Communications Monitoring Report 2016: Broadcasting sector overview

4.0 Broadcasting sector overview

Infographic summarizing section 4.0 - Broadcasting system
Infographic summarizing section 4.0 - Broadcasting system
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This infographic presents several key indicators for the broadcasting sector for 2015. First indicator: circular chart shows the television, radio, and BDU revenues as a percentage of total broadcasting revenues in 2015. Television: 16%; Radio: 10%; BDU: 50%; discretionary and on demand services: 24%; Broadcasting revenues: $17.9 billion. Second indicator: revenues: $17.9 billion, an increase of 1.6% over 2014. Third indicator: BDU earnings before interest, taxes, depreciation, and amortization (EBITDA): 19.0%. Third indicator: Private commercial radio profit before interest and taxes (PBIT): 18.9%. Fourth indicator: Private conventional television profit before interest and taxes (PBIT): -8.0%.

The Canadian broadcasting sector consists of radio (private and CBC), conventional television (private and CBC), and discretionary and on demand television services (pay, pay per view (PPV), video-on-demand (VOD) and specialty services) and broadcasting distribution undertakings (BDU) (cable, satellite and IPTV).Footnote 1

Revenues reported by the Canadian broadcasting sector in 2015 decreased by 1.6% to $17.9 billion, from $18.2 billion in 2014. Broadcasting revenues represents 27.3% of all Canadian communications revenues. From 2011 to 2015, overall broadcasting revenues in the communications sector increased at an average annual rate of 0.4%.

Private radio sector revenues and profitability remained relatively stable from 2014 to 2015, while private conventional television sector revenues and profitability have experienced decreases during the same period. Private radio broadcasters reported $1,603 million in revenues and a PBIT margin of 18.9% in 2015, similar to previous year’s $1,614 million revenues and PBIT margin of 18.5%, while private conventional television broadcasters reported $1,757 million in revenues and PBIT margins of -8.0% in 2015, a 2.6% decrease compared to previous year’s $1,804 million revenues and PBIT margin of -7.7%.

Discretionary and on demand services rely primarily on subscriber revenues while conventional broadcasters rely essentially on advertising revenues. In 2015, approximately 92% of private conventional broadcasters’ revenues and 31% of discretionary and on demand services’ revenues came from advertising revenues.

In 2015, the top 5 companies, in terms of revenues, generated $14.5 billion in broadcasting revenues and accounted for approximately 81% of total broadcasting revenues. The remaining entities reported combined revenues of $3.4 billion, or 19% of total broadcasting revenues.

Companies operating in all broadcasting segments (i.e. radio, conventional television, discretionary and on demand television and BDU) generated approximately 64% of total Canadian broadcasting revenues in 2015. In comparison, companies operating in only one market sector generated 6% of total Canadian broadcasting revenues.

i) Revenues

Table 4.0.1 Broadcasting revenues ($ millions)
Category Sub-category 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Radio Private commercial AM stations 311 306 295 291 286 -1.7 -2.1
Private commercial FM stations 1,303 1,312 1,328 1,323 1,317 -0.5 0.3
Private commercial Total 1,614 1,618 1,623 1,614 1,603 -0.7 -0.2
CBC AM stations 80 73 58 53 49 -7.6 -11.6
CBC FM stations 257 253 246 235 228 -3.0 -3.0
CBC total 337 326 305 288 277 -3.9 -4.8
Total 1,951 1,944 1,927 1,902 1,879 -1.2 -0.9
Conventional television Private conventional 2,139 2,038 1,944 1,804 1,757 -2.6 -4.8
CBC conventional 1,339 1,369 1,247 1,328 1,107 -16.6 -4.6
Total conventional 3,478 3,407 3,191 3,132 2,864 -8.5 -4.7
Discretionary and on demand television Discretionary and on demand services 3,748 3,968 4,091 4,236 4,255 0.4 3.2
Total television Total 7,226 7,375 7,282 7,367 7,119 -3.4 -0.4
BDU Cable and IPTV 5,927 6,068 6,322 6,516 6,630 1.7 2.8
DTH/MDS 2,532 2,492 2,472 2,414 2,289 -5.2 -2.5
Total 8,459 8,561 8,794 8,930 8,918 -0.1 1.3
All Broadcasting services Total 17,636 17,880 18,004 18,199 17,916 -1.6 0.4

Source: CRTC data collection

In this table, broadcasting revenues are presented for each type of service and their component parts, for the years 2011 to 2015. It also shows a compound annual growth rate (CAGR) for each component. For more details, visit the CRTC’s financial summaries page: http://www.crtc.gc.ca/eng/stats.htm

The notable decrease in CBC conventional television revenues comes from a decrease in advertising revenues and LPIF revenues. The decrease in advertising revenues is in part linked with 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.

Table 4.0.2 Broadcasting revenue distribution by region ($ billions)
Region 2014 2015 Percentage of total (%) Growth (%) 2014-2015
Atlantic 0.8 0.8 6.7 0.9
BC and Territories 1.5 1.5 13.0 -0.5
Ontario 4.5 4.3 37.9 -4.4
Prairies 2.1 2.1 18.2 0.8
Québec 2.7 2.8 24.2 0.2

Source: CRTC data collection

This table excludes revenues generated from discretionary and on demand television services as well as DTH BDU services as those services are licensed as national services.

ii) Industry characteristics

Table 4.0.3 Percentage of broadcasting revenues generated by companies operating in multiple sectors
Number of sectors in which companies offer service Number of reporting group or entities operating in these sectors Percentage of broadcasting revenues generated in these sectors
2013 2014 2015 2013 2014 2015
4 3 3 3 63 63 64
3 5 4 4 23 22 21
2 17 17 16 8 8 9
1 172 171 161 6 6 6

Source: CRTC data collection

The broadcasting industry comprises four sectors: radio (1); conventional television (2); discretionary and on demand television (3); and BDUs including cable, satellite and IPTV (4). While most companies operate in only one sector, several operate in all four. This table shows the number of companies that operate in different numbers of sectors, and the percentage of total revenues generated by those companies according to the number of sectors in which they operate. Taken together, the data illustrate that the small number of companies operating in multiple sectors earned about two-thirds of total industry revenues. Affiliated companies are included with their parent company.

Figure 4.0.1 Percent of total broadcasting revenues, by ownership groups

Bar chart of Figure 4.0.1: Percent of total broadcasting revenues, by ownership group
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This bar chart shows broadcasting revenues for the top 5 group of companies, the next top 5 group and the remaining companies for 2013, 2014 and 2015. Top 5 companies: 81%, 81% and 81%; Next 5 companies: 10%, 10% and 10%; Remaining companies: 9%, 8% and 9%.

Source: CRTC data collection

This figure shows the combined percentage of broadcasting revenues of Canada’s five largest groups—BCE, Shaw (including Corus), Rogers, Québecor, CBC,—as well as the next five largest, and the remaining 175 groups/entities in the industry. Groups’ revenues include those of their affiliates.

Figure 4.0.2 Percentage of total commercial radio revenues by broadcaster, 2015

Circular chart of Figure 4.0.2: Percentage of total commercial radio revenues by broadcaster, 2015
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This circular chart shows the percentage of total 2015 revenues achieved by the largest commercial radio broadcasters. Corus: 10%, BCE: 26%, Newcap: 10%, Rogers: 15%, Cogeco: 7% and other broadcasters: 32%.

Source: CRTC data collection

Canada’s five largest commercial radio broadcasters reported for more than 68% of the sector’s total revenues in 2015.

The “percentage of total revenue” calculation is based on total revenues reported for each service controlled by the broadcaster. Control was determined where the broadcaster had greater than 50% direct and indirect voting interest as of 31 August 2015.

Figure 4.0.3 Percentage of television revenues by broadcaster, 2015

Circular chart of Figure 4.0.3: Percentage of television revenues by broadcaster, 2015
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This circular chart shows the percentage of total 2015 revenues achieved by the largest television broadcasters. Québecor: 5%, Shaw/Corus: 20%, Rogers: 11%, BCE: 31%, CBC: 18%, Remstar: 1% and other broadcasters: 14%.

Source: CRTC data collection

The six largest television broadcasters accounted for 86% of the sector’s total industry revenues in 2015. In the determination of the top 5 companies, Shaw and Corus were counted as one entity.

The “percentage of total revenue” calculation is based on total revenues reported for each service controlled by the broadcaster. Control was determined where the broadcaster had greater than 50% direct and indirect voting interest as of 31 August 2015.

CBC revenues include advertising, subscriber, and other commercial revenues and Parliamentary appropriations.

iii) Financial performance

Figure 4.0.4 Total broadcasting revenues by type of service ($ billion)

Bar stacked chart of Figure 4.0.4: Total broadcasting revenues by type of service ($ billion)
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This bar stacked chart shows broadcasting revenues, in billions of dollars, by sector for each year between 2011 and 2015. CBC Radio: 0.3, 0.3, 0.3, 0.3 and 0.3; CBC conventional television: 1.3, 1.4, 1.2, 1.3 and 1.1; Private commercial radio: 1.6, 1.6, 1.6, 1.6 and 1.6; Private conventional television: 2.1, 2.0, 1.9, 1.8 and 1.8; DTH/MDS: 2.5, 2.5, 2.5, 2.4 and 2.3; Discretionary and on demand television: 3.7, 4.0, 4.1, 4.2 and 4.3; Cable and IPTV : 5.9, 6.1, 6.3, 6.5 and 6.6; Combined revenues: 17.6, 17.9, 18.0, 18.2 and 17.9.

Source: CRTC data collection

The bar graph shows total broadcasting industry revenues and total revenues generated in each of the industry’s subcategories (BDU, commercial television, commercial radio, and the CBC).

Figure 4.0.5 PBIT/EBITDA margins by type of service (%)

Line chart of Figure 4.0: PBIT/EBITDA margins by type of service (%).
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This line graph provides an overview of EBITDA and PBIT by type of service for the broadcast years 2011 to 2015, in percentage. Cable and IPTV EBITDA: 22.5%, 20.3%, 19.9%, 15.8% and 16.1%; Discretionary and on demand television PBIT: 24.8%, 23.0%, 26.5%, 23.8%, and 20.8 %; DTH/MDS EBITDA: 24.4%, 30.1%, 33.4%, 32.0% and 27.7%.; Private conventional television PBIT: 7.3%, 1.1%, -0.1%, -7.7% and -8.0%; Private commercial radio PBIT: 19.3%, 19.8%, 20.2%, 18.5% and 18.9%.

Source: CRTC data collection

The line graph shows PBIT margins for private radio and television services and EBITDA margins for BDUs, as measures of profitability.

4.1 Radio sector

Infographic summarizing section 4.1 - Radio sector
Infographic summarizing section 4.1 - Radio sector
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This infographic presents several key indicators for the radio sector. First indicator: circular chart shows the percentage of radio revenues as a proportion of all broadcasting revenues in 2015. CBC radio revenues were 2% of all broadcasting revenues and private commercial radio revenues were 9% of all broadcasting revenues. Total broadcasting revenues were $17.9 billion. Second indicator: Total radio revenues: $1.9 billion, a decrease of 1.2% over 2014. Third indicator: Listening: Canadians (12+) listened to 16 hrs of radio each week on average. Fourth indicator: Private commercial radio revenues: $1.6 billion, a decrease of 0.7% over 2014. Fifth indicator: CBC radio revenues: $0.3 billion, a decrease of 3.9% over 2014.

Canadians continued to have access to a wide variety of musical choices and local, regional and national news platforms with over 1,100 radio and audio services broadcasting across the country. Over 75% of all private commercial radio stations in Canada are located in Ontario, Quebec, Alberta or British Columbia.

The Canadian Broadcasting Corporation (CBC), Canada’s public broadcaster, operates 69 radio stations, in English and in French, across Canada. Revenues for CBC’s radio unit have steadily declined from $337 million in 2011 to $277 million in 2015.

There are over 700 private commercial radio stations in Canada. They operate in hundreds of different markets and account for over three-quarters of the total number of radio stations in operation in Canada. Over the last five years, commercial radio stations reported a slight average annual revenue decrease of approximately 0.2%. In 2015, these services reported $1,603 million in revenues and a profitability margin of 19%. During the same period, revenues reported by AM radio stations have dropped to from $311 million in 2011 to $286 million in 2015. This can be attributed, in part, to the faltering advertising revenues. FM stations have reported a marginal annual revenue increase of 0.3% over the same period.

Country and contemporary music formats together garnered the largest national listener share. The popularity of these genres on Canadian radio has been steadily increasing over the last few years.

In 2015, the Commission issued 14 new licences, half of which were non-commercial entities. Community, campus and Aboriginal radio stations play an important role in the communities they serve and in the broadcasting sector as a whole. In 2015, these radio stations numbered 187 and reported $61 million in revenues.

Canadians are increasingly using a range of audio content services in addition to over-the-air radio. According to the Media Technology Monitor (MTM), 23% of Canadians (18+) stream AM/FM radio online and 55% of Canadians (18+) stream music videos on YouTube, an increase of 3% over 2014. National satellite subscribership has remained stagnant over the past year, as MTM again estimates 16% of Canadians (18+) subscribe to satellite radio.

i) Revenues

In 2015, the 704 commercial radio stations in operation generated total revenues of $1,603 million, relatively unchanged from 2011. There were 12 additional FM services in operation in 2015, compared to the previous year, bringing the total number of FM station to 580 services. They reported combined total revenues of $1,317 million. Revenues for FM services have grown on average by 0.3% a year since 2011.

The number of AM radio stations, on the other hand, was down 3 units from 2014 to 124 services reporting in 2015. AM radio stations have been struggling over the last 5 years: their revenues have dropped 2.1% per year on average since 2011 to $286 million in 2015.

A total of 23 radio services were offering third-language programming in 2015 nation-wide, 12 of them on the AM band and 11 on the FM band. These services generated a combined $46.7 million in revenue in 2015, up 1.5% from 2014. As a matter of fact, total revenues for ethnic radio services have recorded an average growth rate of 1.3% per year between 2011 and 2015, while those for French and English-language services declined by an average rate of 0.1% and 0.3% per year respectively over that period.

Table 4.1.1 Revenues ($ millions) of private commercial radio stations, by language of broadcast and frequency band
Type of station 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
English-language - AM 274.9 274.9 264.6 262.0 257.1 -1.9 -1.7
French-language - AM 11.7 6.1 4.9 4.3 4.0 -6.2 -23.5
Third-language - AM 24.4 25.2 25.1 24.7 24.9 0.9 0.5
All languages - AM 311.1 306.2 294.6 290.9 286.0 -1.7 -2.1
English-language - FM 1,035.3 1,040.1 1,053.8 1,042.7 1,040.1 -0.2 0.1
French-language - FM 247.7 251.9 253.2 259.2 254.7 -1.8 0.7
Third-language - FM 19.8 20.2 21.1 21.3 21.8 2.1 2.4
All languages - FM 1,302.8 1,312.2 1,328.0 1,323.3 1,316.6 -0.5 0.3
All languages – AM and FM 1,613.8 1,618.4 1,622.7 1,614.2 1,602.5 -0.7 -0.2

Source: CRTC data collection

This table show revenue trends for private English-, French-, and Third-language commercial AM and FM radio stations, for the period 2011 and 2015, and includes the annual growth between 2014 and 2015, and over the entire study period.

Network results are included; however, results for pay and specialty audio programming services, as well as for multi-channel subscription radio services, are excluded.

Table 4.1.2 Number of private commercial radio stations reporting financial results, by language of broadcast and frequency band
Type of radio station 2011 2012 2013 2014 2015
English-language - AM 115 111 109 109 105
French-language - AM 7 6 8 6 7
Third-language - AM 12 12 12 12 12
All languages - AM 134 129 129 127 124
English-language - FM 434 444 454 466 477
French-language - FM 89 90 89 90 92
Third-language - FM 11 12 13 12 11
All languages - FM 534 546 556 568 580
All languages – AM and FM 668 675 685 695 704

Source: CRTC data collection

The Canadian Broadcasting Corporation (CBC), Canada’s public broadcaster, operates a total of 14 AM and 55 FM radio stations across Canada. These services’ total revenues have steadily declined from $337 million in 2011 to $277 million in 2015. The majority of this decrease is attributable to a change in Parliamentary Appropriation.

2015 marked the 2nd year of eligibility for the CBC to generate national advertising revenues on Ici Musique and Radio 2. A total of $1.4 million in advertising revenue was generated, up 27.2% from 2014. Nonetheless, advertising revenues remain a modest source of income for the CBC’s radio services – it accounted for 0.5% of the broadcaster’s total radio revenues in 2015.

Of note, the number of radio stations operated by the CBC declined by 13 units between 2014 and 2015 to 69. This is explained by the fact that the CBC ended a pilot project whereby it was airing local content on these 13 stations, which have since reverted back to rebroadcasters.

Table 4.1.3 Revenues of CBC radio stations summary, by type of revenue
Metric 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Advertising revenues 0 0 0 1,074 1,366 27.2 n/a
Parliamentary appropriations 327,267 316,508 295,523 277,310 266,880 -3.8 -5.0
Sales/syndication of programs 859 952 1,087 1,328 1,816 36.8 20.6
Other revenues 8,803 8,432 8,145 7,924 6,480 -18.2 -7.4
Total revenues 336,928 325,892 304,756 287,636 276,542 -3.9 -4.8
Number of stations 78 78 81 82 69 -15.9 -3.0

Source: CRTC data collection

In its Broadcasting Decision CRTC 2013-263, the Commission allowed the broadcast of national advertising on Ici Musique and Radio 2. Advertising revenues for CBC in 2014 and 2015 in the above table reflect this decision.

Table 4.1.4 Revenues ($ millions) of commercial radio stations, by radio market type
Market Type 2011 2012 2013 2014 2015 CAGR (%) 2011-2015
Designated 1,215.3 1,224.8 1,217.9 1,203.0 1,196.3 -0.4
Non-designated 398.5 393.6 404.8 411.2 406.2 0.5
All markets 1,613.8 1,618.4 1,622.7 1,614.2 1,602.5 -0.2

Source: CRTC data collection

Designated markets generate 75% of all revenues reported by commercial radio stations, they include markets formally known as medium, large and major markets in addition to additional markets. To find out more information on designated and non-designated markets, please consult the CRTC’s 2011-2015 commercial radio financial summaries: http://www.crtc.gc.ca/eng/publications/reports/BrAnalysis/radio2015/radio2015.htm.

Table 4.1.5 Revenues ($ millions) of ethnic commercial radio stations, by province
Province 2011 2012 2013 2014 2015 CAGR (%) 2011-2015
British-Columbia 14.2 15.2 15.2 14.7 14.6 0.7
Alberta/Manitoba 3.4 3.2 3.7 5.0 5.4 12.3
Ontario 23.3 23.6 23.7 23.1 23.5 0.2
Québec 3.3 3.3 3.5 3.2 3.1 -1.6
Total 44.2 45.4 46.2 46.0 46.7 1.5

Source: CRTC data collection

This table shows radio revenues reported by ethnic radio stations by province from 2011 to 2015. There were no ethnic commercial stations to report for in Saskatchewan, the Atlantic Provinces and the North.

The data in the four following figures present the revenues of private commercial English, French, and third-language AM and FM radio stations. The data on average annual revenues are compared to profit before interest and taxes (PBIT) to indicate the financial health of groups of radio stations. The data for AM and FM stations, as well as the language of broadcast, are segmented to show the variations for each of these criteria.

Figure 4.1.1 Revenues of private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.1: Revenues of private commercial radio stations and number of reporting undertakings
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues, in millions of dollars, along with the number of undertakings reporting, of Canadian private commercial radio stations from 2011 to 2015 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings. AM radio stations’ revenues: 311, 306, 295, 291 and 286; Number of AM undertakings reporting: 134, 129, 129, 127 and 124; FM radio stations revenues: 1,302, 1,314, 1,328, 1,323 and 1,317; Number of FM undertakings reporting: 535, 546, 556, 568 and 580; Total radio AM and FM stations revenues: 1,614, 1,620 1,623, 1,614 and 1,603; Number of AM and FM undertakings reporting: 669, 675, 685, 695 and 704. The second axis depicts FM revenues as a percentage of total revenues: 81%, 81%, 82%, 82% and 82% and FM undertakings as a percentage of total undertakings: 80%, 81%, 81%, 82% and 82.

Source: CRTC data collection

The data in figures 4.1.1 through 4.1.3 include network results, but exclude pay and specialty audio programming services, as well as multi-channel subscription audio services.

Figure 4.1.2 Revenues of English-language private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.2: Revenues of English-language private commercial radio stations and number of reporting undertakings
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues, in millions of dollars, along with the number of undertakings reporting, of English-language Canadian private commercial radio stations from 2011 to 2015 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings. AM radio stations revenues: 275, 275, 265, 262 and 257; Number of AM undertakings reporting: 115, 111, 109, 109 and 124; FM radio stations revenues: 1,035, 1,042, 1,054, 1,043 and 1,040; Number of FM undertakings reporting: 435, 444, 454, 466 and 477; Total radio AM and FM stations revenues: 1,310, 1,317, 1,318, 1,305 and 1,297; Number of AM and FM undertakings reporting: 550, 555, 563, 575 and 582. The second axis depicts FM revenues as a percentage of total revenues: 79%, 79%, 80%, 80% and 80%; and FM undertakings as a percentage of total undertakings: 79%, 80%, 81%, 81% and 82%.

Source: CRTC data collection

Figure 4.1.3 Revenues of French-language private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.3: Revenues of French-language private commercial radio stations and number of reporting undertakings
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues, in millions of dollars, along with the number of undertakings reporting, of French-language Canadian private commercial radio stations from 2011 to 2015 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings. AM radio stations revenues: 12, 6, 5, 4 and 4; number of AM undertakings reporting: 7, 6, 8, 6 and 7; FM radio stations revenues: 258, 252, 253, 259 and 255; Number of FM undertakings reporting: 89, 90, 89, 90 and 92; Total radio AM and FM stations revenues: 270, 258, 258, 263 and 259; Number of AM and FM undertakings reporting: 96, 96, 97, 96 and 99. The second axis depicts FM revenues as a percentage of total revenues: 96%, 98% 98%, 98% and 99%; FM undertakings as a percentage of total undertakings: 93%, 94%, 92%, 94% and 93%.

Source: CRTC data collection

Figure 4.1.4 Revenues of Ethnic private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.4: Revenues of Ethnic private commercial radio stations and number of reporting undertakings
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues, in millions of dollars, along with the number of undertakings reporting, of Canadian ethnic private commercial radio stations from 2011 to 2015 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings. AM radio stations revenues: 24, 25, 25, 25 and 25; number of AM undertakings reporting: 12, 12, 12, 12 and 12; FM radio stations revenues: 20, 21, 21, 21 and 22; Number of FM undertakings reporting: 11, 12, 13, 12 and 11; Total radio AM and FM stations revenues: 44, 45, 46, 46 and 47; Number of AM and FM undertakings reporting: 23, 24, 25, 24 and 23. The second axis depicts FM revenues as a percentage of total revenues: 45%, 47% 46%, 46% and 47%; FM undertakings as a percentage of total undertakings: 48%, 50%, 52%, 50% and 48%.

Source: CRTC data collection

Revenues from private commercial radio stations operating in the context of the Ethnic Broadcasting Policy trended upwards from 2011 to 2015.

