2015 Highlights - Cable, Internet Protocol Television (IPTV) and Satellite Companies Statistical and Financial Summaries
Cable, Internet Protocol Television (IPTV) and Satellite Companies
Figure 1: Key Indicators
Notice: Total revenue per subscriber includes revenues derived from consumers’ monthly subscription fees, but also from connection fees and other revenues.
All cable, IPTV and Satellite Companies
- In 2015, Canadian cable, IPTV and satellite companies’ revenues stood at $8.9 billion, with a marginal decline in revenues of 0.1% since 2014, the first decline in the last five years.
- The $26.9 million loss in “subscription revenues” was partly compensated by a combined increase in “connection revenues” and “other revenues” of $15.2 million.
- Cable, IPTV and satellite companies have generated an average annual growth in revenues of 1.3% since 2011.
- Cable, IPTV and satellite companies garnered 11.2 million subscribers in 2015, a -1.4% (157,922 subscribers) decline from 2014. This negative trend has been accelerating since its start in 2013. Of note, subscription to IPTV services recorded a double-digit growth rate in 2015, however, these gains were insufficient to offset the combined declines in cable and satellite services.
- Despite these declines in subscribers and revenues, the average total revenue per subscriber increased from $65.25 per month in 2014 to $66.08 per month in 2015.
- After recording a 6.2% growth rate in 2014, the 2015 total expenses growth rate slowed back to its 2012-2013 levels and stands at 1.3%. Total expenses rose from $7.1 billion in 2014 to $7.2 billion in 2015.
- In 2015, cable, IPTV and satellite companies reported their lowest operating income margin in five years, but it remains healthy at 19.0%.
- Cable, IPTV and satellite companies employed a total of 27,244 individuals in 2015, down 6.3% (1,842 individuals) in comparison to 2014. This represented the first decrease in employment in this sector since 2009.
Results by Type of Company
- Revenues for cable and IPTV companies continued on their upward trend and totalled $6.6 billion in 2015. This represented an increase of $113.5 million (1.7%) since 2014 and of $702.6 million (11.9%) since 2011. By contrast, the revenues of satellite companies have been on a downward trend since 2012, recording the largest losses over the past two years. Theygenerated revenues of $2.2 billion in 2015, down 5.2% from 2014.
- Since 2011, cable and IPTV companies increased their share of the subscriber market from 74.8% to 78.9%, and total 8.9 million subscribers in 2015. Conversely, satellite companies have decreased their share of the subscriber market to 21.1% (2.3 million subscribers), but nonetheless garnered 25.7% of all cable, IPTV and satellite companies revenues.
- In 2015, cable and IPTV companies’ average total revenue per subscriber was $62.27 per month, an increase of 7.4% ($4.30 per month) since 2011. For their part, satellite companies’ average total revenue per subscriber was $80.29 per month, up 9.5% ($6.96 per month) since 2011.
- The operating margin for cable and IPTV companies followed a relatively steady decline, going from 22.5% in 2011 to 16.1% in 2015, with their expenditures growing almost twice as fast as their revenues (with average annual growth rates of 4.9% and 2.8% respectively). Satellite companies performed better as their operating margin generally grew over the period, starting at 24.4% in 2011, reaching a peak of 33.4% in 2013 and attaining 27.7% in 2015.
Figure 2: Contributions to the Creation and Production of Canadian Programming
- Cable, IPTV and satellite companies are required to spend the equivalent of 5% of their annual broadcast-related revenues to the creation and production of Canadian programming. This can take the form of contributions to various Certified Independent Production Funds (CIPF), to the Canada Media Fund (CMF) or contributions towards local expression, which are intended to the creation and distribution of community programming.
- In 2009, the Commission established an additional fund, the Local Programming Improvement Fund (LPIF), in an effort to support local programming by conventional television stations during a difficult financial period. The LPIF was discontinued on 1 September 2014.
- Excluding LPIF, contributions to the creation and production of Canadian programming by cable, IPTV and satellite companies totalled $436.9 million in 2015, almost unchanged from 2014.
- Contribution levels to each contribution category, namely Local Expression, CIPFs and the CMF were essentially unchanged from 2014, reflecting the trend in revenues on which they are calculated, which, as mentioned above, have remained constant from 2014 to 2015.
Cable and IPTV - Basic and non-Basic Services
Figure 3: Key indicators – by Region
NOTICE: This regional analysis pertains solely to cable and IPTV companies’ performance, given that, by their nature, satellite companies are not bound to specific geographical areas.
- Among Canada’s regions in 2015:
- The Atlantic region was the most profitable, with an operating margin of 26.3%.
- The region of Ontario generated the highest average total revenue per subscriber, which totalled $70.83 per month.
- The regions of Québec and BC & Territories generated the lowest average total revenue per subscriber, at $51.90 and $59.33 per month respectively. However, out of the two regions, Québec generated higher profits, with an operating margin of 9.6% compared to -3.9% for the BC & Territories region.
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