Communications Monitoring Report 2017: Broadcasting sector overview

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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 2016. The first section is a donut chart and the last 5 are data points.

  1. Donut chart shows the television, radio, and BDU revenues as a percentage of total broadcasting revenues in 2016.
    1. Conventional TV: 16%;
    2. Radio: 10%;
    3. Discretionary and on demand services: 25%;
    4. BDU: 49%;
    5. Broadcasting revenues: $17.9 billion.
  2. Revenues: $17.9 billion, a decrease of 0.5% from 2015.
  3. BDU earnings before interest, taxes, depreciation, and amortization (EBITDA): 16.0%.
  4. Private commercial radio profit before interest and taxes (PBIT): 18.6%.
  5. Private conventional television profit before interest and taxes (PBIT): -6.7%.
  6. Discretionary and on demand TV profit before interest and taxes (PBIT): 21.0%

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

In 2016, revenues reported by the Canadian broadcasting sector ($17.85 billion) decreased by 0.5% relative to 2015 revenues, which totalled $17.95 billion. Broadcasting revenues represented 26.8% of all Canadian communications revenues. From 2012 to 2016, overall broadcasting revenues decreased by 0.14%, the equivalent of an average annual decrease of 0.04%.

Total television revenues increased by 1.7% from 2015 to 2016. The discretionary and on-demand sector was the main source of the growth, with reported revenues of $4.4 billion and a PBIT margin of 21.0% in 2016, representing a 2.9% or $126-million increase in revenues from 2015 to 2016.

CBC conventional television also contributed to television revenue growth from 2015 to 2016, reporting revenues totalling $1,185 million in 2016, a 7.0% or $78-million increase over 2015.

While the profitability of the private conventional television sector improved slightly, reaching -6.7% in 2016 compared to -8.0% in 2015, revenues decreased 4.5% over the same period, totalling $1.7 billion in 2016.

Discretionary and on demand services rely primarily on subscriber revenues while conventional broadcasters rely essentially on advertising revenues. In 2016, approximately 92% of private conventional broadcasters’ revenues and 31% of discretionary and on demand services’ revenues came from advertising revenues.

In 2016, 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 2016. In comparison, companies operating in only one market sector generated 5% of total Canadian broadcasting revenues. The remaining 31% of revenues were reported by companies operating in two or three market sectors.

i) Revenues

Table 4.0.1 Broadcasting revenues ($ millions)
Category Sub-category 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Radio Private commercial AM stations 306 295 290 286 284 -0.6 -1.8
Private commercial FM stations 1,312 1,328 1,323 1,316 1,267 -3.8 -0.9
Private commercial Total 1,618 1,623 1,613 1,602 1,551 -3.2 -1.1
CBC AM stations 73 58 53 49 51 4.4 -8.6
CBC FM stations 253 246 235 228 240 5.3 -1.3
CBC total 326 305 288 277 291 5.1 -2.8
Total 1,944 1,927 1,901 1,879 1,842 -2.0 -1.3
Conventional television Private conventional 2,038 1,944 1,804 1,757 1,678 -4.5 -4.7
CBC conventional 1,369 1,247 1,328 1,107 1,185 7.0 -3.5
Total conventional 3,407 3,191 3,132 2,864 2,863 -0.04 -4.3
Discretionary and on demand television Discretionary and on demand services 3,968 4,091 4,249 4,290 4,416 2.9 2.7
Total television Total 7,375 7,282 7,381 7,154 7,279 1.7 -0.3
BDU Cable 5,480 5,390 5,231 5,067 4,789 -5.5 -3.3
IPTV 589 931 1,285 1,563 1,795 14.8 32.2
DTH/MDS 2,492 2,472 2,414 2,289 2,150 -6.1 -3.6
Total 8,561 8,794 8,930 8,919 8,734 -2.1 0.5
All Broadcasting services Total 17,880 18,004 18,212 17,952 17,855 -0.5 -0.04

Source: CRTC data collection

In this table, broadcasting revenues are presented for each type of service and their component parts, for the years 2012 to 2016. 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.

Table 4.0.2 Broadcasting revenue distribution by region ($ billions)
Region 2014 2015 2016 Percentage of total (%) Growth (%) 2015-2016
Atlantic 0.8 0.8 0.8 6.8 1.2
BC and Territories 1.5 1.5 1.6 13.8 5.2
Ontario 4.5 4.3 4.3 38.0 -0.6
Prairies 2.1 2.1 2.0 17.6 -4.0
Québec 2.7 2.8 2.7 23.8 -2.2

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. Growth rate variance is calculated from exact amounts and, therefore, may not be apparent in the rounded revenue numbers reported in this table.

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
2014 2015 2016 2014 2015 2016
4 3 3 3 63 64 64
3 4 4 4 22 21 21
2 17 18 17 8 10 10
1 171 160 173 6 6 5

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). (Internet radio and Internet television services are not included.) 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 groups Bar chart of Figure 4.0.1: Percent of total broadcasting revenues, by ownership groups
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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 2014, 2015 and 2016.

Groups 2014 2015 2016
Top 5 groups 81 81 81
Next 5 groups/entities 10 10 11
Remaining groups/entities 8 9 8

Source: CRTC data collection

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

Figure 4.0.2 Percentage of total commercial radio revenues by broadcaster, 2016

Circular chart of Figure 4.0.2: Percentage of total commercial radio revenues by broadcaster, 2016 Circular chart of Figure 4.0.2: Percentage of total commercial radio revenues by broadcaster, 2016
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This circular chart shows the percentage of total 2016 revenues achieved by the largest commercial radio broadcasters.

Broadcaster Percent revenue
Other 35%
BCE 26%
Rogers 14%
Newcap 10%
Corus 8%
Cogeco 7%

Source: CRTC data collection

Canada’s five largest commercial radio broadcasters reported 59% of the sector’s total revenues in 2016.

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 2016.

Figure 4.0.3 Percentage of television revenues by broadcaster, 2016

Circular chart of Figure 4.0.3: Percentage of television revenues by broadcaster, 2016 Circular chart of Figure 4.0.3: Percentage of television revenues by broadcaster, 2016
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This circular chart shows the percentage of total 2016 revenues achieved by the largest television broadcasters.

Broadcaster Percent revenue
BCE 32%
Corus 19%
CBC 19%
Rogers 13%
Other 10%
Québecor 6%
Remstar 1%

Source: CRTC data collection

The six largest television broadcasters accounted for 90% of the sector’s total industry revenues in 2016. In the determination of the top 6 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 2016.

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) 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 2012 and 2016.

Service 2012 2013 2014 2015 2016
Total broadcasting 17.9 18.0 18.2 18.0 17.9
Cable 5.5 5.4 5.2 5.1 4.8
Discretionary and on demand television 4.0 4.1 4.2 4.3 4.4
DTH/MDS 2.5 2.5 2.4 2.3 2.1
IPTV 0.6 0.9 1.3 1.6 1.8
Private conventional television 2.0 1.9 1.8 1.8 1.7
Private commercial radio 1.6 1.6 1.6 1.6 1.6
CBC conventional television 1.4 1.2 1.3 1.1 1.2
CBC radio 0.3 0.3 0.3 0.3 0.3

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 (%). 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 2012 to 2016, in percentage.

Service 2012 2013 2014 2015 2016
DTH/MDS EBITDA 30.1 33.4 32.0 27.7 31.2
Cable EBITDA 27.1 28.4 24.6 24.7 21.9
Discretionary and on demand television PBIT 23.0 26.5 24.1 21.5 21.0
Private commercial radio PBIT 19.8 20.2 18.5 18.9 18.6
Private conventional television PBIT 1.1 -0.1 -7.7 -8.0 -6.7
IPTV EBITDA -43.0 -29.3 -19.8 -19.5 -17.9

Source: CRTC data collection

The line graph shows Profitability before interest and taxes (PBIT) margins for private radio and television services and Earnings before interest, taxes, depreciation and amortization (EBITDA) margins for broadcasting distribution undertakings (BDUs), as measures of profitability.

National direct-to-home (DTH) and multipoint distribution service (MDS) refer to satellite service providers. IPTV refers to Internet protocol television.

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. The first section is a donut chart and the last 4 are data points.

  1. Donut chart shows the percentage of radio revenues as a proportion of all broadcasting revenues in 2016.
    1. CBC radio revenues were 2% of all broadcasting revenues;
    2. Private commercial radio revenues were 9% of all broadcasting revenues;
    3. Total broadcasting revenues were $17.9 billion.
  2. Total radio revenues: $1.8 billion, a decrease of 2.0% over 2015.
  3. Listening: Canadians (12+) listened to 14.5 hrs of radio each week on average.
  4. Private commercial radio revenues: $1.6 billion, a decrease of 3.2% over 2015.
  5. CBC radio revenues: $0.3 billion, an increase of 5.1% over 2015.

In 2016, private commercial radio stations reported $1,551 million in revenues and a profitability margin of 18.6%. Commercial radio is profitable overall. However, this can vary significantly depending on region, language and format.

There are 711 private commercial radio stations in Canada. They operate in hundreds of different markets and account for over three-quarters of all radio stations in operation in Canada. From 2012 to 2016, commercial radio stations reported an average annual revenue decrease of approximately -1.1%. Over the same period, revenues reported by AM radio stations dropped from $306 million to $284 million. This can be attributed in part to faltering advertising revenues. FM stations reported an annual revenue decrease of 0.9% over the same five year period.

Canadians continue 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/Société Radio-Canada (CBC/SRC), Canada’s public broadcaster, operates 67 English- and French-language radio stations across Canada. Revenues for CBC/SRC’s radio unit have steadily declined from $326 million in 2012 to $291 million in 2016.

Community, campus and Aboriginal radio stations play an important role in the communities they serve and in the broadcasting sector as a whole. These radio stations numbered 180 and reported $58 million in revenues. In 2016, the Commission issued 15 new licences, 11 of which were to non-commercial entities.

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

Canadians are increasingly using a range of audio content services in addition to over-the-air radio. According to the Media Technology Monitor (MTM), 22% of Canadians (18+) stream AM/FM radio online and 55% of Canadians (18+) stream music videos on YouTube, consistent with last years findings. National satellite subscribership is unchanged over the past three years, as MTM again estimates 16% of Canadians (18+) subscribe to satellite radio.

i) Revenues

In 2016, the 711 commercial radio stations in operation generated total revenues of $1,551 million, down 3.2% from 2015. There were 7 additional FM services in operation in 2016 relative to the previous year, bringing the total number of FM station to 587 services. They reported combined total revenues of $1,267 million. Revenues for FM services have decreased on average by 0.9% each year since 2012.

By contrast, the number of AM radio stations has decreased by 5 stations since 2012, for a total of 124 AM services in 2016. AM radio stations struggled relative to FM stations over this period: their revenues dropped 1.8% per year on average since 2012 (to $284.4 million in 2016), twice the rate of FM stations.

A total of 24 radio services were offering third-language programming in 2016, half of them on the AM band and the other half on the FM band. These services generated a combined $46.3 million in revenue in 2016, down 0.7% from 2015. Total revenues for ethnic radio services have recorded an average growth rate of 0.5% per year, those for French 0.3% per year, while English-language services have declined by an average rate of 1.4% per year, over the 2012 and 2016 period.

Table 4.1.1 Revenues ($ millions) of private commercial radio stations, by language of broadcast and frequency band
Type of station 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
English-language - AM 274.9 264.6 261.3 257.1 255.5 -0.6 -1.8
French-language - AM 6.1 4.9 4.3 4.0 4.1 1.3 -9.8
Third-language - AM 25.2 25.1 24.7 24.9 24.8 -0.4 -0.4
All languages - AM 306.2 294.6 290.2 286.0 284.4 -0.6 -1.8
English-language - FM 1,040.1 1,053.8 1,042.7 1,040.1 987.9 -5.0 -1.3
French-language - FM 251.9 253.2 259.2 254.4 257.3 1.1 0.5
Third-language - FM 20.2 21.1 21.3 21.8 21.5 -1.3 1.6
All languages - FM 1,312.2 1,328.0 1,323.3 1,316.4 1,266.7 -3.8 -0.9
All languages – AM and FM 1,618.4 1,622.7 1,613.5 1,602.3 1,551.1 -3.2 -1.1

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 2012 and 2016, and includes the annual growth between 2015 and 2016, 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 2012 2013 2014 2015 2016
English-language - AM 111 109 108 105 105
French-language - AM 6 8 6 7 7
Third-language - AM 12 12 12 12 12
All languages - AM 129 129 126 124 124
English-language - FM 444 454 466 478 484
French-language - FM 90 89 90 91 91
Third-language - FM 12 13 12 11 12
All languages - FM 546 556 568 580 587
All languages – AM and FM 675 685 694 704 711

Source: CRTC data collection

The Canadian Broadcasting Corporation (CBC), Canada’s public broadcaster, operates a total of 14 AM and 53 FM radio stations across Canada. These services’ total revenues have declined from $326 million in 2012 to $277 million in 2015. From 2015 to 2016, reported revenues increased 5.1% to reach $291 million. The majority of this increase is attributable to an increase in Parliamentary Appropriation.

2016 marked the 3rd year of eligibility for the CBC to generate national advertising revenues on ICI Musique and Radio 2. A total of $1.1 million in advertising revenue was generated, down 22.6% from 2015. Nonetheless, advertising revenues remain a modest source of income for the CBC’s radio services – it accounted for 0.4% of the broadcaster’s total radio revenues in 2016.

The number of radio stations operated by the CBC declined by 13 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/SRC radio stations summary, by type of revenue ($ thousands)
Metric 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Advertising revenues 0 0 1,074 1,366 1,057 -22.6 n/a
Parliamentary appropriations 316,508 295,523 277,310 266,880 280,962 5.3 -2.9
Sales/syndication of programs 952 1,087 1,328 1,816 1,684 -7.3 15.3
Other revenues 8,432 8,145 7,924 6,480 6,991 7.9 -4.6
Total revenues 325,892 304,756 287,636 276,542 290,694 5.1 -2.8
Number of stations 78 81 82 69 67 -2.9 -3.7

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/SRC in 2014 and after in the above table reflect this decision.

Table 4.1.4 Revenues ($ millions) of commercial radio stations, by radio market type
Market Type 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Designated 1,223.7 1,216.7 1,201.7 1,194.6 1,150.4 -3.7 -1.5
Non-designated 394.7 405.9 411.7 407.7 400.7 -1.7 0.4
All markets 1,618.4 1,622.7 1,613.5 1,602.3 1,551.1 -3.2 -1.1

Source: CRTC data collection

Designated markets generate 74% 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://crtc.gc.ca/eng/publications/reports/BrAnalysis/radio2016/radio2016.htm.

Figure 4.1.1 Revenues ($ millions) of ethnic commercial radio stations, by province

Circular chart of Figure 4.1.1: Revenues ($ millions) of ethnic commercial radio stations, by province Circular chart of Figure 4.1.1: Revenues ($ millions) of ethnic commercial radio stations, by province
Text Description of Image

This circular chart shows the percentage representation radio revenues by province.

Province Percentage
Québec 7
British-Columbia 33
Alberta/Manitoba 11
Ontario 48

Source: CRTC data collection

This figure shows radio revenues reported by ethnic radio stations by province from 2012 to 2016. 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 4.1.2 Revenues of private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.2: Revenues of private commercial radio stations and number of reporting undertakings Line clustered-column on 2 axes chart of Figure 4.1.2: 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 2012 to 2016 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 306 295 290 286 284
FM 1,312 1,328 1,323 1,316 1,267
AM and FM 1,618.4 1,622.7 1,613.5 1,602.3 1,551.1
FM as a percent of total 81.1% 81.8% 82.0% 82.1% 81.7%
Number of reporting undertakings:
Type 2012 2013 2014 2015 2016
AM 129 129 126 124 124
FM 546 556 568 580 587
AM and FM 675 685 694 704 711
FM as a percent of total 80.9% 81.2% 81.8% 82.4% 82.6%

Source: CRTC data collection

“FM as a total” refers to the proportion of revenues and undertakings that FM stations represent out of the total.

The data in figures 4.1.2 through 4.1.4 include network results, but exclude pay and specialty audio programming services, as well as multi-channel subscription audio services.

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

Line clustered-column on 2 axes chart of Figure 4.1.3: Revenues of English-language private commercial radio stations and number of reporting undertakings Line clustered-column on 2 axes chart of Figure 4.1.3: 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 2012 to 2016 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 275.0 265.0 261.0 257.0 255.0
FM 1040.0 1054.0 1043.0 1040.0 988.0
AM and FM 1315.0 1318.0 1304.0 1297.0 1243.4
FM as a percent of total 79.1% 80.0% 80.0% 80.2% 79.5%
Number of reporting undertakings:
Type 2012 2013 2014 2015 2016
AM 111 109 108 105 105
FM 444 454 466 478 484
AM and FM 555 563 574 583 589
FM as a percent of total 80.0% 80.6% 81.2% 82.0% 82.2%

Source: CRTC data collection

“FM as a total” refers to the proportion of revenues and undertakings that FM stations represent out of the total.

Figure 4.1.4 Revenues of French-language private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.4: Revenues of French-language private commercial radio stations and number of reporting undertakings Line clustered-column on 2 axes chart of Figure 4.1.4: 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 2012 to 2016 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 6 5 4 4 4
FM 252 253 259 254 257
AM and FM 258 258 264 258 261
FM as a percent of total 97.7% 98.1% 98.1% 98.4% 98.5%
Number of reporting undertakings:
Type 2012 2013 2014 2015 2016
AM 6 8 6 7 7
FM 90 89 90 91 91
AM and FM 96 97 96 98 98
FM as a percent of total 93.8% 91.8% 93.8% 92.9% 92.9%

Source: CRTC data collection

“FM as a total” refers to the proportion of revenues and undertakings that FM stations represent out of the total.

Figure 4.1.5 Revenues of Ethnic private commercial radio stations and number of reporting undertakings

Line clustered-column on 2 axes chart of Figure 4.1.5: Revenues of Ethnic private commercial radio stations and number of reporting undertakings Line clustered-column on 2 axes chart of Figure 4.1.5: 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 2012 to 2016 for AM, FM, and AM and FM combined. The second axis depicts percentage of FM in relation to total revenues or undertakings.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 25.1 25.1 24.7 24.9 24.8
FM 20.2 21.1 21.3 21.8 21.5
AM and FM 45.4 46.2 46.0 46.7 46.3
FM as a percent of total 44.5% 45.7% 46.3% 46.7% 46.4%
Number of reporting undertakings:
Type 2012 2013 2014 2015 2016
AM 12 12 12 12 12
FM 12 13 12 11 13
AM and FM 24 25 24 23 24
FM as a percent of total 50.0% 52.0% 50.0% 47.8% 50.0%

Source: CRTC data collection

The line “FM as a total” shows the proportion of revenues and undertakings that FM stations represent out of the total. Revenues from private commercial radio stations operating in the context of the Ethnic Broadcasting Policy have remained stable from 2012 to 2016.