Table 4.1.6 Financial summary ($ thousands) of native, community, and campus radio stations
Type of station Metric 2011 2012 2013 2014 2015
Native stationsFootnote 2 Number of stations reporting 33 33 35 27 21
Advertising revenues 5,820 5,397 4,569 3,984 4,316
Other revenues 12,450 10,772 11,203 8,731 8,847
Total revenues 18,270 16,168 15,772 12,715 13,162
Advertising as a percent of total revenues (%) 31.9 33.4 29.0 31.3 32.8
PBIT margin (%) 0.5 -4.7 -14.6 11.1 0.1
Community radio stations Number of stations reporting 107 110 112 111 113
Advertising revenues 15,201 15,512 15,223 14,973 15,816
Other revenues 14,987 15,126 17,190 16,815 18,448
Total revenues 30,188 30,638 32,412 31,787 34,264
Advertising as a percent of total revenues (%) 50.4 50.6 47.0 47.1 46.2
PBIT margin (%) 10.5 3.7 7.4 4.4 5.9
Campus radio stations Number of stations reporting 48 49 47 47 47
Advertising revenues 1,082 1,019 889 1,337 907
Other revenues 7,401 7,814 8,323 8,440 8,839
Total revenues 8,483 8,833 9,213 9,777 9,746
Advertising as a percent of total revenues (%) 12.8 11.5 9.7 13.7 9.3
PBIT margin (%) 20.3 10.5 8.5 7.9 4.8

Source: CRTC data collection

This table shows the number of stations reporting revenues and PBIT margins (PBIT divided by total revenues) for radio stations operating in the context of the Native Broadcasting Policy, as well as community and campus stations from 2011 to 2015.

For all three types of radio stations, “other revenues” include fundraising and other sources. For native radio stations only, “other revenues” also include band council grants and contributions.

ii) Financial performance

Overall, the average Profit Before Interest and Taxes margin (PBIT margin) of the commercial radio industry has remained in the 18-20% range over the past 5 years as expenses remained relatively constant in response to stagnating revenues. In 2015, the sector reported an average PBIT margin of 18.9%, up 0.4 percentage points from 2014.

FM radio services report higher-than-average PBIT margins. In 2015, their combined profitability stood at almost 22% (or $286 million), while that of the AM services was of 6% ($17 million).

The data presented in figures 4.1.5 through 4.1.12 include network results, but exclude results for pay and specialty audio programming services, as well as for multi-channel subscription audio services.

Figure 4.1.5 Average per-station annual revenues and PBIT of private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.5: Average per-station annual revenues and PBIT of private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the average annual revenue and PBIT per station, in millions of dollars, of Canadian private commercial radio for each year from 2011 to 2015. Average annual revenues per station: AM stations: 2.3, 2.4, 2.3, 2.3 and 2.3; FM stations: 2.4, 2.4, 2.4, 2.4 and 2.3; AM and FM combined: 2.4, 2.4, 2.4, 2.4 and 2.3. Average PBIT per station: AM stations: 0.2, 0.3, 0.2, 0.1 and 0.1; FM stations: 0.5, 0.5, 0.5, 0.5 and 0.5; AM and FM combined: 0.5, 0.4, 0.4, 0.4 and 0.5.

Source: CRTC data collection

Figure 4.1.6 PBIT and PBIT margins of private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.6: PBIT and PBIT margins of private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the total PBIT, in millions of dollars, of Canadian private commercial radio stations from 2011 to 2015. The second axis represents the associated PBIT margin in percent. PBIT AM radio stations: 32, 33, 25, 13 and 17; and AM PBIT margin: 10.3%, 10.7%, 8.4%, 4.5% and 6.0%. PBIT FM radio stations: 279, 288, 303, 285 and 286; and FM PBIT margin: 21.4%, 21.9%, 22.8%, 21.5% and 21.7%. PBIT for Total AM and FM radio stations: 311, 321, 328, 298 and 303 and AM and FM PBIT margin: 19.3%, 19.8%, 20.2%, 18.5% and 18.9%.

Source: CRTC data collection

There was an overall increase in the PBIT and PBIT margins for all radio stations from 2010 to 2013, followed by decrease in 2014 and a slight increase in 2015.

Figure 4.1.7 Average annual revenues and PBIT per station of English-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.7: Average annual revenues and PBIT per station of English-language private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the AM, FM, and AM and FM combined revenues per station with revenues, in millions of dollars, of English-language Canadian private commercial radio stations from 2011 to 2015. The second axis depicts PBIT for AM, FM and AM and FM combined per station. AM radio stations revenues per station: 2.4, 2.5, 2.4, 2.4 and 2.1; FM radio stations revenues per station: 2.4, 2.3, 2.3, 2.2 and 2.2. Total radio AM and FM revenues per station: 2.4, 2.4, 2.3, 2.3 and 2.2. The second axis depicts the PBIT information in millions of dollars. PBIT per station for AM: 0.3, 0.3, 0.2, 0.1 and 0.1. PBIT per station for FM: 0.5, 0.6, 0.6, 0.5 and 0.5. PBIT per station for AM and FM: 0.5, 0.5, 0.5, 0.4 and 0.4.

Source: CRTC data collection

Average annual per-station revenues for both AM and FM English-language private commercial radio stations have decreased in 2015, although the average PBIT for AM and FM stations rose slightly in 2015.

Figure 4.1.8 PBIT and PBIT margins of English-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.8: PBIT and PBIT margin of English-language private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the total PBIT, in millions of dollars, of English-language Canadian private commercial radio stations from 2011 to 2015. The second axis represents the associated PBIT margin in percent. PBIT AM radio stations: 31, 30, 22, 9 and 13; and AM PBIT margin: 11.2%, 11.0%, 8.3%, 3.4% and 5.2%. PBIT FM radio stations: 239, 246, 263, 239 and 240; and FM PBIT margin: 23.1%, 23.6%, 25.0%, 22.9% and 23.1%. Total AM and FM radio stations: 270, 276, 285, 248 and 253; and AM and FM PBIT margin: 20.6%, 20.9%, 21.7%, 19.0% and 19.5%.

Source: CRTC data collection

Figure 4.1.9 Average annual revenues and PBIT per station of French-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.9: Average annual revenues and PBIT per station of French-language private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the AM, FM, and AM and FM combined revenues per station with revenues, in millions of dollars, of French-language Canadian private commercial radio stations from 2011 to 2015. The second axis depicts PBIT for AM, FM and AM and FM combined per station. AM radio stations revenues per station: 1.7, 1.0, 0.6, 0.7 and 0.6; FM radio stations revenues per station: 2.9, 2.8, 2.8, 2.9 and 2.8. Total radio AM and FM revenues per station: 2.8, 2.7, 2.7, 2.7 and 2.6. The second axis depicts the PBIT information in millions of dollars. PBIT per station for AM: -0.0, 0.0, -0.0, 0.1 and 0.0. PBIT per station for FM: 0.4, 0.4, 0.4, 0.5 and 0.5. PBIT per station for AM and FM: 0.4, 0.4, 0.4, 0.5 and 0.4.

Source: CRTC data collection

Average annual per-station revenues for French-language private commercial radio stations remained constant from 2011 to 2015. This was largely due to the strength of revenues from FM stations. Revenues from French-language AM radio stations have declined considerably since 2011.

Figure 4.1.10 PBIT and PBIT margins of French-language private commercial

Line clustered-column on 2 axes chart of Figure 4.1.10: PBIT and PBIT margin of French-language private commercial
Text Description of Image

This line clustered-column on 2 axes chart depicts the total PBIT, in millions of dollars, of French-language Canadian private commercial radio stations from 2011 to 2015. The second axis represents the associated PBIT margin in percent. PBIT AM radio stations: -0.3, 0.2, -0.2, 0.5 and 0.1; AM PBIT margin: -2.8%, 3.7%, -3.1%, 10.7% and 1.8%; PBIT FM radio stations: 37.1, 39.4, 37.3, 43.6 and 43.1; FM PBIT margin: 15.0%, 15.6%, 14.7%, 16.8% and 16.9%. Total AM and FM radio stations: 36.8, 39.6, 37.2, 44.1 and 43.2; AM and FM PBIT margin: 14.2%, 15.4%, 14.4%, 16.7% and 16.7%.

Source: CRTC data collection

Figure 4.1.11 Average per-station annual revenues and PBIT of Ethnic private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.11: Average per-station annual revenues and PBIT of Ethnic private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the AM, FM, and AM and FM combined revenues per station with revenues, in millions of dollars, of Ethnic private commercial radio stations from 2011 to 2015. The second axis depicts PBIT for AM, FM and AM and FM combined per station. AM radio stations revenues per station: 2.0, 2.1, 2.1, 2.1 and 2.1; FM radio stations revenues per station: 1.8, 1.8, 1.6, 1.8 and 2.0. Total radio AM and FM revenues per station: 1.9, 1.9, 1.8, 1.9 and 2.0. The second axis depicts the PBIT information in millions of dollars. PBIT per station for AM: 0.1, 0.2, 0.3, 0.3 and 0.3. PBIT per station for FM: 0.3, 0.3, 0.2, 0.3 and 0.3. PBIT per station for AM and FM: 0.2, 0.2, 0.2, 0.3 and 0.3.

Source: CRTC data collection

Average annual revenues of private ethnic commercial radio stations fluctuated around the $2-million mark over the last five years. From 2011 to 2015, AM radio stations outperformed FM radio stations in terms of revenues, although the gap is closing.

Figure 4.1.12 PBIT and PBIT margin – Ethnic private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.12: PBIT and PBIT margin – Ethnic private commercial radio stations
Text Description of Image

This line clustered-column on 2 axes chart depicts the total PBIT, in millions of dollars, of Ethnic private commercial radio stations from 2011 to 2015. The second axis represents the associated PBIT margin in percent. PBIT AM radio stations: 1.5, 2.1, 3.0, 3.7 and 3.8; and AM PBIT margin: 6.3%, 8.4%, 12.0%, 14.8% and 15.2%. PBIT FM radio stations: 3.1, 3.4, 2.4, 3.1 and 3.1; FM PBIT margin: 15.5%, 16.2%, 11.4%, 14.8% and 14.1%. Total AM and FM radio stations: 4.6, 5.5, 5.5, 6.8 and 6.9; and AM and FM PBIT margin: 10.5%, 12.2%, 12.0%, 14.8% and 14.7%.

Source: CRTC data collection

PBITs and PBIT margins for private ethnic commercial AM radio stations increased every year over the past 5 years. PBIT and PBIT margins for the private ethnic commercial FM radio stations remained relatively stable from 2014 to 2015, following a strong increase in 2014.

iii) Availability of radio and audio services

Canadians have access to a number of different audio services such as private AM and FM commercial radio, non-commercial AM and FM radio, Satellite subscription radio services and pay and specialty audio services.

In 2015, a total of 1,120 services were authorized to broadcast in Canada, an increase of 14 over-the-air services and a decrease of 1 pay/specialty service over 2014. Private commercial radio stations account for almost two thirds of all the audio services in Canada, while community stations, the second most numerous type of audio service, represented 12% of all audio services in 2015.

Table 4.1.7 Number and type of radio and audio services authorized to broadcast in Canada, by language of broadcast
Type of station English-language French- language Third- language All languages
2014 2015 2014 2015 2014 2015 2014 2015
CBC Radio One / ICI Radio-Canada Première 39 39 21 21 0 0 60 60
CBC Radio 2 / ICI Musique 14 14 14 14 0 0 28 28
CBC Radio network licences 2 2 2 2 0 0 4 4
Private commercial AM stations 107 106 9 9 12 14 128 129
Private commercial FM stations 482 482 92 93 16 19 590 594
Private commercial AM and FM network licences 0 0 1 1 0 0 1 1
Religious (music and spoken word) 39 44 5 5 1 1 45 50
Community 51 58 65 67 1 3 117 128
Community Developmental 6 5 1 1 0 0 7 6
Campus Community-based 42 42 6 5 0 0 48 47
Campus Instructional 8 0 0 0 0 0 8 0
Aboriginal stations 41 41 5 5 3 3 49 49
Other (tourist/traffic, etc.) 9 11 1 2 0 0 10 13
Total number of over-the-air Canadian radio services 840 844 222 225 33 40 1,095 1,109
Satellite subscription radio service 2 2 0 0 0 0 2 2
Specialty audio (commercial / non-profit, regional/national) 4 2 0 0 5 5 9 7
Pay audio 0 0 0 0 1 2 1 2
Total number of Canadian radio and audio services 846 848 222 225 39 47 1,107 1,120

Source: CRTC internal database

This table shows the number of radio services approved by the Commission. Not all are necessarily in operation. “Over-the-air radio services” exclude radiocommunication distribution undertakings, rebroadcasters, and radio services exempt from licensing requirements. These figures are as of 31 December 2015.

Table 4.1.8 Number of public/community-based and private radio services authorized to broadcast over-the-air, by province and language of broadcast, 2015
Province/territory English-language French-language Third-language Total
Public/ community Private Public/ community Private Public/ community Private Public/ community Private
British Columbia 34 109 3 0 0 6 37 115
Alberta 8 113 4 0 0 3 12 116
Saskatchewan 8 52 2 0 0 0 10 52
Manitoba 7 39 3 0 0 1 10 40
Ontario 52 241 14 5 1 15 67 261
Quebec 10 15 59 102 0 7 69 124
New Brunswick 7 32 13 5 0 0 20 37
Nova Scotia 14 36 6 0 0 1 20 37
Prince Edward Island 1 6 1 0 0 0 2 6
Newfoundland and Labrador 11 20 1 0 0 0 12 20
The North 8 8 2 0 0 0 10 8
Canada 160 671 108 112 1 33 269 816

Source: CRTC internal database

Non-commercial, tourist information and emergency radio services, as well as rebroadcasters are excluded. Third-language includes Native-language services. This table shows the number of radio services approved by the Commission. All are not necessarily in operation.

Figure 4.1.13 Types of radio and audio services authorized to broadcast in Canada, as a percentage of all such services, 2015

Circular chart of Figure 4.1.13: Types of radio and audio services authorized to broadcast in Canada, as a percentage of all such services, 2015
Text Description of Image

This circular chart shows the percentage representation of the types of radio and audio services in relation to the total: Private commercial: 64.9%; Community: 12.0%; CBC/SRC: 7.9%; Religious: 4.5%; Aboriginal: 4.4%, Campus: 4.2%, Other: 1.2% and Satellite, Multi-Channel and audio via BDUs: 1.0%.

Source: CRTC data collection

In 2015, private commercial radio stations accounted for almost two-thirds of the total number of stations licensed for broadcast in Canada.

Table 4.1.9 Number of new over-the-air radio stations licensed categorized by language, licence category, type and licensing process
Category Sub-category 2011 2012 2013 2014 2015 Total
Language English-language 27 26 20 24 10 107
French-language 2 1 5 2 3 13
Third-language 1 1 0 3 1 6
Total 30 28 25 29 14 126
Licence category Commercial 11 18 12 20 7 68
Community 9 5 7 6 2 29
Campus - - 0 1 1 2
Native 7 3 0 2 1 13
Other 3 2 6 0 3 14
Total 30 28 25 29 14 126
Type Stand-alone digital - - 0 0 0 0
Digital radio - - 0 0 0 0
AM frequency 2 - 0 2 1 5
FM frequency 28 28 25 27 13 121
AM to FM conversions (included in FM) 1 2 5 0 2 10
Total 30 28 25 29 14 126
Process Competitive 1 7 0 5 1 14
Non-competitive 29 21 25 24 13 112
Total 30 28 25 29 14 126

Source: CRTC decisions issued from 1 January 2011 to 31 December 2015

This table shows the number of stations licensed by language, licence category, type of service and process used in granting the licence.

The following are excluded: radiocommunication distribution undertakings, rebroadcasters, pay audio services, specialty audio services, and multi-channel subscription services. The “Other” licence category includes not-for-profit stations, such as those operated in English and in French by the CBC, and Environment Canada.

Figure 4.1.14 Percentage of Canadians accessing online streamed audio services monthly, by language group

Clustered bar chart of Figure 4.1.14: Percentage of Canadians accessing online streamed audio services monthly, by language group (%)
Text Description of Image

This bar chart compares the percentage of Anglophones and Francophones as well as the percentage of all Canadians who reported using following streamed audio: Stream music videos on YouTube: 2014: 53% (Anglophones), 49% (Francophones), 52% (Nationally); 2015: 56% (Anglophones), 51% (Francophones), 55% (Nationally); Stream personalized online music service: 2014: 19%, 13%, 18%; 2015: 21%, 17% , 20%; Stream AM/FM radio: 2014: 23%, 19%, 22%; 2015: 23%, 20%, 23%; Podcast listener: 2014: 22%, 14%, 21%; 2015: 24%,15%, 22%; Regular radio listener: 2014 : 88%, 93%, 89% ; 2015: 88%, 94% 89%.

Source: MTM, 2015 (respondents: Canadians aged 18+)

Figure 4.1.15 Satellite radio subscriptions, by language group

Clustered column chart of Figure 4.1.15: Satellite radio subscriptions, by language group
Text Description of Image

This bar chart shows the percentage of Canadians subscribing to satellite radio from 2010 to 2015. 2010: 13% (Anglophones), 6% (Francophones), 11% (Nationally); 2011: 15%, 7%, 13%; 2012: 16%, 7%, 14%, 2013: 17%, 7%,15%; 2014: 19%, 8%, 16% and 2015: 18%, 9%, 16%.

Source: MTM, 2010-2015 (respondents: Canadians aged 18+)

iv) Audience measurement

Audience measurement data is important not only to industry stakeholders, who use the data to help sell air time to advertisers, but also to the CRTC, which uses the data to assess the effectiveness of its policies by understanding the reach of programming across the country and across various demographics.

Table 4.1.10 Average weekly hours of radio tuned per capita by age group for all Canada
Age group 2011 2012 2013 2014 2015 Growth (%) 2014-2015
Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM
All persons 12+ 17.7 8.3 17.5 7.1 17.0 7.1 16.5 7.0 16.2 7.0 -1.8 0.0
Teens 12 – 17 7.3 4.0 6.9 3.7 6.5 3.7 6.0 3.7 5.8 3.3 -3.3 -10.8
18 – 24 12.5 5.8 12.5 5.0 11.5 4.4 11.4 4.6 10.6 4.7 -7.0 2.2
25 – 34 16.8 6.5 16.6 5.8 16.0 5.7 15.4 5.8 15.0 5.9 -2.6 1.7
35 – 49 19.8 8.2 19.3 7.8 18.7 7.4 18.0 7.4 17.4 7.6 -3.3 2.7
50 – 54 21.3 9.5 20.9 8.8 21.1 8.5 19.8 7.6 19.8 8.0 0.0 5.3
55 – 64 20.0 9.5 19.9 7.6 19.4 8.2 18.9 8.0 18.5 7.7 -2.1 -3.8
65 + 19.4 12.0 19.1 9.1 18.8 9.3 18.4 9.1 18.3 9.1 -0.5 0.0

Source: Numeris

This table shows that for the third consecutive year, all age demographics, except the 65+, recorded decreases in diary marketsFootnote 3. The average number of hours per week per capita is determined by dividing the total number of hours tuned by the population.

Table 4.1.11 Radio tuning share (%) in an average week for English- and French-language AM and FM stations
Radio station type 2011 2012 2013 2014 2015 Growth (%) 2014-2015
Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM
English-language AM 15.7 21.8 14.7 21.2 14.2 20.9 13.6 22.6 14.5 25.7 6.6 13.7
English-language FM 57.0 55.0 57.5 54.3 58.4 55.4 59.1 56.5 57.2 54.1 -3.2 -4.3
English total 72.7 76.8 72.2 75.5 72.6 76.2 72.7 79.0 71.7 79.8 -1.4 1.0
French-language AM 0.2 0.2 0.1 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.0 0.0
French-language FM 20.3 22.8 21.3 24.1 20.9 23.2 21.0 20.6 20.7 19.8 -1.4 -3.9
French total 20.5 22.9 21.4 24.2 20.9 23.4 21.1 20.7 20.8 19.9 -1.4 -3.9
Other 6.9 0.2 6.4 0.3 6.5 0.4 6.2 0.3 7.2 0.2 16.1 -33.3

Source: Numeris

This table shows radio tuning by frequency band and by language of broadcast over the past five years. The “Other” category is mainly over-the-air tuning to U.S. border stations (diary), but also includes tuning to Internet radio that is not attributed to Canadian over-the-air radio stations, multi-channel subscription (satellite radio) services, pay and specialty audio services, over-the-air and video services available on cable, and unknown sources.

Table 4.1.12 Average weekly hours of radio tuned by listener for English- and French-language AM and FM stations
Tuning 2011 2012 2013 2014 2015 Growth (%) 2014-2015
Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM Diary PPM
Average number of weekly hours per listener 19.9 9.9 19.6 9.8 19.3 9.7 18.8 9.5 18.4 9.7 -2.1 2.1
Total average weekly national hours (millions) 303.8 164.5 303.9 166.5 299.0 167.7 289.0 167.6 288.0 169.4 -0.3 1.1

Source: Numeris

The average number of weekly hours per listener is determined by dividing the total number of hours tuned by reach, which is the number of different persons who tune in for at least one quarter hour within a specified time period, as estimated by Numeris.

Table 4.1.13 Tuning (millions of hours) and tuning share (%) achieved by the largest English-language private commercial radio operators in Canada in an average week
Commercial radio operator Metric 2013 2014 2015
Diary PPM Diary PPM Diary PPM
BCE Tuning 40.5 38.1 34.2 32.4 32.2 32.6
Share (%) 18.6 36.3 16.3 29.3 15.5 26.6
Cogeco Tuning - - - - - -
Share (%) - - - - - -
Corus Tuning 21.5 21.0 19.0 18.7 16.6 16.7
Share (%) 9.8 20.0 9.0 16.9 8.0 13.6
Harold R. Steele (Newcap) Tuning 18.8 2.6 19.2 10.5 18.5 13.2
Share (%) 8.6 2.5 9.1 9.5 8.9 10.8
Rogers Tuning 22.5 23.5 21.8 17.3 21.6 21.3
Share (%) 10.3 22.4 10.4 15.6 10.4 17.4
Total Tuning 218.2 104.8 210.4 110.6 207.2 122.6
Share (%) 100 100 100 100 100 100

Source: Numeris

Table 4.1.14 Tuning (millions of hours) and tuning share (%) achieved by the largest French-language private commercial radio operators in Canada in an average week
Commercial radio operator Metric 2013 2014 2015
Diary PPM Diary PPM Diary PPM
BCE Tuning 19.9 8.6 17.4 6.9 17.5 6.2
Share (%) 31.7 26.9 28.8 24.1 29.3 20.3
Cogeco Tuning 12.6 21.3 12.7 18.7 13.5 17.9
Share (%) 20.1 66.7 20.9 65.4 22.6 58.5
Total Tuning 62.7 31.9 60.9 28.6 59.8 30.6
Share (%) 100 100 100 100 100 100

Source: Numeris

These tables present tuning data by large radio ownership groups, by language, for the years 2013 through 2015.

In Broadcasting Decision 2013-310, the Commission approved the change in effective control of Astral’s 21 French-language and 63 English-language radio stations to BCE, subject to the divestiture by BCE of 10 English-language (7 Astral and 3 BCE) radio stations, and the transfer of their management and control to a trustee (Pierre Boivin), pending their sale to third parties;

Several divested stations from Pierre Boivin have been acquired by other large private commercial radio operators, hence the fluctuation by operator in listening hours (2013-2014).

Figure 4.1.16 Radio tuning by station type in diary markets, 2015

Circular chart of Figure 4.1.16: Radio tuning by station type in diary markets, 2015
Text Description of Image

This circular chart shows the percentage of hours tuned in an average week to over-the-air radio and audio services in diary markets: Private commercial: 73%; CBC/SRC: 16%; United States: 3%; Audio services: 4%; Community and campus: 2%; Other: 1% and Ethnic and Native: less than 1%.

