Market Insights

In examining today’s marketplace and the direction in which it appears to be moving in the future, it is clear that the Internet has become essential to all Canadians, bringing global connectivity and making it part of people’s everyday lives. This new reality has significantly disrupted Canada’s audio and video marketplace—often in striking ways, though sometimes to varying degrees. Traditional media will be forced to evolve in response to this new reality.

The growth in broadband Internet — faster speeds, more data — is driven by video and audio consumption.

Read time: approx. 4 min

Internet Trends

Market Insight 1. Better than coffee.
Audio market Video market

Canadians say they would forego pleasures like fast food, alcohol, chocolate or even coffee for a year if they had to do so to keep their Internet access. The Internet is a gateway to the world, to entertainment on an unprecedented scale and to multiple forms of media and communication. It allows a person to precisely tailor what they consume, to consume what they want on demand and to access content easily. In this wireless age, it lets them watch and listen to what they want, where they want and on the device of their choice. Smart speakers are now even making the Internet experience screenless.

Figure 1: Canadians are adopting online video and audio services

Total English-language market French-language market

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Source: MTM

Note: Examples of OTT include Netflix, Crave and Club Illico. Examples of music streaming services include Spotify and Apple Music.

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Figure 2: What would Canadians give up for a year to keep their Internet access?

Share Source: CIRA research, March 2017
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Figure 3: Canadians are adopting multiple Internet-connected devices

Total English-language market French-language market

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Source: MTM, Edison

Note: Smart speaker data is from Edison and for January 2018.

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Market Insight 2. An uneven shift.
Audio market Video market

In Canada, however, this new reality isn’t evenly distributed. It’s happening at a different pace in the French-language market than in the English-language market and differently for various age demographics. We can see clear differences between how and where certain age groups spend their media time and the rate at which they are taking up online devices and services. Also Canadians in smaller, rural or remote communities may not have access to the broadband speeds available to those in urban markets.

“With my age, [I am] not as aware of technology, and [I] don’t know the cost”

Focus group participant from Fort McMurray (EKOS)

Figure 4: Anglophones spend less time watching TV and more time on the Internet

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Source: TV (Numeris PPM, broadcasting year 2016-17, persons aged 2+), Radio (Numeris Diary, Fall 2017, persons aged 12+), Internet (MTM, Fall 2017, persons aged 18+)
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Figure 5: Mobile and Internet are higher priorities for younger Canadians

Proportion (%) Per household ($)

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Source: Statistics Canada (Survey of Household Spending)
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Figure 6: Younger Canadians are listening to less AM/FM radio

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Source: Numeris (Fall diaries)

Note: Numeris introduced an online radio diary methodology in Fall 2016.

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Figure 7: Younger Canadians are watching less traditional TV

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Source: Numeris (broadcasting year)
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Figure 8: Many in rural areas do not have access to broadband

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Source: Innovation, Science and Economic Development Canada (ISED) and CRTC data collection, CMR figure 5.3.17
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Market Insight 3. Broadband Internet usage erupting, pushed by demand for real-time video entertainment.
Audio market Video market

Canadians rely on Internet access across diverse areas of their lives, from how they sell products and run businesses to how they bank, access government services, seek employment, search for information, get around and communicate. But the true driving force behind the rise of broadband Internet in this country is demand for real-time entertainment, and particularly video, which accounts for two-thirds of the capacity of fixed networks and one-third of the capacity of mobile networks.

“If you’re not at your WiFi and you have to do it over the data, over the cell network, then you’re going to be greatly limited by the amount of data you can use.”

Focus group participant from Saskatoon (EKOS)

Figure 9: Video and audio dominate broadband Internet consumption

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North American fixed networks:
Peak period traffic composition by category

North American mobile networks:
Peak period traffic composition by category

Source: Sandvine 2016
Text description

These Circular Charts show the Peak period traffic composition by category: North American fixed and mobile networks. On mobile networks, one third of traffic is for real time entertainment (e.g. YouTube, Netflix, Pandora, Spotify, Soundcloud, Apple Music and Google Music). On fixed networks, two thirds of traffic is for real time entertainment (e.g. Netflix and YouTube).

Figure 10: Video and audio consumption represents the vast majority of time spent online

Total, Canadians aged 18+ English-language market French-language market

Share Source: MTM (Fall 2017)

Note: Adults aged 18+.

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Figure 11: The appetite for broadband data is growing

Share Source: CRTC Data Collection, CMR table 5.3.6
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