Table 4.1.5 Financial summary ($ thousands) of native, community, and campus radio stations
Type of station Metric 2012 2013 2014 2015 2016
Native stationsFootnote 2 Number of stations reporting 33 36 29 25 24
Advertising revenues 5,397 4,647 5,043 4,512 4,286
Other revenues 10,772 11,203 8,221 8,978 9,077
Total revenues 16,168 15,850 13,264 13,490 13,363
Advertising as a percent of total revenues (%) 33.4 29.3 38.0 33.4 32.1
PBIT margin (%) -4.7 -15.3 -3.8 -0.2 1.3
Community radio stations Number of stations reporting 111 112 111 115 110
Advertising revenues 15,545 15,223 14,973 16,194 16,136
Other revenues 15,241 17,190 16,815 18,643 18,483
Total revenues 30,786 32,412 31,787 34,838 34,618
Advertising as a percent of total revenues (%) 50.5 47.0 47.1 46.5 46.6
PBIT margin (%) 3.7 7.4 4.4 5.8 4.5
Campus radio stations Number of stations reporting 49 47 47 47 46
Advertising revenues 1,019 889 1,337 907 936
Other revenues 7,814 8,323 8,440 8,839 9,112
Total revenues 8,833 9,213 9,777 9,746 10,049
Advertising as a percent of total revenues (%) 11.5 9.6 13.7 9.3 9.3
PBIT margin (%) 10.5 8.5 7.9 4.8 3.6

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 2012 to 2016.

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 2016, the sector reported an average PBIT margin of 18.6%, down 0.3% percentage points from 2015.

FM radio services report higher-than-average PBIT margins. In 2016, their combined profitability stood at almost 21.6% (or $273 million), while that of the AM services was of 5.3% ($15.1 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 4.1.6 Average per-station annual revenues and PBIT of private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.6: Average per-station annual revenues and PBIT of private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.6: Average per-station annual revenues and PBIT of private commercial radio stations
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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 2012 to 2016

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 2.37 2.29 2.30 2.31 2.29
FM 2.40 2.39 2.33 2.27 2.16
AM and FM 2.40 2.37 2.32 2.28 2.18
PBIT ($ millions):
Type 2012 2013 2014 2015 2016
AM 0.25 0.19 0.10 0.14 0.12
FM 0.53 0.55 0.50 0.49 0.47
AM and FM 0.48 0.48 0.43 0.43 0.41

Source: CRTC data collection

Figure 4.1.7 PBIT and PBIT margins of private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.7: PBIT and PBIT margins of private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.7: 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 2012 to 2016. The second axis represents the associated PBIT margin in percent.

AM Stations:
Type 2012 2013 2014 2015 2016
PBIT 32.6 24.8 13.2 17.1 15.1
PBIT Margin 10.65% 8.42% 4.55% 5.98% 5.31%
FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 288.3 303.1 285.3 286.2 273.1
PBIT Margin 21.97% 22.82% 21.56% 21.74% 21.56%
AM and FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 320.9 327.9 298.5 303.3 288.2
PBIT Margin 19.83% 20.21% 18.50% 18.93% 18.58%

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. These markers have stayed stable in 2016.

Figure 4.1.8 Average annual revenues and PBIT per station of English-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.8: Average annual revenues and PBIT per station of English-language private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.8: 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 2012 to 2016. The second axis depicts PBIT for AM, FM and AM and FM combined per station.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 2.48 2.43 2.42 2.45 2.43
FM 2.34 2.32 2.24 2.18 2.04
AM and FM 2.37 2.34 2.27 2.23 2.11
PBIT ($ millions):
Type 2012 2013 2014 2015 2016
AM 0.27 0.20 0.08 0.13 0.11
FM 0.55 0.58 0.51 0.50 0.45
AM and FM 0.50 0.51 0.43 0.43 0.39

Source: CRTC data collection

Average annual per-station revenues for both AM and FM English-language private commercial radio stations have decreased slightly in 2016.

Figure 4.1.9 PBIT and PBIT margins of English-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.9: PBIT and PBIT margin of English-language private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.9: 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 2012 to 2016. The second axis represents the associated PBIT margin in percent.

AM Stations:
Type 2012 2013 2014 2015 2016
PBIT 30.3 21.9 8.8 13.3 11.3
PBIT Margin 11.02% 8.28% 3.37% 5.17% 4.42%
FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 245.5 263.4 238.9 240.0 216.4
PBIT Margin 23.60% 25.00% 22.88% 23.07% 21.91%
AM and FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 275.8 285.3 247.6 253.3 227.7
PBIT Margin 20.97% 21.64% 18.99% 19.53% 18.31%

Source: CRTC data collection

Figure 4.1.10 Average annual revenues and PBIT per station of French-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.10: Average annual revenues and PBIT per station of French-language private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.10: 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 2012 to 2016. The second axis depicts PBIT for AM, FM and AM and FM combined per station.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 1.02 0.61 0.72 0.57 0.59
FM 2.80 2.84 2.88 2.80 2.83
AM and FM 2.69 2.66 2.74 2.64 2.67
PBIT ($ millions):
Type 2012 2013 2014 2015 2016
AM 0.04 -0.02 0.08 0.01 -0.01
FM 0.44 0.42 0.48 0.47 0.59
AM and FM 0.41 0.38 0.46 0.44 0.54

Source: CRTC data collection

Average annual per-station revenues for French-language private commercial radio stations remained constant from 2012 to 2015. We have seen an increase in revenues of 1.12% in 2016. This was largely due to the strength of revenues from FM stations. Revenues from French-language AM radio stations have declined considerably since 2011 but have stabilized in 2016.

Figure 4.1.11 PBIT and PBIT margins of French-language private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.11: PBIT and PBIT margin of French-language private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.11: PBIT and PBIT margin of French-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 French-language Canadian private commercial radio stations from 2012 to 2016. The second axis represents the associated PBIT margin in percent.

AM Stations:
Type 2012 2013 2014 2015 2016
PBIT 0.2 -0.2 0.5 0.1 -0.1
PBIT Margin 3.77% -3.09% 10.66% 1.71% -2.44%
FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 39.4 37.3 43.6 43.1 53.4
PBIT Margin 15.64% 14.75% 16.84% 16.96% 20.75%
AM and FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 39.6 37.2 44.1 43.2 53.3
PBIT Margin 15.4% 14.4% 16.7% 16.7% 20.4%

Source: CRTC data collection

Figure 4.1.12 Average per-station annual revenues and PBIT of Ethnic private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.12: Average per-station annual revenues and PBIT of Ethnic private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.12: 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 2012 to 2016. The second axis depicts PBIT for AM, FM and AM and FM combined per station.

Revenues ($ Millions):
Type 2012 2013 2014 2015 2016
AM 2.10 2.09 2.06 2.08 2.07
FM 1.68 1.62 1.78 1.98 1.79
AM and FM 1.88 1.84 1.92 2.04 1.93
PBIT ($ millions):
Type 2012 2013 2014 2015 2016
AM 0.18 0.25 0.31 0.32 0.33
FM 0.28 0.18 0.26 0.28 0.27
AM and FM 0.23 0.22 0.28 0.30 0.30

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 2012 to 2016, AM radio stations outperformed FM radio stations in terms of revenues.

Figure 4.1.13 PBIT and PBIT margin – Ethnic private commercial radio stations

Line clustered-column on 2 axes chart of Figure 4.1.13: PBIT and PBIT margin – Ethnic private commercial radio stations Line clustered-column on 2 axes chart of Figure 4.1.13: 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 2012 to 2016. The second axis represents the associated PBIT margin in percent.

AM Stations:
Type 2012 2013 2014 2015 2016
PBIT 2.1 3.0 3.7 3.8 3.9
PBIT Margin 8.33% 11.95% 14.98% 15.26% 15.73%
FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 3.4 2.4 3.1 3.1 3.2
PBIT Margin 16.83% 11.37% 14.55% 14.22% 14.88%
AM and FM Stations:
Type 2012 2013 2014 2015 2016
PBIT 5.5 5.5 6.8 6.9 7.1
PBIT Margin 12.22% 11.96% 14.78% 14.68% 15.33%

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 2015 to 2016, 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 2016, a total of 1,112 services were authorized to broadcast in Canada, a decrease of 8 over-the-air services over 2015. 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 2016.

Table 4.1.6 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
2015 2016 2015 2016 2015 2016 2015 2016
CBC Radio/Radio Canada 53 53 35 35 0 0 88 88
CBC/SRC Radio network licenses 2 2 2 2 0 0 4 4
Private commercial AM stations 106 105 9 9 14 14 129 128
Private commercial FM stations 482 484 93 93 19 20 594 597
Private commercial AM and FM network licences 0 0 1 1 0 0 1 1
Religious (music and spoken word) 44 45 5 4 1 1 50 50
Community 58 59 67 65 3 3 128 127
Community Developmental 5 2 1 1 0 0 6 3
Campus Community-based 42 42 5 5 0 0 47 47
Campus Instructional 0 0 0 0 0 0 0 0
Aboriginal stations 41 43 5 5 3 3 49 51
Other (tourist/traffic, etc.) 11 3 2 2 0 0 13 5
Total number of over-the-air Canadian radio services 844 838 225 222 40 41 1,109 1,101
Satellite subscription radio service 2 2 0 0 0 0 2 2
Specialty audio (commercial / non-profit, regional/national) 2 2 0 0 5 5 7 7
Pay audio 0 0 0 0 2 2 2 2
Total number of Canadian radio and audio services 848 842 225 222 47 48 1,120 1,112

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 2016.

Table 4.1.7 Number of public/community-based and private radio services authorized to broadcast over-the-air, by province and language of broadcast, 2016
Province/territory English-language French-language Third-language Total
Public/ community Private Public/ community Private Public/ community Private Public/ community Private
British Columbia 32 104 5 0 0 7 37 111
Alberta 8 106 5 0 0 4 13 110
Saskatchewan 8 43 2 0 0 0 10 43
Manitoba 7 34 3 0 0 1 10 35
Ontario 53 209 13 4 1 15 67 228
Quebec 10 9 57 94 2 6 69 109
New Brunswick 7 25 13 4 0 0 20 29
Nova Scotia 14 31 6 0 0 1 20 32
Prince Edward Island 1 5 1 0 0 0 2 5
Newfoundland and Labrador 11 18 1 0 0 0 12 18
The North 7 5 2 0 0 0 9 5
Canada 158 589 108 102 3 34 269 725

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 4.1.14 Types of radio and audio services authorized to broadcast in Canada, as a percentage of all such services, 2016

Circular chart of Figure 4.1.14: Types of radio and audio services authorized to broadcast in Canada, as a percentage of all such services, 2016 Circular chart of Figure 4.1.14: Types of radio and audio services authorized to broadcast in Canada, as a percentage of all such services, 2016
Text Description of Image

This circular chart shows the percentage representation of the types of radio and audio services in relation to the service total.

Service Percentage
Private Commercial 65.3%
Religious 4.5%
CBC/SRC 8.3%
Community 11.7%
Campus 4.2%
Aboriginal 4.6%
Other 0.4%
Satellite, multi-channel and audio via BDUs 1.0%

Source: CRTC data collection

In 2016, private commercial radio stations accounted for 65.3% of the total number of stations licensed for broadcast in Canada.

Table 4.1.8 Number of new over-the-air radio stations licensed categorized by language, licence category, type and licensing process
Category Sub-category 2012 2013 2014 2015 2016 Total
Language English-language 26 20 24 10 10 90
French-language 1 5 2 3 2 13
Third-language 1 0 3 1 3 8
Total 28 25 29 14 15 111
Licence category Commercial 18 12 20 7 4 61
Community 5 7 6 2 6 26
Campus 0 0 1 1 0 2
Native 3 0 2 1 5 11
Other 2 6 0 3 0 11
Total 28 25 29 14 15 111
Type Stand-alone digital 0 0 0 0 0 0
Digital radio 0 0 0 0 0 0
AM frequency 0 0 2 1 2 5
FM frequency 28 25 27 13 13 106
AM to FM conversions (included in FM) 2 5 0 2 0 9
Total 28 25 29 14 15 111
Process Competitive 7 0 5 1 2 15
Non-competitive 21 25 24 13 13 96
Total 28 25 29 14 15 111

Source: CRTC decisions issued from 1 January 2012 to 31 December 2016

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

The “Other” licence category includes not-for-profit stations, such as those operated in English and in French by the CBC/SRC, and Environment Canada.

Figure 4.1.15 Percentage of Canadians accessing online streamed audio services monthly, by language group

Clustered bar chart of Figure 4.1.15: Percentage of Canadians accessing online streamed audio services monthly, by language group (%) Clustered bar chart of Figure 4.1.15: 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 AM/FM radio:
Type 2015 2016
National 23 22
Anglophone 23 22
Francophone 20 20
Stream personalized online music service:
Type 2015 2016
National 20 27
Anglophone 21 28
Francophone 17 22
Stream music videos on YouTube:
Type 2015 2016
National 55 55
Anglophone 56 55
Francophone 51 53
Podcast listener:
Type 2015 2016
National 22 26
Anglophone 24 28
Francophone 15 18
Regular radio listener:
Type 2015 2016
National 89 89
Anglophone 88 88
Francophone 94 91

Source: MTM, Fall 2015-2016 (respondents: Canadians aged 18+)

Figure 4.1.16 Satellite radio subscriptions, by language group

Clustered column chart of Figure 4.1.16: Satellite radio subscriptions, by language group Clustered column chart of Figure 4.1.16: Satellite radio subscriptions, by language group
Text Description of Image

This bar chart shows the percentage of Canadians subscribing to satellite radio from 2011 to 2016.

Type 2011 2012 2013 2014 2015 2016
National 13 14 15 16 16 16
Francophone 7 7 7 8 9 9
Anglophone 15 16 17 19 18 18

Source: MTM, Fall 2011-2016 (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 4.1.9 Average weekly hours of radio tuned per capita by age group for all Canada
Age group 2012 2013 2014 2015 2016 Growth (%) 2015-2016
All persons 12+ 16.9 16.4 16.0 15.6 14.5 -7.6
Teens 12 – 17 6.7 6.1 5.7 5.8 4.8 -18.0
18 – 24 11.2 10.8 10.6 9.7 8.7 -11.1
25 – 34 14.9 14.4 14.1 13.8 12.0 -12.6
35 – 49 18.3 18.0 17.1 16.6 15.0 -9.5
50 – 54 20.5 20.0 19.3 19.5 17.6 -9.9
55 – 64 20.0 19.3 19.2 18.5 17.9 -3.5
65 + 20.0 19.3 19.1 18.7 18.0 -3.8

Source: Numeris Radio Diary, Fall surveys, Mo-Su 5a-1a, 12+. Note: Fall 2016 Online Radio Diary (ORD) introduced.

This table shows that over the past 5 years, the average listening hours has decreased by at least 2 hours across all age groups. The average number of hours per week per capita is determined by dividing the total number of hours tuned by the population.

Table 4.1.10 Radio tuning share (%) in an average week for English- and French-language AM and FM stations
Radio station type 2012 2013 2014 2015 2016 Growth (%) 2015-2016
English-language AM 16.7 16.6 16.0 17.1 16.6 -3.1
English-language FM 56.1 57.5 57.7 56.8 57.1 0.4
English total 72.9 74.1 73.7 73.9 73.6 -0.4
French-language AM 0.2 0.2 0.2 0.2 0.2 -
French-language FM 20.7 20.2 20.4 20.0 20.5 2.4
French total 20.9 20.4 20.5 20.2 20.7 2.8
Other 6.2 5.5 5.7 5.9 5.7 -4.2

Source: Numeris Radio Diary, Fall surveys, Mo-Su 5a-1a, 12+. Note: Fall 2016 Online Radio Diary (ORD) introduced.

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 4.1.11 Average weekly hours (millions of hours) of radio tuned by listener for English- and French-language AM and FM stations
Tuning 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Average weekly time spent listening (per listener) 18.9 18.5 18.1 17.7 16.6 -6.2 -3.2
Total average weekly national hours (millions) 509.9 502.9 494.1 486.3 455.6 -6.3 -2.8

Source: Numeris Radio Diary, Fall surveys, Mo-Su 5a-1a, 12+. Note: Fall 2016 Online Radio Diary (ORD) introduced.

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 4.1.12 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 2014 2015 2016
BCE Tuning 71.2 65.1 60.3
Share (%) 19.5 18.1 18.0
Cogeco Tuning n/a n/a n/a
Share (%) n/a n/a n/a
Corus Tuning 42.1 39.2 40.0
Share (%) 11.5 10.9 11.9
Newfoundland Capital Corporation Limited (Newcap) Tuning 33.3 30.8 31.3
Share (%) 9.1 8.6 9.3
Rogers Tuning 46.8 49.8 42.9
Share (%) 12.8 13.9 12.8
Total English-language stations Tuning 364.6 359.5 335.4
Share (%) 100 100 100

Source: Numeris and CRTC data collection

Four ownership groups garner over 50% of all tuning in Canada across all English-language stations in 2016.

Table 4.1.13 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 2014 2015 2016
BCE Tuning 24.5 24.7 20.7
Share (%) 24.9 25.2 21.9
Cogeco Tuning 31.9 31.2 30.4
Share (%) 31.5 31.8 32.1
Total - French-language stations Tuning 101.5 98.1 94.4
Share (%) 100 100 100

Source: Numeris and CRTC data collection

These tables present tuning data by large radio ownership groups, by language, for the years 2014 through 2016.

In 2016, the BCE and Cogeco groups garnered over 55% of all tuning in Canada, across all French-language stations.

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 4.1.17 Radio tuning by station type in diary markets, 2016

Circular chart of Figure 4.1.17: Radio tuning by station type in diary markets, 2016 Circular chart of Figure 4.1.17: Radio tuning by station type in diary markets, 2016
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.

Services Percentage
Audio Services 2%
CBC/SRC 16%
Community & Campus 2%
Ethnic & Native 1%
Other 1%
Private Commercial 75%
United-States 2%

Sources: Numeris 2016 and CRTC data collection

This table shows the different types of radio stations tuned by listeners in diary markets in 2016.

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 4.1.14 Fall radio tuning shares - English-language radio station formats, 2016
Top formats/Radio Networks Audience share Number of stations
CBC Radio One 13% 32
Today's Country 12% 108
Adult Contemporary 11% 112
Hot Adult Contemporary 10% 86
News/Talk 9% 39
Mainstream Top 40/CHR 8% 46
Classic Hits 8% 56
AOR/Mainstream Rock 6% 54
Classic Rock 5% 26
CBC Radio Two 3% 17
Other 15% 247

Sources: Numeris Fall 2016 and CRTC data collection

Although CBC/SRC radio non-commercial stations are not considered a Format, they have been added as they hold an important radio tuning share.