Sources: Numeris, 2015 and CRTC data collection

This table shows the different types of radio stations tuned by listeners in diary markets in 2015.

The “Audio services” segment includes tuning to multi-channel subscription (satellite radio) services, pay and specialty audio services, over-the-air radio stations, and video services broadcast over cable and the Internet.

Table 4.1.15 Radio tuning shares - English-language radio station formats in diary markets, 2015
Top formats Audience share Number of stations
Today’s Country 16% 103
CBC Radio One 15% 34
Adult Contemporary 10% 107
Hot Adult Contemporary 10% 85
Album-oriented/mainstream Rock 8% 53
News/Talk 8% 41
Classic Hits 7% 58
Mainstream Top 40/CHR 7% 41
Classic Rock 5% 26
CBC Radio Two 3% 9
Other 8% 128

Sources: Numeris Fall 2015 and CRTC data collection

Other formats rounding to 100 include: Modern Rock (12 stns, 2%), community/campus/tourism (88 stns, 1%, Gold/Oldies (11 stns, 1%), Adult Standards (1 stn, 1%), Alternative Rock (12 stns, 2%), Classical/Fine Arts (4 stns, 1%).

Table 4.1.16 Radio tuning shares - French-language radio station formats in diary markets, 2015
Top formats Audience share Number of stations
Adult Contemporary 24% 36
News/Talk 17% 8
Mainstream Top 40/CHR 14% 15
Hot Adult Contemporary 13% 19
Ici Radio-Canada Première 12% 17
Community 7% 50
Ici Musique 4% 10
Classic Hits 2% 3
Adult Album Alternative 2% 1
Classical/Fine Arts 2% 2
Other 2% 4

Sources: Numeris Fall 2015 and CRTC data collection

Other formats rounding to 100 include: Modern/Alternative Rock (1stn, 1%), Oldies (3 stn, 1%).

Among Canadians in diary markets listening to English-language radio stations, over 50% of listening hours went to country, CBC Radio One, adult contemporary, and hot adult contemporary formats. Among French-language radio station listeners, almost a quarter of listening hours went to the adult contemporary format.

Table 4.1.17 Radio tuning shares - English-language radio station formats in PPM markets, 2015
Top formats Audience share Number of stations
News/Talk 17% 11
Adult Contemporary 15% 10
CBC Radio One 13% 5
Mainstream Top 40/CHR 10% 10
Hot AC 8% 4
Classic Hits 8% 7
Classic Rock 6% 4
Mainstream/Modern Rock 6% 7
Sports Talk 5% 7
Country 4% 4
Other 9% 9

Sources: Numeris 2015 and CRTC data collection

Other formats rounding to 100 are: CBC Radio 2 (5 stns, 4%), Adult Standards (2 stns, 4%), Jazz (1 stn, 0.5%) and Campus (1 stn, 0.5%).

Table 4.1.18 Radio tuning shares - French-language radio station formats in PPM markets, 2015
Top formats Audience share Number of stations
Adult Contemporary 32% 3
News/Talk 28% 2
CHR 20% 2
ICI Radio-Canada Première 12% 4
Classical Music 4% 1
ICI Musique 4% 4

Sources: Numeris 2015 and CRTC data collection

Other format rounding to 100 are: Traffic (1 stn, 0%)

v) Programming contributions and expenditures

The CRTC uses a number of approaches to achieve the cultural, social, and economic objectives set out in the Broadcasting Act. One such instrument has been the establishment of various contribution and expenditure regimes.

In the 2014-2015 broadcast year, commercial radio operators contributed 3 cents per revenue dollar to support Canadian Content Development (CCD). Collectively, they contributed nearly $48 million to the development of Canadian content, a decrease of 20% over the previous period. Approximately 55% of the funds were a direct result of the conditions of licence issued to new radio stations and tangible benefits paid following a change in ownership or control of radio stations.

What are tangible benefits and CCD contributions?

In the absence of a competitive licensing process relating to transfers of ownership or control of radio or television services, tangible benefits, which are financial contributions proportionate to the value of the transaction (6% minimum for radio and 10% minimum for television service), are required to be made to the broadcasting system by the purchaser of a licensed radio or television service. They are usually paid over five to seven consecutive broadcast years. Tangible benefits is one means, used by the Commission, of ensuring the best possible proposal by the applicant and that approval is in the public interest, consistent with the overall objectives of the Broadcasting Act.

Canadian Content Development (CCD) contributions are financial contributions made by radio broadcasters to support the development and promotion of Canadian musical and spoken word content for broadcast. Most applicants make specific CCD commitments as part of applications for new licences and as tangible benefits at the time of transfer of ownership and control of radio stations. Commercial and ethnic stations are further subject to regulations requiring annual CCD contributions.

These financial contributions serve, among other things, to foster the creation of Canadian content, to help advance the careers of emerging Canadian artists, and to increase the supply of quality Canadian music in a variety of genres.

Chart 4.1.1 Radio CCD contributions structure

Chart 4.1.1: CCD contributions structure
Text Description of Image

This chart illustrates the extent to which commercial radio stations supported the development of Canadian content. Commercial radio stations support CCD by contributing annual contributions. These contributions support various funds and initiatives including FACTOR, Starmaker, MUSICATION, Community Radio Fund and other eligible initiatives. Ultimately, these contributions help support Canadian artists, music industry associations, local music initiatives, new spoken word content, music organizations, festivals and conferences, schools and educational institutions.

Commercial radio broadcasters support CCD financially as a result of three regulatory processes:

  • Basic annual CCD contributions;
  • Additional contributions over and above the basic CCD contribution (usually related to applications for new licences); and
  • Contributions made in relation to applications for transfers of ownership or control (tangible benefits).

Figure 4.1.17 CCD contributions by regulatory measure ($ millions)

Stacked bar chart of Figure 4.1.17: CCD contributions by regulatory measure ($ millions)
Text Description of Image

This stacked bar chart shows the contributions, in millions of dollars, for CCD by regulatory measure from broadcast year 2010-2011 to broadcast year 2014-2015. Change in ownership/control: 18, 22, 21, 31 and 19; licence renewals: 8, 9, 15, 20 and 22; new stations: 28, 24, 17, 8 and 7.

Source: CRTC data collection

Figure 4.1.18 CCD contributions by regulatory measure (percentage)

Stacked bar chart of Figure 4.1.18: CCD contributions by regulatory measure (percentage)
Text Description of Image

This stacked bar chart shows the contributions, as a percent of the total, for CCD by regulatory measure from broadcast year 2010-2011 to broadcast year 2014-2015. Change in ownership/control: 33.2%, 39.9%, 39.5%, 52.6% and 40.6%; Licence renewals: 14.4%, 16.5%, 28.7%, 34.2% and 45.1%; New stations: 52.5%, 43.6%, 31.8%, 13.2% and 14.3%.

Source: CRTC data collection

Table 4.1.19 Summary of annual CCD contributions reported by radio station licensees ($ thousands)
CCD category 2010- 2011 2011-2012 2012-2013 2013-2014 2014- 2015 Growth (%) 2013-14 to 2014-15 CAGR (%) 2010-11 to 2014-15
FACTOR 10,755 10,545 12,022 13,982 10,090 -27.8 -1.6
MUSICACTION 1,930 2,538 2,426 3,596 3,461 -3.7 15.7
CRFC 346 1,509 1,722 2,922 2,954 1.1 71.0
Music Industry Association 4,360 3,754 4,334 3,168 3,591 13.4 -4.7
Local music initiatives 10,833 13,777 10,538 10,731 10,552 -1.7 -0.7
New spoken word content 1,340 943 253 292 75 -74.3 -51.3
Audio content initiatives 135 135 531 968 638 -34.1 47.5
Schools and educational institutions 2,700 2,383 1,430 1,818 1,405 -22.7 -15.1
Radio Starmaker Fund/Fonds RadioStar 10,783 11,783 10,985 15,902 9,479 -40.4 -3.2
Other eligible CCD initiatives 10,815 7,713 8,114 6,190 5,507 -11.0 -15.5
Total 53,996 55,080 52,356 59,567 47,753 -19.8 -3.0

Source: CRTC data collection

Contributions are based on annual payments reported by licensees for the broadcast year (i.e., 1 September to 31 August). Contributions include those made under both the CCD and the former Canadian talent development regimes. Figures for the 2012-2013 broadcast year include contributions made by pay audio undertakings. The contributions made by satellite radio services have been split between the first licence term and the licence renewal sections (25% and 75%, respectively), based on a licence renewal date of 1 December.

Table 4.1.20 Annual CCD contributions reported by new radio station licensees during the first licence term ($ thousands)
CCD category 2010- 2011 2011-2012 2012-2013 2013-2014 2014- 2015 Growth (%) 2013-14 to 2014-15 CAGR (%) 2010-11 to 2014-15
FACTOR 2,719 2,615 2,818 2,008 1,544 -23.1 -13.2
MUSICACTION 791 563 242 255 403 57.9 -15.5
Community Radio Fund of Canada - 165 17 21 21 4.6 -
Music Industry Association 2,493 2,221 2,342 1,754 1,477 -15.8 -12.3
Local music initiatives 7,485 9,106 5,524 3,275 2,446 -25.3 -24.4
New spoken word content 1,139 545 192 171 - - -
Audio content initiatives - - 172 585 153 -73.9 -
Schools and educational institutions 2,020 1,553 886 516 435 -15.8 -31.9
Radio Starmaker Fund/Fonds RadioStar 1,982 1,038 466 - - - -
Other eligible CCD initiatives 9,714 6,195 3,986 352 355 0.8 -56.3
Total 28,342 24,001 16,644 8,935 6,833 -23.5 -29.9

Source: CRTC data collection

Contributions are based on annual payments reported by licensees for the broadcast year (i.e., 1 September to 31 August). Contributions include those made under both the CCD and the former Canadian talent development regimes. Figures for the 2012-2013 broadcast year include contributions made by pay audio undertakings. The contributions made by satellite radio services have been split between the first licence term and the licence renewal sections (25% and 75%, respectively), based on a licence renewal date of 1 December.

Table 4.1.21 Annual CCD contributions reported by radio licensees in the context of licence renewals ($ thousands)
CCD category 2010- 2011 2011-2012 2012-2013 2013-2014 2014- 2015 Growth (%) 2013-14 to 2014-15 CAGR (%) 2010-11 to 2014-15
FACTOR 2,629 1,971 3,152 4,156 4,847 16.6 16.5
MUSICACTION 808 727 1,414 1,681 1,695 0.9 20.3
Community Radio Fund of Canada - 617 1,020 1,305 1,342 2.8 -
Music Industry Association 823 966 1,607 932 1,735 86.2 20.5
Local music initiatives 1,947 2,381 3,352 4,417 5,665 28.2 30.6
New spoken word content 201 398 61 121 35 -71.1 -35.4
Audio content initiatives - - - - 446 - -
Schools and educational institutions 473 614 342 948 760 -19.9 12.6
Radio Starmaker Fund/Fonds RadioStar - 246 35 52 - -100.0 -
Other eligible CCD initiatives 873 1,194 4,026 5,716 5,020 -12.2 54.9
Total 7,754 9,114 15,010 19,328 21,545 11.5 29.1

Source: CRTC data collection

Contributions are based on annual payments reported by licensees for the broadcast year (i.e., 1 September to 31 August). Contributions include those made under both the CCD and the former Canadian talent development regimes. Figures for the 2012-2013 broadcast year include contributions made by pay audio undertakings. The contributions made by satellite radio services have been split between the first licence term and the licence renewal sections (25% and 75%, respectively), based on a licence renewal date of 1 December.

Table 4.1.22 Annual CCD contributions reported by radio licensees in the context of changes in ownership and/or control ($ thousands)
CCD category 2010- 2011 2011-2012 2012-2013 2013-2014 2014- 2015 Growth (%) 2013-14 to 2014-15 CAGR (%) 2010-11 to 2014-15
FACTOR 5,407 5,959 6,053 7,818 3,699 -52.7 -9.1
MUSICACTION 331 1,248 770 1,660 1,362 -17.9 42.4
Community Radio Fund of Canada 346 727 684 1,596 1,591 -0.4 46.5
Music Industry Association 1,044 567 386 482 379 -21.5 -22.4
Local music initiatives 1,401 2,290 1,662 3,038 2,442 -19.6 14.9
New spoken word content - - - - 40 - -
Audio content initiatives 135 135 359 383 40 -89.6 -26.2
Schools and educational institutions 207 216 203 354 211 -40,4 0.4
Radio Starmaker Fund/Fonds RadioStar 8,801 10,499 10,483 15,850 9,479 -40.2 1.9
Other eligible CCD initiatives 228 324 102 122 133 8.6 -12.7
Total 17,900 21,965 20,702 31,303 19,376 -38.1 2.0

Source: CRTC data collection

Contributions are based on annual payments reported by licensees for the broadcast year (i.e., 1 September to 31 August). Contributions include those made under both the CCD and the former Canadian talent development regimes. Figures for the 2012-2013 broadcast year include contributions made by pay audio undertakings. The contributions made by satellite radio services have been split between the first licence term and the licence renewal sections (25% and 75%, respectively), based on a licence renewal date of 1 December.

vi) Tangible benefits

In 2015, 6 transactions were approved for both English and French language services resulting in total tangible benefits of $7.9 million, a 49% decrease over 2014.

Table 4.1.23 Number of radio service transactions, value of those transactions and corresponding tangible benefits for the period from 1 January 2011 to 31 December 2015 ($ millions)
Language of services Metric 2011 2012 2013 2014 2015 Total
English Number of Transactions 9 5 4 9 6 33
Value ($M) 316.2 80.4 756.7 257.7 55.1 1,446.1
Benefits ($M) 19.0 4.8 52.0 15.5 4.0 95.3
French Number of Transactions 3 2 1 - 6 12
Values ($M) - 1.5 357.7 - 54.6 413.8
Benefits ($M) - 0.1 25.0 - 3.9 29.0

Sources: CRTC decisions and administrative approvals

The BCE/CTVglobemedia Inc. ownership transaction, which occurred in 2011 (see Broadcasting Decision 2011-163), resulted in $17.5 million in tangible benefits; and
The BCE/Astral ownership transaction, which occurred in 2013 (see Broadcasting Decision 2013-310), resulted in $71.5 million in tangible benefits. Approximately $46.5 million of this amount was committed to English-language initiatives and $25 million to French-language initiatives. In its decision, the Commission directed BCE to divest itself of 10 radio services. These divestitures are expected to generate not less than $11 million in additional tangible benefit commitments from other purchasers. In December 2013, the Commission approved the divestiture of 3 radio stations (CFQX-FM Selkirk and CHIQ-FM Winnipeg, Manitoba, and CKCE-FM Calgary, Alberta) to the Jim Pattison Broadcast Group Limited Partnership (Pattison). Pattison has committed $1.8 million in tangible benefits initiatives.

vii) Programming of high standards

The Broadcasting Act sets out that programming provided by broadcasting undertakings should be of high standard. In addition to the CRTC, two bodies deal with programming complaints relating to public and community broadcasters, as well as non- members of the CBSC. The CRTC also deals with issues that are outside the parameters of the codes administered by the CBSC.

The CBSC administers specific codes of broadcast conduct and provides a means of recourse for members of the public regarding the application of the standards set out in the following codes:

The Canadian Broadcast Standards Council (CBSC) is an independent organization created by the Canadian Association of Broadcasters (CAB) to administer standards established by Canada’s private broadcasters. The CBSC’s membership includes more than 790 private-sector radio and television stations, specialty services, pay services, and networks across Canada. Membership includes broadcasters broadcasting in English, French, and third languages. For more information, visit www.cbsc.ca.

The Advertising Standards Canada (ASC) is a national, not-for-profit advertising self-regulatory body that responds to complaints by consumers and special interest groups regarding advertising with respect to all media subject to the Canadian Code of Advertising Standards, the principal instrument of advertising self-regulation.

The ASC responds to complaints by consumers and special interest groups regarding advertising with respect to all media subject to the Canadian Code of Advertising Standards, the principal instrument of advertising self-regulation. In addition, the ASC undertakes pre-clearance functions in five industry categories, which consist of reviewing advertisements based on applicable legislation, regulations, and/or industry codes and guidelines.

Additional information on the ASC can be found at: www.adstandards.com/en/

Table 4.1.24 Number of radio-related contacts received by the CRTC, by type of issue
Fiscal year CRTC – policies/ decisions Billing    Quality of service/ delivery Terms and conditions Accessibility issues Programming Loudness Other
2014-2015 847 3 41 3 0 802 9 227
2015-2016 695 4 33 0 0 456 13 46

Source: CRTC correspondence tracking system

Table 4.1.25 Number of radio complaints by subject matter
Subject Matter 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Complaints
received
Referrals
to the
CBSC
Complaints
received
Referrals
to the
CBSC
Complaints
received
Referrals
to the
CBSC
Complaints
received
Referrals
to the
CBSC
Complaints
received
Referrals
to the
CBSC
Abusive comment 38 3 64 32 32 8 46 16 39 12
Adult content 14 6 9 3 5 1 4 1 10 2
Alcohol advertising 1 - 4 - 3 - 2 0 - -
Gender portrayal 5 4 1 - 2 1 2 1 2 -
Offensive comment 258 95 283 135 702 582 317 203 163 48
Offensive language 22 9 50 14 31 13 41 16 27 9
Total 338 117 411 184 775 605 412 237 241 71

Source: CRTC correspondence tracking system

Together, the CRTC and the CBSC receive and address a range of complaints regarding radio and subscription radio services. This table shows the number of complaints received by the CRTC—and referred to the CBSC—regarding various issues across diverse market sectors for the 2011-2012 through 2015-2016. No complaints were received for satellite radio between 2011-2012 and 2015-2016.

The CRTC’s correspondence tracking system counts multiple communications from the same client regarding the same complaint as separate units. Consequently, the actual number of complaints received is likely to be slightly lower than the figures indicated.

The category “Abusive comment” includes complaints alleging hatred or contempt incited on air against one of the groups identified in the Television Broadcasting Regulations, 1987 or the Specialty Services Regulations, 1990.

The category “Offensive comment” includes complaints alleging offensive humour, or other comments that do not fall under the “abusive comment” provision in CRTC regulations.

The category “Offensive language” includes complaints alleging offensive language in song lyrics or in spoken word programming.

Table 4.1.26 Radio complaints handled by the CBSC in 2015 by language and national origin
Category Sub-category Radio Subscription radio (satellite) Total
Language of Broadcast of program English 212 4 216
French 215 0 215
Third language 8 0 8
Other 0 0 0
Total 435 4 439
National origin of program Canadian 415 1 416
Foreign 13 2 15
Other 7 1 8
Total 435 4 439

Source: CBSC, 2014-2015 annual report

Table 4.1.27 Complaints handled by the ASC
Statistics 2011 2012 2013 2014 2015
Total number of complaints 1,809 1,310 1,310 1,274 1,774
Complaints about radio advertisements 85 55 84 64 94
Radio complaints as percentage of total (%) 5% 4% 6% 5% 5%

Source: ASC complaint reports

This table shows the number of complaints handled by the ASC relating to advertisements on radio as a percentage of the total number of complaints handled. In 2015, 5% of those complaints related to radio advertisements.

viii) Ownership groups

Between 2013 and 2015, Canada’s six largest commercial radio operators together accounted for nearly 70% of the commercial radio industry’s revenues. They also accounted for approximately 40% of the total number of radio undertakings in the country.

Table 4.1.28 English-language and French-language radio revenues and number of undertakings reporting for the largest commercial radio operators in Canada
Language Radio operators   Revenues ($ thousands) Number of radio undertakings reporting Share of total revenue (%)
2013 2014 2015 2013 2014 2015 2013 2014 2015
All languages BCE 422,708 414,116 410,835 109 107 106 26 26 26
Pierre-Boivin (BCE in-trust) 51,518 N/A N/A 10 N/A N/A 3 N/A N/A
Astral N/A N/A N/A N/A N/A N/A N/A N/A N/A
Rogers 224,520 228,485 233,380 55 55 53 14 14 15
Corus 173,909 164,525 152,433 37 39 39 11 10 10
Harold R. Steele (Newcap) 122,365 156,289 152,471 62 69 67 8 10 10
Cogeco 106,613 109,943 106,718 13 13 13 7 7 7
Total largest commercial radio operators 1,101,633 1,073,357 1,055,837 286 283 278 69 67 68
Total all commercial radio operators 1,621,944 1,613,471 1,602,534 718 703 715 100 100 100
English-language BCE 313,998 306,288 305,905 88 86 85 24 23 24
Pierre-Boivin (BCE in-trust) 51,518 N/A N/A 10 N/A N/A 4 N/A N/A
Astral N/A N/A N/A N/A N/A N/A N/A N/A N/A
Rogers 223,374 227,267 232,096 54 54 52 17 18 18
Corus 173,909 164,525 152,433 37 39 39 13 13 12
Harold R. Steele (Newcap) 122,365 156,289 152,471 62 69 67 9 12 12
Total English-language largest commercial radio operators 885,164 854,367 842,906 251 248 243 67 65 66
Total English-language commercial radio operators 1,317,706 1,304,965 1,297,201 595 583 593 100 100 100
French-language BCE 108,710 107,828 104,930 21 21 21 42 41 41
Astral N/A N/A N/A N/A N/A N/A N/A N/A N/A
Cogeco N/A N/A N/A 12 12 12 N/A N/A N/A
Total - largest commercial radio operators 108,710 107,828 104,930 33 33 33 42 41 41
Total French-language commercial radio operators 258,025 263,513 263,513 98 96 99 100 100 100

Source: CRTC data collection

The total number of services owned by private, English- and French-language radio operators includes commercial networks and ethnic commercial radio stations. Transfers of ownership or control of radio services to or from ownership groups are deemed to have occurred in the broadcast year in which the proposed transfer was approved by the CRTC and not on the closing date of the transaction. Further, the radio service’s entire annual revenue is attributed to its deemed ownership group. Cogeco’s revenue data have been removed from the category “largest French-language commercial radio corporations” due to residual disclosure issues;

In Broadcasting Decision 2013-310, the Commission approved the change in effective control of Astral's 21 French-language and 63 English-language radio stations to BCE, subject to the divestiture by BCE of 10 English-language (7 Astral and 3 BCE) radio stations, and the transfer of their management and control to a trustee (Pierre Boivin), pending their sale to third parties. The services being held in trust by Pierre Boivin are indicated separately, but are included in the BCE 2013 data.

4.2 Television sector

Infographic summarizing section 4.2 – Television sector
Infographic summarizing section 4.2 – Television sector
Text Description of Image

This infographic presents several key indicators for the television sector for 2015. First indicator: circular chart shows percentage of television revenues as a proportion of all broadcasting revenues in 2015. Television revenues were 40% of all broadcasting revenues; Discretionary and on demand TV were 24%, CBC conventional TV were 6% and private conventional TV were 10%. Total broadcasting revenues were $17.9 billion. Second indicator: total television revenues: $7.1 billion, an increase of 3.4% over 2014. Third indicator: viewing: Canadians (2+) watched 27.2 hrs of television each week on average. Fourth indicator: total private conventional television revenues: $1.8 billion, a decrease of 2.6% over 2014. Fifth indicator: total CBC conventional television revenues: $1.1 billion, a decrease of 16.6% over 2014. Sixth indicator: total discretionary and on demand services revenues: $4.3 billion, an increase of 0.4% over 2014.

Canadians have access to over 600 Canadian and non-Canadian television services. Most still watch television by traditional means, whether it be over-the-air, or via cable, satellite or IPTV. However, Canadians are also turning to new platforms and devices connected to the Internet for their video content consumption.

