CRTC releases 2009 financial results for specialty, pay and pay-per-view<br>television services and video-on-demand services

OTTAWA-GATINEAU, April 22 /CNW Telbec/ - The Canadian Radio-television and Telecommunications Commission (CRTC) today released statistical and financial summaries for Canadian specialty, pay and pay-per-view television services, as well as video-on-demand (VOD) services. The report provides information on the profitability, revenues and expenditures of these sectors of the broadcasting industry for the period of September 1, 2008 to August 31, 2009.

Profitability

In 2009, these services experienced a decline in advertising revenues that was partially offset by an increase in subscriber revenues. Total revenues grew by 6% from $2.9 billion to $3.1 billion, while expenses rose from $2.2 billion to $2.3 billion.

As a result, profits before interest and taxes (PBIT) improved to $728.7 million, up from $648.2 million in 2008. These services posted a PBIT margin of 23.5%, which was slightly better than the previous year's margin of 22.1%.

Sources of revenues

The total revenues of $3.1 billion were generated from the following sources:

    
    -  $1.4 billion from cable television subscribers
    -  $624.1 million from direct-to-home satellite subscribers
    -  $982.2 million from national advertising
    -  $18.2 million from local advertising, and
    -  $53.1 million from other sources.
    

When compared with the 2008 results, national and local advertising revenues declined by 2.4% and 11.1%, respectively. At the same time, revenues from cable and satellite subscribers increased by 12.9% and 3.6%, respectively.

English-language services earned $2.5 billion of the total revenues, while French-language services brought in $501.4 million.

Revenue by sectors

Specialty television services captured the largest share of the total revenues, $2.4 billion, which included:

    
    -  $2.08 billion from 49 analog services
    -  $100.6 million from 18 Category 1 digital services, and
    -  $223.9 million from 77 Category 2 digital services.
    

Pay, pay-per-view and VOD services saw their share of revenues increase by 16.6%, going from $596.4 million to $695.6 million in one year.

Canadian programming

In 2009, these services spent $1.08 billion on Canadian programming, which was roughly the same amount as the previous year. Of the overall programming expenditures, $357.1 million was paid to independent producers to acquire Canadian programs.

Spending on Canadian programming included $163.1 million for news programs, $226.8 million for other information programs, $302.6 million for sports programming, $194.7 million for drama, $47.5 million for musical and variety shows, and $73.7 million for general-interest programming.

Although investments in Canadian programming were essentially at the same level, these services directed $521.8 million to foreign programming. This represented an increase of 36.7% from the $381.6 million reported in 2008.

Employment

In 2009, specialty, pay, pay-per-view television and video-on-demand services employed 5,306 people and paid a total of $402 million in salaries. In comparison, they employed 5,514 people and paid $405 million in salaries the previous year.

CRTC reports

The data compiled in this report were drawn from the annual reports of specialty, pay and pay-per-view television services, as well as video-on-demand services.

The CRTC recently released the financial results for conventional television stations and broadcasting distribution companies. It will publish the financial results for AM and FM radio stations by market segments during the week of May 24. These annual reports allow interested parties to stay informed about the state of the Canadian broadcasting industry.

Pay Television, Pay-Per-View, Video-On-Demand and Specialty Services - Statistical and Financial Summaries 2005-2009 http://www.crtc.gc.ca/eng/publications/reports/BrAnalysis/psp2009/psp2009.htm

The CRTC

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

Reference documents:

Conventional television stations' financial results http://www.crtc.gc.ca/eng/com100/2010/r100318.htm

Broadcasting distribution companies' financial results http://www.crtc.gc.ca/eng/com100/2010/r100318-1.htm

These documents are available in alternative format upon request.

For further information: Media Relations: http://support.crtc.gc.ca/CRTCSubmissionMU/forms/Mediarelations.aspx?lang=e, Tel: [phone], Fax: [phone]; General Inquiries: Tel: [phone], TDD: [phone], Fax: [phone], Toll-free No. 1-877-249-CRTC (2782), TDD - Toll-free No. 1-877-909-CRTC (2782), http://crtc.gc.ca/RapidsCCM/Register.asp?lang=E