Table 4.1.15 Fall radio tuning shares - French-language radio station formats, 2016
Top formats/Radio Networks Audience share Number of stations
Hot Adult Contemporary 21% 20
News/Talk 18% 8
Adult Contemporary 17% 37
ICI Radio-Canada Premiere 16% 21
Mainstream Top 40/CHR 9% 16
ICI Radio-Canada Musique 5% 14
Community Radio 4% 52
Classical/Fine Arts 3% 2
Classic Hits 2% 4
Sports 1% 1
Other 4% 34

Sources: Numeris Fall 2016 and CRTC data collection

Although CBC/SRC radio non-commercial stations are not considered a Format, they have been added as they hold an important radio tuning share.

Among Canadians listening to English-language radio stations, over 46% of listening hours went to CBC Radio One, country, and adult contemporary formats. Among French-language radio station listeners, almost 40% of listening hours went to the adult contemporary formats. Audiences tune in much more to News/Talk radio in the French-language markets (18%) than in the English-language markets (9%).

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 2015-2016 broadcast year, commercial radio operators contributed 3 cents per revenue dollar to support Canadian Content Development (CCD). Collectively, they contributed nearly $47 million to the development of Canadian content. On average, the fund has decreased 3.9% annually over the past 5 years. Approximately 50.7% 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, the other half was garnered through licence renewals.

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 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 4.1.18 CCD contributions by regulatory measure ($ millions)

Stacked bar chart of Figure 4.1.18: CCD contributions by regulatory measure ($ millions) Stacked bar chart of Figure 4.1.18: 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 2011-2012 to broadcast year 2015-2016.

Years New stations Licence renewals Change in ownership/control Total
2011-2012 24 9 22 55
2012-2013 17 15 21 53
2013-2014 9 19 31 59
2014-2015 7 22 19 48
2015-2016 4 23 20 47

Source: CRTC data collection

Figure 4.1.19 CCD contributions by regulatory measure (percentage)

Stacked bar chart of Figure 4.1.19: CCD contributions by regulatory measure (percentage) Stacked bar chart of Figure 4.1.19: 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 2011-2012 to broadcast year 2015-2016.

Years New stations Licence renewals Change in ownership/control
2011-2012 43.6% 16.5% 39.9%
2012-2013 31.8% 28.7% 39.5%
2013-2014 13.2% 34.2% 52.6%
2014-2015 14.3% 45.1% 40.6%
2015-2016 7.9% 49.2% 42.8%

Source: CRTC data collection

Table 4.1.16 Summary of annual CCD contributions reported by radio station licensees ($ thousands)
CCD category 2011-2012 2012-2013 2013-2014 2014- 2015 2015-2016 Growth (%) 2014-15 to 2015-16 CAGR (%) 2011-12 to 2015-16
FACTOR 10,545 12,022 13,982 10,090 9,868 -2.2 -1.6
MUSICACTION 2,538 2,426 3,596 3,461 3,347 -3.3 7.2
Community Radio Fund of Canada 1,509 1,722 2,922 2,954 3,072 4.0 19.5
Music Industry Association 3,754 4,334 3,168 4,360 3,300 -24.3 -3.2
Local music initiatives 13,777 10,538 10,731 9,675 9,690 0.2 -8.4
New spoken word content 943 253 292 1,208 1,374 13.8 9.9
Audio content initiatives 135 531 968 638 245 -61.6 16.1
Schools and educational institutions 2,383 1,430 1,818 1,249 1,135 -9.1 -16.9
Radio Starmaker Fund/Fonds RadioStar 11,783 10,985 15,902 9,479 9,762 3.0 -4.6
Other eligible CCD initiatives 7,713 8,114 6,190 4,639 4,827 4.1 -11.1
Total 55,080 52,536 59,567 47,753 46,621 -2.4 -4.1

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 4.1.17 Annual CCD contributions reported by new radio station licensees during the first licence term ($ thousands)
CCD category 2011-2012 2012-2013 2013-2014 2014- 2015 2015- 2016 Growth (%) 2014-15 to 2015-16 CAGR (%) 2011-12 to 2015-16
FACTOR 2,615 2,818 2,008 1,544 771 -50.1 -26.3
MUSICACTION 563 242 255 403 0 -100.0 -100.0
Community Radio Fund of Canada 165 17 21 21 7 -65.1 -53.8
Music Industry Association 2,221 2,342 1,754 1,477 970 -34.3 -18.7
Local music initiatives 9,106 5,524 3,275 2,446 1,359 -44.4 -37.8
New spoken word content 545 192 171 - 8 - -65.2
Audio content initiatives - 172 585 153 4 -97.2 -
Schools and educational institutions 1,553 886 516 435 210 -51.8 -39.4
Radio Starmaker Fund/Fonds RadioStar 1,038 466 - - 0 - -100.0
Other eligible CCD initiatives 6,195 3,986 352 355 377 6.3 -50.3
Total 24,001 16,644 8,935 6,833 3,706 -45.8 -37.3

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 4.1.18 Annual CCD contributions reported by radio licensees in the context of licence renewals ($ thousands)
CCD category 2011-2012 2012-2013 2013-2014 2014- 2015 2015- 2016 Growth (%) 2014-15 to 2015-16 CAGR (%) 2011-12 to 2015-16
FACTOR 1,971 3,152 4,156 4,847 5,359 10.6 28.4
MUSICACTION 727 1,414 1,681 1,695 1,871 10.4 26.7
Community Radio Fund of Canada 617 1,020 1,305 1,342 1,402 4.5 22.8
Music Industry Association 966 1,607 932 2,504 1,939 -22.6 19.0
Local music initiatives 2,381 3,352 4,417 4,788 5,812 21.4 25.0
New spoken word content 398 61 121 1,167 1,326 13.6 35.1
Audio content initiatives - - - 446 201 -54.9 -
Schools and educational institutions 614 342 948 603 747 23.7 5.0
Radio Starmaker Fund/Fonds RadioStar 246 35 52 - 0 - -100.0
Other eligible CCD initiatives 1,194 4,026 5,716 4,152 4,287 3.3 37.7
Total 9,114 15,010 19,328 21,545 22,942 6.5 26.0

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 4.1.19 Annual CCD contributions reported by radio licensees in the context of changes in ownership and/or control ($ thousands)
CCD category 2011-2012 2012-2013 2013-2014 2014- 2015 2015-2016 Growth (%) 2014-15 to 2015-16 CAGR (%) 2011-12 to 2015-16
FACTOR 5,959 6,053 7,818 3,699 3,739 1.1 -11.0
MUSICACTION 1,248 770 1,660 1,362 1,476 8.3 4.3
Community Radio Fund of Canada 727 684 1,596 1,591 1,663 4.6 23.0
Music Industry Association 567 386 482 379 390 3.1 -8.9
Local music initiatives 2,290 1,662 3,038 2,442 2,520 3.2 2.4
New spoken word content - - - 40 40 - -
Audio content initiatives 135 359 383 40 40 - -26.2
Schools and educational institutions 216 203 354 211 179 -15.2 -4.6
Radio Starmaker Fund/Fonds RadioStar 10,499 10,483 15,850 9,479 9,762 3.0% -1.8
Other eligible CCD initiatives 324 102 122 133 163 22.9 -15.8
Total 21,965 20,703 31,303 19,375 19,972 3.1 -2.3

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 2016, 4 transactions were approved for both English and French language services resulting in total tangible benefits of $1.4 million.

Table 4.1.20 Number of radio service transactions, value of those transactions and corresponding tangible benefits for the period from 1 January 2012 to 31 December 2016 ($ millions)
Language of services Metric 2012 2013 2014 2015 2016 Total
English Number of Transactions 5 4 9 6 4 28
Value ($M) 80.4 756.7 257.7 55.1 1.41 1,151.3
Benefits ($M) 4.8 52.0 15.5 4.0 0.8 77.1
French Number of Transactions 2 1 - 6 4 13
Values ($M) 1.5 357.7 - 54.6 9.4 423.2
Benefits ($M) 0.1 25.0 - 3.9 0.6 29.6

Sources: CRTC decisions and administrative approvals

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 Canadian Broadcast Standards Council (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 CBSC is an independent organization created by the CAB to administer codes 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 also 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 4.1.21 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 Total
2014-2015 847 3 41 3 0 802 9 227 1,932
2015-2016 695 4 33 0 0 456 13 46 1,247
2016-2017 864 11 184 16 0 531 4 233 1,843

Source: CRTC correspondence tracking system

Table 4.1.22 Number of radio complaints by subject matter
Subject Matter 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
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 64 32 32 8 46 16 39 12 40 2
Adult content 9 3 5 1 4 1 10 2 1 -
Alcohol advertising 4 - 3 - 2 0 - - - -
Gender portrayal 1 - 2 1 2 1 2 - - -
Offensive comment 283 135 702 582 317 203 163 48 273 168
Offensive language 50 14 31 13 41 16 27 9 14 5
Total 411 184 775 605 412 237 241 71 328 175

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 2012-2013 through 2016-2017. No complaints were received for satellite radio between 2012-2013 and 2016-2017.

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 4.1.23 Radio complaints handled by the CBSC in 2016 by language and national origin
Category Sub-category Radio Subscription radio (satellite) Total
Language of Broadcast of program English 209 4 213
French 151 0 151
Third language 17 0 17
Other 1 0 1
Total 378 4 382
National origin of program Canadian 350 0 350
Foreign 13 2 15
Other 15 2 17
Total 378 4 382

Source: CBSC, 2015-2016 annual report

Table 4.1.24 Complaints handled by the ASC
Statistic 2012 2013 2014 2015 2016
Total number of complaints 1,310 1,310 1,274 1,774 1,639
Complaints about radio advertisements 55 84 64 94 82
Radio complaints as percentage of total (%) 4% 6% 5% 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 2016, 5% of those complaints related to radio advertisements.

viii) Ownership groups

Between 2014 and 2016, Canada’s six largest commercial radio operators together accounted for nearly 65% or $1.1B of the commercial radio industry’s revenues. They also accounted for nearly 40% of the total number of radio undertakings in the country.

Table 4.1.25 English-language and French-language radio revenues and number of undertakings reporting for the largest commercial radio operators in Canada
Language Radio operator Revenues ($ thousands) Number of radio undertakings reporting Share of total revenue (%)
2014 2015 2016 2014 2015 2016 2014 2015 2016
All languages BCE 414,116 410,835 397,090 107 106 106 26 26 26
Rogers 228,485 233,380 220,847 55 53 53 14 15 14
Corus 164,525 152,433 123,941 39 39 39 10 10 8
Newfoundland Capital Corporation Limited (Newcap) 156,289 152,471 155,985 69 67 68 10 10 10
Cogeco 109,943 106,718 115,615 13 13 13 7 7 7
Total largest commercial radio operators 1,073,358 1,055,837 1,013,478 283 278 279 67 66 65
Total all commercial radio operators 1,613,471 1,602,342 1,551,098 694 704 711 100 100 100
English-language BCE 306,288 305,905 296,339 86 85 85 23 24 24
Rogers 228,485 233,380 220,847 54 52 52 18 18 18
Corus 164,525 152,433 123,941 39 39 39 13 12 10
Newfoundland Capital Corporation Limited (Newcap) 156,289 152,471 155,985 69 67 68 12 12 13
Total English-language largest commercial radio operators 855,587 844,189 797,112 248 243 239 65 65 64
Total English-language commercial radio operators 1,303,965 1,297,234 1,243,407 574 583 589 100 100 100
French-language BCE 107,828 104,930 100,751 21 21 21 41 40 39
Cogeco n/a n/a n/a 12 12 12 n/a n/a n/a
Total - largest commercial radio operators 107,828 104,930 100,751 33 33 33 41 40 39
Total French-language commercial radio operators 263,513 258,460 261,358 96 98 98 100 100 100

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.

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 2016. The first section is a donut chart and the last 5 are data points.

  1. Circular chart shows percentage of television revenues as a proportion of all broadcasting revenues in 2016.
    1. Television revenues were 41% of all broadcasting revenues;
    2. Discretionary and on demand TV were 25%;
    3. CBC conventional TV were 7%;
    4. private conventional TV were 9%;
    5. Total broadcasting revenues were $17.9 billion.
  2. Total television revenues: $7.3 billion, an increase of 1.7% over 2015.
  3. Viewing: Canadians (2+) watched 26.6 hrs of television each week on average.
  4. Total private conventional television revenues: $1.7 billion, a decrease of 4.5% over 2015.
  5. Total CBC conventional television revenues: $1.2 billion, an increase of 7.0% over 2015.
  6. Total discretionary and on demand services revenues: $4.4 billion, an increase of 2.9% over 2015.

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 2015-2016 audience measurement data, Canadians two years of age and older are watching an average of more than 26 hours of television each week. However, teens and young adults tend to watch less television through traditional means. From 2014-2015 to 2015-2016, traditional television viewership in the 12-17 age demographic decreased the most, reaching 16.4 hours per week, a 13% decrease relative to the 2014-2015 average of 18.8 hours per week.

While traditional viewership is decreasing, Canadians are supplementing their viewership with Internet television.Footnote 4 According to MTM, Canadians 18 years of age and older are now watching an average of 3.1 hours per week of Internet TV compared to an average of 0.5 hours per week in 2010.

In 2016, the private conventional television sector reported $1.68 billion in revenues, compared to $4.42 billion for discretionary services (pay, pay-per-view, video-on-demand and specialty services). The television industry’s five large ownership groups reported 89% of all television revenues.

The English-language private conventional television sector includes three major ownership groups: BCE, with a 42% revenue share of the private conventional television sector; Corus, with a 23% revenue share; and Rogers, with a 12% revenue share. The French-language private conventional television sector has two major players: Quebecor, with a 12% revenue share of the private conventional television sector; and Remstar, with a 4% revenue share.

In 2016, the CBC, Canada’s national public broadcaster, reported $1.19 billion in revenues, 69% of which were parliamentary appropriations.

Collectively, broadcasters contributed over $3 billion to Canadian programming expenditures (CPE), 22% of which was spent on Programs of National Interest (PNI) in 2016. For each dollar earned, television services invested 41 cents in support of Canadian programming during the 2015-2016 broadcast year.

i) Revenues

Total revenues generated in the television industryFootnote 5—private and CBC conventional television and discretionary services combined—increased by 1.7% from 2015 to 2016, reaching $7,279 million in 2016.

Revenues generated by discretionary services (all types of services combined) increased 2.7% per year on average between 2012 and 2016, attaining $4,416 million in 2016. While discretionary services reported only a modest increase of 0.96% in revenues between 2014 and 2015, their revenues increased by 2.9% or $126 million from 2015 to 2016.

Conventional television services owned by both private operators and the CBC generated $2,863 million in revenues in 2016, a $1-million decrease compared to 2015 levels.

The 93 privately owned conventional stations in operation in 2016 garnered $1,678 million, down 4.5% or $79 million from 2015. However, the 27 CBC conventional television stations reported total revenues of $1,185 million in 2016, a 7% or $78 million increase from 2015.

Table 4.2.1 Revenues of television services, by type of service ($ millions)
Type Subtype 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Conventional television services Private 2,038 1,944 1,804 1,757 1,678 -4.5 -4.7
CBC/SRC 1,369 1,247 1,328 1,107 1,185 7.0 -3.5
Subtotal 3,407 3,191 3,132 2,864 2,863 0.0 -4.3
Discretionary services Pay, PPV, and VOD 837 799 801 773 723 -6.5 -3.6
Specialty 3,130 3,292 3,448 3,517 3,693 5.0 4.2
Subtotal 3,968 4,091 4,249 4,290 4,416 2.9 2.7
All services Total 7,375 7,282 7,381 7,154 7,279 1.7 -0.3

Source: CRTC data collection

This table shows the change in television revenues by type of service from 2012 to 2016.

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) 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 2012 to 2016 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 2012 to 2016:

Total revenues:
Type 2012 2013 2014 2015 2016
Specialty, Pay, PPV and VOD Services 3,968 4,091 4,249 4,290 4,416
Private Conventional Television 2,038 1,944 1,804 1,757 1,678
CBC Conventional Television 1,369 1,247 1,328 1,107 1,185
Total 7,375 7,282 7,381 7,154 7,279
Advertising revenues:
Type 2012 2013 2014 2015 2016
Specialty, Pay, PPV and VOD Services 1,264 1,297 1,254 1,235 1,347
Private Conventional Television 1,832 1,758 1,642 1,626 1,553
CBC Conventional Television 373 331 475 220 266
Total 3,469 3,386 3,371 3,081 3,166
Subscriber revenues:
Type 2012 2013 2014 2015 2016
Specialty, Pay, PPV and VOD Services 2,623 2,725 2,907 2,960 2,975
Total 2,623 2,725 2,907 2,960 2,975

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) from 2012-2014. Total revenues also include funding from the Small Market Local Programming Fund (SMLPF) in 2015 and 2016. Advertising revenues include local, national, network and infomercial sales.

Figure 4.2.2 Private conventional television revenue sources (%), 2016

Circular chart of Figure 4.2.2: Private conventional television revenue sources (%), 2016 Circular chart of Figure 4.2.2: Private conventional television revenue sources (%), 2016
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.

Type Percentage
Local Time Sales 19%
National Time Sales 67%
Network Payments 6%
Infomercials 0.9%
Syndicated Production 0.7%
SMLPF 0.5%
Other 6%

Source: CRTC data collection

“Network payments” includes net payments made to the affiliates as a reduction of the revenue. For the affiliates it should include their share of the network net payments, or the reverse as the case may be;

“Infomercials” is programming exceeding 12 minutes in length that combines entertainment or information with the sale or promotion of goods or services into a virtually indistinguishable whole;

“Syndicated Production” is the revenue perceived by the sale or airing permission of a program produced by a network to another network;

“SMLPF” is defined by Small Market Local Programming Fund;

“Local Time Sales” are revenues from the sale of air time by local sales representative, net of advertising agency commissions and trade discounts;

“National Time Sales” are Revenues for national advertising, net of any advertising agency commissions and trade discounts;

“Other” includes broadcast related revenue received from the use of talent services and technical facilities.

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 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 2012 to 2016 with the second axes representing the percent of total revenue captured by the CBC English-language stations.

Types of stations 2012 2013 2014 2015 2016
CBC/SRC English-language stations 245 200 333 104 149
CBC/SRC French-language stations 127 131 141 116 117
CBC/SRC Total 373 331 475 220 266
English-language stations percent of total 65.7 60.4 70.1 47.3 56.0

Source: CRTC data collection

Table 4.2.2 CBC conventional television revenues ($ millions)
Type 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
English-language stations advertising 245 200 333 104 149 43.6 -11.7
French-language stations advertising 127 131 141 116 117 0.7 -2.0
Advertising total 373 331 475 220 266 20.9 -8.1
Other revenues 135 133 127 129 107 -17.3 -5.7
Parliamentary appropriation 861 783 726 758 812 7.2 -1.5
Total revenues 1,369 1,247 1,328 1,107 1,185 7.0 -3.5

Source: CRTC data collection

“Other revenues” include syndication revenues and funding from the LPIF from 2012 to 2014.