According to 2014-15 audience measurement data, Canadians two years of age and older are watching an average of more than 27 hours of television each week. Younger demographics are watching less television. For example, during that period, the 18-34 demographic watched 19.7 hours of television each week, three hours less than five years earlier.

In 2015, the private conventional television sector reported $1.76 billion in revenues, compared to $4.3 billion for discretionary services (pay, pay-per-view, video-on-demand and specialty services). The television industry’s five large ownership groups reported over 90% of all television revenues.

The English-language private conventional television sector includes three major ownership groups: BCE (CTV and CTV Two), with a 49% revenue share; Shaw (Global), with a 28% revenue share; and Rogers (City and OMNI), with a 15% revenue share. The French-language private conventional television sector has two major players: Québecor (TVA), with a 70% revenue share; and Remstar (V), with a 20% revenue share.

In 2015, the CBC, Canada’s national public broadcaster, reported $1.1 billion in revenues, 68% of which was parliamentary appropriations.

Collectively, broadcasters contributed nearly $3 billion to Canadian programming expenditures (CPE), 15% of which was spent on Programs of National Interest (PNI) in 2015. For each dollar earned, television services invested 45 cents in support of Canadian programming during the 2014-2015 broadcast year.

i) Revenues

Total revenues generated in the television industryFootnote 4, private and CBC conventional television and discretionary services combined, edged down 0.4% a year over the 2011-2015 period and totalled $7,118 million in 2015.

Conventional television services owned by both private operators and the CBC generated $2,864 million in revenues in 2015, an 8.6% decrease over 2014.

The 93 privately-owned conventional stations in operation in 2015 garnered $1,757 million, down 2.6% (or $46.6 million) from 2014. The termination of the Local Programming Improvement Fund (LPIF) accounts for $21.7 million of the year-over-year loss for private conventional stations.

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. The termination of the LPIF resulted in $17.6 million less revenues for the CBC in 2015 compared to the previous year.

Revenues generated by discretionary services, all types of services combined, advanced 3.2% a year on average between 2011 and 2015 to reach $4,255 million in 2015. On a year-over-year basis, however, these services edged up a modest 0.4% ($19.0 million) in 2015 in comparison to 2014, the slowest pace of growth in that sector since 2009.

Table 4.2.1 Revenues of television services, by type of service ($ millions)
Type Subtype 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Conventional television services Private 2,139 2,038 1,944 1,804 1,757 -2.6 -4.8
CBC 1,339 1,369 1,247 1,328 1,107 -16.6 -4.6
Subtotal 3,478 3,407 3,191 3,132 2,864 -8.6 -4.7
Discretionary services Pay, PPV, and VOD 856 837 799 788 738 -6.3 -3.6
Specialty 2,892 3,130 3,292 3,448 3,516 2.0 5.0
Subtotal 3,748 3,968 4,091 4,236 4,255 0.4 3.2
All services Total 7,226 7,375 7,282 7,368 7,118 -3.4 -0.4

Source: CRTC data collection

This table shows the change in television revenues by type of service for the period from 2011 to 2015.

Revenue declines for conventional television services are partly attributable to an approximate drop of $300 million for CBC conventional television advertising. Also, LPIF was terminated on August 31, 2014.

Figure 4.2.1 Television services revenues, by type of service ($ millions)

Stacked clustered column chart of Figure 4.2.1: Revenues of television services, by type of service ($ millions)
Text Description of Image

This stacked clustered column chart depicts the total revenues achieved by private conventional television, pay, PPV, VOD and specialty services for each of the 2011 to 2015 broadcast years. Advertising revenues include infomercials. Commercial advertising revenues garnered by CBC conventional television stations are also included in this chart. Revenues in millions of dollars from 2011 to 2015: Pay, PPV, VOD and specialty services: 3,748, 3,968, 4,091, 4,236 and 4,255254; Private conventional television: 2,139, 2,038, 1,944, 1,804 and 1,757; CBC conventional television: 1,339, 1,369, 1,247, 1,328 and 1,107; Total revenues: 7,226, 7,375, 7,282, 7,368 and 7,118. Total advertising revenues in millions of dollars from 2011 to 2015: Pay, PPV, VOD and specialty services: 1,234, 1,264, 1,297, 1,254 and 1,23544; Private conventional television: 1,9449, 1,832, 1,758, 1,642 and 1,62612; CBC conventional television: 370, 373, 331, 475 and 220; Total advertising revenues: 3,54853, 3,469, 3,386, 3,37153 and 3,08167. Total subscriber revenues in millions of dollars from 2011 to 2015: Pay, PPV, VOD and specialty services: 2,419, 2,623, 2,725 2,894 and 2,925.

Source: CRTC data collection

Total revenues include “other revenues” (i.e., those tied to a broadcasting licence but not stemming from broadcasting activities, for example, fundraisers) and funding from the Local Programming Improvement Fund (LPIF). Advertising revenues include infomercial sales.

Figure 4.2.2 Private conventional television revenue sources (%), 2015

Circular chart of Figure 4.2.2: Private conventional television revenue sources (%), 2015
Text Description of Image

This circular chart depicts the percentage breakdown of the various components that make up the revenue sources for private conventional television services. Syndicated Production: 1%, Other: 6%, Local Time Sales: 19%, National Time Sales: 67%, Network Payments: 6% and Infomercials: 1%.

Source: CRTC data collection

Figure 4.2.3 Advertising revenues of conventional television stations owned and operated by the CBC

Line clustered-column on 2 axes chart of Figure 4.2.3: Advertising revenues of conventional television stations owned and operated by the CBC
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues (in millions of dollars), of CBC conventional television from 2011 to 2015 with the second axes representing the percent of total revenue captured by the CBC English-language stations. CBC/SRC English-language stations: 246, 245, 200, 333 and 104; CBC/SRC French-language stations: 123,127, 131, 141 and 116; CBC and SRC English and French-language station combined total: 370, 373, 331, 475 and 220. The percent of English-language stations of total: 66.5%, 65.7%, 60.4%, 70.1% and 47.3%.

Source: CRTC data collection

Table 4.2.2 CBC conventional television revenues ($ millions)
Type 2011 2012 2013 2014 2015 Growth (%) 2014-15 CAGR (%) 2011-2015
English-language stations advertising 246 245 200 333 104 -68.9 -19.4
French-language stations advertising 123 127 131 141 116 -17.7 -1.5
Advertising total 370 373 331 475 220 -53.6 -12.2
Other revenues 130 135 133 127 129 1.6 -0.2
Parliamentary appropriation 839 861 783 726 758 4.4 -2.5
Total revenues 1,339 1,369 1,247 1,328 1,107 -16.6 -4.6

Source: CRTC data collection

“Other revenues” include syndication revenues and funding from the LPIF from 2011 to 2014.

Table 4.2.3 Advertising and other revenues: private conventional television stations, by language of broadcast
Language of broadcast Type of revenue 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
English Advertising 1,655 1,540 1,468 1,369 1,366 -0.2 -4.7
Other 129 131 115 106 81 -23.6 -11.0
Subtotal 1,784 1,672 1,583 1,475 1,447 -1.9 -5.1
French Advertising 289 291 290 273 260 -4.8 -2.6
Other 66 75 70 56 50 -10.7 -6.7
Subtotal 356 367 361 329 310 -5.8 -3.4
Total Advertising 1,944 1,832 1,758 1,642 1,626 -1.0 -4.4
Other 195 206 186 162 131 -19.1 -9.5
Total 2,139 2,038 1,944 1,804 1,757 -2.6 -4.8

Source: CRTC data collection

Revenues for English-language private conventional television stations include revenues for ethnic stations since a significant portion of these stations’ revenues was derived from English-language programming. “Other” revenues include funding from the LPIF for 2011-2014.

Table 4.2.4 Revenues of discretionary services, by language of broadcast
Type of services Language Categories Revenues ($ thousands) PBIT ($ thousands) PBIT margin (%)
2013 2014 2015 2013 2014 2015 2013 2014 2015
Specialty English-language Category A 1,376,935 1,409,549 1,368,309 495,284 469,288 475,284 36.0 33.3 34.7
Category B 373,721 375,938 376,558 111,385 112,605 113,814 29.8 30.0 30.2
Category C 850,891 968,017 1,010,483 218,905 211,780 218,527 25.7 21.9 21.6
All Categories 2,601,547 2,753,504 2,755,350 825,574 793,673 807,625 31.7 28.8 29.3
French-language Category A 296,800 288,126 302,735 91,640 74,712 76,210 30.9 25.9 25.2
Category B 37,418 42,983 51,755 -2,876 -4,533 29,837 -7.7 -10.5 57.7
Category C 269,679 282,522 327,938 49,354 34,815 -11,788 18.3 12.3 -3.6
All Categories 603,897 613,346 682,428 138,118 104,994 94,259 22.9 17.1 13.8
Ethnic and third-language Category A 60,429 57,392 54,985 15,268 9,935 8,462 25.3 17.3 15.4
Category B 26,151 23,246 23,505 2,841 3,851 5,203 10.9 16.6 22.1
All Categories 86,580 80,638 78,490 18,109 13,786 13,665 20.9 17.1 17.4
All languages Category A 1,734,163 1,755,067 1,726,029 602,191 553,935 559,956 34.7 31.6 32.4
Category B 437,291 442,168 451,818 111,350 111,923 122,000 25.5 25.3 27.0
Category C 1,120,570 1,250,539 1,338,421 268,259 246,594 206,739 23.9 19.7 15.4
All Categories 3,292,024 3,447,774 3,516,268 981,800 912,452 913,599 29.8 26.6 26.0
Pay All languages N/A 444,785 435,350 423,950 99,297 110,667 63,643 22.3 25.4 15.0
PPV All languages N/A 99,652 101,326 95,149 10,543 8,336 -10,909 10.6 8.2 -11.5
VOD All languages N/A 254,532 251,336 219,226 -8,862 -31,603 -56,509 -3.5 -12.6 -25.8
Pay, PPV and VOD All languages N/A 798,969 788,012 738,325 100,978 87,400 -3,775 12.6 11.1 -0.5
Total All services All Categories 4,090,993 4,235,786 4,254,593 1,082,778 999,852 909,824 26.5 23.6 21.4

Source: CRTC data collection

English-language specialty services accounted for the majority of the total number of services (62%) as well as of revenues (64.9%). They also were the most profitable language group (average PBIT margin of 29.3%). Their revenues totalled $2,755 million in 2015, virtually unchanged from 2014.

Revenues of the French-language specialty services rose by 11.3% from 2014 to 2015 as a result of a $50 million gain in subscriber revenues. In particular, the sports-related specialty services TVA Sports saw its total revenues increased fivefold, with its subscriber revenues multiplied by 4 in 2015 relative to 2014, as the service aired NHL hockey games.

Ethnic and third-language specialty services’ revenues decreased by 2.6% in comparison to 2014 and generated 1.8% ($78.5 million) of total revenues in 2015.

On-demand services, namely pay-per-view and video-on-demand, continued their downward trend in 2015. These two categories of services combined reported revenues of $314 million in 2015, down $38 million (-10.9%) from 2014, and $40 million (11.2%) from 2013.

Figure 4.2.4 Ranking by revenue of individual discretionary services, in descending order, 2015

Line chart of Figure 4.2.4: Ranking by revenue of individual discretionary services, in descending order, 2015
Text Description of Image

This line chart ranks by total revenue in descending order each discretionary service for the 2014-2015 broadcast year. In total, over 228 services are individually depicted on the chart, with the highest grossing service at top left corner and the lowest grossing service at the bottom right corner.

Source: CRTC data collection

This graph shows the total revenues reported by individual discretionary services, in descending order, in 2015. Each of the top five services reported at least $100 million in revenues, while each of the next five services reported between $80 million to $90 million in revenues. These 10 highest grossing services accounted for 37.7% of total revenues generated in 2015. Five of them were sports related services; two owned by BCE, two owned by Rogers and one by Groupe TVA. Sportsnet One and TVA Sports were among the top 10 grossing services for the first time in 2015 as their revenues recorded strong growth with the broadcasting of NHL content.

Each of the next 74 ranked services reported total revenues in excess of $10 million; each of the next 89 services reported total revenues in excess of $1 million; and each of the remaining ranked services reported total revenues of less than $1 million.

Figure 4.2.5 Revenues of English-language private conventional television and discretionary services

Line chart of Figure 4.2.5: Revenues of English-language private conventional television and discretionary services
Text Description of Image

In this line-column on 2 axes chart, the line part depicts the advertising as percent of total revenues for English-language private conventional television and discretionary services for 2011 to 2015. The column part of the chart shows total revenues, in millions of dollars, of Canadian English-language private conventional television and discretionary services from 2011 to 2015. Private conventional television: Total Revenue: 1,788, 1,672, 1,583, 1,475 and 1,447; and advertising as percent of total: 93%, 92%, 93%, 92% and 94%. For category A specialty services, total revenues: 1,342, 1,348, 1,377, 1,410 and 1,368; for category B specialty services, total revenues: 295, 333, 374, 376 and 377; for category C specialty services, total revenues: 666, 795, 851, 969 and 1,010; and advertising revenues for discretionary services as percent of total: 44%, 42%, 41%, 36% and 37%. For Pay, PPV, and VOD services, total revenues: 771, 750, 716, 704 and 665.

Source: CRTC data collection

Ethnic conventional television stations have been included under “private conventional” since a significant portion of their revenues is derived from English-language programming. English-language discretionary services include bilingual services.

The line in the chart shows advertising revenues as a percentage of total revenues for private conventional television and specialty services (all categories included).

Figure 4.2.6 Revenues of French-language private conventional television and discretionary services

Line chart of Figure 4.2.6: Revenues of French-language private conventional television and discretionary services
Text Description of Image

In this line-column on 2 axes chart, the line part depicts the advertising as percent of total revenues for French-language private conventional television and discretionary services for 2011 to 2015. The column part of the chart shows total revenues, in millions of dollars, of Canadian French-language private conventional television, specialty services and pay, PPV, VOD services from 2011 to 2015. Private conventional television: total revenue: 357, 367, 361,329 and 311 and advertising as percent of total: 79%, 78%, 80%, 81% and 82%. Category A specialty services, total revenues: 275, 277, 297, 288 and 302; Category B specialty services, total revenues: 20, 29, 37, 43 and 52; Category C specialty services, total revenues: 213, 266, 270, 283 and 328; and advertising revenues for specialty services as percent of total: 37%, 34%, 33%, 29% and 33%. For Pay, PPV, and VOD services, total revenues: 79, 84, 83, 84 and 73.

Source: CRTC data collection

The line in the chart shows advertising revenues as a percentage of total revenues for private conventional television and specialty services (all categories included).

Figure 4.2.7 Revenues of ethnic and third-language discretionary services

Line chart of Figure 4.2.7: Revenues of ethnic and third-language discretionary services
Text Description of Image

This line-column on 2 axes chart depicts in the columns the total revenues for specialty services and pay services and in the line portion of the chart, advertising as a percentage of revenues for 2011 to 2015. Total specialty revenues in millions of dollars: 87, 88, 87, 81 and 79; Advertising as a percentage of specialty revenues: 43%, 41%, 36%, 36% and 33%.Total pay revenues in millions of dollars: 5, 4, 0.1, 0.1 and NIL. Advertising revenue as a percentage of pay revenues: 25%, 25%, 12%, 12% and NIL.

Source: CRTC data collection

In 2015, no ethnic or third language pay services were in operation. From 2012 to 2014, the remaining ethnic and third-language pay services either ceased operations or changed licence type to specialty.

The line in the chart shows advertising revenues as a percentage of total revenues for specialty services (all categories included) and pay services.

Figure 4.2.8 Collective revenues of top three English-language private conventional television ownership groups

Line chart of Figure 4.2.8: Collective revenues of top three English-language private conventional television ownership groups
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues, in millions of dollars, of large English-language private conventional television station ownership groups from 2011 to 2015. BCE: 829, 803, 768, 728 and 716; Shaw: 522, 448, 419, 405 and 406; Rogers: 298, 289, 269, 224 and 219; Total English-language conventional television: 1,788, 1,672, 1,583, 1,475 and 1,447. The dot portion shows the revenues of the top 3 groups as a percent of total: 92%, 92%, 92%, 92% and 93%.

Source: CRTC data collection

This graph shows the revenues of each of the three largest English-language private conventional television ownership groups in each of the 2011 to 2015 broadcast years. It also shows the total revenues of these three groups as a percentage of the revenues of all groups for the same years. Ethnic private conventional television stations have been included since a significant portion of their revenues is derived from English-language programming.

Each group’s total annual revenues are based on total revenues of stations controlled by the broadcaster. Control was determined where the broadcaster had a greater than 50% direct and indirect voting interest as of 31 August of that year. Total revenues include funding from LPIF for 2011-2014.

Figure 4.2.9 Collective revenues of top two owners of French-language private conventional stations

Line chart of Figure 4.2.9: Collective revenues of top two French-language private conventional television ownership groups
Text Description of Image

This line clustered-column on 2 axes chart depicts the total revenues (in millions of dollars) of large French-language private conventional television by group from 2011 to 2015. The second axes represents a percent. Québecor (TVA): 260, 257, 249, 229 and 214; Remstar (V): 66, 73, 77, 67 and 67. Total French-language conventional television: 357, 367, 361, 329 and 310. The dot portion (using second axis) shows top two as a percent of total: 91%, 90%, 90%, 90% and 91%.

Source: CRTC data collection

ii) Financial performance

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 market the third consecutive year of financial losses for the private conventional television stations.

Discretionary service reported an average PBIT margin of 20.8% in 2015, down 3 percentage points from 2014. Specialty services, notably category A services with a 32.4% PBIT margin, were the most profitable of all types of services in 2015. While pay services remained profitable in 2015 despite lower revenues, on-demand services (PPV and VOD services) reported a significant drop in profitability in 2015 as their combined PBIT margin fell 14.8 percentage points between 2014 and 2015 to -21.4%. As a result, Pay, PPV and VOD service together recorded an overall PBIT margin of -0.5%, down from 11% the previous year, and the first time this category was not profitable.

Figure 4.2.10 Aggregate PBIT margins for private conventional television and discretionary services

Column chart of Figure 4.2.10: Aggregate PBIT margins for private conventional television and discretionary services
Text Description of Image

This column chart depicts the aggregate PBIT margins achieved by Canadian private conventional OTA television services, Pay, PPV and VOD services and category A, B, C specialty services for each of the 2011 to 2015 broadcast years: private conventional television services: 7%, 1%, 0%, -8% and -8%; pay, PPV and VOD services: 16%, 11%, 12%,11% and -0.5%; category A specialty services: 33%, 35%, 35%, 32% and 32%; category B specialty services: 24%, 24%, 25%, 25% and 27%; category C specialty services: 18%, 13%, 24%, 20% and 15%.

Source: CRTC data collection

Figure 4.2.11 Aggregate PBIT margins for English-language private conventional television and discretionary services

Line chart of Figure 4.2.11: Aggregate PBIT margins for English-language private conventional television and discretionary services
Text Description of Image

This line column on 2 axes chart depicts the aggregate PBIT margins and number of reporting services (or units) achieved by English-language private conventional television, discretionary services for 2011 to 2015. For private conventional television services, PBIT margins: 6%, 1%, -2%, -9% and -10%; and reporting services: 73, 72, 73, 75 and 73. For discretionary services margins: 25%, 24%, 27%, 25% and 23%; and reporting services: 150, 155, 157, 157 and 157.

Source: CRTC data collection

Figure 4.2.12 Aggregate PBIT margins for French-language private conventional television and discretionary services

Line-column on 2 axes chart of Figure 4.2.12: Aggregate PBIT margins for French-language private conventional television and discretionary services
Text Description of Image

This line-column on 2 axes chart depicts the number and aggregate PBIT margins of Canadian French-language private conventional television and discretionary services from 2011 to 2015. Private conventional television: PBIT Margin: 11%, 9%, 9%, 0% and 0%; number of services or units reporting: 20, 20, 20, 20 and 20; Discretionary services PBIT Margin: 25%, 19%, 24%, 20% and 11%; number of services reporting: 29, 31, 31, 32 and 31.

Source: CRTC data collection

Figure 4.2.13 Aggregate PBIT margins for ethnic and third-language discretionary services

Line chart of Figure 4.2.13: Aggregate PBIT margins for ethnic and third-language discretionary services
Text Description of Image

This line-column on 2 axes chart depicts the number of units reporting and PBIT margins of ethnic and third-language discretionary services from 2011 to 2015. Discretionary services PBIT Margin: 24%, 24%, 21%, 17% and 17%; and Number of services or units reporting: 38, 43, 47, 41 and 38.

Source: CRTC data collection

iii) Availability of television and video services

Canadians enjoy multiple sources and means of accessing content, from conventional over-the-air linear broadcasting to digital media provided over the Internet. The following chart shows the various categories and types of programming sources and platforms.

Chart 4.2.1 Programming sources and platforms

Chart 4.2.1 Programming sources and platforms
Text Description of Image

This chart depicts various categories and types of programming sources and platforms. At the center are Canadian Viewers. On the first radial axis are different means of accessing media: broadband (wireline/wireless); OTA; BDUs (cable/satellite/IPTV); and physical access. The second radial axis displays types of media that can be accessed by means. For broadband: BitTorrent (legal and illegal); Blu-ray and DVD rentals/sales (Amazon); National Film Board; VOD (video on demand); Pay TV programs* (where * includes authenticated and non-authenticated [e.g. Catch-up/”GO”/TV Anywhere] services); Specialty service programs*; OTA programs*. For OTA: OTA (Cdn & US) is displayed. For BDUs: Specialty services; Pay TV; Pay-per-view; PVRs and VOD. For physical access: Cinemas/Theatres and Blu-ray and DVD rentals/sales (video stores, Redbox). VOD is further expanded into: A-VOD (Ad-based VOD e.g. TouTV, Crackle, YouTube); S-VOD (subscription-based VOD e.g. Netflix, LoveFilms); and T-VOD (transactional VOD (e.g. iTunes).

For figures and tables with the Media Technology Monitor (MTM) as a source, note that:

Figure 4.2.14 Percentage of Canadians who viewed television and Internet video services and programming in the past month, by language and platform

Bar chart of Figure 4.2.14: Percentage of Canadians who viewed television and Internet video services and programming in the past month, by language and platform
Text Description of Image

This clustered horizontal bar chart compares the penetration of the following television and Internet video viewing options broken down by Francophones, Anglophones, and nationally for 2015: Sports highlight or event online: 23% (Francophones), 37% (Anglophones) and 34% (nationally); Online news or news program: 34%, 47% and 44%; Full length movie online: 25%, 43% and 39%; Entire 30 or 60 minute TV show online: 29%, 39% and 37%; Internet TV: 49%, 57% and 55%; Watch any type of Youtube video: 64%, 70%, 69%; Any type of internet video: 75%, 82% and 81%; Pay TV: 23%, 22% and 22%; and TV: 98%, 95%, 96%.

