2013 financial results for specialty, pay and pay-per-view television services and video-on-demand services
Each year, the CRTC compiles financial data on the Canadian broadcasting and telecommunications industries. The data drawn from the annual returns of specialty, pay, PPV and VOD television services are compiled in the financial summaries issued for these services.
These financial summaries allow interested parties to stay informed about the state of the Canadian broadcasting industry and assist them greatly in participating in Commission proceedings dealing with these services.
- Revenues for these television services surpassed $4 billion for the first time in 2013, and have climbed by an annual average of 7% over the past five years. In 2013, specialty, pay, PPV and VOD services invested $1.3 billion in the creation of television programs made by Canadians and employed 6,120 people.
- Spending of specialty services on programs made by Canadians included $224 million for news programs, $256 million for drama series, long-form documentaries, and Canadian awards shows, $412 million for sports, $77 million for human-interest shows, and $263 million for other types of programs. As part of these investments, specialty television services paid $379 million to Canadian independent producers.
- In addition, investments in non-Canadian programs increased from $293 million in 2012 to $340 million in 2013.
- In 2013, Canadian specialty, pay, PPV and VOD television services generated revenues of $4.09 billion, an increase of 3.1% over the $3.97 billion earned the previous year. National advertising revenues increased to $1.27 billion, representing 2.8% growth over 2012. In addition, subscriber revenues exceeded $2.7 billion.
- While revenues continued to climb, expenses decreased from $2.93 billion in 2012 to $2.92 billion in 2013. As a result, profits before interest and taxes (PBIT) increased from $913.2 million to $1.08 billion, and the PBIT margin improved from 23% to 26.5%.
- The total revenues of more than $4 billion were generated from the following sources: $2 billion from cable subscribers; $740.2 million from satellite subscribers; $1.3 billion from national advertising; $29.3 million from local advertising, and $69 million from other sources.
- Total revenues for English-language and bilingual services were $3.3 billion, while French-language services brought in $687.1 million.
- Specialty television services continued to capture the largest share of the total revenues at $3.3 billion. Their PBIT margin increased from 26.2% to 29.8%.
- Pay services saw their revenues decrease by 2.8% going from $457.8 million in 2012 to $444.8 million in 2013. Nonetheless, their pre-tax profit margin remained relatively unchanged, going from 22.2% to 22.3%.
- On-demand services (PPV and VOD) also witnessed a drop in revenues from $379.7 million to $354.2 million. Their PBIT margin, however, increased from -2.2% to 0.5%.
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