Table 4.2.3 Advertising and other revenues: private conventional television stations, by language of broadcast
Language of broadcast Type of revenue 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
English Advertising 1,540 1,468 1,369 1,366 1,300 -4.8 -4.2
Other 131 115 106 81 74 -8.5 -13.3
Subtotal 1,672 1,583 1,475 1,447 1,374 -5.0 -4.8
French Advertising 291 290 273 260 253 -2.8 -3.5
Other 75 70 56 50 51 1.1 -9.3
Subtotal 367 361 329 310 304 -2.2 -4.6
Total Advertising 1,832 1,758 1,642 1,626 1,553 -4.5 -4.0
Other 206 186 162 131 125 -4.8 -11.8
Total 2,038 1,944 1,804 1,757 1,678 -4.5 -4.7

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 2012-2014 and funding from the Small Market Local Programming Fund (SMLPF) in 2015 and 2016.

Table 4.2.4 Revenues of discretionary services, by language of broadcast
Type of services Language Categories Revenues ($ thousands) PBIT ($ thousands) PBIT margin (%)
2014 2015 2016 2014 2015 2016 2014 2015 2016
Specialty English-language Category A 1,409,549 1,368,309 1,298,926 470,041 476,871 452,912 33.3 34.9 34.9
Category B 375,938 377,404 399,805 112,605 113,989 113,773 30.0 30.2 28.5
Category C 968,017 1,010,483 1,212,919 211,780 218,527 268,626 21.9 21.6 22.1
All Categories 2,753,504 2,756,195 2,911,649 794,426 809,385 835,312 28.9 29.4 28.7
French-language Category A 288,126 302,735 303,707 83,947 76,210 70,984 29.1 25.2 23.4
Category B 42,983 51,755 56,891 -4,533 2,984 7,914 -10.5 5.8 13.9
Category C 282,522 327,938 342,911 34,815 -11,788 3,180 12.3 -3.6 0.9
All Categories 613,631 682,427 703,510 114,229 67,406 82,078 18.6 9.9 11.7
Ethnic and third-language Category A 57,392 54,985 50,468 9,929 8,462 5,093 17.3 15.4 10.1
Category B 23,061 23,505 27,404 3,903 5,203 4,279 16.9 22.1 15.6
All Categories 80,453 78,490 77,872 13,832 13,665 9,373 17.2 17.4 12.0
All languages Category A 1,755,067 1,726,029 1,653,101 563,918 561,543 528,990 32.1 32.5 32.0
Category B 441,982 452,663 484,100 111,975 122,177 125,967 25.3 27.0 26.0
Category C 1,250,539 1,338,420 1,555,830 246,594 206,739 271,806 19.7 15.4 17.5
All Categories 3,447,588 3,517,113 3,693,031 922,487 890,459 926,762 26.8 25.3 25.1
Pay All languages N/A 435,350 423,105 404,196 110,667 63,467 16,037 25.4 15.0 4.0
PPV All languages N/A 101,326 95,149 87,837 8,336 -10,909 9,502 8.2 -11.5 10.8
VOD All languages N/A 264,498 254,367 230,581 -18,433 -21,368 -26,598 -7.0 -8.4 -11.5
Pay, PPV and VOD All languages N/A 801,174 772,621 722,614 100,570 31,190 -1,059 12.6 4.0 -0.1
Total All services All Categories 4,248,763 4,289,734 4,415,645 1,023,056 921,649 925,703 24.1 21.5 21.0

Source: CRTC data collection

English-language specialty services accounted for the majority of the total number of services (48%) as well as of revenues (79%). They also were the most profitable language group (average PBIT margin of 28.7%). Their revenues totalled $2.9 billion in 2016, a 5.6% increase from 2015.

Revenues of the French-language specialty services rose by 3.1% from 2015 to 2016. 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 have stayed stable and generated 1.76% ($77.9 million) of total revenues in 2016, reporting a 0.8% decrease in revenues.

On-demand services, namely pay-per-view and video-on-demand, continued their downward trend in 2016. These two categories of services combined reported revenues of $318 million in 2016, down $31.1 million (-8.9%) from 2015, and $47 million (13%) from 2014.

Category A – A service that focuses on a specific genre (for example, music, children’s programming, weather, comedy programming). It is protected from competition from non-Canadian services and Category B services. All broadcasting distribution undertakings must carry these services.

Category B – A service that focuses on a specific genre, that is not competitive with any Category A or Category C service. Category B services do not have any specific carriage rights.

Category C – A service that operates in either of the competitive genres of national news or mainstream sports. There are no specific carriage rights for Category C Sports services. Category C News services must be made available in the best possible discretionary package consistent with their genre. They must also be made available to subscribers on a stand-alone basis.

Figure 4.2.4 Ranking by revenue of individual discretionary services, in descending order, 2016

Line chart of Figure 4.2.4: Ranking by revenue of individual discretionary services, in descending order, 2016. Line chart of Figure 4.2.4: Ranking by revenue of individual discretionary services, in descending order, 2016.
Text Description of Image

This line chart ranks by total revenue in descending order each discretionary service for the 2015-2016 broadcast year. In total, over 300 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 2016. Each of the top five services reported close to or over $100 million in revenues, while each of the next five services reported between $70 million to $95 million in revenues. These 10 highest grossing services reported 42% of total revenues generated in 2016. Five of them were sports related services; two owned by BCE, two owned by Rogers and one by Groupe TVA.

Each of the next 73 ranked services reported total revenues in excess of $10 million; each of the next 88 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 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 2012 to 2016. The column part of the chart shows total revenues, in millions of dollars, of Canadian English-language private conventional television and discretionary services from 2012 to 2016.

Private conventional:
Type 2012 2013 2014 2015 2016
Total Revenues 1,672 1,583 1,475 1,447 1,374
Advertising revenues (percent of total) 92% 93% 93% 94% 94%
Specialty services:
Type 2012 2013 2014 2015 2016
Advertising revenues (percent of total) 42% 41% 36% 37% 39%
Category A 1,348 1,377 1,410 1,368 1,299
Category B 333 374 376 377 400
Category C 795 851 968 1,010 1,213
Pay, PPV and VOD:
Type 2012 2013 2014 2015 2016
Total revenues 750 716 717 699 649

Source: CRTC data collection

Ethnic conventional television stations have been included with English-language stations 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 and barcombo chart ofFigure 4.2.6: Revenues of French-language private conventional television and discretionary services Line and barcombo chart ofFigure 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 2012 to 2016. 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 2012 to 2016.

Private conventional:
Type 2012 2013 2014 2015 2016
Total revenues 367 361 329 311 304
Advertising revenues (percent of total) 79% 80% 83% 84% 83%
Specialty services:
Type 2012 2013 2014 2015 2016
Advertising revenues (percent of total) 34% 33% 34% 29% 28%
Category A 277 297 288 302 304
Category B 29 37 43 52 57
Category C 266 270 283 328 343
Pay, PPV and VOD:
Type 2012 2013 2014 2015 2016
Total revenues 84 83 84 73 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 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 2012 to 2016.

Specialty services:
Type 2012 2013 2014 2015 2016
Total revenues 84 87 80 78 78
Advertising (percent of total) 42 35 35 32 31
Pay services:
Type 2012 2013 2014 2015 2016
Total revenues 4 0.1 0.1 n/a n/a
Advertising (percent of total) 25 12 12 n/a n/a

Source: CRTC data collection

In 2016, 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 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 2012 to 2016.

Ownership group 2012 2013 2014 2015 2016
BCE 803 768 728 716 710
Corus 448 419 405 406 380
Rogers 289 269 224 219 195
Revenue of top 3 groups as % of Total 92 92 92 93 94
Total 1,672 1,583 1,475 1,447 1,374

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 2012 to 2016 broadcast years. It also shows the total revenues of these three groups as a percentage of total English-language private conventional television revenues. Ethnic private conventional television stations have been included with English-language stations 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 2012-2014 and SMLPF 2015-2016.

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 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 2012 to 2016.

Category 2012 2013 2014 2015 2016
Quebecor (TVA) 257 249 229 214 209
Remstar (V) 73 77 67 67 64
Top 2 (percent of total) 90 90 90 91 90
Total Revenue 367 361 329 310 304

Source: CRTC data collection

The line “Revenue of top 2 groups as % of total” shows the proportion of revenues reported by these 2 ownership groups out of the total French-language private conventional television revenues

ii) Internet-based video services

Revenues for Internet-based services are new to this year’s report. Different types of Internet-based services are available to Canadians. Depending on their business model, they can be categorized into the following three types of services:

Estimated revenues for Internet-based video services in Canada grew by 17.8% from 2015 to 2016, reaching almost $2 billion in 2016Footnote 6. Some services, such as AVOD services, rely heavily on mobile platforms for their revenues; for these, mobile platforms represent approximately one third of their AVOD revenues.

Please note that information found in this section has been sourced from an external research firm and is not based on data collected by the Commission.

Table 4.2.5 Estimated revenues of Internet-based video services in Canada by type of service ($ millions)
Service 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
SVOD 232.0 368.1 648.8 911.8 1082.1 18.7 47.0
TVOD 252.6 294.4 322.9 365.4 393.5 7.7 11.7
AVOD 150.7 219.4 291.5 383.8 480.0 25.1 33.6
Total 654.4 881.9 1263.2 1661.2 1955.5 17.7 31.5

Source: OVUM, 2016

This table shows the estimated revenues for SVOD, TVOD, and AVOD services.

SVOD revenues represent over half the total revenues of Internet-based services. While TVOD services have shown the steadiest growth over the past five years, both AVOD and SVOD have grown rapidly over this period. Netflix is the largest SVOD player in Canada, with their 2016 revenues being estimated at $766 million, or 70.8% of total SVOD revenues, up from an estimated $156 million in 2012.

Table 4.2.6 Estimated revenues of top 5 TVOD services in Canada ($ millions)
Service 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
iTunes 176.9 202.1 219.6 250.9 267.6 6.6% 10.9%
Microsoft Movies & TV 32.8 36.6 37.1 45.5 49.2 8.2% 10.6%
PlayStation Network 13.9 19.0 24.2 27.3 33.4 22.6% 24.6%
Google Play 12.6 14.6 19.4 20.0 21.6 8.2% 14.4%
CinemaNow 6.3 8.8 8.1 5.5 5.9 8.2% -1.7%
Others 10.1 13.2 14.5 16.4 15.7 -3.8% 11.7%
Total 252.6 294.4 322.9 365.4 393.5 7.7% 11.7%

Source: OVUM, 2016

This table shows the revenues of the top 5 TVODs in Canada.

In Canada, iTunes is the largest service in terms of revenues, earning more than two thirds of total TVOD revenues in 2016, followed by Microsoft’s service (12.5%) and the PlayStation Network (8.5%). Overall, the annual growth of TVOD revenues are more moderate than SVOD and AVOD revenues, with the PlayStation Network growing at the fastest pace over the past five years.

Table 4.2.7 Estimated revenues of AVOD services by platform in Canada ($ millions)
Platform 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Non-mobile 143.5 192.7 247.6 287.8 325.3 13.0% 22.7%
Mobile 7.2 19.5 43.8 95.9 154.6 61.1% 115.2%
Total 150.7 212.2 291.5 383.8 480.0 25.1% 33.6%

Source: OVUM, 2016

This table shows the revenues of AVOD services by platform in Canada.

While non-mobile AVOD revenues continue to outpace mobile revenues, representing approximately two thirds of total AVOD revenues in 2016, mobile AVOD revenues have increased twentyfold from 2012 to 2016, significantly narrowing this gap.

Figure 4.2.10 Estimated AVOD revenues of Facebook and YouTube in Canada ($ millions)

Circular chart of Figure 4.2.10: Estimated AVOD revenues of Facebook and YouTube in Canada ($ millions) Circular chart of Figure 4.2.10: Estimated AVOD revenues of Facebook and YouTube in Canada ($ millions)
Text Description of Image

These two circular charts show the estimated AVOD revenues in millions of dollars and percentage of total revenues, in Canada for 2015 and 2016.

Estimated AVOD revenues in Canada, 2015:
Category Revenue ($ million) Percentage
YouTube $98.1 26
Facebook $23.9 6
Other $261.8 68
Total $383.8 100
Estimated AVOD revenues in Canada, 2016:
Category Revenue ($ million) Percentage
YouTube $118.6 25
Facebook $65.9 14
Other $295.4 62
Total $480.0 100

Source: OVUM, 2016

This figure shows the estimated AVOD revenues of YouTube and Facebook in Canada.

In both 2015 and 2016, YouTube’s estimated AVOD revenues represented approximately one quarter of total AVOD revenues, although they grew at a slower pace than total AVOD revenues. Conversely, Facebook’s estimated AVOD revenues went from representing a 6% share of AVOD revenues in 2015 to a 14% share in 2016, increasing by 176% year over year. Please note that Facebook’s AVOD revenues exclude revenues from Instagram.

iii) Financial performance

Although private conventional television stations did not achieve profitability in 2016, their losses nonetheless decreased, reporting a -6.7% Profit Before Interest and Taxes (PBIT) in 2016, compared to the -8.0% PBIT reported in 2015. 2016 marked the fourth consecutive year of financial losses for the private conventional television stations.

Discretionary and On-Demand services reported an average PBIT margin of 21% in 2016, similar to 2015’s 21.5%. Category A services with a 32% PBIT margin, were the most profitable of all types of services. PPV managed to attain a 10.8 PBIT margin but Video-on-demand slumped to -11.5. As a result, Pay, PPV and VOD service together recorded an overall PBIT margin of 0.1%, down from the previous year’s 4%.

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

Column chart of Figure 4.2.11: Aggregate PBIT margins for private conventional television and discretionary services Column chart of Figure 4.2.11: 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 2012 to 2016 broadcast years:

Private conventional television services:
Year Percentage
2012 1%
2013 0%
2014 -8%
2015 -8%
2016 -7%
Pay, PPV and VOD services:
Year Percentage
2012 11%
2013 12%
2014 12%
2015 4%
2016 0.1%
Category A specialty services:
Year Percentage
2012 35%
2013 35%
2014 32%
2015 33%
2016 32%
Category B specialty services:
Year Percentage
2012 24%
2013 26%
2014 25%
2015 27%
2016 26%
Category C specialty services:
Year Percentage
2012 13%
2013 24%
2014 20%
2015 15%
2016 17.5%

Source: CRTC data collection

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

Line-column chart of Figure 4.2.12: Aggregate PBIT margins for English-language private conventional television and discretionary services Line-column chart of Figure 4.2.12: 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 2012 to 2016.

Private conventional:
Category 2012 2013 2014 2015 2016
PBIT margins (%) 1 -2 -9 -10 -9
Number of reporting units 72 72 72 73 73
Discretionary services:
Category 2012 2013 2014 2015 2015
PBIT margins (%) 24 27 25 23 22
Number of reporting units 126 154 157 157 160

Source: CRTC data collection

Figure 4.2.13 Aggregate PBIT margins for French-language private conventional television and discretionary services

Line-column chart of Figure 4.2.13: Aggregate PBIT margins for French-language private conventional television and discretionary services Line-column chart of Figure 4.2.13: 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 2012 to 2016.

Private conventional:
Category 2012 2013 2014 2015 2016
PBIT margins (%) 9 9 0.1 1 2
Number of reporting units 20 20 20 20 20
Discretionary services:
Category 2012 2013 2014 2015 2016
PBIT margins (%) 19 24 20 11 13
Number of reporting units 31 31 34 32 32

Source: CRTC data collection

Figure 4.2.14 Aggregate PBIT margins for ethnic and third-language discretionary services

Line chart of Figure 4.2.14: Aggregate PBIT margins for ethnic and third-language discretionary services Line chart of Figure 4.2.14: 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 2012 to 2016.

Category 2012 2013 2014 2015 2016
PBIT margins (%) 24 21 17 17 12
Number of reporting units 43 47 41 38 114

Source: CRTC data collection

iv) 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 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: AVOD (Ad-based VOD e.g. TouTV, Crackle, YouTube); SVOD (subscription-based VOD e.g. Netflix, LoveFilms); and TVOD (transactional VOD (e.g. iTunes).

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

Figure 4.2.15 Percentage of Canadians who viewed television and Internet video services and programming in the past month, by language and platform, 2016

Bar chart of Figure 4.2.15: Percentage of Canadians who viewed television and Internet video services and programming in the past month, by language and platform Bar chart of Figure 4.2.15: 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 2016:

National:
Category 2016
TV 95
Pay TV 22
Any type of internet video 82
Watch any type of YouTube video 69
Internet TV 58
Entire 30 or 60 minute TV show online 51
Full length movie online 42
Online news or news program 45
Sports highlight or event online 30
Anglophones:
Category 2016
TV 94
Pay TV 22
Any type of internet video 83
Watch any type of YouTube video 70
Internet TV 60
Entire 30 or 60 minute TV show online 53
Full length movie online 45
Online news or news program 48
Sports highlight or event online 32
Francophones:
Category 2016
TV 98
Pay TV 24
Any type of internet video 79
Watch any type of YouTube video 66
Internet TV 54
Entire 30 or 60 minute TV show online 44
Full length movie online 33
Online news or news program 36
Sports highlight or event online 22

Source: MTM, 2016 (Respondents: Canadians 18+)

Table 4.2.8 Estimated Canadian Youtube and Facebook monthly active users (millions)
Service 2015 2016 Growth (%) 2015-2016
Youtube 21.0 21.2 1.0
Facebook (excl. Instagram) 21.5 23.9 11.3

Source: OVUM, 2016

Table 4.2.9 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
2015 2016 2015 2016 2015 2016 2015 2016
Canadian conventional television services CBC/SRC (owned and operated) 14 14 13 13 0 0 27 27
Private commercial 67 67 20 20 6 6 93 93
Religious included in private commercial 5 5 0 0 0 0 5 5
Other religious 2 2 0 0 0 0 2 2
Educational 4 4 3 3 0 0 7 7
Canadian discretionary services Specialty Category A services 44 44 15 15 5 5 64 64
Specialty Category B services 79 84 10 10 33 109 122 203
Specialty Category C services 6 6 4 4 0 0 10 10
Pay television services 6 6 2 2 0 0 8 8
PPV services (DTH and terrestrial) 12 11 0 0 0 0 12 11
VOD services 20 16 1 1 0 0 21 17
Other Canadian services Community services 11 11 4 4 0 0 15 15
House of Commons (CPAC) 1 1 1 1 0 0 2 2
Non-Canadian services Authorized for distribution in Canada 128 138 22 24 149 165 299 327
Total Total 394 404 95 97 193 285 682 786

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. Conventional Communnity and Other Canadian community services have been broken down. 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 4.2.10 Number of Canadian public/community/educational and private conventional television services authorized to broadcast, by province and language of broadcast, 2016
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 13 1 0 0 2 4 15
Saskatchewan 2 6 1 0 0 0 3 6
Manitoba 2 4 1 0 0 0 3 4
Ontario 6 22 3 0 0 2 9 24
Quebec 1 3 11 20 0 1 12 24
New Brunswick 2 3 1 0 0 0 3 3
Nova Scotia 3 4 0 0 0 0 3 4
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 30 67 19 20 0 6 49 93

Source: CRTC internal database

Nationally, Canadians have access to 93 private conventional television services and 49 public/community/educational television services. Québec leads all provinces in regard to public, community and education stations (12). Ontario and Quebec lead in regard to private conventional television stations (24).

v) 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 4.2.16 Average number of hours Canadians watched traditional television (2011-2012 through 2015-2016 broadcast years) and Internet television (2010 to 2016)

Bar chart of Figures 4.2.16: Average number of hours Canadians watched traditional television (2011-2012 through 2015-2016 broadcast years) and Internet television (2010 to 2016) Bar chart of Figures 4.2.16: Average number of hours Canadians watched traditional television (2011-2012 through 2015-2016 broadcast years) and Internet television (2010 to 2016)
Text Description of Image

The two bar charts display the national average weekly viewing hours for Canadians aged 18+, for traditional television and Internet television (Internet TV usage for typical weekly user and total population), respectively.

