2015 Highlights - Private and CBC/Radio-Canada Conventional Television Statistical and Financial Summaries
Private Conventional Television
Figure 1: Key indicators for Canadian Private Conventional Television
The 93 private conventional television stations in operation in 2015 generated total revenues of $1.76 billion, down 2.6%, or $46.6 million, from 2014:
A drop of $13.6 million, or 9.9%, in “Other revenues” contributed to the decline in total revenues between 2014 and 2015. Examples of “Other revenues” include retransmission and Broadcasting Distribution Undertakings royalties, co-production sponsorship and donations.
The termination of the Local Programming Improvement Fund (LPIF) resulted in $21.7 million less revenues in 2015 compared to 2014.
Advertising revenues were relatively unchanged compared to the previous year, but have experienced a sharp decline since 2011 (-$309.0 million or -17.0%).
Private conventional television stations’ total revenues have been falling steadily in the last five years; they decreased by 17.9% or $381.9 million between 2011 and 2015.
Similar to private conventional television stations’ revenues, total expenditures has trended downward in the last five years; expenditures decreased by 3.9% ($72.7 million) between 2011 and 2015. Total expenditures were $1.82 billion in 2015, whichrepresents a 1.6% (-$29.0 million) decrease since 2014:
Spending was down in tree of the four expenditure categories (Program; Technical; and Sales & Promotion).
Program expenditures reported the largest decline, down $34.0 million (-2.4%). At $1.36 billion, Program expenditure nonetheless accounted for 75.1% of total expenses by private conventional television stations.
Administration & General expenditure was up 6.0% ($10.8 million).
Private conventional television stations were unprofitable in 2015:
Profitability, as measured by the Profit Before Interest and Taxes (PBIT) margin fell to -8.0% in 2015, down from -7.7% in 2014.
2015 marked the third consecutive year of financial losses for the private conventional television stations.
Employment by the private conventional television stations totaled 5,790 individuals in 2015.The number of persons employed in that sector decreased by 172 individuals from 2014, and by 473 individuals since 2011.
Figure 2: Program Expenditures for Canadian Private Conventional Television
Program expenditures by private conventional television stations, which totalled $1.36 billion in 2015, were composed of:
Canadian Programming Expenditure (CPE): $652.8 million
Non-Canadian Programming Expenditure: $656.1 million
Production Expenditure: $54.4 million
“Canadian Programming Expenditures”, or CPE, refers to the CRTC requirement imposed on most television broadcasters that they spend a minimum percentage of their revenues on content that makes use of Canadian resources.
In 2015, private conventional television stations invested $652.8 million in Canadian Programming Expenditures:
This represented a 5.4% (or $33.5 million) increase from 2014.
Spending on Information programming (News and Long form documentaries) totalled $406.9 million and accounted for 62.3% of total CPE.
The bulk ofInformation programming was in the News category at $369.6 million, or 56.6% of total CPE.
CPE by private conventional television stations has maintained consistent growth over the last 5 years:
These stations spent 16.0% more on CPE in 2015 than in 2011; Canadian programming expenses increased from $562.9 million to $652.8 million over the period.
CPE as a proportion of total program expenditure was 49.9% in 2015, higher than that reported in 2014 (46.3%) and markedly higher than that reported in 2011 (43.6%).
This year’s publication includes, for the first time, broadcasters’ programming spending for the Animation category, and children’s programming. In 2015, private conventional stations’ total CPE included just over $358,000 in spending on Animation, and about $343,000 on Children’s programming.
Spending on non-Canadian programming by private conventional television stationsdecreased by $60.9 million (-8.5%) to $656.1 million in 2015.
Notably, expenditures on non-Canadian Drama programming decreased by $56.8 million relative to 2014.
Non-Canadian Drama nonetheless remained a major expense item for private conventional television stations; with spending of $432.9 million in 2015, this category accounted for 1/3 of total (CPE and non-Canadian combined) programming expenses.
CBC/Radio-Canada Conventional Television
Figure 3: Key Indicators for Canadian Broadcasting Corporation/Société Radio-Canada Conventional Television
The 27 CBC/Radio-Canada conventional television stations reported total revenues of $1.11 billion in 2015, down $220.9 million (or 16.6%) from 2014:
Following two years of decline, Parliamentary Appropriation rose 4.4% to $757.9 million in 2015, accounting for 68.5% of total revenues.
The termination of the LPIF resulted in $17.6 million less revenues in 2015 compared to the previous year.
Advertising revenues decreased by 53.6% to $220.1 million in the past year. This is in part linked to the loss of the National Hockey League TV rights, combined with the absence of major sports events – namely the Olympics and FIFA World Cup – that generated additional advertising revenues in 2014.
In 2015, total expenses on the CBC/Radio-Canada conventional television stations fell 18.1% (or $226.2 million) relative to 2014 to $1.02 billion. This included a 23.5% decrease in Program expenses, which were of $687.3 million in 2015, down from $897.9 million in 2014.
CBC/Radio-Canada conventional television station employed 5,205 individuals in 2015. The number of individuals employed is down 638 (or 10.9%) from 2014, and 1,009 since 2011.
Figure 4: Key indicators for Canadian Broadcasting Corporation Television - Expenditures
Program expenditures by the CBC/Radio-Canada conventional television stations, which totalled $687.3 million in 2015, were composed of:
Canadian Programming Expenditure (CPE): $557.2 million
Non-Canadian Programming Expenditure: $21.1 million
Production Expenditure: $109.0 million
Program expenditures decreased by $210.6 million (-23.5%) relative to 2014.
The most notable decline was in the Sports programming category, -$222.1 million to $35.9 million in 2015, in absence of major sports events that were aired on the CBC/Radio-Canada conventional television stations in 2014.
As Canada’s public broadcaster, the CBC/Radio-Canada invests heavily in Canadian programming:
In 2015, CBC/Radio-Canada spent $557.2 million on Canadian television content, which represented 96.4% of total (Canadian and non-Canadian combined) programming expenses.
In 2015, Canadian programming expenditures on the CBC/Radio-Canada conventional television stations were mostly composed of Information ($270.1 million) – including news programming ($190.9 million) - and Music & Entertainment ($250.1 million).
Expenditure on Canadian Drama programming ($144.1 million) by the CBC/Radio-Canada was almost three times that spent by the private conventional television services in 2015.
Of a total of $557.2 million it spent on Canadian Programming Expenditure, the CBC/Radio-Canada reported $9.0 million in the Animation category, and a total of $33.8 million on children’s programming in 2015.