Source: MTM, 2015 (Respondents: Canadians18+)

Table 4.2.5 Type and number of television services authorized to broadcast in Canada, by language of broadcast
Category Subcategory English-language French-language Third-language All languages
2014 2015 2014 2015 2014 2015 2014 2015
Canadian conventional television services CBC/SRC (owned and operated) 14 14 13 13 0 0 27 27
Private commercial 64 64 20 20 6 6 90 90
Religious 8 7 0 0 0 0 8 7
Educational 4 4 3 3 0 0 7 7
Canadian discretionary services Specialty Category A services 44 44 16 16 5 5 65 65
Specialty Category B services 77 78 10 10 35 33 122 121
Specialty Category C services 8 5 5 4 0 0 3 9
Pay television services 7 7 2 2 0 0 9 9
PPV services (DTH and terrestrial) 10 12 0 0 0 0 10 12
VOD services 23 20 1 1 0 0 24 21
Other Canadian services Community services 11 11 2 4 0 0 13 15
House of Commons (CPAC) 1 1 1 1 0 0 2 2
Non-Canadian services All services 120 128 11 22 141 149 272 299
Total Total 391 395 84 96 187 193 662 684

Source: CRTC internal database

This table shows the types and number of television services that are authorized to broadcast in Canada. Types include conventional television services; various discretionary services (i.e., specialty, pay, PPV, and VOD); community services and the House of Commons (CPAC) service; and non-Canadian programming services authorized for distribution.

Radiocommunication distribution undertakings (RDUs), rebroadcasters, exempt television services, specialty services for which broadcast authority has expired, and some network licences are not included.
Private commercial does not include private commercial religious stations. Specialty Category B services include only services that have been launched and have filed annual returns with the Commission. Pay television services include only pay services that launched as of 31 December 2012. VOD services include services that have been approved but are not necessarily in operation. The number of services presented in the table has decreased following the issuance of Exemption order for small video-on-demand undertakings, Broadcasting Order CRTC 2011-60, 31 January 2011. Carriage of authorized non-Canadian services is at the discretion of the BDU. Appendix 2 to List of non-Canadian programming services authorized for distribution – Annual compilation of amendments, Broadcasting Regulatory Policy CRTC 2015-27, 30 January 2015, sets out a complete list of non-Canadian programming services approved as of 31 December 2014. English-language services include those considered bilingual (English/French and English/Native). Other Canadian services exclude community channels reported by BDU licensees.

Table 4.2.6 Number of Canadian public/community/educational and private conventional television services authorized to broadcast, by province and language of broadcast, 2015
Province/territory English-language French-language Third-language Total
Public, community and educational Private conv. Public, community and educational Private conv. Public, community and educational Private conv. Public, community and educational Private conv.
British Columbia 7 11 1 0 0 1 8 12
Alberta 3 16 1 0 0 2 4 18
Saskatchewan 2 6 1 0 0 0 3 6
Manitoba 2 4 1 0 0 0 3 4
Ontario 5 24 3 0 0 2 8 26
Quebec 1 3 11 20 0 1 12 24
New Brunswick 2 3 1 0 0 0 3 3
Nova Scotia 3 3 0 0 0 0 3 3
Prince Edward Island 1 0 0 0 0 0 1 0
Newfoundland and Labrador 1 1 0 0 0 0 1 1
The North 2 0 0 0 0 0 2 0
Canada 29 71 19 20 0 6 48 97

Source: CRTC internal database

Nationally, Canadians have access to 97 private conventional television services and 48 public/community/educational television services. Québec leads all provinces in regard to public, community and education stations (11). Ontario leads all provinces in regard to private conventional television stations (26).

iv) Audience measurement

Audience measurement data is important not only to industry stakeholders, who use the data to help sell air time to advertisers, but also to the CRTC, which uses the data to assess the effectiveness of its policies by understanding the reach of programming across the country and across various demographics.

Unless otherwise specified, audience measurement data sourced from Numeris was collected by portable people meter (PPM) devices;

The Numeris data presented by linguistic market divides Canada into two sections: (1) all of Canada, excluding Francophone respondents in Quebec; and (2) exclusively Francophones respondents in Quebec;

The television seasons used by Numeris were the following:

For figures and tables with the Media Technology Monitor (MTM) as a source, note that:

For tables with data by ownership groups:

Figure 4.2.15 Average number of hours Canadians watched traditional television (2010-2011 through 2014-2015 broadcast years) and Internet television (2009 to 2015)

Bar chart of Figures 4.2.15: Average number of hours Canadians watched traditional television (2010-2011 through 2014-2015 broadcast years) and Internet television (2009 to 2015)
Text Description of Image

These 2 figures display the national average weekly viewing hours for Canadians aged 18+, for traditional television and Internet television, respectively. For traditional television (on the left): 29.8 (2010-2011); 29.5 (2011-2012); 29.3 (2012-2013); 29.0 (2013-2014) and 28.6 (2014-2015). For Internet television among typical weekly users: 2.0 (2009); 2.4 (2010); 2.8 (2011); 3.9 (2012); 5.1 (2013) and 5.8 (2015). For Internet television, on the basis of the total population: 0.5; 0.5; 0.7; 1.3, 1.9 and 2.7.

Source: Numeris, MTM (respondents: Canadians 18+)

These graphs show the national average number of hours Canadians 18 years of age and older watched traditional television (excluding digital media) and Internet television each week. The graph displaying Internet television data shows the viewing habits of respondents who watch Internet television every week, as well as those of the national average. 2014 data for Internet TV is unavailable.

Whereas weekly viewing of traditional television has decreased by approximately 1 hour over the last 5 years, weekly Internet television viewing in the total population increased by approximately 2 hours and by approximately 4 hours for typical Internet TV weekly users over the same period.

Table 4.2.7 Average number of hours Canadians watched traditional television each week, by age group
Age group Average number of hours watching traditional television (Weekly) Growth (%) 2013-14 to 2014-15
2010-11 2011-12 2012-13 2013-14 2014-15
All persons 2+ 28.5 28.2 27.9 27.4 27.2 -0.7
Children 2-11 22.7 22.2 21.6 20.6 21.4 3.9
Teens 12–17 22.4 22.7 21.0 19.9 18.8 -5.5
18–34 23.0 22.8 21.9 20.6 19.7 -4.4
35–49 25.3 24.8 24.7 24.0 23.6 -1.7
50-64 33.6 33.1 33.2 33.4 33.0 -1.2
65+ 42.2 41.9 41.5 41.8 42.0 0.5

Source: Numeris

This table shows the national average of weekly viewing hours by age group. It does not include digital media. For the third consecutive year, average weekly viewing declined across all age groups except for children 2-11 and the 65+ age group which saw little movement over the same timeframe.

Table 4.2.8 Viewing share of Canadian and non-Canadian television services, by language and type of service, for all of Canada, excluding the Quebec francophone market
Category of services Subcategory Viewing share (%) Growth (%) 2013-14 to 2014-15
2010- 2011 2011- 2012 2012- 2013 2013- 2014 2014- 2015
Canadian English-language CBC 6.4 5.5 5.1 6.9 5.2 -24.6
Private conventional 25.0 25.6 24.9 25.3 26.1 3.2
Discretionary and on-demand services 49.3 49.6 51.1 50.3 52.0 3.4
Other services 2.3 2.2 2.3 2.0 2.3 15.0
All services 83.0 82.8 83.4 84.5 85.6 1.3
Canadian French-language SRC 0.2 0.2 0.1 0.1 0.1 0
Private conventional 0.1 0.1 0.1 0.1 0.1 0
Télé-Québec 0 0 0 0 0 n/a
Discretionary and on-demand services 0.4 0.4 0.4 0.4 0.3 -25.0
All services 0.8 0.8 0.7 0.6 0.5 -16.7
Canadian other languages Private conventional 1.3 1.1 0.9 0.6 0.4 -33.3
Discretionary and on-demand services 1.2 1.0 0.9 1.0 0.9 -10.0
APTN 0.2 0.1 0.2 0.2 0.2 0
All services 2.6 2.3 2.0 1.8 1.5 -16.7
Canadian all languages Community services 0.3 0.3 0.3 0.3 0.3 0
VOD/PPV 0 0 0 0 0 n/a
All services 86.7 86.1 86.4 87.2 87.9 0.8
Non-Canadian U.S. conventional 5.3 5.4 5.0 4.5 4.8 6.7
U.S. discretionary 8.0 8.5 8.8 8.0 7.2 -10.0
International 0 0 0 0 0.1 n/a
All services 13.3 13.9 13.7 12.5 12.1 -3.2
All services Total hours (millions) 713.2 720.0 712.0 710.7 704.7 -0.8

Source: Numeris

Table 4.2.9 Viewing share of Canadian and non-Canadian television services, by language and type of service, in the Quebec francophone market
Category of services Subcategory Viewing share (%) Growth (%) 2013-14 to 2014-15
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Canadian French-language CBC 12.9 11.8 12.8 13.4 12.3 -8.2
Private conventional 32.3 32.0 32.4 30.8 30.5 -1.0
Télé-Québec 3.0 2.9 3.0 3.0 3.4 13.3
TFO 0.1 0.1 0.1 0.3 0.3 0
Discretionary and on demand services 43.8 45.8 44.7 45.0 45.8 1.8
All services 92.2 92.7 93.0 92.5 92.3 -0.2
Canadian English-language CBC 0.5 0.6 0.4 0.8 0.6 -25.0
Private conventional 1.9 1.7 1.7 1.7 1.9 11.8
Discretionary and on demand services 3.5 3.1 3.1 3.2 3.8 18.8
Other services 0 0.1 0 0 0 n/a
All services 6.0 5.5 5.2 5.7 6.3 10.5
Canadian other languages Private conventional 0.1 0.1 0.2 0 0 n/a
Discretionary and on demand services 0 0 0 0 0.1 n/a
APTN 0 0 0.1 0 0 n/a
All services 0.2 0.2 0.3 0.1 0.1 0
Canadian all languages Community services 0.2 0.2 0.2 0.2 0.2 0
VOD/PPV 0 0 0 0 0 n/a
All services 98.5 98.6 98.8 98.3 98.9 0.6
Non-Canadian US conventional 1.0 0.8 0.8 1.0 0.8 -20.0
US discretionary 0.5 0.6 0.5 0.5 0.5 0
International 0 0.1 0.1 0.1 0 n/a
All services 1.5 1.5 1.4 1.6 1.3 -18.8
All services Total hours (millions) 219.5 211.3 216.5 220.3 225.5 2.4

Source: Numeris

Table 4.2.10 Average weekly viewing hours (millions) for Canadian programs broadcast by Canadian television services, by language market, program origin, and program category
Programming Category Viewing Metric English-language and ethnic services, all of Canada (excluding Quebec francophone market) French-language services, Quebec francophone market
2011-2012 2012-2013 2013-2014 2014-2015 2011-2012 2012-2013 2013-2014 2014-2015
News (category 1) Viewing hours (M) 76.7 84.7 84.8 82.2 29.8 30.7 26.4 27.1
% Canadian 100 100 100 99.9 98.8 98.8 98.7 98.1
% of total 13.3 14.6 14.2 13.6 15 15 13.2 13.4
Long-form documentary (category 2(b)) Viewing hours (M) 22.5 21.6 11.2 28.6 11.4 10.9 10.4 11.3
% Canadian 43.8 46.9 48.2 47.6 44.6 42.9 47 48.7
% of total 3.9 3.7 3.9 4.7 5.7 5.4 5.2 5.6
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 52.7 52.2 50.2 53.8 32.6 32.7 28.7 29
% Canadian 55.6 56.9 59.1 56.6 91.1 91.1 91.3 89.5
% of total 9.1 9 8.4 8.9 16.4 16 14.4 14.3
Sports (category 6) Viewing hours (M) 84.5 70.9 95.5 93.8 13.4 10.7 17.7 18.6
% Canadian 72 65.9 72.9 67.3 82.1 67.8 75 70.5
% of total 14.6 12.2 16 15.6 6.8 5.3 8.9 7.7
Drama and comedy (category 7) Viewing hours (M) 236.5 237.4 227.5 230.8 75.3 79.8 76 78.2
% Canadian 20.1 20 19.4 19.2 29.3 29.1 28.8 29.2
% of total 40.9 40.9 38.1 38.3 38 39.1 38.1 38.7
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 9.7 10.5 9 7.3 3.5 3.8 3.1 3.1
% Canadian 27.4 23.8 34.6 40.9 80.8 81.5 85.4 83.5
% of total 1.7 1.8 1.5 1.2 1.8 1.8 1.6 1.5
Game show (category 10) Viewing hours (M) 4.9 8.1 9.1 8.5 8.9 9.1 9 7.2
% Canadian 28.8 26.7 23.6 22.5 92.5 94.1 95.4 89.3
% of total 0.8 1.4 1.5 1.4 4.5 4.5 4.5 3.5
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 91 94.6 97.6 97.4 23 25.9 28.1 30.4
% Canadian 27.7 29.7 31.7 32.1 71.9 68.9 68.2 65.4
% of total 15.7 16.3 16.3 16.2 11.6 12.7 14.1 15
Other (categories 12 through 15) Viewing hours (M) 0 0.1 4.1 4.1 0.4 0.4 18.6 0.4
% Canadian 98 96.4 61.5 81.1 98.2 91.6 67.8 98.3
% of total 0 0 0 0 0.2 0.2 0 0.2
All Categories Viewing hours (M) 578.6 580.1 596.8 602.5 198.2 204.1 199.5 202.3
% Canadian 43.8 43.4 46.1 44.8 63.2 61.4 61.5 59.9

Source: Numeris

Table 4.2.11 Average weekly viewing hours for Canadian programs broadcast by private conventional television services, by language market, program origin, and program category
Programming Category Viewing Metric English-language and ethnic services, all of Canada (excluding Quebec francophone market) French-language services, Quebec francophone market
2011-2012 2012-2013 2013- 2014 2014- 2015 2011-2012 2012-2013 2013-2014 2014-2015
News (category 1) Viewing hours (M) 35.4 36.7 37.3 34.1 9.4 10.3 9.2 9.2
% Canadian 100 100 100 100 100 100 100 100
% of total 20.2 21.6 22.0 19.9 14.1 14.8 13.6 13.6
Long-form documentary (category 2(b)) Viewing hours (M) 1.0 1.5 1.8 1.8 0.3 0.3 0.2 0.4
% Canadian 91.9 95.2 89.2 96.6 76.4 90.5 79.9 80.2
% of total 0.6 0.9 1.1 1.0 0.4 0.4 0.4 0.6
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 11.0 10.4 10.5 11.5 15.1 14.5 12.3 12.3
% Canadian 58.3 62.2 65.8 67.2 99.6 100 99.8 99.3
% of total 6.3 6.1 6.2 6.7 22.5 20.8 18.3 18.2
Sports (category 6) Viewing hours (M) 11.6 4.6 3.8 6.8 1.3 0 0.7 0.1
% Canadian 66.0 6.5 7.4 32.8 96.9 85.9 60.9 71.8
% of total 6.6 2.7 2.3 4.0 2.0 0.0 0.1 0.1
Drama and comedy (category 7) Viewing hours (M) 67.1 64.9 65.3 66.4 23.7 26.9 28.4 29.4
% Canadian 10.5 10.3 10.0 7.7 23.9 22.7 22.5 22.2
% of total 38.3 38.1 38.6 38.8 35.3 38.7 42.2 43.5
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 6.3 7.3 5.4 3.6 1.0 0.9 0.3 0.2
% Canadian 3.4 2.0 3.5 5.4 67.5 59.7 71.1 85.4
% of total 3.6 4.3 3.2 2.1 1.5 1.3 0.4 0.3
Game show (category 10) Viewing hours (M) 1.8 5.0 6.0 5.5 6.2 6.6 6.9 5.3
% Canadian 0 3.7 2.9 3.3 97.6 99.5 99.5 94.4
% of total 1.0 2.9 3.5 3.2 9.3 9.6 10.2 7.9
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 40.9 40.0 39.1 41.5 9.7 9.7 9.9 10.4
% Canadian 23.7 22.9 29.0 37.7 80.2 81.5 85.9 85.5
% of total 23.4 23.5 23.1 24.2 14.5 14.0 14.8 15.4
Other (categories 12 through 15) Viewing hours (M) 0 0 0 0.3 0.4 0.3 0 0.4
% Canadian 0 0 0 95.3 100 100 0 100
% of total 0 0 0 0 0.6 0.5 0 0.5
All Categories Viewing hours (M) 175.0 170.1 169.2 171.1 67.1 69.4 67.2 67.6
% Canadian 38.5 35.9 38.0 39.1 69.3 66.9 64.9 63.2

Source: Numeris

Table 4.2.12 Average weekly viewing hours for Canadian programs broadcast by CBC conventional services, by language market, program origin, and program category
Programming Category Viewing Metric English-language and ethnic services, all of Canada (excluding Quebec francophone market) French-language services, Quebec francophone market
2011-2012 2012-2013 2013-2014 2014-2015 2011-2012 2012-2013 2013-2014 2014-2015
News (category 1) Viewing hours (M) 6.6 7.1 7.2 7.3 3.8 4.4 4.1 3.9
% Canadian 100 100 100 100 100 100 100 100
% of total 17.2 20.4 14.9 20.9 15.4 15.9 13.9 14.0
Long-form documentary (category 2(b)) Viewing hours (M) 1.5 1.6 1.3 1.6 0.3 0.3 0.3 0.4
% Canadian 96.1 96.6 98.4 89.8 98.8 93.0 98.7 97.7
% of total 3.8 4.7 2.8 4.2 1.2 1.1 1.0 1.4
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 2.2 2.9 2.1 2.3 4.0 3.6 2.8 3.0
% Canadian 100 99.9 100 100 100 99.9 99.9 100
% of total 5.6 8.3 4.3 6.5 16.0 12.9 9.6 11.0
Sports (category 6) Viewing hours (M) 11.5 9.9 25.4 10.8 0.2 0.3 2.9 0.4
% Canadian 99.9 100 100 100 99.6 100 99.9 100
% of total 29.6 28.3 52.6 30.8 1.0 1.0 9.7 1.3
Drama and comedy (category 7) Viewing hours (M) 11.5 9.4 8.6 10.9 7.4 9.0 8.4 9.6
% Canadian 42.6 54.1 56.0 63.4 73.1 70.0 70.0 66.0
% of total 29.6 26.9 17.8 31.1 29.7 32.4 28.6 34.9
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 0.2 0.1 0.1 0.1 1.1 1.4 1.5 1.5
% Canadian 36.2 100 100 51.1 99.4 100 100 100
% of total 0.5 0.2 0.2 0.4 4.4 5.1 5.1 5.4
Game show (category 10) Viewing hours (M) 2.5 0.2 0 0.2 1.8 1.7 1.5 1.2
% Canadian 0 0 0 100 100 100 100 100
% of total 6.6 0.5 0 0.4 7.3 6.2 5.1 4.2
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 2.8 3.7 3.6 2.0 6.2 7.0 7.9 7.7
% Canadian 99.6 99.5 99.6 98.9 100 100 100 100
% of total 7.2 10.6 7.4 5.6 25.0 25.3 26.9 27.8
Other (categories 12 through 15) Viewing hours (M) 0 0 2.2 0 0 0.0 0.3 0.0
% Canadian 0 0 100 100 100 100 100 100
% of total 0 0 0 0 0 0 0 0
All Categories Viewing hours (M) 38.8 35.0 48.3 35.0 24.8 27.6 29.5 27.6
% Canadian 75.9 86.9 92.1 87.9 92.0 90.2 91.4 88.1

Source: Numeris

Table 4.2.13 Average weekly viewing hours for Canadian programs broadcast by discretionary services, by language market, program origin, and program category
Programming Category Viewing Metric English-language and ethnic services, all of Canada (excluding Quebec francophone market) French-language services, Quebec francophone market
2011-2012 2012-2013 2013-2014 2014-2015 2011-2012 2012-2013 2013-2014 2014-2015
News (category 1) Viewing hours (M) 35.1 41.2 40.3 40.8 16.5 16.0 13.1 13.1
% Canadian 100 100 99.9 99.8 97.8 97.7 97.5 96.3
% of total 9.8 11.2 10.6 10.3 16.5 15.9 12.8 14.0
Long-form documentary (category 2(b)) Viewing hours (M) 17.6 16.0 20.0 25.4 10.3 9.8 9.9 9.8
% Canadian 39.0 41.0 41.1 41.8 43.1 41.2 44.6 45.6
% of total 4.9 4.3 5.3 6.4 10.3 9.7 9.6 10.5
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 37.1 36.6 37.6 40.0 12.4 13.5 13.6 12.8
% Canadian 51.4 51.2 55.0 51.0 78.5 79.4 81.7 78.5
% of total 10.3 9.9 9.9 10.1 12.4 13.4 13.3 13.7
Sports (category 6) Viewing hours (M) 61.5 56.5 66.3 76.2 11.9 10.4 14.8 14.2
% Canadian 67.9 64.7 66.3 65.7 80.1 66.9 70.2 69.8
% of total 17.1 15.3 17.5 19.2 11.8 10.4 14.4 15.2
Drama and comedy (category 7) Viewing hours (M) 154.9 159.1 153.6 153.6 40.5 40.2 39.2 36.6
% Canadian 22.1 21.7 21.3 21.0 22.9 23.5 24.5 25.4
% of total 43.0 43.2 40.5 38.7 40.4 40.0 38.1 39.2
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 3.2 3.1 3.5 3,6 1.1 1.3 1.3 1.3
% Canadian 74.1 73.6 81.3 75.7 69.6 72.8 71.8 65.2
% of total 0.9 0.8 0.9 0.9 1.1 1.3 1.3 1.4
Game show (category 10) Viewing hours (M) 2.0 3.2 3.1 2.9 0.8 0.6 0.6 0.7
% Canadian 69.9 62.4 63.0 55.2 32.1 15.9 35.8 32.8
% of total 0.6 0.9 0.8 0.7 0.8 0.6 0.6 0.7
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 48.7 53.1 54.8 54.0 6.8 8.7 10.2 11,5
% Canadian 26.1 28.7 29.1 25.3 32.9 28.0 26.4 27.1
% of total 13.5 14.4 14.5 13.6 6.7 8.7 9.9 12.3
Other (categories 12 through 15) Viewing hours (M) 0 0 0.2 0 0 0 0.2 0
% Canadian 0 0 16.7 4.8 56.6 33.3 62.0 77.8
% of total 0 0 0 0 0 0 0 0
All Categories Viewing hours (M) 360.1 368.8 379.3 396.3 100.2 100.5 102.8 107.1
% Canadian 42.6 42.6 43.9 43.4 52.2 50.0 50.8 50.5

Source: Numeris

Table 4.2.14 Viewing share of English- and French-language Canadian services, by ownership group in all of Canada, excluding the Quebec francophone market
Owner Language Viewing share (%)
2012-2013 2013-2014 2014-2015
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
BCE All 15.4 22.9 38.3 15.6 19.9 35.5 16.5 20.1 36.6
English 15.4 22.7 38.1 15.6 19.7 35.2 16.5 19.9 36.4
French - 0.2 0.2 - 0.3 0.3 - 0.2 0.2
Shaw All 8.5 15 23.5 8.3 14.3 22.6 8.6 15.2 23.8
English 8.5 15 23.5 8.3 14.3 22.6 8.6 15.2 23.8
French - - - - - - - - -
Corus All 0.3 12.8 13.1 1.7 11.7 13.3 1.6 11.3 12.9
English 0.3 12.8 13.1 1.7 11.6 13.2 1.6 11.2 12.8
French - 0 0 - 0.1 0.1 - 0.1 0.1
Rogers All 4.6 4.7 9.3 4.5 5.2 9.7 4.4 6 10.4
English 4.6 4.7 9.3 4.5 5.2 9.7 4.4 6 10.4
French - - - - - - - - -
CBC-SRC All 6.0 1.8 7.8 8.1 1.8 9.9 6.1 1.9 8.0
English 5.9 1.8 7.6 8.0 1.8 9.7 5.9 1.8 7.8
French 0.1 0.1 0.2 0.1 0.1 0.2 0.1 0 0.2

Source: Numeris

Table 4.2.15 Viewing share of English- and French-language Canadian services, by ownership group in the Quebec francophone market
Owner Language Viewing share (%)
2012-2013 2013-2014 2014-2015
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
Québecor All 24.4 8.6 32.9 23.4 8.7 32.1 23.3 11.2 34.5
French 24.4 8.6 32.9 23.4 8.7 32.1 23.3 11.2 34.5
English 0 0 0 0 0 0 - - -
BCE All 0.9 21.9 22.8 0.8 21.3 22.1 1 19.8 20.8
French - 20.3 20.3 - 19.8 19.8 - 18.3 18.3
English 0.9 1.6 2.5 0.8 1.5 2.3 1 1.4 2.4
SRC-CBC All 13.4 5.1 18.5 14.4 4.9 19.3 13.1 4.6 17.7
French 13.0 5.0 18.0 13.6 4.8 18.5 12.4 4.5 17.0
English 0.4 0.1 0.5 0.8 0.1 0.8 0.6 0.1 0.7
Remstar All 8.6 - 8.6 8 0.9 9 7.8 0.9 8.7
French 8.6 - 8.6 8 0.9 9 7.8 0.9 8.7
English - - - - - - - - -
Corus All - - - - 8 8 0 7.8 7.8
English - - - 0 7.7 7.7 - 7.4 7.4
French - - - - 0.3 0.3 0 0.4 0.4

Source: Numeris

In Tables 4.2.14 and 4.2.15:

Table 4.2.16 Total viewing hours (millions) by market
Market Total hours (millions)
2012-2013 2013-2014 2014-2015
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
Canada (excluding the Quebec francophone market) 237.5 368.3 605.8 238.1 362.5 600.7 229.8 369.5 599.3
Quebec francophone market 109.3 103.6 212.8 109.7 106.1 215.7 109.7 111.5 221.2

Source: Numeris

This table presents total viewing hours per market. Total viewing was based on viewing for all Canadian conventional stations (including ethnic stations) and Canadian discretionary and on demand services (specialty and pay only; excludes PPV and VOD services).

v) Programming expenditures

The policy objectives of the Broadcasting Act include encouraging the development of Canadian expression and ensuring that each element of the Canadian broadcasting system contributes in an appropriate manner to the creation and presentation of Canadian programming. As such, Canadian broadcasters are required to allocate portions of their annual broadcasting revenues to expenditures on Canadian programming. These expenditures are used to create Canadian programming and to ensure that a diversity of voices and interests are represented in our national broadcasting system.