Traditional television:
Year Weekly Hours
2011-2012 29.5
2012-2013 29.3
2013-2014 29.0
2014-2015 28.6
2015-2016 28.2
Internet television:
Category 2010 2011 2012 2013 2015 2016
Internet TV usage - typical weekly user 2.4 2.8 3.9 5.1 5.8 6.4
Internet TV usage - total population 0.5 0.7 1.3 1.9 2.7 3.1

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 2.5 hours and by approximately 4 hours for typical Internet TV weekly users over the same period.

Table 4.2.11 Average number of hours Canadians watched traditional television each week, by age group
Age group Average number of hours watching traditional television (Weekly) Growth (%) 2014-15 to 2015-16
2011-12 2012-13 2013-14 2014-15 2015-16
All persons 2+ 28.2 27.9 27.4 27.2 26.6 -2.2
Children 2-11 22.2 21.6 20.6 21.4 20.3 -5.1
Teens 12–17 22.7 21 19.9 18.8 16.4 -12.8
18–34 22.8 21.9 20.6 19.7 18.5 -6.1
35–49 24.8 24.7 24 23.6 22.1 -6.4
50-64 33.1 33.2 33.4 33 32.9 -0.3
65+ 41.9 41.5 41.8 42 42.8 1.9

Source: Numeris

This table shows the national average of weekly viewing hours by age group. It does not include digital media.

Average weekly viewing declined across all age groups except for the 65+ age group which saw little movement over the same timeframe.

Table 4.2.12 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 (%) 2014-15 to 2015-16
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Canadian English-language CBC 5.5 5.1 6.9 5.2 5.1 -1.9
Private conventional 25.6 24.9 25.3 26.1 25.1 -3.8
Discretionary and on-demand services 49.6 51.1 50.3 52.0 52.5 1.0
Other services 2.2 2.3 2 2.3 2.2 -4.3
All services 82.8 83.4 84.5 85.6 84.9 -0.8
Canadian French-language SRC 0.2 0.1 0.1 0.1 0.1 0.0
Private conventional 0.1 0.1 0.1 0.1 0.1 0.0
Télé-Québec 0 0 0 0.0 0.0 0.0
Discretionary and on-demand services 0.4 0.4 0.4 0.3 0.4 33.3
All services 0.8 0.7 0.6 0.5 0.6 20.0
Canadian other languages Private conventional 1.1 0.9 0.6 0.4 0.2 -50.0
Discretionary and on-demand services 1 0.9 1 0.9 0.6 -33.3
APTN 0.1 0.2 0.2 0.2 0.2 0.0
All services 2.3 2 1.8 1.5 1.0 -33.3
Canadian all languages Community services 0.3 0.3 0.3 0.3 0.3 0.0
VOD/PPV 0 0 0 n/a n/a n/a
All services 86.1 86.4 87.2 87.9 86.5 -1.6
Non-Canadian U.S. conventional 5.4 5 4.5 4.8 4.5 -6.3
U.S. discretionary 8.5 8.8 8 7.2 8.5 18.1
International 0 0 0 0.1 0.1 0.0
All services 13.9 13.7 12.5 12.1 13.1 8.3
All services Total hours (millions) 720.0 712.0 710.7 704.7 684.9 -2.8

Source: Numeris

Relative to the total viewing hours, viewership has slightly declined or has remained stable across the different services over the past five years. The total hours for all services has diminished by over 30 million hours from 2011-2012 to 2015-2016.

Table 4.2.13 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 (%) 2014-15 to 2015-16
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Canadian French-language SRC 11.8 12.8 13.4 12.3 12.9 4.9
Private conventional 32 32.4 30.8 30.5 30.6 0.3
Télé-Québec 2.9 3 3 3.4 3.8 11.8
TFO 0.1 0.1 0.3 0.3 0.2 -33.3
Discretionary and on demand services 45.8 44.7 45 45.8 45.2 -1.3
All services 92.7 93 92.5 92.3 92.7 0.4
Canadian English-language CBC 0.6 0.4 0.8 0.6 0.5 -16.7
Private conventional 1.7 1.7 1.7 1.9 1.7 -10.5
Discretionary and on demand services 3.1 3.1 3.2 3.8 3.5 -7.9
Other services 0.1 0 0 0 0 0.0
All services 5.5 5.2 5.7 6.3 5.7 -9.5
Canadian other languages Private conventional 0.1 0.2 0 0 0 0.0
Discretionary and on demand services 0 0 0 0.1 0.1 0.0
APTN 0 0.1 0 0 0 0.0
All services 0.2 0.3 0.1 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 n/a n/a n/a
All services 98.6 98.8 98.3 98.9 98.5 -0.4
Non-Canadian US conventional 0.8 0.8 1 0.8 0.6 -25.0
US discretionary 0.6 0.5 0.5 0.5 0.5 0.0
International 0.1 0.1 0.1 0 0 0.0
All services 1.5 1.4 1.6 1.3 1.1 -15.4
All services Total hours (millions) 211.3 216.5 220.3 225.5 223.7 -0.8

Source: Numeris

In contrast to the English-language market, which has seen its total viewing hours diminish in the past five years, the French-language market has experienced a growth in total viewing hours of 12.4 million hours.

Table 4.2.14 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
2012-2013 2013-2014 2014-2015 2015-2016 2012-2013 2013-2014 2014-2015 2015-2016
News (category 1) Viewing hours (M) 84.7 84.8 82.2 77.1 30.7 26.4 27.1 27.0
% Canadian 100 100 99.9 99.7 98.8 98.7 98.1 98.3
% of total 14.6 14.2 13.6 13.1 15 13.2 13.4 13.6
Long-form documentary (category 2(b)) Viewing hours (M) 21.6 11.2 28.6 23.9 10.9 10.4 11.3 9.7
% Canadian 46.9 48.2 47.6 46.3 42.9 47 48.7 46.5
% of total 3.7 3.9 4.7 4.1 5.4 5.2 5.6 4.9
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 52.2 50.2 53.8 49.6 32.7 28.7 29 28.2
% Canadian 56.9 59.1 56.6 58.2 91.1 91.3 89.5 90.0
% of total 9 8.4 8.9 8.4 16 14.4 14.3 14.1
Sports (category 6) Viewing hours (M) 70.9 95.5 93.8 110.5 10.7 17.7 18.6 16.7
% Canadian 65.9 72.9 67.3 72 67.8 75 70.5 64.3
% of total 12.2 16 15.6 18.8 5.3 8.9 7.7 8.4
Drama and comedy (category 7) Viewing hours (M) 237.4 227.5 230.8 215.3 79.8 76 78.2 78.0
% Canadian 20 19.4 19.2 18.7 29.1 28.8 29.2 27.0
% of total 40.9 38.1 38.3 36.6 39.1 38.1 38.7 39.1
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 10.5 9 7.3 7 3.8 3.1 3.1 3.0
% Canadian 23.8 34.6 40.9 33.6 81.5 85.4 83.5 86.1
% of total 1.8 1.5 1.2 1.2 1.8 1.6 1.5 1.5
Game show (category 10) Viewing hours (M) 8.1 9.1 8.5 10.1 9.1 9 7.2 7.0
% Canadian 26.7 23.6 22.5 14.1 94.1 95.4 89.3 91.7
% of total 1.4 1.5 1.4 1.7 4.5 4.5 3.5 3.5
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 94.6 97.6 97.4 95 25.9 28.1 30.4 29.8
% Canadian 29.7 31.7 32.1 32.1 68.9 68.2 65.4 66.3
% of total 16.3 16.3 16.2 16.1 12.7 14.1 15 14.9
Other (categories 12 through 15) Viewing hours (M) 0.1 4.1 4.1 0.1 0.4 18.6 0.4 0.1
% Canadian 96.4 61.5 81.1 71.5 91.6 67.8 98.3 87.3
% of total 0 0 0 0 0.2 0 0.2 0
All Categories Viewing hours (M) 580.1 596.8 602.5 588.5 204.1 199.5 202.3 199.5
% Canadian 43.4 46.1 44.8 46.1 61.4 61.5 59.9 58.7

Source: Numeris

Drama and comedy exhibits the highest viewing percentage of any category for both French- (39.1%) and English-language (36.6%) markets, yet only 27% of this type of programming for the French-language market and 18.7% for the English-language market is produced in Canada. News and Sports programming are 98.3% and 64.3% Canadian-made in the French-language market, while 99.7% and 72% of these types of program respectively are made in the English-language market.

Table 4.2.15 Average weekly viewing hours for Canadian programs broadcast by CBC 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
2012-2013 2013-2014 2014-2015 2015-2016 2012-2013 2013-2014 2014-2015 2015-2016
News (category 1) Viewing hours (M) 7.1 7.2 7.3 5.7 4.4 4.1 3.9 3.8
% Canadian 100 100 100 100 100 100 100 100
% of total 20.4 14.9 20.9 16.6 15.9 13.9 14 13.3
Long-form documentary (category 2(b)) Viewing hours (M) 1.6 1.3 1.6 1.7 0.3 0.3 0.4 0.3
% Canadian 96.6 98.4 89.8 49.3 93 98.7 97.7 95.6
% of total 4.7 2.8 4.2 5 1.1 1 1.4 1
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 2.9 2.1 2.3 2.2 3.6 2.8 3 2.9
% Canadian 99.9 100 100 80.8 99.9 99.9 100 99.9
% of total 8.3 4.3 6.5 6.6 12.9 9.6 11 10.2
Sports (category 6) Viewing hours (M) 9.9 25.4 10.8 12.9 0.3 2.9 0.4 2.1
% Canadian 100 100 100 100 100 99.9 100 100
% of total 28.3 52.6 30.8 37.8 1 9.7 1.3 7.5
Drama and comedy (category 7) Viewing hours (M) 9.4 8.6 10.9 9.1 9 8.4 9.6 8.7
% Canadian 54.1 56 63.4 61.3 70 70 66 69
% of total 26.9 17.8 31.1 26.6 32.4 28.6 34.9 30.5
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 0.1 0.1 0.1 0.4 1.4 1.5 1.5 1.6
% Canadian 100 100 51.1 79.6 100 100 100 99.7
% of total 0.2 0.2 0.4 1.1 5.1 5.1 5.4 5.4
Game show (category 10) Viewing hours (M) 0.2 0 0.2 0.1 1.7 1.5 1.2 1.2
% Canadian 0 0 100 100 100 100 100 100
% of total 0.5 0 0.4 0.4 6.2 5.1 4.2 4
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 3.7 3.6 2 2 7 7.9 7.7 8
% Canadian 99.5 99.6 98.9 96 100 100 100 100
% of total 10.6 7.4 5.6 5.8 25.3 26.9 27.8 28
Other (categories 12 through 15) Viewing hours (M) 0 2.2 0 0 0 0.3 0 0
% Canadian 0 100 100 100 100 100 100 98.1
% of total 0 0 0 0 0 0 0 0.1
All Categories Viewing hours (M) 35 48.3 35 34.2 27.6 29.5 27.6 28.7
% Canadian 86.9 92.1 87.9 85.4 90.2 91.4 88.1 90.5

Source: Numeris

In French-language markets, drama and comedy garnered the highest percentage of total CBC viewing (30.5%), followed closely by the General entertainment/Human interest/Reality category at 28%.

English-language markets shared an interest for drama and comedy, with 26.6% of total viewing, yet preferred the Sports category (37.8% of total viewing) to the General entertainment/Human interest/Reality category (5.8% of total viewing).

Table 4.2.16 Average weekly viewing hours for Canadian programs broadcast by private 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
2012-2013 2013-2014 2014-2015 2015-2016 2012-2013 2013-2014 2014-2015 2015-2016
News (category 1) Viewing hours (M) 36.7 37.3 34.1 30.9 10.3 9.2 9.2 9
% Canadian 100 100 100 99.3 100 100 100 100
% of total 21.6 22 19.9 19.5 14.8 13.6 13.6 13.4
Long-form documentary (category 2(b)) Viewing hours (M) 1.5 1.8 1.8 1.6 0.3 0.2 0.4 0.5
% Canadian 95.2 89.2 96.6 97.6 90.5 79.9 80.2 53.3
% of total 0.9 1.1 1 1 0.4 0.4 0.6 0.8
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 10.4 10.5 11.5 11.5 14.5 12.3 12.3 12.8
% Canadian 62.2 65.8 67.2 68.9 100 99.8 99.3 99.7
% of total 6.1 6.2 6.7 7.2 20.8 18.3 18.2 19.1
Sports (category 6) Viewing hours (M) 4.6 3.8 6.8 4.7 0 0.7 0.1 0.2
% Canadian 6.5 7.4 32.8 14.7 85.9 60.9 71.8 7.1
% of total 2.7 2.3 4 3 0 0.1 0.1 0.4
Drama and comedy (category 7) Viewing hours (M) 64.9 65.3 66.4 58.9 26.9 28.4 29.4 29.6
% Canadian 10.3 10 7.7 8.6 22.7 22.5 22.2 19.9
% of total 38.1 38.6 38.8 37.2 38.7 42.2 43.5 44.1
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 7.3 5.4 3.6 3.5 0.9 0.3 0.2 0.3
% Canadian 2 3.5 5.4 2.1 59.7 71.1 85.4 74.5
% of total 4.3 3.2 2.1 2.2 1.3 0.4 0.3 0.5
Game show (category 10) Viewing hours (M) 5 6 5.5 6.9 6.6 6.9 5.3 5
% Canadian 3.7 2.9 3.3 3.8 99.5 99.5 94.4 98.4
% of total 2.9 3.5 3.2 4.4 9.6 10.2 7.9 7.4
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 40 39.1 41.5 40.4 9.7 9.9 10.4 9.7
% Canadian 22.9 29 37.7 38.6 81.5 85.9 85.5 83.6
% of total 23.5 23.1 24.2 25.5 14 14.8 15.4 14.5
Other (categories 12 through 15) Viewing hours (M) 0 0 0.3 0 0.3 0 0.4 0
% Canadian 0 0 95.3 89.8 100 0 100 n/a
% of total 0 0 0 0 0.5 0 0.5 0
All Categories Viewing hours (M) 170.1 169.2 171.1 158.5 69.4 67.2 67.6 67.2
% Canadian 35.9 38 39.1 39.1 66.9 64.9 63.2 61.3

Source: Numeris

The News category reaches almost 100% Canadian production across the English- (99.3%) and French-language (100%) markets, while the percentage is much lower for the Sports category (English 14.7%; French 7.1%) and Drama and comedy category (English 8.6%; French 19.9%).

Table 4.2.17 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
2012-2013 2013-2014 2014-2015 2015-2016 2012-2013 2013-2014 2014-2015 2015-2016
News (category 1) Viewing hours (M) 41.2 40.3 40.8 40.5 16 13.1 13.1 14.2
% Canadian 100 99.9 99.8 99.9 97.7 97.5 96.3 96.7
% of total 11.2 10.6 10.3 10.2 15.9 12.8 14 13.7
Long-form documentary (category 2(b)) Viewing hours (M) 16 20 25.4 20.5 9.8 9.9 9.8 8.9
% Canadian 41 41.1 41.8 42 41.2 44.6 45.6 44.5
% of total 4.3 5.3 6.4 5.2 9.7 9.6 10.5 8.6
Other informational (categories 2 through 5, excluding 2(b)) Viewing hours (M) 36.6 37.6 40 35.9 13.5 13.6 12.8 12.5
% Canadian 51.2 55 51 53.4 79.4 81.7 78.5 77.7
% of total 9.9 9.9 10.1 9.1 13.4 13.3 13.7 12
Sports (category 6) Viewing hours (M) 56.5 66.3 76.2 92.8 10.4 14.8 14.2 14.3
% Canadian 64.7 66.3 65.7 71.1 66.9 70.2 69.8 59.9
% of total 15.3 17.5 19.2 23.5 10.4 14.4 15.2 13.8
Drama and comedy (category 7) Viewing hours (M) 159.1 153.6 153.6 147.3 40.2 39.2 36.6 39.7
% Canadian 21.7 21.3 21 20.2 23.5 24.5 25.4 23.1
% of total 43.2 40.5 38.7 37.2 40 38.1 39.2 38.3
Music, dance, and variety (categories 8 and 9) Viewing hours (M) 3.1 3.5 3,6 3.1 1.3 1.3 1.3 1.1
% Canadian 73.6 81.3 75.7 63.2 72.8 71.8 65.2 70.6
% of total 0.8 0.9 0.9 0.8 1.3 1.3 1.4 1.1
Game show (category 10) Viewing hours (M) 3.2 3.1 2.9 3.1 0.6 0.6 0.7 0.8
% Canadian 62.4 63 55.2 34 15.9 35.8 32.8 40
% of total 0.9 0.8 0.7 0.8 0.6 0.6 0.7 0.8
General entertainment/ Human interest/ Reality (category 11) Viewing hours (M) 53.1 54.8 54 52.6 8.7 10.2 11,5 12.1
% Canadian 28.7 29.1 25.3 24.7 28 26.4 27.1 30
% of total 14.4 14.5 13.6 13.3 8.7 9.9 12.3 11.7
Other (categories 12 through 15) Viewing hours (M) 0 0.2 0 0 0 0.2 0 0
% Canadian 0 16.7 4.8 23.1 33.3 62 77.8 81.1
% of total 0 0 0 0 0 0 0 0
All Categories Viewing hours (M) 368.8 379.3 396.3 395.8 100.5 102.8 107.1 103.6
% Canadian 42.6 43.9 43.4 45.5 50 50.8 50.5 48.2

Source: Numeris

Drama and comedy is the most viewed discretionary service category, but only 20.2% is made in Canada in the English-language market and 23.1% is made in Canada in the French-language market.

