 million for news
programs, $235.4 million for other information programs, $270.3 million for
sports programs, $202.1 million for drama, $55 million for musical and variety
shows, $72 million for general interest programming.
    These services also spent $361.1 million on foreign programming, which
represented an increase of 9.1% from $331.1 million in 2007.

    Employment

    In 2008, Canadian specialty, pay, pay-per-view television and VOD
services employed 5,495 people and paid a total of $406.8 million in salaries.
In comparison, the previous year this sector employed 5,501 people and paid a
total of $408.4 million in salaries.

    CRTC reports

    The data compiled in this report were drawn from the annual reports of
specialty, pay, pay-per-view television and VOD services.
    The CRTC recently released the financial results for conventional
television and will soon publish those for the broadcast distribution and
radio industries. The CRTC's annual reports allow interested parties to stay
informed about the state of the Canadian broadcasting industry.

    Reference document:
    Pay Television, Pay-per-view, Video-on-demand and Specialty Services -
Statistical and Financial Summaries 2004 - 2008
    http://crtc.gc.ca/eng/publications/reports/branalysis/psp2008/psp2008.htm

    The CRTC

    The CRTC is an independent public authority that regulates and supervises
broadcasting and telecommunications in Canada.

For further information: Media Relations: MediaRelations
(http://support.crtc.gc.ca/CRTCSubmissionMU/forms/Mediarelations.aspx?lang=e),
[phone], Fax: [phone]; General Inquiries: [phone], TDD:
[phone], Fax: [phone], Toll-free # 1-877-249-CRTC (2782), TDD -
Toll-free # 1-877-909-CRTC (2782), On-line services
(http://support.crtc.gc.ca/crtcsubmissionmu/forms/main.aspx?lang=e); These
documents are available in alternative format upon request.