Television service providers contributed 45 cents per revenue dollar in support of Canadian programming during the 2014-2015 broadcast year. Canadian programming expenditures (CPE) totalled $3 billion, 15% of which was spent on program of national interest (PNI).

Spending on non-Canadian programming by private conventional television stations decreased by $60.9 million (-8.5%) to $656.1 million in 2015.

The CRTC has defined programs of national interest (PNI) as including drama and comedy, long-form documentary, and specific Canadian award shows that celebrate Canadian creative talent. For French-language broadcasters, PNI also include music video and variety programs.

For the purposes of this report, PNI expenditures include expenditures in any of the following program categories:

The PNI data presented in this section include all PNI expenditures reported by broadcasting undertakings, regardless of conditions of licence requiring such expenditures.

Chart 4.2.2 illustrates the flow of funding to the creation of Canadian programming. A percentage of BDU subscriber revenues is used to fund Canadian discretionary (pay, specialty, PPV and VOD) services, as well as local expression (community television), the Canada Media Fund (CMF), the LPIF, and various independent funds. Commercial television services (specialty, pay, and private conventional OTA) and the CBC rely on funds generated by advertising. Government funding is also provided to the CMF, the CBC (via parliamentary appropriations), and various independent content providers.

Chart 4.2.2 Canadian programming funding ecosystem (2014-2015 broadcast year)

Chart 4.2.2: Canadian programming funding ecosystem (2014-2015 broadcast year)
Text Description of Image

This chart illustrates the flow of funds within the Canadian programming ecosystem. Many revenue streams help fund Canadian programming, such as advertising revenues, subscriber revenues and various funds, of which some receive funding from the Government and television programming services. These funds include local expression, CMF, and other independent funds. Government funding is provided to the CMF, the CBC (via parliamentary appropriations) and various independent content providers.

This chart provides an overview of the major sources of television program funding in Canada.

Figure 4.2.16 CPE on television, by type of service, 2015 ($ millions)

Circular chart of Figure 4.2.16: CPE on television, by type of service, 2015 ($ millions)
Text Description of Image

This circular chart shows the amount that broadcasters spent on Canadian programming, by type of service, as well as the percentage of total CPE in each case. Specialty and Pay, $1,599, 55%; PPV and VOD, $38 million, 1%; CBC conventional TV $557 million, 19%; Private commercial conventional TV $653 million, 23%; Other public and not-for-profit conventional TV $66 million, 2%.

Source: CRTC data collection

This chart shows the amount that broadcasters spent on Canadian programming, by type of service, as well as the percentage of total CPE in each case. Approximately half of the spending went to specialty and pay services.

CPE amounts include spending on Canadian programs broadcast; write-downs of Canadian inventory; script and concept development; and loss on equity for Canadian programs. They also include spending relating to tangible benefits paid as part of change in ownership transactions and commitments made at the time of licensing. However, they exclude CMF “top-ups” reported by private conventional, specialty, pay, PPV, and VOD television services. CBC conventional television exclude indirect and facility cost allocations.

In 2015, discretionary and on demand services (specialty, pay, PPV and VoD) spent $1,637 million in CPE, an increase of $147.1 million (9%) over 2014. Historically, specialty services has accounted for at least half of CPE spending.

Figure 4.2.17 Television programming expenditures ($4.2 billion total), PNI vs. Canadian vs. non-Canadian, 2015

Circular chart of Figure 4.2.17: Television programming expenditures ($4.2 billion total), PNI vs. Canadian vs. non-Canadian, 2015
Text Description of Image

This circular chart shows the percentages of expenditures that broadcasters spent on Canadian programming (excluding PNI), PNI, and non-Canadian programming; Canadian programming (excluding PNI) 54%; Programs of national interest (PNI) 15% and Non-Canadian programming 31%.

Source: CRTC data collection

This chart shows the percentages of expenditures that broadcasters spent on Canadian programming (excluding PNI), PNI, and non-Canadian programming. Approximately 70% of the spending went to Canadian programming (PNI included). Programming of VOD and PPV services, as well as other public and not-for-profit conventional television services, is excluded.

Figure 4.2.18 Programming expenditures per revenue dollar

Stacked bar chart of Figure 4.2.18: Programming expenditures per revenue dollar
Text Description of Image

This stacked bar chart shows programming expenditures per revenue dollar for non-Canadian programming, PNI and Canadian programming (excluding PNI) for years 2013 to 2015. Non- Canadian programming: $0.20, $0.20 and $0.20; PNI: $0.09, $0.09 and $0.10; Canadian programming (excluding PNI): $0.34, $0.34 and $0.35.

Source: CRTC data collection

This figure shows broadcaster spending per dollar of revenue on Canadian programming (excluding PNI), PNI, and non-Canadian programming. For example, it shows that for every dollar of revenue the broadcasters received in 2015, $0.35 was spent on Canadian programming (excluding PNI), $0.10 on PNI, and $0.20 on non-Canadian programming. This chart excludes VOD and PPV services as well as other public and not-for-profit conventional television.

Table 4.2.17 PNI expenditures by type of service and program category ($ millions)
Service Program category PNI expenditures ($ millions) Growth (%) 2014-2015 2015 PNI expenditures as percentage of total (%)
2013 2014 2015
Private conventional television Long-form documentary 7.9 6.3 7.3 15.9 1.2
Drama 66.0 65.8 55.3 -16.0 8.9
Music, dance, and variety (French programming only) 21.0 17.5 12.6 -28.0 2.0
Award shows (English programming only) 2.6 2.3 1.1 -52.2 0.2
Total PNI 97.5 91.9 76.3 -17.0 12.3
CBC conventional television Long-form documentary 30.9 22.3 38.2 71.3 6.2
Drama 153.5 136.9 157.1 14.8 25.3
Music, dance, and variety (French programming only) 15.3 20.4 21.3 4.4 3.4
Award shows (English programming only) 3.1 3.1 3.6 16.1 0.6
Total PNI 202.8 182.7 220.2 20.5 35.5
Discretionary services Long-form documentary 112.3 107.4 113.3 5.5 18.2
Drama 200.5 224.1 194.3 -13.3 31.3
Music, dance, and variety (French programming only) 12.0 11.3 10.1 -10.6 1.6
Award shows (English programming only) 4.9 6.3 6.9 9.5 1.1
Total PNI 329.7 349.1 324.6 -7.0 52.6
Total Long-form documentary 151.1 136 158.8 16.8 25.6
Drama 420 424 406.7 -4.1 65.5
Music, dance, and variety (French programming only) 49.3 49.3 44 -10.8 7.1
Award shows (English programming only) 10.6 11.7 11.3 -3.4 1.8
Total PNI 630 623.7 621.1 -0.4 100

Source: Public disclosure of aggregate annual returns for large ownership groups and CRTC data collection

This table summarizes the PNI expenditures made by the CBC, private conventional television, and discretionary services. The CBC section now includes discretionary services operated by the CBC.

Table 4.2.18 PNI expenditures by CBC and large private ownership groups, by program category ($ millions)
Ownership group Program category PNI expenditures ($ millions) Growth (%) 2014-2015 2015 PNI expenditures as percentage of total (%)
2013 2014 2015
CBC conventional television Long-form documentary 30.9 22.3 38.2 71.3 6.2
Drama 153.5 136.9 157.1 14.8 25.3
Music, dance, and variety (French programming only) 15.3 20.4 21.3 4.4 3.4
Award shows (English programming only) 3.1 3.1 3.6 16.1 0.6
Total PNI 202.8 182.7 220.2 20.5 35.5
BCE Long-form documentary 43.2 47.0 54.9 16.8 8.8
Drama 99.1 96.2 77.3 -19.6 12.4
Music, dance, and variety (French programming only) 0 0 0.7 0.0 0.1
Award shows (English programming only) 7.3 8.3 7.1 -14.5 1.1
Total PNI 149.7 151.5 140 -7.6 22.5
Shaw Long-form documentary 34.5 27.3 23.4 -14.3 3.8
Drama 33.7 25.9 26.3 1.5 4.2
Music, dance, and variety (French programming only) 0 0 0 0.0 0.0
Award shows (English programming only) 0 0 0 0.0 0.0
Total PNI 68.3 53.3 49.7 -6.8 8.0
Corus Long-form documentary 5.0 5.8 6.4 10.3 1.0
Drama 36.8 71.7 91.2 27.2 14.7
Music, dance, and variety (French programming only) 0 0 0 0.0 0.0
Award shows (English programming only) 0 0 0 0.0 0.0
Total PNI 41.8 77.5 97.6 25.9 15.7
Rogers Long-form documentary 4.6 2.8 4.1 46.4 0.7
Drama 5.8 7.2 9.5 31.9 1.5
Music, dance, and variety (French programming only) 0 0 0 0.0 0.0
Award shows (English programming only) 0 0 0 0.0 0.0
Total PNI 10.4 10.0 13.6 36.0 2.2
Total Long-form documentary 151.1 136 158.8 16.8 25.6
Drama 420 424 406.7 -4.1 65.5
Music, dance, and variety (French programming only) 49.3 49.3 44 -10.8 7.1
Award shows (English programming only) 10.6 11.7 11.3 -3.4 1.8
Total PNI 630 623.7 621.1 -0.4 100

Source: Public disclosure of aggregate annual returns for large ownership groups

Table 4.2.19 CPE for CBC English and French-language conventional television, by program category ($ thousands)
Program category 2011 2012 2013 2014 2015 Growth (%) 2014-2015
News (category 1) 191,924 196,688 212,876 207,331 190,937 -7.9
Long-form documentary (category 2(b)) 39,242 36,042 30,867 22,337 28,471 27.5
Other informational (categories 2 through 5, excluding category 2(b)) 59,292 67,446 63,744 62,792 50,651 -19.3
Sports (category 6) 157,190 158,698 127,730 258,029 35,940 -86.1
Drama and comedy (category 7) 141,049 158,420 153,529 136,895 158,544 15.8
Music, dance, and variety (categories 8 and 9) 12,912 26,120 27,635 27,278 29,347 7.6
Game show (category 10) 11,900 16,217 12,933 9,300 5,449 -41.4
Human interest/Award shows/Reality (category 11) 94,059 73,063 70,337 64,807 56,742 -12.4
Human interest n/a n/a 58,411 49,545 44,785 -9.6
Award shows n/a n/a 7,467 7,725 8,008 3.7
Reality television n/a n/a 4,460 7,537 3,949 -47.6
Other (categories 12 through 15) 2,203 941 1,139 1,011 1,102 9.0
Total (categories 1 through 15) 709,769 733,635 700,793 789,782 557,183 -29.5

Source: CRTC data collection

Canadian programming expenditures (CPE) include spending on Canadian programs broadcast; write-downs of Canadian inventory; script and concept development; and loss on equity for Canadian programs. They also include spending relating to tangible benefits paid as part of change in ownership transactions and commitments made at the time of licensing. CBC conventional television CPE exclude indirect and facility cost allocations. The breakdown for “Human interest/Award Shows/Reality” (category 11) is only available as of 2013.

Table 4.2.20 CPE for private conventional television, by program category ($ thousands)
Program category 2011 2012 2013 2014 2015 Growth (%) 2014-2015
News (category 1) 316,922 353,646 355,287 361,050 369,570 2.4
Long-form documentary (category 2(b)) n/a 16,600 7,894 6,261 7,288 16.4
Other informational (categories 2 through 5, excluding category 2(b)) 55,033 32,150 30,923 29,339 30,026 2.3
Sports (category 6) 848 68,485 6,490 1,123 21,450 1,810.1
Drama and comedy (category 7) 58,322 59,169 66,164 65,759 55,289 -15.9
Music, dance, and variety (categories 8 and 9) 33,006 30,241 24,476 22,317 17,097 -23.4
Game show (category 10) 22,033 17,546 19,394 19,042 17,258 -9.4
Human interest/ Award shows/Reality (category 11) 75,577 83,842 92,345 113,897 134,422 18.0
Human interest n/a n/a 72,953 84,669 86,737 2.4
Award shows n/a n/a 4,071 3,695 2,671 -27.8
Reality television n/a n/a 15,321 25,533 45,014 76.3
Other (categories 12 through 15) 1,173 905 2,444 516 361 -30.0
Total (categories 1 through 15) 562,914 661,759 605,415 619,305 652,762 5.4

Source: CRTC data collection

Canadian programming expenditures (CPE) include spending on Canadian programs broadcast; write-downs of Canadian inventory; script and concept development; and loss on equity for Canadian programs. They also include spending relating to tangible benefits paid as part of change in ownership transactions and commitments made at the time of licensing. CBC conventional television CPE exclude indirect and facility cost allocations. The breakdown for “Human interest/Award Shows/Reality” (category 11) is only available as of 2013. 2015 private conventional television CPE is equivalent to 37.2% of this sector’s revenues.

Figure 4.2.19 Distribution of CPE for private conventional television services, by program category, 2015

Circular chart of Figure 4.2.19: Distribution of CPE for private conventional television services, by program category, 2015
Text Description of Image

This circular chart depicts the percentage distribution by genre for the expenditures for private conventional television services: News (cat. 1): 57%; Other info. (cat. 2-5): 5%; Sports (cat. 6): 3%; Drama and comedy (cat. 7): 9%; Music, dance and variety (cat. 8 & 9): 3%, Game show (cat. 10): 2%, Human interest/Award shows/Reality (cat. 11): 20%; and Other (cat. 12-15): 0%.

Source: CRTC data collection

This figure shows the distribution, broken down by program category, of CPE of private conventional television services in 2015.

More than half of the expenditures were made on news programming. Other significant investments were made in general entertainment (including human interest and awards shows), and drama and comedy programming.

Table 4.2.21 Expenditures on non-Canadian programming by private conventional television services, by program category ($ thousands)
Program category 2011 2012 2013 2014 2015 Growth (%) 2014-2015
News (category 1) 90 57 4,631 594 703 18.4
Long-form documentary (category 2(b)) n/a 298 454 603 218 -63.8
Other informational (categories 2 through 5, excluding category 2(b)) 16,522 15,034 9,750 10,975 20,039 82.6
Sports (category 6) 17,916 17,877 20,269 19,953 28,747 44.1
Drama and comedy (category 7) 480,114 488,652 483,024 516,267 473,296 -8.3
Music, dance, and variety (categories 8 and 9) 31,878 47,333 57,128 28,736 10,499 -63.5
Game show (category 10) 11,460 5,278 5,625 8,360 8,287 -0.9
Human interest/ Award shows/Reality (category 11) 169,059 151,234 151,044 131,529 114,346 -13.1
Human interest n/a n/a 90,375 72,813 66,417 -8.8
Award shows n/a n/a 14,173 16,152 14,493 -10.3
Reality television n/a n/a 46,496 42,564 33,436 -21.4
Other (categories 12 through 15) 1,994 51 52 2 2 0
Total (categories 1 through 15) 729,033 725,813 731,978 717,018 656,137 -8.5

Source: CRTC data collection

For 2012-2015, the numbers shown for “Other informational (categories 2 through 5)” do not include expenditures on category 2(b)) programming. In addition, the breakdown for “Human interest/Award shows/Reality” (category 11) is only available as of 2013. 2015 private conventional television non-Canadian programming expenditures are equivalent to 37.3% of this sector’s revenues.

From 2014 to 2015, the decrease in Non-Canadian programming was most prominent in the “Drama” programming category, which reported a year over year decrease of $43M (-8.3%).

Table 4.2.22 Expenditures on non-Canadian programming by private and CBC conventional television services, by program category and linguistic market ($ thousands)
Program category 2014 2015 Growth (%)
English-language French-language English-language French-language English-language French-language
News (category 1) 591 - 703 - 19.0 -
Long-form documentary (category 2(b)) 725 44 798 241 10.1 447.7
Other informational (categories 2 through 5, excluding category 2(b)) 10,974 13 20,039 222 82.6 1,607.7
Sports (category 6) 19,953 - 28,742 - 44.0 -
Drama and comedy (category 7) 495,007 30,584 440,173 29,798 -11.1 -2.6
Music, dance, and variety (categories 8 and 9) 28,700 36 10,624 - -63.0 -
Game show (category 10) 8,360 - 8,275 - -1.0 -
Human interest/Award shows/Reality (category 11) 121,678 1,785 111,429 1,484 -8.4 -14.7
Human interest 64,243 1,757 63,520 1,464 -1.1 -16.7
Award shows 16,152 - 14,493 - -10.3 -
Reality television 41,283 29 33,416 20 -19.1 -31.0
Other (categories 12 through 15) 2 38 2 165 0.0 334.2
Total (categories 1 through 15) 685,989 32,520 620,786 31,909 -9.5 -1.9

Source: CRTC data collection

Revenues for English-language private conventional television stations include revenues for ethnic stations since a significant portion of these stations’ revenues was derived from English-language programming.

Table 4.2.23 CPE and expenditures on non-Canadian programming reported by specialty services, by language of broadcast and program category ($ thousands) (Part 1 of 2)
Language of broadcast Program category CPE Expenditures on non-Canadian programming
2014 2015 Growth (%) 2014 2015 Growth (%)
English Number of services reporting 127 127 0.0 127 127 0.0
News (category 1) 152,516 157,626 3.4 829 768 -7.4
Long-form documentary (category 2(b)) 74,625 77,118 3.3 31,725 32,897 3.7
Other informational (categories 2 through 5, excluding category 2(b)) 102,077 87,927 -13.9 5,368 6,045 12.6
Sports (category 6) 452,314 498,286 10.2 88,377 103,738 17.4
Drama and comedy (category 7) 134,423 89,447 -33.5 129,624 142,783 10.2
Music, dance, and variety (categories 8 and 9) 15,070 11,285 -25.1 1,414 637 -55.0
Game show (category 10) 10,705 9,009 -15.8 1,154 1,056 -8.5
Human interest/ Award shows/Reality (category 11) 109,227 89,435 -18.1 68,762 70,603 2.7
Human interest 45,617 31,189 -31.6 43,666 44,417 1.7
Award shows 6,291 6,592 4.8 174 811 366.1
Reality television 57,319 51,653 -9.9 24,921 25,375 1.8
Other (categories 12 through 15) 21,488 46,148 114.8 1,203 10,543 776.4
Total (categories 1 through 15) 1,072,445 1,066,280 -0.6 328,457 369,071 12.4
French Number of services reporting 30 29 -3.3 30 29 -3.3
News (category 1) 80,750 74,476 -7.8 0 0 n/a
Long-form documentary (category 2(b)) 28,391 30,808 8.5 7,238 5,489 -24.2
Other informational (categories 2 through 5, excluding category 2(b)) 44,822 49,547 10.5 2,858 1,718 -39.9
Sports (category 6) 90,508 190,428 110.4 10,631 13,033 22.6
Drama and comedy (category 7) 25,764 31,726 23.1 18,725 21,601 15.4
Music, dance, and variety (categories 8 and 9) 11,276 7,613 -32.5 897 514 -42.7
Game show (category 10) 3,540 4,100 15.8 0 0 0
Human interest/ Award shows/Reality (category 11) 13,767 20,889 51.7 5,728 4,631 -19.2
Human interest 11,227 15,204 35.4 1,176 1,145 -2.6
Award shows 494 0 -100.0 10 654 6,440.0
Reality television 2,046 5,685 177.9 4,542 2,832 -37.6
Other (categories 12 through 15) 6,287 6,892 9.6 469 1,171 149.7
Total (categories 1 through 15) 305,106 416,478 36.5 46,546 48,157 3.5

Source: CRTC data collection

Table 4.2.24 CPE and expenditures on non-Canadian programming reported by specialty services, by language of broadcast and program category ($ thousands) (Part 2 of 2)
Language of broadcast Program category CPE Expenditures on non-Canadian programming
2014 2015 Growth (%) 2014 2015 Growth (%)
Third-language Number of services reporting 40 39 -2.5 40 39 -2.5
News (category 1) 3,920 3,978 1.7 1,525 1,493 -2.1
Long-form documentary (category 2(b)) 1,518 2,138 40.8 0 74 n/a
Other informational (categories 2 through 5, excluding category 2(b)) 2,671 2,792 4.5 554 445 -19.7
Sports (category 6) 1,249 749 -40.0 1,241 900 -27.5
Drama and comedy (category 7) 3,256 3,021 -7.2 6,089 6,838 12.3
Music, dance, and variety (categories 8 and 9) 6,559 5,244 -20.0 1,302 1,046 -19.7
Game show (category 10) 705 499 -29.2 2,602 930 -64.3
Human interest/ Award shows/Reality (category 11) 4,505 4,175 -7.3 2,057 4,265 107.3
Human interest 4,241 3,902 -8.0 2,057 4,265 107.3
Award shows 264 272 3.0 0 0 0.0
Reality television 0 0 0.0 0 0 0.0
Other (categories 12 through 15) 2,081 1,844 -11.4 1,048 1,003 -4.4
Total (categories 1 through 15) 26,463 24,450 -7.6 16,418 16,994 3.5
All languages Number of services reporting 197 195 -1.0 197 195 -1.0
News (category 1) 237,185 236,090 -0.5 2,355 2,261 -4.0
Long-form documentary (category 2(b)) 104,534 110,065 5.3 38,963 38,459 -1.3
Other informational (categories 2 through 5, excluding category 2(b)) 149,570 140,277 -6.2 8,779 8,208 -6.5
Sports (category 6) 544,071 689,462 26.7 100,248 117,672 17.4
Drama and comedy (category 7) 163,442 124,194 -24.0 154,438 171,222 10.9
Music, dance, and variety (categories 8 and 9) 32,905 24,142 -26.6 3,613 2,197 -39.2
Game show (category 10) 14,951 13,607 -9.0 3,757 1,986 -47.1
Human interest/ Award shows/Reality (category 11) 127,499 114,499 -10.2 76,547 79,499 3.9
Human interest 61,085 50,297 -17.7 46,899 49,827 6.2
Award shows 7,050 6,864 -2.6 185 1,465 691.9
Reality television 59,364 57,338 -3.4 29,463 28,207 -4.3
Other (categories 12 through 15) 29,856 54,885 83.8 2,721 12,717 367.4
Total (categories 1 through 15) 1,404,014 1,507,218 7.3 391,420 434,222 10.9

Source: CRTC data collection

This table (Parts 1 and 2) shows total CPE and expenditures on non-Canadian programming of English-, French-, and third-language television services, broken down by program category. It also shows annual growth rates between the two years and lists the number of services reporting in each linguistic category.