Table 4.2.18 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 (%)
2013-2014 2014-2015 2015-2016
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
BCE All 15.6 19.9 35.5 16.1 20.1 36.2 15.2 21.5 36.7
English 15.6 19.7 35.2 16.1 19.9 36 15.2 21.4 36.6
French 0 0.3 0.3 0 0.2 0.2 0 0.1 0.1
Shaw All 8.3 14.3 22.6 8.6 15.2 23.8 0 0 0
English 8.3 14.3 22.6 8.6 15.2 23.8 0 0 0
French 0 0 0 0 0 0 0 0 0
Corus All 1.7 11.7 13.3 1.6 11.3 12.9 8.5 26.1 34.6
English 1.7 11.6 13.2 1.6 11.2 12.8 8.5 26.1 34.6
French 0 0.1 0.1 0 0.1 0.1 0 0 0
Rogers All 4.5 5.2 9.7 4.4 6 10.4 4.2 7.7 11.9
English 4.5 5.2 9.7 4.4 6 10.4 4.2 7.7 11.9
French 0 0 0 0 0 0 0 0 0
CBC-SRC All 8.3 1.9 10.2 6.1 1.9 8 6.2 2.2 8.4
English 8.2 1.8 10 5.9 1.9 7.8 6 2.1 8.1
French 0.2 0.1 0.2 0.1 0 0.1 0.2 0.1 0.3

Source: Numeris

Table 4.2.19 Viewing share of English- and French-language Canadian services, by ownership group in the Quebec francophone market
Owner Language Viewing share (%)
2013-2014 2014-2015 2015-2016
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
Québecor All 23.4 8.7 32.1 23.3 11.2 34.5 23.5 11.3 34.8
French 23.4 8.7 32.1 23.3 11.2 34.5 23.5 11.3 34.8
English 0 0 0 0 0 0 0 0 0
BCE All 0.8 21.3 22.1 1 19.8 20.8 0.9 18 18.9
French 0 19.8 19.8 0 18.3 18.3 0 16.6 16.6
English 0.8 1.5 2.3 1 1.4 2.4 0.9 1.4 2.3
SRC-CBC All 14.5 4.9 19.4 13.1 4.7 17.8 13.7 5.1 18.8
French 13.7 4.9 18.6 12.5 4.6 17.1 13.2 5 18.2
English 0.8 0.1 0.8 0.6 0.1 0.7 0.5 0.1 0.6
Remstar All 8 0.9 9 7.8 0.9 8.7 7.5 1.2 8.7
French 7.9 0.9 8.8 7.6 0.9 8.6 7.3 1.2 8.5
English 0 0 0 0 0 0 0 0 0
Corus All 0 8 8 0 7.8 7.8 0 9.5 9.5
French 0 7.7 7.7 0 7.4 7.4 0 8.2 8.2
English 0 0.3 0.3 0 0.4 0.4 0 1.3 1.3

Source: Numeris

In Tables 4.2.18 and 4.2.19:

Table 4.2.20 Total viewing hours (millions) by market
Market Total hours (millions)
2013-2014 2014-2015 2015-2016
Conventional Discretionary Total Conventional Discretionary Total Conventional Discretionary Total
Canada (excluding the Quebec francophone market) 238.1 362.5 600.7 229.8 369.5 599.3 216.0 363.1 579.1
Quebec francophone market 109.7 106.1 215.7 109.7 111.5 221.2 111.0 109.0 219.9

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).

vi) 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 43 cents per revenue dollar in support of Canadian programming during the 2015-2016 broadcast year. Canadian programming expenditures (CPE) totalled $3 billion, 19% of which was spent on program of national interest (PNI).

Spending on non-Canadian programming by private conventional television stations decreased by $46 million (-7%) to $610.3 million in 2016.

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

Chart 4.2.2: Canadian programming funding ecosystem Chart 4.2.2: Canadian programming funding ecosystem
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 as well as tax credits.

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

Figure 4.2.17 CPE on television, by type of service, 2016 ($ millions)

Circularchart of Figure 4.2.17: CPE on television, by type of service, 2016 ($ millions) Circularchart of Figure 4.2.17: CPE on television, by type of service, 2016 ($ millions)
Text Description of Image

This circular chart shows the amount ($ million) that broadcasters spent on Canadian programming, by type of service, as well as the percentage of total CPE in each case.

Service Percentage CPE (million)
CBC conventional TV 21% $635
Other public and not-for-profit conventional TV 2% $63
Private commercial conventional TV 20% $633
Specialty and Pay 56% $1,707
PPV and VOD 1% $26

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 exclude CMF “top-ups” reported by private conventional, specialty, pay, PPV, and VOD television services.

In 2016, discretionary and on demand services (specialty, pay, PPV and VOD) spent $1,707 million in CPE, an increase of $108 million (6.8%) over 2015. Historically, specialty services has accounted for more than half of CPE spending.

Figure 4.2.18 Television programming expenditures ($4.3 billion total), PNI vs. Canadian vs. non-Canadian, 2016

Circularchart of Figure 4.2.18: Television programming expenditures ($4.3 billion total), PNI vs. Canadian vs. non-Canadian, 2016 Circularchart of Figure 4.2.18: Television programming expenditures ($4.3 billion total), PNI vs. Canadian vs. non-Canadian, 2016
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.

Program Type Percentage
Canadian programming (excluding PNI) 54%
Programs of national interest (PNI) 15%
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. Programming of VOD and PPV services, as well as other public and not-for-profit conventional television services, is excluded.

Almost 70% of the spending went to Canadian programming (PNI included).

Figure 4.2.19 Programming expenditures per revenue dollar

Stacked bar chart of Figure 4.2.19: Programming expenditures per revenue dollar Stacked bar chart of Figure 4.2.19: 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 2014 to 2016.

Program Type 2014 2015 2016
Canadian programming (excluding PNI) 0.34 0.35 0.33
Programs of national interest (PNI) 0.09 0.10 0.09
Non-Canadian programming 0.20 0.20 0.19
Total 0.63 0.65 0.62

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 2016, $0.33 was spent on Canadian programming (excluding PNI), $0.09 on PNI, and $0.19 on non-Canadian programming. This chart excludes VOD and PPV services as well as other public and not-for-profit conventional television.

Table 4.2.21 PNI expenditures by type of service and program category ($ millions)
Service Program category PNI expenditures ($ millions) Growth (%) 2015-2016 2016 PNI expenditures as percentage of total (%)
2014 2015 2016
Private conventional television Long-form documentary 6.3 7.3 8.2 12.3 1.2
Drama 65.8 55.3 53.1 -4.0 7.8
Music, dance, and variety (French programming only) 17.5 12.6 13.1 4.0 1.9
Award shows (English programming only) 2.3 1.1 3.0 172.7 0.4
Total PNI 91.9 76.3 77.6 1.7 11.4
CBC conventional television Long-form documentary 22.3 28.3 34.4 21.6 5.1
Drama 136.9 158.5 164.2 3.6 24.1
Music, dance, and variety (French programming only) 20.4 21.3 16.6 -22.1 2.4
Award shows (English programming only) 3.1 3.6 3.7 2.8 0.5
Total PNI 182.7 211.9 219.0 3.4 32.2
Discretionary services Long-form documentary 107.4 113.3 96.6 -14.7 14.2
Drama 224.1 194.3 259.2 33.4 38.1
Music, dance, and variety (French programming only) 11.3 10.1 20.7 105.0 3.0
Award shows (English programming only) 6.3 6.9 7 1.4 1.0
Total PNI 349.1 324.6 383.5 18.1 56.4
Total Long-form documentary 136 148.9 139.2 -6.5 20.5
Drama 424 408.1 476.5 16.8 70.1
Music, dance, and variety (French programming only) 49.3 44.0 50.4 14.5 7.4
Award shows (English programming only) 11.7 11.6 13.7 18.1 2.0
Total PNI 623.7 612.8 680.1 11.0 100.0

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.

Discretionary services spend the most on PNI (56.1%) with 37.9% going towards drama. Spending in the drama category grew by a more than a third between 2015 and 2016 while total PNI grew by 10.1% in 2016.

Table 4.2.22 PNI expenditures by CBC and large private ownership groups, by program category ($ millions)
Ownership group Program category PNI expenditures ($ millions) Growth (%) 2015-2016 2016 PNI expenditures as percentage of total (%)
2014 2015 2016
CBC Long-form documentary 22.3 28.3 34.4 21.6 5.1
Drama 136.9 158.5 164.2 3.6 24.1
Music, dance, and variety (French programming only) 20.4 21.3 16.6 -22.1 2.4
Award shows (English programming only) 3.1 3.6 3.7 2.8 0.5
Total PNI 182.7 211.9 219.0 3.4 32.2
BCE Long-form documentary 47 54.9 38.8 -29.3 5.7
Drama 96.2 77.3 89 15.1 13.1
Music, dance, and variety (French programming only) 0 0.7 1 42.9 0.1
Award shows (English programming only) 8.3 7.1 7.9 11.3 1.2
Total PNI 151.5 140 136.7 -2.4 20.1
Corus Long-form documentary 5.8 6.4 20.8 225.0 3.1
Drama 71.7 91.2 99 8.6 14.6
Music, dance, and variety (French programming only) 0 0 0 n/a n/a
Award shows (English programming only) 0 0 0.2 n/a 0.0
Total PNI 77.5 97.6 119.9 22.8 17.6
Rogers Long-form documentary 2.8 4.1 6.5 58.5 1.0
Drama 7.2 9.5 6.7 -29.5 1.0
Music, dance, and variety (French programming only) 0 0 0 n/a n/a
Award shows (English programming only) 0 0 0 n/a n/a
Total PNI 10 13.6 13.2 -2.9 1.9
Shaw Long-form documentary 27.3 23.4 - n/a n/a
Drama 25.9 26.3 - n/a n/a
Music, dance, and variety (French programming only) 0 0 - n/a n/a
Award shows (English programming only) 0 0 - n/a n/a
Total PNI 53.3 49.7 - n/a n/a
Total Long-form documentary 136 148.9 139.2 -6.5 20.5
Drama 424 408.1 476.5 16.8 70.1
Music, dance, and variety (French programming only) 49.3 44.0 50.4 14.5 7.4
Award shows (English programming only) 11.7 11.6 13.7 18.1 2.0
Total PNI 623.7 612.8 680.1 11.0 100.0

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

Following Corus’s acquisition of Shaw Media, many specialty services are now listed under Corus Entertainment.

The 4 largest private ownership groups and CBC contributed almost 500 million dollars to programs of national interest in 2015-2016. The drama category benefitted the most with a total 358.9 million dollars. Its main benefactors were CBC (163.2 M), Corus (99 M), and BCE (89 M).

Table 4.2.23 CPE for CBC English and French-language conventional television, by program category ($ thousands)
Program category 2012 2013 2014 2015 2016 Growth (%) 2015-2016
News (category 1) 196,688 212,876 207,331 190,937 173,523 -9.1
Long-form documentary (category 2(b)) 36,042 30,870 22,337 28,471 34,410 20.9
Other informational (categories 2 through 5, excluding category 2(b)) 67,446 63,744 62,792 50,651 45,547 -10.1
Sports (category 6) 158,698 127,730 258,029 35,940 117,300 226.4
Drama and comedy (category 7) 158,420 153,529 136,895 158,544 164,245 3.6
Music, dance, and variety (categories 8 and 9) 26,120 27,635 27,278 29,347 24,964 -14.9
Game show (category 10) 16,217 12,933 9,300 5,449 7,352 34.9
Human interest/Award shows/Reality (category 11) 73,063 70,337 64,807 56,742 66,685 17.5
Human interest n/a 58,411 49,545 44,785 51,655 15.3
Award shows n/a 7,467 7,725 8,008 8,041 0.4
Reality television n/a 4,460 7,537 3,949 6,989 77.0
Other (categories 12 through 15) 941 1,139 1,011 1,102 1,060 -3.8
Total (categories 1 through 15) 733,635 700,793 789,782 557,183 635,085 14.0

Source: CRTC data collection

The breakdown for “Human interest/Award Shows/Reality” (category 11) is only available as of 2013. In 2015, CPE for sports has seen a decline partly due to the loss of the hockey rights.

Table 4.2.24 CPE for private conventional television, by program category ($ thousands)
Program category 2012 2013 2014 2015 2016 Growth (%) 2015-2016
News (category 1) 353,646 355,287 361,050 369,570 365,633 -1.1
Long-form documentary (category 2(b)) 16,600 7,894 6,261 7,288 8,217 12.7
Other informational (categories 2 through 5, excluding category 2(b)) 32,150 30,923 29,339 30,026 25,405 -15.4
Sports (category 6) 68,485 6,490 1,123 21,450 10,121 -52.8
Drama and comedy (category 7) 59,169 66,164 65,759 55,289 53,176 -3.8
Music, dance, and variety (categories 8 and 9) 30,241 24,476 22,317 17,097 13,251 -22.5
Game show (category 10) 17,546 19,394 19,042 17,258 18,670 8.2
Human interest/ Award shows/Reality (category 11) 83,017 92,345 113,897 134,422 138,513 3.0
Human interest n/a 72,953 84,669 86,737 91,313 5.3
Award shows n/a 4,071 3,695 2,671 3,035 13.6
Reality television n/a 15,321 25,533 45,014 44,165 -1.9
Other (categories 12 through 15) 905 2,444 516 361 308 -14.7
Total (categories 1 through 15) 661,759 605,415 619,305 652,762 633,294 -3.0

Source: CRTC data collection

The breakdown for “Human interest/Award Shows/Reality” (category 11) is only available as of 2013.

2016 private conventional television CPE is equivalent to 38% of this sector’s revenues.

Figure 4.2.20 Distribution of CPE for private conventional television services, by program category, 2016

Circular chart of Figure 4.2.20: Distribution of CPE for private conventional television services, by program category, 2016 Circular chart of Figure 4.2.20: Distribution of CPE for private conventional television services, by program category, 2016
Text Description of Image

This circular chart depicts the percentage distribution by genre for the expenditures for private conventional television services:

Service Percentage
News (cat. 1) 57%
Other info (cat. 2 to 5) 4%
Sports (cat. 6) 2%
Drama & comedy (cat. 7) 8%
Music/Variety (cat. 8 & 9) 2%
Game shows (cat. 10) 3%
Human interest / Award Shows / Reality (cat. 11) 14%
Other (cat. 12 to 15) 0%

Source: CRTC data collection

This figure shows the distribution, broken down by program category, of CPE of private conventional television services in 2016.

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 progr

Table 4.2.25 Expenditures on non-Canadian programming by private conventional television services, by program category ($ thousands)
Program category 2012 2013 2014 2015 2016 Growth (%) 2015-2016
News (category 1) 57 4,631 594 703 0 -100
Long-form documentary (category 2(b)) 298 454 603 218 22 -89.9
Other informational (categories 2 through 5, excluding category 2(b)) 15,034 9,750 10,975 20,039 22,184 10.7
Sports (category 6) 17,877 20,269 19,953 28,747 34,484 20.0
Drama and comedy (category 7) 488,652 483,024 516,267 473,296 436,839 -7.7
Music, dance, and variety (categories 8 and 9) 47,333 57,128 28,736 10,499 4,570 -56.5
Game show (category 10) 5,278 5,625 8,360 8,287 9,353 12.9
Human interest/ Award shows/Reality (category 11) 151,234 151,044 131,529 114,346 102,799 -10.1
Human interest n/a 90,375 72,813 66,417 56,389 -15.1
Award shows n/a 14,173 16,152 14,493 15,276 5.4
Reality television n/a 46,496 42,564 33,436 31,133 -6.9
Other (categories 12 through 15) 51 52 2 2 2 0.0
Total (categories 1 through 15) 725,813 731,978 717,018 656,137 610,253 -7.0

Source: CRTC data collection

The breakdown for “Human interest/Award shows/Reality” (category 11) is only available as of 2013. 2016 private conventional television non-Canadian programming expenditures are equivalent to 36% of this sector’s revenues.

From 2015 to 2016, the decrease in Non-Canadian programming was most prominent in the “Drama” programming category, which reported a year over year decrease of $36M (-7.7%).

Table 4.2.26 Expenditures on non-Canadian programming by private and CBC conventional television services, by program category and linguistic market ($ thousands)
Program category 2015 2016 Growth (%)
English-language French-language English-language French-language English-language French-language
News (category 1) 703 0 0 0 -100.0 n/a
Long-form documentary (category 2(b)) 798 241 924 238 15.8 -1.2
Other informational (categories 2 through 5, excluding category 2(b)) 20,039 222 22,184 0 10.7 -100.0
Sports (category 6) 28,742 0 34,484 0 20.0 n/a
Drama and comedy (category 7) 440,173 29,798 423,637 31,227 -3.8 4.8
Music, dance, and variety (categories 8 and 9) 10,624 0 4,690 0 -55.9 n/a
Game show (category 10) 8,275 0 9,353 0 13.0 n/a
Human interest/Award shows/Reality (category 11) 111,429 1,484 102,371 498 -8.1 -66.4
Human interest 63,520 1,464 55,962 498 -11.9 -66.0
Award shows 14,493 0 15,276 0 5.4 n/a
Reality television 33,416 20 31,133 0 -6.8 -100.0
Other (categories 12 through 15) 2 165 2 243 0.0 47.3
Total (categories 1 through 15) 620,786 31,909 597,646 32,229 -3.7 1.0

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 4.2.27 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
2015 2016 Growth (%) 2015 2016 Growth (%)
English Number of services reporting 129 134 3.9 129 134 3.9
News (category 1) 157,626 147,390 -6.5 768 898 16.9
Long-form documentary (category 2(b)) 77,118 56,159 -27.2 32,897 39,401 19.8
Other informational (categories 2 through 5, excluding category 2(b)) 87,927 88,067 0.2 6,045 6,120 1.2
Sports (category 6) 498,286 626,903 25.8 103,738 128,497 23.9
Drama and comedy (category 7) 89,447 115,495 29.1 142,783 165,451 15.9
Music, dance, and variety (categories 8 and 9) 11,285 7,864 -30.3 637 502 -21.2
Game show (category 10) 9,009 5,696 -36.8 1,056 2,386 125.9
Human interest/ Award shows/Reality (category 11) 89,435 91,760 2.6 70,603 75,536 7.0
Human interest 31,189 33,530 7.5 44,417 44,704 0.6
Award shows 6,592 6,789 3.0 811 258 -68.2
Reality television 51,653 51,441 -0.4 25,375 30,574 20.5
Other (categories 12 through 15) 46,148 14,076 -69.5 10,543 2,768 -73.7
Total (categories 1 through 15) 1,066,280 1,153,412 8.2 369,071 421,557 14.2
French Number of services reporting 29 29 0.0 29 29 0.0
News (category 1) 74,476 77,055 3.5 0 0 0.0
Long-form documentary (category 2(b)) 30,808 34,267 11.2 5,489 5,701 3.9
Other informational (categories 2 through 5, excluding category 2(b)) 49,547 49,296 -0.5 1,718 1,282 -25.4
Sports (category 6) 190,428 193,352 1.5 13,033 13,433 3.1
Drama and comedy (category 7) 31,726 32,634 2.9 21,601 26,478 22.6
Music, dance, and variety (categories 8 and 9) 7,613 8,345 9.6 514 437 -15.0
Game show (category 10) 4,100 4,048 -1.3 0 28 100.0
Human interest/ Award shows/Reality (category 11) 20,889 28,079 34.4 4,631 5,465 18.0
Human interest 15,204 17,748 16.7 1,145 1,336 16.7
Award shows 0 23 100 654 0 -100.0
Reality television 5,685 10,308 81.3 2,832 4,129 45.8
Other (categories 12 through 15) 6,892 2,029 -70.6 1,171 362 -69.1
Total (categories 1 through 15) 416,478 429,104 3.0 48,157 53,187 10.4

Source: CRTC data collection

Canadian programming expenditures (CPE) and non-Canadian expenditures have grown by 3% and 10.4% this past year. The Sports and News categories are the biggest contributors. In fact, Sports represents 52% of total CPE when considering both language markets together.

