Highlights: 2014 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.
- In 2014, 230 Canadian specialty, pay, pay-per-view and video-on-demand television services generated revenues of $4.2 billion, a 3.1% increase over the $4.1 billion in revenues from the previous year.
- The increased revenues in 2014 are largely attributable to an increase in subscription revenues ($160.3 million or 5.9%), which more than compensated for the 4.2% drop in national advertising revenues.
- Though revenues continued increasing in 2014, expenditures increased faster, rising from $2.9 billion in 2013 to $3.1 billion in 2014. As a result, profits before interest and taxes (PBIT) dropped from $1.1 billion to approximately $1 billion, and the PBIT margin from 26.5% to 23.7%.
- Bilingual and English-language services yielded a total of $3.5 billion, and French-language services produced revenues of $678.4 million.
- On an individual basis, sports services (such as TSN, Sportsnet and RDS) were among the specialty services with the highest increase in revenues, which increased by $124 million (13.6%).
- Pay and video-on-demand services reported revenue decreases of 2.1% (or 9.4 million) and 1.3 % (or $3.2 million) respectively in 2014.
- Canadian programming expenditures reached $1.5 billion in 2014, an increase of 12.6% compared to 2013. Expenditures in the “sports” programming category showed the largest increase: $132 million.
- Of those investments, $432 million went to independent Canadian producers, $376 million of which came from specialty television services.
- Expenditures related to foreign programming increased from $528 million in 2013 to $574 million in 2014, $389 million of which came from specialty services.
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