The data listed for English-language services include expenditures on bilingual programming and expenditures relating to tangible benefits and to commitments made at the time of licensing, but excludes CMF “top-up” funding reported by specialty services.

CPE rose by $103.2 million (7.3%) to reach $1.5 billion in 2015. Of that amount, $254.0 million was spend on programs of national interest (PNI), down $27.6 million (-9.8%) compared to 2014. Also of note is the $689.4 million spent on sports programming (45.7% of total CPE), which was up by $145.4 million (26.7%) in the past year, partly as a result of the acquisition of NHL programming rights by Rogers and Groupe TVA, notably.

Non-Canadian programming expenditures increased by $43 million (10.9%) in 2015. Expenditures on non-Canadian sports programming increased by $17.4 million (17.4%).

Table 4.2.25 CPE reported by PPV and VOD services ($ thousands)
Metric 2011 2012 2013 2014 2015 CAGR (%) 2011- 2015
Total PPV and VOD services CPE 16,838 16,280 17,317 24,890 37,574 22.2
Number of services reporting 30 26 23 24 24 -5.4

Source: CRTC data collection

This table shows the total CPE reported by PPV and VOD services from 2011 to 2015, as well as the number of services reporting and the growth rate during that period.

Expenditures broken down by program category for PPV and VOD services are not available. The amounts shown exclude CMF “top-up” funding reported by PPV and VOD services, but include expenditures relating to ownership transfer benefits (tangible benefits) and to commitments made at the time of licensing.

Table 4.2.26 Statistical data reported by licensed VOD services
Category Metric 2014 2015
Number of titles on servers Canadian Titles (English) 29,893 36,185
Canadian Titles (French) 16,667 18,918
Canadian Titles (other language) 42 30
Total Canadian Titles 46,602 55,133
Percent of all titles 28% 28%
Non-Canadian Titles (English) 94,855 120,988
Non-Canadian Titles (French) 21,834 20,960
Non-Canadian Titles (other language) 670 1,182
Total Non-Canadian Titles 117,359 143,130
Percent of all titles 72% 72%
Total (all titles) 163,961 198,263
Number of feature films on servers Canadian Titles (English) 4,934 3,989
Canadian Titles (French) 1,645 1,788
Total Canadian Titles (feature films) 6,579 5,777
Percent of all feature films 10% 10%
Non-Canadian Titles (English) 46,108 42,959
Non-Canadian Titles (French) 13,623 11,254
Total Non-Canadian Titles (feature films) 59,731 54,213
Percent of all feature films 90% 90%
Total (all feature films) 66,310 59,990
Number of orders (free and paid) Canadian Titles (free) 84,440,016 107,052,469
Canadian Titles (paid) 9,282,531 1,481,056
Total Orders - Canadian Titles 93,722,547 108,533,525
Percent of all orders 27% 31%
Non-Canadian Titles (free) 164,669,690 200,866,982
Non-Canadian Titles (paid) 86,545,739 37,188,170
Total Orders - Non-Canadian Titles 251,215,429 238,055,152
Percent of all orders 73% 69%
Total (free orders) – Canadian and non-Canadian 249,109,706 307,919,451
Total (paid orders) – Canadian and non-Canadian 95,828,270 38,669,226
Total (orders) 344,937,976 346,588,677
Remitted revenue ($ millions) 5.8 4.3

Source: CRTC data collection

The 2014 data reflects data reported by 11 licensed VOD services and the 2015 data reflects data reported by 12 licensed VOD services. Titles and feature film data reflects availability on servers on 31 August of each year. Orders are based on entire broadcast years ending 31 August. Remitted revenue to Canadian feature film rights holders are based on an entire broadcast year ending 31 August.

vi) Tangible benefits

No television transactions resulting in a change of ownership or effective control triggering tangible benefits were approved in 2015

Table 4.2.27 Value of television ownership transactions and corresponding tangible benefits for the period from 1 January 2011 to 31 December 2015
Language Metric 2011 2012 2013 2014 2015 Total
English-language services Transactions 5 4 4 2 - 15
Value ($M) 2,254.0 106.0 944.4 174.3 - 3,478.7
Benefits ($M) 224.2 18.6 94.4 17.4 - 260.2
French-language services Transactions - - 3 1 - 4
Value ($M) - - 1,512.8 22.9 - 1,535.7
Benefits ($M) - - 151.3 2.3 - 153.6

vii) Programming of high standards

The Broadcasting Act sets out that programming provided by broadcasting undertakings should be of high standard. In addition to the CRTC, two bodies deal with programming complaints relating to public and community broadcasters, as well as non- members of the CBSC. The CRTC also deals with issues that are outside the parameters of the codes administered by the CBSC.

The CBSC administers specific codes of broadcast conduct and provides a means of recourse for members of the public regarding the application of the standards set out in the following codes:

The Canadian Broadcast Standards Council (CBSC) is an independent organization created by the Canadian Association of Broadcasters (CAB) to administer standards established by Canada’s private broadcasters. The CBSC’s membership includes more than 790 private-sector radio and television stations, specialty services, pay services, and networks across Canada. Membership includes broadcasters broadcasting in English, French, and third languages. For more information, visit www.cbsc.ca.

The Advertising Standards Canada (ASC) is a national, not-for-profit advertising self-regulatory body that responds to complaints by consumers and special interest groups regarding advertising with respect to all media subject to the Canadian Code of Advertising Standards, the principal instrument of advertising self-regulation.

The ASC responds to complaints by consumers and special interest groups regarding advertising with respect to all media subject to the Canadian Code of Advertising Standards, the principal instrument of advertising self-regulation. In addition, the ASC undertakes pre-clearance functions in five industry categories, which consist of reviewing advertisements based on applicable legislation, regulations, and/or industry codes and guidelines.

Additional information on the ASC can be found at: www.adstandards.com/en/

Table 4.2.28 Number of television-related contacts received by the CRTC, by type of issue
Year CRTC – policies/ decisions Billing Quality of service/ delivery Terms and conditions Disability issues Programming Loudness Other
2014-2015 1,182 0 132 4 132 2,437 595 337
2015-2016 1,356 105 390 19 271 1,357 592 54

Source: CRTC Correspondence Tracking System

This table summarizes the contacts received by the CRTC, which included questions, comments, complaints, and other communications, broken down by the type of issue raised.

In 2015-2016 the CRTC received 4,144 contacts, a 14% decrease from previous year’s 4,819 contacts.

Table 4.2.29 Television programming complaints received by the Commission and referred to the Canadian Broadcast Standards Council, by sector and issue
Market sector Type of complaint 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Complaints
received
Referrals
to
CBSC
Complaints
received
Referrals
to
CBSC
Complaints
received
Referrals
to
CBSC
Complaints
received
Referrals
to
CBSC
Complaints
received
Referrals
to
CBSC
Conventional television Abusive comment 30 2 30 6 15 5 24 6 19 3
Adult content 56 11 71 12 73 13 77 13 53 10
Alcohol advertising 8 - 18 3 9 2 14 1 13 -
Gender portrayal 9 - 5 1 6 - 3 - 1 -
Offensive comment 217 43 233 62 164 63 171 25 113 23
Offensive language 29 3 32 8 45 7 67 15 46 7
Television violence 76 14 54 8 61 11 68 9 37 4
Specialty services Abusive comment 1 - 5 2 2 - 10 6 14 4
Adult content 23 12 16 9 19 10 19 7 15 3
Alcohol advertising - - 2 1 3 1 - - 2 -
Gender portrayal 1 - 1 1 - - 2 1 - -
Offensive comment 161 87 44 23 46 25 51 24 14 4
Offensive language 7 5 11 7 15 8 8 4 10 6
Television violence 18 10 13 3 12 6 19 6 7 2
Pay and PPV services Abusive comment - - - - - - - - - -
Adult content 3 - 2 1 1 - 6 1 2 1
Alcohol advertising - - - - - - - - - -
Gender portrayal - - - - - - - - - -
Offensive comment - - - - - - 1 1 - -
Offensive language - - - - - - 1 - - -
Television violence - - - - 1 - 1 - - -
Total Total 639 187 537 147 472 151 542 119 346 67

Source: CRTC Correspondence Tracking System

Together, the CRTC and the CBSC receive and address a range of complaints regarding conventional television and discretionary services. This table shows the number of complaints received by the CRTC—and the number referred to the CBSC—regarding various issues for the 2011–2012 through 2015–2016 fiscal years (i.e., 1 April to 31 March). Between April 2015 and March 2016, approximately 19% of the complaints relating to television received by the Commission were referred to the CBSC.

The CRTC’s Correspondence Tracking System counts multiple contacts from the same client regarding the same complaint as separate units. Consequently, the actual number of complaints received should be slightly lower than the figures indicated. The category “Abusive comment” includes complaints alleging hatred or contempt incited on air against one of the groups identified in the Television Broadcasting Regulations, 1987 or the Specialty Services Regulations, 1990. The category “Offensive comment” includes complaints alleging offensive humour, or other comments that do not fall under the “abusive comment” provision in CRTC regulations. The category “Offensive language” includes complaints alleging offensive language in song lyrics or in spoken word programming.

Table 4.2.30 Television-related complaints handled by the CBSC, by language of broadcast and origin of the program (2014-2015)
Category Subcategory Conventional and specialty TV Pay TV Total
Language of broadcast English-language 508 7 515
French-language 104 4 108
Third-language 7 0 7
Other 1 0 1
Total 620 11 631
Origin of the program Canadian 477 4 481
Foreign 110 2 112
Other 33 5 38
Total 620 11 631

Source: CBSC annual reports

The category “Other” in each case refers to complaints for which there was not enough information for the CBSC to determine either the language of broadcast or the national origin of the program.

Table 4.2.31 Complaints relating to digital advertising and advertising on television, handled by the ASC
Statistics 2011 2012 2013 2014 2015
Total number of complaints 1,809 1,310 1,310 1,274 1,774
Complaints about television advertisements 686 559 528 500 671
Complaints about television advertisements as percentage of total complaints received 38% 43% 40% 39% 38%
Complaints about digital advertisements n/a 280 240 289 348
Complaints about digital advertisements as percentage of total complaints received n/a 21% 18% 23% 20%

Source: ASC Ad complaints reports

viii) Ownership groups

The following tables provide an overview of the different broadcasting ownership groups with a controlling interest in various types of discretionary services in 2015. The overview covers the type of services offered, as well as the language of the service, subscriber numbers, revenues, PBIT and PBIT margin for each service.

In regard to this section:

The abbreviations used in the following tables are defined as follows:

Table 4.2.32 BCE – Controlling ownership interest in discretionary and on demand services, 2015
Language Service Type of service Number of subscribers (000) Revenues ($) (000) PBIT ($) (000) PBIT margin (%)
English Animal Planet Sp. B 2,384 9,880 4,230 42.8
Bell TV On Demand (formerly General Interest) VOD n/a 5,946 1,287 21.6
Bell TV On Demand and Vu! (formerly Bell) PPV** n/a 34,069 4,938 14.5
Bell TV On Demand (formerly Vu! On Demand) VOD n/a 15,258 -5,792 -38.0
Book Television Sp. A 524 3,948 2,584 65.5
Bravo! Sp. A 6,361 51,363 26,354 51.3
Business News Network Sp. A 5,997 29,685 11,155 37.6
CablePulse 24 Sp. A 3,536 30,543 6,635 21.7
Comedy Gold Sp. B 776 4,477 2,936 65.6
CTV News Channel Sp. C 7,942 26,570 10,150 38.2
Discovery Channel Sp. A 7,202 97,372 23,402 24.0
Discovery Science Sp. B 1,648 5,857 1,509 25.8
Discovery Velocity (formerly Discovery World) Sp. B 1,142 24,109 13,032 54.1
E! Sp. A 7,069 29,596 9,282 31.4
ESPN Classic Canada Sp. B 557 2,131 346 16.2
Fashion Television Channel Sp. A 681 4,423 2,673 60.4
Investigation Discovery Sp. B 1,426 11,066 6,838 61.8
Juicebox Sp. B 114 310 240 77.4
M3 Sp. A 5,831 19,228 2,859 14.9
MTV Canada Sp. A 5,800 18,704 -660 -3.5
MTV2 Canada Sp. A 1,029 5,531 2,611 47.2
MuchLoud Sp. B 111 260 163 62.7
Much (formerly MuchMusic) Sp. A 9,049 34,907 4,034 11.6
MuchRetro (Formerly MuchMoreRetro) Sp. B 247 635 466 73.4
MuchVibe Sp. B 126 320 204 63.8
Northwestel VOD VOD n/a 867 -353 -40.7
Space Sp. A 6,097 54,940 28,472 51.8
The Comedy Network Sp. A 5,418 56,594 30,010 53.0
The Movie Network Pay A 1,133 120,564 4,105 3.4
The Movie Network Encore Pay A 1,225 20,374 11,742 57.6
The Sports Network (TSN) Sp. C 8,798 442,840 116,227 26.2
Viewer’s Choice Canada PPV** 0 332 46 13.9
French Câblevision du Nord de Québec inc. VOD n/a 412 -3 -0.7
Canal D Sp. A 2,489 41,666 18,611 44.7
Canal D Investigation Sp. B 534 4,420 -641 -14.5
Canal Vie Sp. A 2,232 45,664 16,510 36.2
CINÉPOP Pay B 1,241 11,340 6,264 55.2
Le Réseau des Sports (RDS) Sp. C 3,149 162,477 19,298 11.9
RDS Info Sp. A 1,117 6,856 -4,831 -70.5
Super Écran Pay A 617 61,402 15,332 25.0
VRAK.TV Sp. A 2,108 26,127 6,206 23.8
Ztélé Sp. A 1,880 25,560 7,162 28.0

Sources: CRTC ownership records and CRTC data collection

Viewer’s Choice Canada ceased operation on 30 September 2014

Table 4.2.33 CBC - Controlling ownership interest in discretionary and on demand services, 2015
Language Service Type of service Number of subscribers (000) Revenues ($) (000) PBIT ($) (000) PBIT margin (%)
English CBC News Network Sp. C 11,173 87,952 7,839 8.9
Documentary Sp. A 2,647 6,645 1,012 15.2
French ARTV Sp. A 1,792 13,601 -1,064 -7.8
EXPLORA Sp. B n/a 5,020 n/a n/a
RDI Sp. C 10,854 54,270 1,392 2.6

Sources: CRTC ownership records and CRTC data collection

Table 4.2.34 Cogeco - Controlling ownership interest in discretionary and on demand services, 2015
Service Type of service Number of subscribers (000) Revenues ($) (000) PBIT ($) (000) PBIT margin (%)
Cogeco On Demand/Cogeco Sur Demande VOD n/a 15,074 2,779 18.4

Sources: CRTC ownership records and CRTC data collection

Table 4.2.35 Corus - Controlling ownership interest in discretionary and on demand services, 2015
Language Service Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
English ABC Spark Sp. B n/a 11,758 n/a n/a
Cartoon Network Sp. B n/a 3,438 n/a n/a
CMT Canada Sp. A 9,949 19,896 3,458 17.4
Cosmopolitan TV Sp. B n/a 8,606 n/a n/a
Encore Avenue Pay A 1,997 18,389 10,885 59.2
EuroWorld SPORT Sp. B n/a 21 n/a n/a
Movie Central Pay A 886 81,734 -6,821 -8.3
Nickelodeon Sp. B n/a 5,818 n/a n/a
OWN Sp. A 6,067 28,601 4,087 14.3
Sundance Channel Sp. B n/a 4,709 n/a n/a
TELETOON Network (formerly TELETOON Retro) Sp. B n/a 6,662 n/a n/a
TELETOON/TÉLÉTOON Sp. A 8,340 69,453 20,949 30.2
TreeHouse TV Sp. A 8,169 13,841 1,681 12.1
W Movies Sp. B n/a 7,012 n/a n/a
W Network Sp. A 7,692 79,862 36,211 45.3
YTV Sp. A 11,118 73,411 30,788 41.9
French Historia Sp. A 1,435 20,351 12,706 62.4
Séries+ Sp. A 1,435 29,838 17,958 60.2
La chaine Disney (formerly TÉLÉTOON Rétro) Sp. B n/a 1,621 n/a n/a
Third-language Mediaset Italia Sp. B n/a 1,778 n/a n/a
Sky TG24 Canada Sp. B n/a 233 n/a n/a
Telebimbi Sp. B n/a 1 n/a n/a
Telelatino Sp. A 4,158 14,799 5,967 40.3
Teleniños Sp. B n/a 32 n/a n/a
Univision Canada Sp. B n/a 1,424 n/a n/a

Sources: CRTC ownership records and CRTC data collection

Movie Central and Encore Avenue ceased operation on 1 March 2016.

Table 4.2.36 Québecor - Controlling ownership interest in discretionary and on demand services, 2015
Language Service Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
French addikTV Sp. A 1,358 12,132 1,877 15.5
ARGENT Sp. A 502 2,170 -475 -21.9
Canal Indigo PPV** 1,524 7,338 2,550 35.0
Casa Sp. B 1,163 9,729 985 10.1
Illico sur demande VOD n/a 50,012 -5,483 -11.0
Le Canal Nouvelles (LCN) Sp. C 2,562 29,404 6,456 22.0
Moi&cie Sp. B 853 5,840 -1,192 -20.4
Prise 2 Sp. B 1,134 9,053 2,537 28.0
TVA Sports Sp. C 1,996 81,786 -38,934 -47.6
YOOPA Sp. B 667 4,035 -97 -2.4
English Sun News Network Sp. C - 5,845 -5,401 -92.4

Sources: CRTC ownership records and CRTC data collection

Sun News Network ceased operation on 13 February 2015.

Table 4.2.37 Rogers - Controlling ownership interest in discretionary and on demand services, 2015
Service (English-language) Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
FX Canada Sp. B 4,671 14,363 1,584 11.0
FXX Sp. B 1,641 4,525 -1,733 -38.3
G4 Sp. A 1,458 4,527 1,966 43.4
OLN Sp. A 4,960 20,059 8,179 40.8
Rogers on Demand VOD n/a 47,289 1,068 2.3
Sportsnet Sp. C 7,972 360,368 53,757 14.9
Sportsnet 360 Sp. A 5,694 35,101 -4,948 -14.1
Sportsnet One Sp. C 6,731 86,907 35,954 41.4
Sportsnet PPV PPV** 1,708 19,896 -17,589 -88.4
Sportsnet World Sp. B 82 11,167 335 3.0
The Biography Channel Sp. A 1,632 6,360 237 3.7

Sources: CRTC ownership records and CRTC data collection

Table 4.2.38 Shaw - Controlling ownership interest in discretionary services, 2015
Service (English-language) Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
Action Sp. B 4,333 20,535 12,555 61.1
BBC Canada Sp. B 2,657 10,641 6,075 57.1
BC News 1 Sp. B 882 1,518 -4,781 -315.0
Crime + Investigation (formerly Mystery) Sp. A 3,193 19,159 10,833 56.5
D.I.Y. Network Sp. B 3,249 11,496 7,242 63.0
DéjaView Sp. B 1,506 7,992 4,606 57.6
DTOUR Sp. A 4,997 25,740 15,312 59.5
Food Network Canada Sp. A 6,033 67,131 29,923 44.6
FYI, (formerly Twist TV) Sp. A 2,063 8,176 3,300 40.4
H2 Sp. A 2,816 9,358 4,196 44.8
HGTV Canada Sp. A 7,128 72,121 30,753 42.6
History Television Sp. A 6,950 75,912 49,324 65.0
Independent Film Channel Canada Sp. A 1,302 9,449 3,938 41.7
Lifetime Sp. B 3,777 20,874 7,208 34.5
MovieTime Sp. B 4,247 16,004 10,193 63.7
NatGeo Wild Sp. B 2,748 5,824 -14 -0.2
National Geographic Channel Canada Sp. B 5,053 26,942 17,340 64.4
Shaw on Demand VOD n/a 62,056 161 0.3
Shaw Pay-Per-View (formerly Allarcom) PPV** n/a 14,247 -2,896 -20.3
Shaw Pay-Per-View (formerly Home Theatre) PPV** n/a 6,294 383 6.1
Showcase Sp. A 6,490 72,927 40,715 55.8
Slice Sp. A 4,977 38,885 14,252 36.7

Sources: CRTC ownership records and CRTC data collection

4.3 Broadcasting distribution sector

Infographic summarizing section 4.3 - Broadcasting distribution sector
Infographic summarizing section 4.3 - Broadcasting distribution sector
Text Description of Image

This infographic presents several key indicators for the broadcasting distribution sector and is divided into 5 sections. First indicator: circular chart shows percentage of broadcasting distribution revenues as a proportion of all broadcasting revenues in 2015. Broadcasting distribution revenues were 50% of all broadcasting revenues. Total broadcasting revenues were $17.9 billion. Second indicator: revenues: $8.9 billion, a decrease of 0.1% over 2014. Third indicator: subscribers: 11.2 million, a decrease of 1.4% over 2014. Fourth indicator: affiliation payments: 88% are to Canadian services. Fifth indicator: IPTV subscriber share: 19%, up from 16% in 2014.

Broadcasting distribution undertakings (BDUs) provide subscription television services to Canadians. They distribute conventional television, discretionary services and on-demand services. The BDU section of this report focuses on three types of BDUs: cable, Internet protocol television (IPTV), and national direct-to-home (DTH) satellite service providers.

In 2015, BDUs reported $8.9 billion in revenues, a decrease of 0.1% over 2014. Combined, the five largest BDUs reported 87% of programming distribution revenues.

The Canadian distribution landscape has been dominated by cable and DTH satellite BDUs. While cable is in decline, it is still the largest type of BDU with over 60% of the subscriber market share. However, IPTV service providers are rapidly growing due to expanded distribution networks and reach. In 2015, IPTV providers reported, for the first time, over 2 million subscribers.

Over 78% of Canadian households still subscribe to BDU services. Canadians living in urban centres generally have a choice of three to four service providers and/or types of service, while those living in the North and in rural communities usually have access to fewer than three providers.

Canadians have been increasingly cancelling their current television service subscriptions. From 2013 to 2014 BDU subscribers decreased by 112,759 or 0.98% and from 2014 to 2015, the decrease reached 157,922 or 1.38%. Popular online video services are providing Canadians with more choice of where, when and how to access these programs. These services include both free and paid independent, non-affiliated services such as Netflix and YouTube.

i) Revenues

In 2015, Canadian cable, IPTV and satellite companies’ revenues stood at $8,918 million, with a marginal decline in revenues of 0.1% since 2014, the first decline in the last five years. These companies have generated an average annual growth in revenues of 1.3% since 2011.