Table 4.2.28 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
2015 2016 Growth (%) 2015 2016 Growth (%)
Third-language Number of services reporting 38 114 200 38 114 200
News (category 1) 3,978 4,142 4.1 1,493 1,833 22.8
Long-form documentary (category 2(b)) 2,138 1,912 -10.6 74 0 -100.0
Other informational (categories 2 through 5, excluding category 2(b)) 2,792 2,843 1.8 445 527 18.4
Sports (category 6) 749 829 10.7 900 908 0.9
Drama and comedy (category 7) 3,021 2,959 -2.1 6,838 6,317 -7.6
Music, dance, and variety (categories 8 and 9) 5,244 4,479 -14.6 1,046 956 -8.6
Game show (category 10) 499 699 40.1 930 1183 27.2
Human interest/ Award shows/Reality (category 11) 4,175 4,234 1.4 4,265 8,586 101.3
Human interest 3,902 4,022 3.1 4,265 4,343 1.8
Award shows 272 205 -24.6 - 2 100.0
Reality television - 7 100.0 - 7 100.0
Other (categories 12 through 15) 1,844 2,685 45.6 1,736 1,735 -0.1
Total (categories 1 through 15) 24,450 24,783 1.4 16,994 17,812 4.8
All languages Number of services reporting 196 277 41.4 196 277 41.4
News (category 1) 236,090 228,588 -3.2 2,261 2,730 20.7
Long-form documentary (category 2(b)) 110,065 92338 -16.1 38,459 45,102 17.3
Other informational (categories 2 through 5, excluding category 2(b)) 140,277 140,206 -0.1 8,208 7,928 -3.4
Sports (category 6) 689,462 821,083 19.1 117,672 142,838 21.4
Drama and comedy (category 7) 124,194 151,089 21.7 171,222 198,247 15.8
Music, dance, and variety (categories 8 and 9) 24,142 20,689 -14.3 2,197 1,895 -13.7
Game show (category 10) 13,607 10,443 -23.3 1,986 3,596 81.1
Human interest/ Award shows/Reality (category 11) 114,499 124,073 8.4 79,499 85,353 7.4
Human interest 50,297 55,300 9.9 49,827 50,383 1.1
Award shows 6,864 7,017 2.2 1,465 260 -82.3
Reality television 57,338 61,756 7.7 28,207 34,710 23.1
Other (categories 12 through 15) 54,885 18,790 -65.8 12,717 4,866 -61.7
Total (categories 1 through 15) 1,507,218 1,607,300 6.6 434,222 492,557 13.4

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 $100 million (6.6%) to reach $1.6 billion in 2016. Of that amount, $255.8 million was spend on programs of national interest (PNI), a stabilisation compared to the loss 9.8% from 2014 ($281.6 million) to 2015 ($254 million). Also of note is the $821 million spent on sports programming (51% of total CPE) partly as a result of the acquisition of NHL programming rights by Rogers and Groupe TVA, notably, in 2014-2015.

Non-Canadian programming expenditures increased by $58.6 million (13%) in 2016. Expenditures on non-Canadian sports programming increased by $25.2 million (21.4%).

Table 4.2.29 CPE reported by PPV and VOD services ($ thousands)
Metric 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Total PPV and VOD services CPE 16,280 17,317 24,890 37,575 25,711 -31.6 12.1
Number of services reporting 26 23 24 24 22 -8.3 -4.1

Source: CRTC data collection

This table shows the total CPE reported by PPV and VOD services from 2012 to 2016, 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.

vii) Tangible benefits

A total of 2 specialty television undertakings transactions resulting in a change of ownership or effective control triggering tangible benefits were approved in 2016

Table 4.2.30 Value of television ownership transactions and corresponding tangible benefits for the period from 1 January 2012 to 31 December 2016
Language Metric 2012 2013 2014 2015 2016 Total
English-language services Transactions 4 4 2 0 2 12
Value ($M) 106 944.4 174.3 0 5.7 1,230.4
Benefits ($M) 18.6 94.4 17.4 0 1 131.4
French-language services Transactions 0 3 1 0 0 4
Value ($M) 0 1,512.80 22.9 0 0 1,535.7
Benefits ($M) 0 151.3 2.3 0 0 153.6

Source: CRTC internal database

viii) 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 codes 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 4.2.31 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 Accessibility Programming Loudness Other Total
2014-2015 1,182 0 132 4 132 2,437 595 337 4,819
2015-2016 1,356 105 390 19 271 1,357 592 54 4,144
2016-2017 1,676 718 560 198 93 861 149 27 4,282

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 2016-2017 the CRTC received 4,282 contacts, a 3.3% increase from previous year’s 4,144 contacts.

Table 4.2.32 Television programming complaints received by the Commission and referred to the Canadian Broadcast Standards Council, by sector and issue
Market sector Type of complaint 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
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 6 15 5 24 6 19 3 30 3
Adult content 71 12 73 13 77 13 53 10 7 2
Alcohol advertising 18 3 9 2 14 1 13 0 3 0
Gender portrayal 5 1 6 0 3 0 1 0 1 1
Offensive comment 233 62 164 63 171 25 113 23 124 18
Offensive language 32 8 45 7 67 15 46 7 35 1
Television violence 54 8 61 11 68 9 37 4 7 3
Specialty services Abusive comment 5 2 2 0 10 6 14 4 0 4
Adult content 16 9 19 10 19 7 15 3 4 4
Alcohol advertising 2 1 3 1 0 0 2 0 0 0
Gender portrayal 1 1 0 0 2 1 0 0 0 0
Offensive comment 44 23 46 25 51 24 14 4 10 1
Offensive language 11 7 15 8 8 4 10 6 6 1
Television violence 13 3 12 6 19 6 7 2 7 3
Pay and PPV services Abusive comment 0 0 0 0 0 0 0 0 0 0
Adult content 2 1 1 0 6 1 2 1 3 1
Alcohol advertising 0 0 0 0 0 0 0 0 0 0
Gender portrayal 0 0 0 0 0 0 0 0 0 0
Offensive comment 0 0 0 0 1 1 0 0 0 0
Offensive language 0 0 0 0 1 0 0 0 2 0
Television violence 0 0 1 0 1 0 0 0 1 0
Total Total 537 147 472 151 542 119 346 67 240 42

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 2012–2013 through 2016–2017 fiscal years (i.e., 1 April to 31 March). Between April 2016 and March 2017, approximately 17.5% 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 4.2.33 Television-related complaints handled by the CBSC, by language of broadcast and origin of the program (2015-2016)
Category Subcategory Conventional and specialty TV Pay TV Total
Language of broadcast English-language 618 14 632
French-language 206 2 208
Third-language 5 0 5
Other 8 0 8
Total 837 16 853
Origin of the program Canadian 605 2 607
Foreign 141 9 150
Other 78 5 83
Total 824 16 840

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 4.2.34 Complaints relating to digital advertising and advertising on television, handled by the ASC
Statistics 2012 2013 2014 2015 2016
Total number of complaints 1,310 1,310 1,274 1,774 1,639
Complaints about television advertisements 559 528 500 671 652
Complaints about television advertisements as percentage of total complaints received 43% 40% 39% 38% 40%
Complaints about digital advertisements 280 240 289 348 439
Complaints about digital advertisements as percentage of total complaints received 21% 18% 23% 20% 27%

Source: ASC Ad complaints reports

ix) 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 2016. 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 4.2.35 BCE – Controlling ownership interest in discretionary and on demand services, 2016
Language Service Type of service Number of subscribers (000) Revenues ($) (000) PBIT ($) (000) PBIT margin (%)
English Animal Planet Sp. B 2,238 10,068 4,724 46.9
Bell TV On Demand (formerly General Interest) VOD n/a 7,775 2,810 36.1
Bell TV On Demand and Vu! (formerly Bell) PPV** n/a 33,844 10,084 29.8
Bell TV On Demand (formerly Vu! On Demand) VOD n/a 35,873 12,413 34.6
Book Television Sp. A 481 2,412 1,285 53.3
Bravo! Sp. A 6,084 49,330 24,892 50.5
Business News Network Sp. A 5,364 25,961 8,214 31.6
CablePulse 24 Sp. A 3,460 35,002 9,367 26.7
Comedy Gold Sp. B 680 3,235 2,000 61.8
CTV News Channel Sp. C 7,521 29,075 16,773 57.7
Discovery Channel Sp. A 6,899 94,689 35,330 37.3
Discovery Science Sp. B 1,660 6,676 2,770 41.5
Discovery Velocity (formerly Discovery World) Sp. B 962 21,431 13,545 63.2
E! Sp. A 6,877 31,403 12,004 38.2
ESPN Classic Canada Sp. B 479 1,510 189 12.5
Fashion Television Channel Sp. A 475 2,558 1,519 59.4
Investigation Discovery Sp. B 1,302 12,912 8,581 66.5
Gusto (formerly M3) Sp. A 5,561 16,224 2,011 12.4
MTV Canada Sp. A 5,258 16,728 -512 -3.1
MTV2 Canada Sp. A 1,013 4,620 1,800 39
Much (formerly MuchMusic) Sp. A 8,423 33,083 4,804 14.5
Northwestel VOD VOD n/a 724 -505 -69.8
Space Sp. A 5,858 56,651 29,098 51.4
The Comedy Network Sp. A 5,311 54,562 31,495 57.7
The Movie Network Pay A 1,937 167,468 13,037 7.8
The Movie Network Encore Pay A 2,506 27,940 16,472 59
The Sports Network (TSN) Sp. C 8,516 463,777 110,302 23.8
French Câblevision du Nord de Québec inc. VOD n/a 367 -37 -10.2
Canal D Sp. A 2,372 40,641 21,974 54.1
Canal D Investigation Sp. B 667 6,335 637 10.1
Canal Vie Sp. A 2,164 44,354 14,323 32.3
CINÉPOP Pay B 1,279 12,299 6,484 52.7
Le Réseau des Sports (RDS) Sp. C 3,004 174,949 26,814 15.3
RDS Info Sp. A 1,040 6,430 -5,274 -82
Super Écran Pay A 588 60,651 16,715 27.6
VRAK.TV Sp. A 1,923 26,518 8,910 33.6
Ztélé Sp. A 1,828 25,348 5,764 22.7

Sources: CRTC ownership records and CRTC data collection

Even though its PBIT margin is not the most outstanding of its counterparts, The Sports Network’ (TSN) revenue and actual PBIT are the biggest in its group.

Table 4.2.36 CBC - Controlling ownership interest in discretionary and on demand services, 2016
Language Service Type of service Number of subscribers (000) Revenues ($) (000) PBIT ($) (000) PBIT margin (%)
English CBC News Network Sp. C 10,917 86,679 3,084 3.6
Documentary Sp. A 2,451 6,443 437 6.8
French ARTV Sp. A 1,752 13,460 -1,392 -10.3
EXPLORA Sp. B n/a 5,561 n/a n/a
RDI Sp. C 10,720 54,481 1,307 2.4

Sources: CRTC ownership records and CRTC data collection

CBC news services, CBC News Network and RDI, generate the highest PBITs while “Documentary” has the highest PBIT margin.

Table 4.2.37 Cogeco - Controlling ownership interest in discretionary and on demand services, 2016
Service Type of service Number of subscribers (000) Revenues ($) (000) PBIT ($) (000) PBIT margin (%)
Cogeco On Demand/Cogeco Sur Demande VOD n/a 12,944 3,298 25.5

Sources: CRTC ownership records and CRTC data collection

Table 4.2.38 Corus - Controlling ownership interest in discretionary and on demand services, 2016
Language Service Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
English ABC Spark Sp. B n/a 11,856 n/a n/a
ACTION (formerly Showcase Action) Sp. B n/a 18,456 n/a n/a
BBC Canada Sp. B n/a 11,277 n/a n/a
BC News 1 (formerly Global News Plus BC) Sp. B n/a 1,559 n/a n/a
Cartoon Network (formerly TELETOON Kapow!) Sp. B n/a n/a n/a n/a
CMT Canada Sp. A 6,216 21,497 6,276 29.2
Cooking Channel (formerly W Movies) Sp. B n/a 6,629 n/a n/a
Cosmopolitan TV Sp. B n/a 8,305 n/a n/a
Crime + Investigation (formerly Mystery) Sp. A 3,274 20,345 11,566 56.8
DejaView Sp. B n/a 7,979 n/a n/a
D.I.Y. Network (formerly D.I.Y. Television) Sp. B n/a 11,738 n/a n/a
DTOUR (formerly TVtropolis) Sp. A 4,579 24,184 13,345 55.2
Encore Avenue Pay A n/a 9,201 1,634 17.8
EuroWorld SPORT Sp. B n/a 16 n/a n/a
Food Network Canada Sp. A 5,785 65,916 29,206 44.3
Fyi (formerly Twist TV) Sp. A 2,030 7,420 2,250 30.3
H2 (formerly The Cave Men TV Sp. A 2,665 9,383 4,726 50.4
HGTV Canada - Home and Garden Television Canada Sp. A 6,768 71,096 25,243 35.5
Historia Sp. A 1,833 20,723 10,562 50.8
History Television Sp. A 6,711 71,173 45,290 63.6
Lifetime (formerly Showcase Diva) Sp. B n/a 21,022 n/a n/a
Movie Central Pay A n/a 39,514 -49,986 -126.5
Movie Time (formerly known as Lonestar Sp.B n/a 15,750 n/a n/a
NatGeo Wild Sp. B n/a 8,017 n/a n/a
National Geographic Channel Sp. B n/a 26,942 n/a n/a
Nickelodeon (formerly YTV OneWorld) Sp. B n/a 4,978 n/a n/a
OWN: The Oprah Winfrey Network (formerly OWN; formerly VIVA) Sp. A 4,821 24,341 6,525 26.8
Séries+ Sp. A 1,881 29,027 10,906 37.6
Showcase Sp. A 6,140 67,334 32,362 48.1
Slice Sp. A 4,738 31,902 1,609 5.0
Sundance Channel (formerly Drive-In Classics Channel) Sp. B n/a 3,996 n/a n/a
TELETOON/TÉLÉTOON Sp. A 6,372 58,582 17,999 30.7
TGCOM (formerly Sky TG 24 Canada) Sp. B n/a 246 n/a n/a
The Independent Film Channel Canada Sp. A 1,134 9,088 3,736 41.1
TreeHouse TV Sp. A 6,241 13,556 1,370 10.1
W Network Sp. A 5,681 77,870 43,405 55.7
YTV Sp. A 8,307 67,491 22,561 33.4
French La chaine Disney (formerly TÉLÉTOON Rétro) Sp. B n/a 1,965 n/a n/a
Séries+ Sp. A 1,881 29,027 10,906 37.6
Historia Sp. A 1,833 20,723 10,522 50.8
Third-language Mediaset Italia Sp. B n/a 2,995 n/a n/a
TGCOM24 (formerly Sky TG 24 Canada) Sp. B n/a 246 n/a n/a
Telebimbi Sp. B n/a 5 n/a n/a
Telelatino Sp. A 3,852 13,625 3,962 29.1
Teleniños Sp. B n/a 33 n/a n/a
Univision Canada Sp. B n/a 1,631 n/a n/a

Sources: CRTC ownership records and CRTC data collection

Encore-Avenue ceased operation on August 30th, 2016

Following Corus’s acquisition of Shaw Media, many specialty services are now listed under Corus Entertainment.

Table 4.2.39 Quebecor - Controlling ownership interest in discretionary and on demand services, 2016
Language Service Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
French addikTV Sp. A 1,400 13,660 2,779 20.5
ARGENT Sp. A n/a 1,173 -479 -40.8
Canal Indigo PPV** n/a 7,144 2,169 30.4
Casa Sp. B 1,207 10,874 1,935 17.8
Illico sur demande VOD n/a 43,053 -865 -2
Le Canal Nouvelles (LCN) Sp. C 2,464 31,850 8,850 27.8
Moi&cie Sp. B 896 7,048 -459 -6.5
Prise 2 Sp. B 1,154 9,458 2,971 31.4
TVA Sports Sp. C 1,872 81,631 -33,792 -41.4
YOOPA Sp. B 655 4,107 203 5

Sources: CRTC ownership records and CRTC data collection

Argent Channel ceased operation on April 30th, 2016.

Table 4.2.40 Rogers - Controlling ownership interest in discretionary and on demand services, 2016
Service (English-language) Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
FX (formerly FX Canada) Sp. B 4,362 17,745 1,826 10.3
FXX Sp. B 1,792 7,080 34 0.5
G4 Sp. A 196 1,450 -323 -22.3
Outdoor Life Network (OLN) Sp. A 4,621 16,547 7,749 46.8
Rogers on Demand VOD n/a 36,469 -6,336 -17.4
Sportsnet Sp. C 8,102 534,698 93,634 17.5
Sportsnet 360 Sp. A 5,360 34,436 1,172 3.4
Sportsnet One Sp. C 6,479 98,691 44,833 45.4
Sportsnet PPV PPV** n/a 17,097 -4,799 -28.1
Sportsnet World Sp. B 74 10,197 2,687 26.4
Viceland (formerly The Biography Channel) Sp. A 1,509 5,462 -2,490 -45.6

Sources: CRTC ownership records and CRTC data collection

Sportsnet leads its group in revenues and PBIT.

Table 4.2.41 Shaw - Controlling ownership interest in discretionary services, 2016
Service (English-language) Type of service Number of subscribers (000) Revenues ($ 000) PBIT ($ 000) PBIT margin (%)
Shaw on Demand VOD n/a 55,047 -657 -1.2
Shaw Pay-Per-View (formerly Allarcom) PPV** n/a 10,305 -1,027 -10
Shaw Pay-Per-View (formerly Home Theatre) PPV** n/a 6,401 119 1.9

Sources: CRTC ownership records and CRTC data collection

Following Corus’s acquisition of Shaw Media, many specialty services are now listed under Corus Entertainment.

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. The first section is a donut chart and the last 4 are data points.

  1. Donut chart shows percentage of broadcasting distribution revenues as a proportion of all broadcasting revenues in 2016.
    1. Broadcasting distribution revenues were 49% of all broadcasting revenues.
    2. Total broadcasting revenues were $17.9 billion.
  2. Revenues: $8.7 billion, a decrease of 2.1% over 2015.
  3. Subscribers: 11.1 million, a decrease of 1.1% over 2015.
  4. Affiliation payments: 87% are to Canadian services.
  5. IPTV subscriber share: 22%, up from 19% in 2015.

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 2016, BDUs reported $8.7 billion in revenues, a decrease of 2.1% from 2015. Combined, the largest BDUs reported 87% of programming distribution revenues.

The Canadian distribution landscape has been dominated by cable and DTH satellite BDUs. However, from 2012 to 2016, cable and DTH service provider revenues declined by 12.6% and 13.8% respectively, while IPTV service provider revenues increased by 205%.

While cable is in decline, it still represents the largest type of BDU, with a little under 60% of the subscriber market share. However, IPTV service providers are rapidly growing due to expanded distribution networks and reach. In 2016, IPTV providers reported over 2.5 million subscribers, a 13.8% increase over last year.

Over 76% 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.

From 2015 to 2016, BDU subscribers decreased by 124,841 or 1.11%. Over the last five years, the number of BDU subscribers decreased on average by 0.9% annually. 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 services and are offered by independent non-affiliated services such as Netflix and Youtube as well as traditional BDUs.

i) Revenues

In 2016, revenues of Canadian cable, IPTV and satellite companies stood at $8,734 million, a 2.1% decrease from the previous year. This marks a second consecutive year of declining revenues. Despite the decline in revenues in 2015 and 2016 (and due to growth from 2012 to 2014), BDU revenues grew 0.5% per year on average from 2012 to 2016.

Revenues of IPTV service providers continued on their upward trend and totalled $1,795 million in 2016. This represents an increase of $232 million (14.8%) since 2015 and $1,206 million (206%) since 2012. By contrast, the revenues of cable and satellite services continue on a downward trend, reporting decreases of 5.5% and 6.1% respectively from 2015 to 2016. These services generated revenues of $4,789 million (cable) and $2,150 million (satellite) in 2016.

Table 4.3.1 Revenues ($ millions) of broadcasting distribution undertakings (BDU) – Basic and non-basic services
Type of service 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Cable 5,480 5,390 5,231 5,067 4,789 -5.5 -3.3
IPTV 589 931 1,285 1,563 1,795 14.8 32.2
DTH and MDS 2,492 2,472 2,414 2,289 2,150 -6.1 -3.6
Total revenues 8,561 8,794 8,930 8,919 8,734 -2.1 0.5

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 2012 to 2016, 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 2012 2013 2014 2015 2016
Cable 64.0 61.3 58.6 56.8 54.8
IPTV 6.9 10.6 14.4 17.5 20.6
DTH and MDS 29.1 28.1 27.0 25.7 24.6

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 11.1 million subscribers in 2016, a 1.1% (124,841 subscribers) decline from 2015. Even though the IPTV sector has shown very strong growth, total BDU subscribers have been declining by approximately 1% each year since 2013.

From 2012 to 2016, IPTV companies increased their share of the subscriber market from 8.7% to 22.2% and now boast approximately 2.5 million subscribers. Conversely, the subscriber market share of the satellite companies decreased to 19.8% (2.2 million subscribers) in 2016. Nonetheless, satellite service providers garnered 24.6% of all BDU revenues, thus generating more revenue per subscriber than their cable and IPTV counterparts.

Table 4.3.3 Broadcasting distribution undertakings subscriber (thousands) numbers – Basic and non-basic services
Type of service 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Cable 7,697 7,429 7,058 6,703 6,448 -3.8 -4.3
IPTV 1,006 1,397 1,788 2,169 2,468 13.8 25.2
DTH and MDS 2,826 2,691 2,559 2,375 2,206 -7.1 -6.0
BDU total subscribers 11,529 11,517 11,405 11,247 11,122 -1.1 -0.9

Source: CRTC data collection

Table 4.3.4 Percentage of broadcasting distribution undertakings subscriber (%) – Basic and non-basic services
Type of service 2012 2013 2014 2015 2016
Cable 66.8 64.5 61.9 59.6 58.0
IPTV 8.7 12.1 15.7 19.3 22.2
DTH and MDS 24.5 23.4 22.4 21.1 19.8

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 2012 to 2016, 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 2013 2014 2015 2016 2017 Growth (%) 2016-2017 CAGR (%) 2013-2017
BCE 2,170 2,307 2,658 2,749 2,734 -0.5 5.9
Shaw 3,044 2,883 2,760 2,513 2,507 -0.2 -4.7
Rogers 2,189 2,107 1,983 1,870 1,796 -4.0 -4.8
Videotron 1,849 1,811 1,771 1,722 1,681 -2.4 -2.4
Telus 712 842 937 1,016 1,070 5.3 10.7
Cogeco 853 816 780 755 738 -2.3 -3.6
Total 10,817 10,766 10,889 10,625 10,526 -0.9 -0.7
% of all subscribers 93.9 93.9 96.1 95.0 - - -

Source: Corporate quarterly reports

This table shows the number of subscribers for each of the top six 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 (%)
2012 82.8
2013 82.0
2014 80.3
2015 78.5
2016 76.2

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.

The EBITDA margin of cable service providers declined from 27.1% in 2012 to 21.9% in 2016. DTH service providers performed better as their EBITDA margin generally grew over the period, starting at 30.1% in 2012, reaching a peak of 33.4% in 2013, declining to 27.7% in 2015 and stabilizing at 31.2% in 2016. While IPTV service providers reported major growth in revenues and subscribers from 2012 to 2016, they reported negative EBITDA margins throughout the period (from -43% in 2012 to -17.9% in 2016).

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 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, IPTV, DTH and MDS, and cable, IPTV, DTH and MDS undertakings during the years 2012 to 2016.

Category 2012 2013 2014 2015 2016
Cable 27.1% 28.4% 24.6% 24.7% 21.9%
IPTV -43.0% -29.3% -19.8% -19.5% -17.9%
DTH and MDS 30.1% 33.4% 32.0% 27.7% 31.2%
Cable, IPTV, DTH and MDS 23.1% 23.7% 20.2% 17.7% 16.0%

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 2012 to 2016. While these margins declined for cable BDUs , it increased for DTH satellite services and MDS’ and IPTV. 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 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Cable 58.72 59.43 60.12 60.76 60.69 -0.1 0.9
IPTV 58.78 64.64 67.61 67.96 64.52 -5.1 3.7
DTH and MDS 72.84 74.69 76.63 77.30 78.22 1.2 1.5
All Reporting BDUs 62.24 63.63 64.94 65.52 65.08 -0.7 1.3

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 2016 are set out in Appendix 9. In 2016, 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 licenced distributors to offer a $25 entry-level service offering as of March 1st 2016, and full pick and pay as of December 2016. Given that the pricing data collected reflects prices as of December 31st 2016, the full effect of this policy may not be reflected until the next edition of the CMR.

Urban centres

Figure 4.3.2 shows the 2016 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 entry price for basic service is as low as $18/month in some urban areas, in contrast to 2015 when the lowest entry prices were situated in the mid-$30/month range.

Figure 4.3.2 BDU basic service prices by major centre, 2016

Horizontal bar chart of Figure 4.3.2: BDU basic service prices by major centre, 2016 Horizontal bar chart of Figure 4.3.2: BDU basic service prices by major centre, 2016
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.

Centres Low price Variance High price
Vancouver (4) 18 32 50
Victoria (4) 18 32 50
Calgary (4) 18 32 50
Edmonton (4) 18 32 50
Saskatoon (4) 18 40 58
Regina (4) 18 40 58
Winnipeg (4) 18 7 25
Toronto (5) 18 21 39
Ottawa-Gatineau (4) 18 7 25
Hamilton (4) 18 7 25
London (3) 18 7 25
Kitchener-Waterloo (3) 18 7 25
St Catharines - Niagara (3) 18 7 25
Windsor (3) 18 7 25
Oshawa (3) 18 7 25
Montréal (4) 18 9 27
Québec (3) 25 0 25
Fredericton (2) 25 0 25
Halifax (2) 25 0 25
Charlottetown (2) 25 0 25
St. John's (2) 25 0 25
Whitehorse (2) 25 22 47
Yellowknife (2) 25 22 47
Iqaluit (1) 25 0 25

Source: CRTC data collection

The number of service providers in each urban centre is indicated in parentheses. As an example, there are four BDU service providers in Montréal, where the lowest price is $18/month and the highest price is $27/month.

The composition of a basic television package ranged typically from 20 to 35 channels, depending on location and service provider. The services were generally available in digital and high definition formats and the programming generally also included radio.

Rural centres

Figure 4.3.3 BDU basic service prices by province in urban centres and rural communities, 2016

Horizontal bar chart of Figure 4.3.3: BDU basic service prices by province in urban centres and rural communities, 2016 Horizontal bar chart of Figure 4.3.3: BDU basic service prices by province in urban centres and rural communities, 2016
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.

Centres Min Variance Max
B.C. rural (2/3) 25 49 74
B.C. urban (4) 18 32 50
Alta. rural (2/3) 25 25 50
Alta. urban (4) 18 32 50
Sask. rural (2/2) 20 20 40
Sask. urban (4) 18 40 58
Man. rural (1/1) 25 0 25
Man. urban (4) 18 7 25
Ont. rural (1/3) 25 33 58
Ont. urban (3/5) 18 21 39
Que. rural (2/3) 25 15 40
Que. urban (3/4) 18 9 27
N.B. rural (2/2) 25 0 25
N.B. urban (2) 25 0 25
P.E.I. rural (2/2) 25 0 25
P.E.I. urban (2) 25 0 25
N.S. rural (1/1) 25 0 25
N.S. urban (2) 25 0 25
N.L. rural (2/2) 25 0 25
N.L. urban (2) 25 0 25
Y.T. rural (1/1) 25 0 25
Y.T. urban (2) 25 22 47
N.W.T. rural (1/2) 25 22 47
N.W.T. urban (2) 25 22 47
Nvt. rural (1/1) 25 0 25
Nvt. urban (1) 25 0 25

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 Quebec, there are two to three service providers in the rural communities surveyed and three to four in the urban centres surveyed. The lowest prices offered by these providers for basic BDU service is $25 per month in the rural communities, and $18 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 2016, 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, 2016

Circular chart of Figure 4.3.4: Percent Percentage of revenues and subscribers by type of distribution platform, 2016 Circular chart of Figure 4.3.4: Percent Percentage of revenues and subscribers by type of distribution platform, 2016
Text Description of Image

This pair of circular charts show the market share of revenues and subscribers by type of distribution platform.

Revenue market share:
DTH and MDS 25%
IPTV 21%
Cable 55%
Subscriber market share:
DTH and MDS 20%
IPTV 22%
Cable 58%

Source: CRTC data collection

In 2016, DTH and MDS services generated 25% of the TV distribution revenues with 20% of the subscribers in the sector, while Cable services had 58% of the subscribers but reported 55% of the revenues of the sector.

vii) Consumer voices

Table 4.3.8 Number of BDU-related contacts received by the CRTC’s client services
Year 2014-2015 2015-2016 2016-2017
CRTC policies / decisions 755 1,456 1,693
Billing 1,298 652 630
Prices/Rates 223 154 251
Terms and conditions 313 180 236
Accessibility 62 58 57
Quality of services/Delivery 480 352 591
Equipment n/a n/a 376
Competition 110 60 64
Other 2,300 279 445
Programming n/a n/a 394
Total 5,541 3,191 4,737

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

The following data on online television services is provided by the Media Technology Monitor (MTM) and is based on a survey reaching Canadians aged 18 and up.

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 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.

Year National Anglophones Francophones
2012 4 5 2
2013 6 6 3
2014 8 8 4
2015 8 12 4
2016 10 13 4

Source: MTM, 2012-2016 (Respondents: Canadians 18+)

Figure 4.3.6 Percentage of Canadians who watch TV exclusively online, nationally, by age group

Horizontal bar chart of Figure 4.3.6: Percentage of Canadians who watch TV exclusively online in Canada, by age group Horizontal bar chart of Figure 4.3.6: Percentage of Canadians who watch TV exclusively online in Canada, by age group
Text Description of Image

This horizontal bar chart shows the percentage of Canadians who watch TV exclusively online in Canada, by age group for the years 2014 to 2016.

Year 18-34 35-49 50-64 65+
2014 16 9 3 1
2015 22 11 4 1
2016 23 11 4 2

Source: MTM, 2012-2016 (Respondents: Canadians 18+)

Figure 4.3.7 Percentage of Canadians who subscribe to Netflix, by region

Horizontal bar chart of Figure 4.3.7: Percentage of Canadians who subscribed to Netflix, by region Horizontal bar chart of Figure 4.3.7: 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.

Year Total Atlantic Quebec Ontario Manitoba Saskatchewan Alberta British Columbia
2014 33 40 15 37 32 32 49 41
2015 41 44 23 44 47 47 55 46
2016 44 48 26 47 53 52 56 50

Source: MTM, 2014-2016 (Respondents: Canadians 18+)

Before 2016, Saskatchewan and Manitoba data was not reported separately by MTM.

Figure 4.3.8 Percentage of Canadians who subscribe to Netflix, by age group

Bar chart of Figure 4.3.8: Percentage of Canadians who subscribe to Netflix, by age group Bar chart of Figure 4.3.8: 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.

Year 18+ 18-34 35-49 50-64 65+
2014 33 51 39 25 11
2015 41 61 47 31 15
2016 44 64 50 35 17

Source: MTM, 2014-2016 (Respondents: Canadians 18+)

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

Figure 4.3.9 Likelihood of Canadians “cutting the cord” on their current traditional TV subscription in the next 12 months (percentage)

Stacked bar chart of Figure 4.3.9: Likelihood of Canadians “cutting the cord” on their current traditional TV subscription in the next 12 months (percentage) Stacked bar chart of Figure 4.3.9: 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.

Year Very likely Somewhat likely Not very likely Not at all likely Don't know
2014 7 13 26 51 3
2015 7 14 32 44 4
2016 7 13 30 48 2

Source: MTM, 2014-2016 (Respondents: Canadians 18+)

Table 4.3.9 Adoption rates (%) of various video technologies in Canada by language market
Video technology Language market 2012 2013 2014 2015 2016
PVR Anglophone 43 46 50 49 50
Francophone 39 42 52 56 55
Internet TV Anglophone 38 44 51 57 59
Francophone 39 44 42 49 51
Netflix Anglophone 21 29 39 47 50
Francophone 5 7 12 19 22

Source: MTM, 2012-2016 (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 2012 through 2016. 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 contribute a minimum 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 includes 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. From 2010 to 2014, LPIF contributions made by BDUs averaged $87 million per year. On 1 September 2014, the LPIF was discontinued.

Contributions to the creation and production of Canadian programming by cable, IPTV and satellite companies totalled $428 million in 2016.

Figure 4.3.10 Contributions to Canadian programming by type (millions)

Line clustered-column on 2 axes chart of Figure 4.3.10 : Contributions to Canadian programming by type ($ millions) Line clustered-column on 2 axes chart of Figure 4.3.10 : 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 2012 to 2016 broadcast years.

Category 2012 2013 2014 2015 2016
Contribution to the CMF 208.5 219.3 219.3 219.6 214.8
Expenditures on community channels 112.2 138.4 151.6 152.6 150.8
Contributions to other independent funds 62.0 61.1 64.1 64.7 62.6
Local Programming Improvement Fund 112.0 75.2 39.9 n/a n/a
Total contributions 494.7 494.0 474.9 436.9 428.2

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 4.3.11 BDU contributions to Canadian programming by recipient

Stacked bar chart of Figure 4.3.11: BDU contributions to Canadian programming by recipient Stacked bar chart of Figure 4.3.11: BDU contributions to Canadian programming by recipient
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 2012 to 2016. It also indicates the total contributions for each year in millions of dollars.

Category 2012 2013 2014 2015 2016
LPIF 16% 15% 8% 0% 0%
Local expression 25% 28% 32% 35% 35%
CMF 46% 45% 46% 50% 50%
Other independent funds 14% 12% 14% 15% 15%
Total contributions 495 494 475 437 428

Source: CRTC data collection

LPIF was discontinued on September 1, 2014.

x) Affiliation payments

The providers of discretionary programming servicesFootnote 7 (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 3.4% since 2012, whereas payments to non-Canadian affiliates have increased by 6.1%. 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 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Canadian affiliates Cable and IPTV 1,930 2,024 2,193 2,322 2,368 2.0 5.2
DTH and MDS 726 700 716 685 666 -2.8 -2.1
Total 2,656 2,724 2,909 3,007 3,034 0.9 3.4
Non-Canadian affiliates Cable and IPTV 265 285 298 316 343 8.5 6.7
DTH and MDS 86 94 93 101 102 1.0 4.4
Total 351 379 391 417 445 6.7 6.1
All affiliates All services 3,007 3,104 3,300 3,425 3,479 1.6 3.7

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 2012 through 2016.

Table 4.3.11 Affiliation payments received by Canadian and non-Canadian discretionary services reported by BDUs ($ millions)
Category Type of service 2012 2013 2014 2015 2016 Growth (%) 2015-2016 CAGR (%) 2012-2016
Canadian affiliates Pay, PPV and VOD 671 670 669 660 577 -12.6 -3.7
Specialty 1,986 2,054 2,240 2,347 2,457 4.7 5.5
Total 2,657 2,724 2,909 3,007 3,034 0.9 3.4
Non-Canadian affiliates Pay, PPV and VOD 34 37 38 54 55 1.9 12.8
Specialty 317 342 353 363 390 7.4 5.3
Total 351 379 391 417 445 6.7 6.1
All affiliates All services 3,008 3,103 3,300 3,424 3,479 1.6 3.7

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 2012 through 2016.

xi) Broadcasting dispute resolution

Dispute resolution is designed to effectively mediate 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 per type and year
Type Type of intervention 2015-2016 2016-2017
Formal Staff-assisted mediation 15 13
Final offer arbitration 2 1
Informal Informal intervention 133 328

Source: CRTC data collection

Each 12-month period begins April 1.

The mediation sessions were conducted on 27 days over the 12-month period of 1 April 2016 to 31 March 2017.

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