Revenues for IPTV companies continued on their upward trend and totalled $1,557 million in 2015. This represented an increase of $273 million (21.3%) since 2014 and of $1,235 million since 2011. By contrast, the revenues of satellite companies have been on a downward trend since 2011, recording the largest losses over the past two years. They generated revenues of $2,289 million in 2015, down 5.2% from 2014.

Table 4.3.1 Revenues ($ millions) of broadcasting distribution undertakings (BDU) – Basic and non-basic services
Type of service 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Cable 5,605 5,483 5,397 5,232 5,072 -3.1 -2.5
IPTV 322 585 925 1,284 1,557 21.3 48.3
DTH and MDS 2,532 2,492 2,472 2,414 2,289 -5.2 -2.5
Total revenues 8,459 8,561 8,794 8,930 8,918 -0.1 1.3

Source: CRTC data collection

Table 4.3.1 shows the annual revenues of cable BDUs, IPTV services and DTH satellite services collected by BDUs for cable, IPTV, and DTH services from 2011 to 2015, as well as the annual and compounded annual growth rates (CAGR) for all years combined. The data are for the 12-month period ending 31 August of each year. The growth of revenue from IPTV services is noteworthy relative to the other distribution services.

Table 4.3.2 Percentage of broadcasting distribution undertaking revenues (%) - Basic and non-basic services
Type of service 2011 2012 2013 2014 2015
Cable 66.3 64.0 61.4 58.6 56.9
IPTV 3.8 6.8 10.5 14.4 17.5
DTH and MDS 29.9 29.1 28.1 27.0 25.7

Source: CRTC data collection

Basic and non-basic services:

Basic service is the service distributed in a licensed area by a broadcasting distribution undertaking as a package consisting of programming services whose distribution is required by the Commission. Non basic service is the service distributed in a licensed area by a broadcasting distribution undertaking consisting of programming services whose distribution is not required by the Commission.

Multipoint distribution service (MDS):

As of 1 September 2011, the Commission no longer issues MDS broadcasting licences. As part of the spectrum auction of the 2596 to 2686 MHz frequency band, which was the band used by MDS licensees, Innovation, Science and Economic Development Canada (ISED) converted various broadcasting certificates issued to MDS undertakings to Broadband Radio Service (BRS) licences. As of 1 September 2013, there are no MDS undertakings in operation.

ii) Subscriber Data

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.

Since 2011, IPTV companies increased their share of the subscriber market from 5.8% to 19.2%, and counted 2.2 million subscribers in 2015. Conversely, satellite companies have decreased their share of the subscriber market to 21.1% (2.4 million subscribers), but nonetheless garnered 25.7% of all cable, IPTV and satellite companies revenues.

Table 4.3.3 Broadcasting distribution undertakings subscriber (thousands) numbers – Basic and non-basic services
Type of service 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Cable 7,862 7,701 7,445 7,062 6,707 -5.0 -3.9
IPTV 657 1,003 1,382 1,784 2,165 21.4 34.7
DTH and MDS 2,877 2,826 2,691 2,559 2,375 -7.2 -4.7
Total subscribers 11,397 11,529 11,517 11,405 11,247 -1.4 -0.3

Source: CRTC data collection

Table 4.3.4 Percentage of broadcasting distribution undertakings subscriber (%) – Basic and non-basic services
Type of service 2011 2012 2013 2014 2015
Cable 69.0 66.8 64.6 61.9 59.6
IPTV 5.8 8.7 12.0 15.6 19.2
DTH and MDS 25.2 24.5 23.4 22.4 21.1

Source: CRTC data collection

Tables 4.3.3 and 4.3.4 show the number of subscribers of cable BDUs, IPTV services, and DTH satellite services from 2011 to 2015, as well as the annual growth rates and the compound annual growth rate (CAGR) for years combined. The number of subscribers is as of 31 August of each year.

Table 4.3.5 Number of subscribers for the largest Canadian BDUs (thousands)
Largest Canadian BDUs 2012 2013 2014 2015 2016 Growth (%) 2014-2015 CAGR (%) 2012-2016
BCE 2,112 2,170 2,307 2,658 2,749 3.4 6.8
Shaw 3,168 3,044 2,883 2,760 2,513 -8.9 -5.6
Rogers 2,276 2,189 2,107 1,983 1,870 -5.7 -4.8
Videotron 1,854 1,849 1,811 1,771 1,722 -2.8 -1.8
Telus 550 712 842 937 1,016 8.4 16.6
Cogeco 873 853 816 780 755 -3.2 -3.6
Total 10,833 10,817 10,766 10,889 10,625 -2.4 -0.5
% of all subscribers 94.5 93.9 93.9 96.1 - - -

Source: Corporate quarterly reports

This table show the number of subscribers for each of the top five Canadian BDUs (based on revenues) within their exclusive market sectors.

The data are as of 31 March of each year with the exception of those for Shaw and Cogeco, which are as of 28 February of each year. The data are for cable BDUs, IPTV services, and DTH satellite services. The data for Shaw include Shaw Direct, and the data for BCE include broadcasting distribution activities by Bell Canada and Northwestel (Northwestel data have been included since 2011). Due to the acquisition of Bell Aliant by BCE, Bell Aliant’s television subscribers are included with BCE as of 2015.

Table 4.3.6 Percentage of households subscribing to BDUs
Year Household subscription rate (%)
2011 82.6
2012 82.8
2013 82.0
2014 80.3
2015 78.5

Source: CRTC data collection

To calculate the household subscription rates, the number of BDU subscriptions at the end of the annual period is divided by the total number of households in Canada.

iii) Financial performance

The EBITDA margin is a metric used to measure financial performance, it represents earnings before interest, taxes, depreciation, and amortization and is expressed as a percentage of total revenues.

In 2015, cable, IPTV and satellite companies reported their lowest EBITDA margin in five years, but it remains healthy at 19.0%. The EBITDA 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 EBITDA margin generally grew over the period, starting at 24.4% in 2011, reaching a peak of 33.4% in 2013, before declining to 27.7% in 2015.

Figure 4.3.1 EBITDA margins achieved by BDUs - Basic and non-basic services

Line chart of Figure 4.3.1: EBITDA margins achieved by BDUs - Basic and non-basic services
Text Description of Image

This line chart shows the EBITDA margins in percentage of earnings before interest, taxes, depreciation and amortization achieved from basic and non-basic programming activities by cable and IPTV, and DTH and MDS undertakings during the years 2011 to 2015. Cable and IPTV: 22.5%, 20.3%, 19.9%, 15.8% and 16.1%; DTH and MDS: 24.4%, 30.1%, 33.4%, 32.0% and 27.7%; Cable, IPTV, DTH and MDS combined: 23.1%, 23.1%, 23.7%, 20.2%, 19.0%.

Source: CRTC data collection

This figure compares the EBITDA margins for cable BDUs and IPTV service providers with those of DTH satellite services and MDS providers, from 2011 to 2015. While these margins declined for cable BDUs and IPTV services, it increased for DTH satellite services and MDS’. The data are for the 12-month period ending 31 August of each year.

iv) Performance indicators

Table 4.3.7 Monthly revenues per subscriber, by type of BDUs
Type of BDUs 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Cable 59.36 58.72 59.39 60.11 61.40 2.1 0.8
IPTV 49.88 58.78 64.65 67.61 65.72 -2.8 7.1
DTH and MDS 73.53 72.84 74.69 76.63 77.30 0.9 1.3
All Reporting BDUs 62.51 62.24 63.60 64.93 65.62 1.1 1.2

Source: CRTC data collection

Monthly revenues per subscriber:

Monthly revenues per subscriber are calculated by dividing BDUs’ annual revenues from basic and non-basic services by the average number of subscriptions in the year. The result is then divided by 12 to obtain the monthly amount. The average number of subscribers is determined by dividing the sum of the number of subscribers at the beginning and at the end of the year by two.

v) Price

Each year, the Commission surveys the prices of basic television service in a number of urban centres and rural communities. The communities chosen for 2015 are set out in Appendix 9. In 2015, data from 24 major urban centres and a select number of rural communities shows that the prices of basic service and the number of channels included in the basic service varied significantly among service providers and across the communities served, for both types of communities.

In its Regulatory Policy (2015-96), following the Let’s Talk TV proceeding, the Commission required distributors to offer a $25 entry-level service offering as of March 1st 2016. The data in this section presents 2015 information, as such the impact of this requirement will be reflected in next year’s report.

Urban centres

Figure 4.3.2 shows the 2015 prices for BDUs’ basic services for Canadians living in 24 major urban centres. For the most part, those Canadians could choose from among three types of service providers: cable, IPTV or DTH satellite. The price of the basic television services varied, from lows of $30 to $37 per month to highs of $38 to $58 per month.

Figure 4.3.2 BDU basic service prices by major centre, 2015

Horizontal bar chart of Figure 4.3.2: BDUs basic service prices by major centre, 2015
Text Description of Image

This horizontal bar chart shows the BDU basic service highest and lowest monthly prices in dollars by major centre, as well as number of providers in each centre. Vancouver: 3 providers, low 34, high 42; Victoria: 3 providers, low 34 high 42; Calgary: 3 providers, low 34, high 42; Edmonton: 3 providers, low 34, high 42; Saskatoon: 3 providers, low 34, high 58; Regina: 4 providers, low 34, high 58; Winnipeg: 3 providers, low 32, high 45; Toronto: 3 providers, low 37, high 41; Ottawa-Gatineau: 3 providers, low 37 high 41; Hamilton: 4 providers, low 35, high 41; London: 3 providers, low 37, high 41; Kitchener-Waterloo: 3 providers, low 37, high 41; St Catharines – Niagara: 3 providers, low 35, high 41; Windsor: 3 providers, low 35, high 41; Oshawa: 3 providers, low 37, high 41; Montréal: 3 providers, low 30, high 38; Québec: 3 providers, low 30, high 38; Fredericton: 3 providers, low 37, high 57; Charlottetown: 3 providers, low 37, high 57; Halifax: 3 providers, low 35, high 57; St. John’s: 3 providers, low 37, high 57; Whitehorse: 2 providers, low 37, high 42; Yellowknife: 2 providers, low 34, high 42; Iqaluit: 2 providers, low 37, high 42.

Source: CRTC data collection

The number of service providers in each urban centre is indicated in parentheses. As an example, there are three BDU service providers in Vancouver, where the lowest price is $34 and the highest price is $42.

The composition of a basic package of television services varied between 27 and 170 channels, depending on location and service provider. The services were generally available in digital and high definition formats, and the programming generally included television, radio, and music channels.

Rural centres

Figure 4.3.3 BDU basic service prices by province, urban and rural, 2015

Horizontal bar chart of Figure 4.3.3: BDU basic service prices by province, urban and rural, 2015
Text Description of Image

This horizontal bar chart shows the BDU basic service highest and lowest monthly prices in dollars by urban and rural areas on a per province basis. B.C.: 3 to 4 providers, low 34, high 60; B.C. urban: 3 providers, low 34, high 42; Alta. rural: 3 to 4 providers, low 34, high 61; Alta. urban: 3 providers, low 34, high 42; Sask. rural: 2 providers, low 34, high 40; Sask. urban: 4 providers, low 34, high 58; Man. rural: 2 providers, low 34, high 37; Man. urban: 3 providers, low 34, high 45; Ont. rural: 2 to 4 providers, low 27, high 50; Ont. urban: 3 providers, low 35, high 41; Que. rural: 3 to 4 providers, low 22, high 38; Que. urban: 3 providers, low 30, high 38; N.B. rural: 3 providers, low 37, high 42; N.B. urban: 3 providers, low 37, high 57; P.E.I. rural: 2 to 3 providers, low 37, high 53; P.E.I. urban: 3 providers, low 37, high 57; N.S.rural:, 2 to 3 providers, low 37, high 57; N.S. urban: 3 providers, low 35, high 57; N.L. rural: 3 providers, low 37, high 60; N.L. urban: 3 providers, low 37, high 57; Y.T. rural: 2 providers, low 37, high 42; Y.T. urban: 3 providers, low 37, high 42; N.W.T. rural: 2 to 3 providers, low 34, high 41; N.W.T. urban: 2 providers, low 34, high 42; Nvt rural: 2 providers, low 37, high 42; Nvt urban: 2 providers, low 37, high 42.

Source: CRTC data collection

The number of service providers in each province (urban and rural areas surveyed) is indicated in parentheses, as an example, in British Columbia, there are three to four service providers in the rural communities surveyed and three in the urban centres surveyed. The lowest prices offered by these providers for basic BDU service is from $22 to $37 per month in the rural communities, and from $30 to $37 in urban centres.

Which communities were included?

Fifty-four rural communities were selected to assess the price of BDU basic services (see Appendix 9). These communities met the following criteria:

  • The community was not part of one of the CMAs of the 24 major centres;
  • It had a population density of fewer than 400 people per square kilometre, or its population centres had fewer than 1,000 people;
  • The number of communities in each province was proportional to the population of the province; and
  • The communities were not clustered together.

vi) Competitive landscape

Cable companies were the first providers of BDU services in Canada. By the mid-1990s, DTH satellite services had entered the Canadian market. More recently, IPTV services have become available.

In 2015, Canadians living in urban centres were able to choose between three types of BDU service providers: cable, IPTV and DTH satellite. In rural areas, just over half of Canadians households were dependent on a DTH satellite service provider. Just less than half of rural Canadian households had access to both cable and DTH satellite service providers.

Figure 4.3.4 Percentage of revenues and subscribers by type of distribution platform, 2015

Circular chart of Figure 4.3.4: Percent Percentage of revenues and subscribers by type of distribution platform, 2015
Text Description of Image

This pair of circular charts show the market share of revenues and subscribers by type of distribution platform. For revenues: DTH and MDS are 26%, Cable is 57%, and IPTV is 18%. For subscribers: DTH and MDS are 21%, Cable is 60%, and IPTV is 19%.

Source: CRTC data collection

In 2015, DTH and MDS services generated 26% of the TV distribution revenues with 21% of the subscribers in the sector, while Cable services had 60% of the subscribers but reported 57% of the revenues of the sector.

vii) Consumer voices

Table 4.3.8 Number of BDU-related contacts received by the CRTC
Year CRTC policies/ decisions Billing Prices/Rates Terms and conditions Disability issues Quality of service/ Delivery Competition Other Total
2014-2015 755 1,298 223 313 62 480 110 2,300 5,541
2015-2016 1,456 652 154 180 58 352 60 279 3,191

Source: CRTC Correspondence Tracking System

This table summarizes the contacts received by the CRTC, which included questions, comments, complaints, and other communications, broken down by the type of issue raised.

viii) Online television services

Figure 4.3.5 Percentage of Canadians who watch TV exclusively online, nationally and by language

Bar chart of Figure 4.3.5: Percentage of Canadians who watch TV exclusively online, nationally and by language
Text Description of Image

This bar chart shows the percentage of Canadians who watch TV exclusively online, nationally and by language. For National: 2012: 4%; 2013: 6%; 2014: 8%; 2015: 8%. For Anglophones: 2012: 5%; 2013: 6%; 2014: 9%; 2015: 10%; For Francophones: 2012: 2%; 2013: 3%; 2014: 4%; 2015: 4%.

Source: MTM, 2012-2015 (Respondents: Canadians 18+)

Figure 4.3.6 Percentage of Canadians who subscribe to Netflix, by region

Horizontal bar chart of Figure 4.3.6: Percentage of Canadians who subscribed to Netflix, by region
Text Description of Image

This horizontal bar chart shows the percentage of Canadians who subscribed to Netflix, by region. British Columbia: 2014: 41%; 2015: 46%; Alberta: 2014: 49%; 2015: 55%; Manitoba and Saskatchewan: 2014: 32%; 2015: 47%; Ontario: 2014: 37%; 2015: 44%; Quebec: 2014: 15%; 2015: 23%; Atlantic: 2014: 40%; 2015: 44%; Total: 2014: 33%; 2015: 41%.

Source: MTM, 2014-2015 (Respondents: Canadians 18+)

Figure 4.3.7 Percentage of Canadians who subscribe to Netflix, by age group

Bar chart of Figure 4.3.7: Percentage of Canadians who subscribe to Netflix, by age group
Text Description of Image

This bar chart shows the percentage of Canadians who subscribe to Netflix, by age group. For 18+: 2014: 33%; 2015: 41%; For 18-34: 2014: 51%; 2015: 61%; For 35-49: 2014: 39%; 2015: 47%; For 50-64: 2014: 25%; 2015: 31%; For 65+: 2014: 11%; 2015: 15%.

Source: MTM, 2014-2015 (Respondents: Canadians 18+)

Younger Canadians are more likely to subscribe to Netflix than older Canadians.

Figure 4.3.8 Likelihood of Canadians “cutting the cord” on their current traditional TV subscription in the next 12 months (percentage)

Stacked bar chart of Figure 4.3.8: Likelihood of Canadians “cutting the cord” on their current traditional TV subscription in the next 12 months (percentage)
Text Description of Image

This stacked bar chart show the percentage of Canadians holding various attitudes towards “cutting the cord” on their current traditional TV subscription in the next 12 months. For 2013: 7% very likely, 9% somewhat likely, 29% not very likely, 51% not at all likely, and 3% don’t know. For 2014: 7% very likely, 13% somewhat likely, 26% not very likely, 51% not at all likely, and 3% don’t know. For 2015: 7% very likely, 14% somewhat likely, 32% not very likely, 44% not at all likely, and 4% don’t know.

Source: MTM, 2013-2015 (Respondents: Canadians 18+)

Table 4.3.9 Adoption rates (%) of various video technologies in Canada by language market
Video technology Language market 2011 2012 2013 2014 2015
PVR Anglophone 35 43 46 50 49
Francophone 23 39 42 52 56
Internet TV Anglophone 34 38 44 51 57
Francophone 38 39 44 42 49
Netflix Anglophone 12 21 29 39 47
Francophone 3 5 7 12 19

Source: MTM, 2011-2015 (Respondents: Canadians 18+, viewed or used in the past month)

This table shows the percentages of Canadians 18 years of age and older who had adopted various video technologies and services each year from 2011 through 2015. MTM describes “Internet TV” as watching or streaming television programs or clips available over the Internet.

ix) Contribution to 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. Furthermore, 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 $437 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 which have remained relatively constant from 2014 to 2015.

Figure 4.3.9 Contributions to Canadian programming by type (millions)

Line clustered-column on 2 axes chart of Figure 4.3.9   : Contributions to Canadian programming by type ($ millions)
Text Description of Image

This line clustered-column on 2 axes chart depicts the BDU contributions to the Canadian Media Fund (CMF), Local Programming Improvement Fund (LPIF), other independent funds, and expenditures on community channels in millions of dollars for each of 2011 to 2015 broadcast years. Contributions to CMF: 205.8, 208.5, 219.3, 219.3 and 219.6; Contributions to LPIF: 70.8, 73.8, 75.2, 39.9 and 0.0; Contributions to other independent funds: 62.3, 62.0, 61.1, 64.1 and 64.7; Expenditures on community channels: 112.5, 112.2, 138.4, 151.6 and 152.6; Total combined contributions and expenditures: 451.3, 456.5, 493.9, 474.9 and 436.9.

Source: CRTC data collection

This figures shows the contributions made by BDUs to the CMF, the LPIF and other independent production funds, as well as spending on local expression (community channels), during the 12-month period ending 31 August of each year. BDU contributions include contributions reported by cable BDUs, DTH satellite services, MDS’s and satellite relay distribution undertakings (SRDUs).

Figure 4.3.10 BDU contributions to Canadian programming by recipient

Stacked bar chart of Figure 4.3.10: BDU contributions to Canadian programming by recipient ($ millions)
Text Description of Image

This stacked bar chart shows contributions to the creation and production of Canadian programming by BDUs as a percentage for years 2011 to 2015. It also indicates the total contributions for each year in millions of dollars. Contributions to CMF: 47%, 46%, 45%, 46% and 50%; Contributions to LPIF: 16%, 16%, 15%, 8% and 0%; Expenditures on local expression: 25%, 25%, 28%, 32% and 35%; Contributions to other independent funds: 14%, 14%, 12%, 14% and 15%. Total revenues were 451, 456, 494, 475 and 437 million dollars.

Source: CRTC data collection

LPIF was terminated on August 31, 2014.

x) Affiliation payments

The providers of discretionary programming services (both Canadian and non-Canadian) receive remuneration from the BDUs that distribute their services. This remuneration is referred to as an affiliation payment, and is based on the number of BDU subscribers who receive the programming service.

Payments to Canadian affiliates have increased annually by 4.3% since 2011, whereas payments to non-Canadian affiliates have increased by 4.9%. The data are based on the 12-month period ending 31 August of each year.

Table 4.3.10 Affiliation payments made to Canadian and non-Canadian discretionary services reported by BDUs ($ millions)
Category Type of service 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Canadian affiliates Cable and IPTV 1,809 1,930 2,024 2,193 2,322 5.9 6.4
DTH and MDS 735 726 700 716 685 -4.3 -1.7
Total 2,544 2,656 2,724 2,909 3,007 3.4 4.3
Non-Canadian affiliates Cable and IPTV 263 265 285 298 316 6.0 4.7
DTH and MDS 81 86 94 93 101 8.6 5.7
Total 344 351 379 391 417 6.6 4.9
All affiliates All services 2,888 3,007 3,103 3,300 3,424 3.8 4.3

Source: CRTC data collection

This table provides a detailed breakdown of the amounts of affiliation payments made by BDUs (cable/IPTV vs DTH satellite/MDS) to discretionary services, broken down by Canadian and non-Canadian affiliates, for the years 2011 through 2015.

Table 4.3.11 Affiliation payments received by Canadian and non-Canadian discretionary services reported by BDUs ($ millions)
Category Type of service 2011 2012 2013 2014 2015 Growth (%) 2014-2015 CAGR (%) 2011-2015
Canadian affiliates Pay, PPV and VOD 682 671 670 669 660 -1.3 -0.8
Specialty 1,862 1,986 2,054 2,240 2,347 4.8 6.0
Total 2,544 2,656 2,724 2,909 3,007 3.4 4.3
Non-Canadian affiliates Pay, PPV and VOD 48 34 37 38 54 42.1 3.0
Specialty 296 317 342 353 363 2.8 5.2
Total 344 351 379 391 417 6.6 4.9
All affiliates All services 2,888 3,007 3,103 3,300 3,424 3.8 4.3

Source: CRTC data collection

This table provides a detailed breakdown of the amounts of affiliation payments received from discretionary services (pay/PPV/VOD vs specialty), broken down by Canadian and non-Canadian affiliates, for the years 2011 through 2015.

xi) Broadcasting dispute resolution

Dispute resolution is designed to effectively process and resolve disputes in an increasingly competitive broadcasting industry. The process and procedures used for resolving disputes that come under the Commission’s regulatory purview are set out in Practices and procedures for staff-assisted mediation, final offer arbitration and expedited hearings, Broadcasting and Telecom Information Bulletin CRTC 2013-637.

Disputes can be generally classified as follows: (1) dispute between broadcasting distributors and programming services concerning the terms of distribution; (2) disputes between competing broadcasting distributors over access to buildings and to the end-user; and (3) disputes between programmers regarding programming rights and markets served.

Table 4.3.12 Number of dispute resolution cases in 2015-2016
Type Type of intervention Number of cases
Formal Staff-assisted mediation 15
Final offer arbitration 2
Informal Informal intervention 133

Source: CRTC data collection

For the 12-month period of 1 April 2015 to 31 March 2016.

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