Advanced Television

Canada: IPTV revenues $6.5bn in 2014

May 22, 2015

The Canadian Radio-television and Telecommunications Commission has released statistical and financial information on Canadian terrestrial and satellite broadcast distribution companies for the year that ended August 31st 2014.

Overall, these companies’ revenues increased 1.5 per cent from $8.8 billion in 2013 to $8.9 billion in 2014, despite the number of subscribers remaining relatively flat over the period, with a moderate decrease from 11.5 million to 11.4 million.

The revenues of cable and IPTV service providers increased by a combined 3 per cent from $6.3 billion in 2013 to $6.5 billion in 2014, while the number of subscribers held steady at 8.8 million.  Growth was fuelled by IPTV, which added 29 per cent more subscribers over the period and saw revenues increase by 39 per cent, while the subscriptions and revenues of cable service providers decreased by 5.2 per cent and 3.2 per cent, respectively. For their part, satellite television providers saw revenues decrease by 2.4 per cent to $2.4 billion, while the number of subscribers dropped by 4.9 per cent to just under 2.6 million.

Highlights: Cable and IPTV companies
•    In 2014, cable and IPTV companies reported revenues of $6.5 billion from their programming services. This total represents an increase of 3 per cent from $6.3 billion in 2013.
•    Operating expenses for these companies increased by 7.6 per cent from $5.1 billion to $5.5 billion.
•    The number of Canadian households that subscribed to a cable or IPTV company increased by 0.2 per cent from 8.81 million to 8.83 million.
•    IPTV continues to register significant growth, with subscribers increasing 29 per cent and revenues up 39 per cent in 2014.
•    Cable companies saw declines in both subscriptions and revenues of 5.2 per cent and 3.2 per cent respectively.
•    In 2014, the total number of terrestrial television distribution company employees rose by 1.3 per cent from 26,852 to 27,188 people. Total employee earnings rose by 5.6 per cent from $2.2 billion to $2.3 billion.
•    In 2014, cable and IPTV companies spent $2.5 billion on affiliation payments for pay and specialty services. This total represents a 7.8 per cent increase compared to the $2.3 billion spent in 2013.

Highlights: Satellite companies
•    Satellite companies’ revenues decreased by 2.4 per cent from $2.5 billion in 2013 to $2.4 billion in 2014.
•    Operating expenses for these companies were essentially unchanged  at $1.6 billion.
•    The number of Canadian households that subscribed to a satellite company’s television service decreased by 4.9 per cent from 2.7 million to 2.6 million.
•    Satellite companies employed 1,840 people in 2014, down from 1,973 in 2013. These companies spent $162 million on salaries in 2014, down from $183 million the previous year.
•    Satellite companies saw affiliation payments increase by 1.9 per cent from $794 million in 2013 to $809 million in 2014.

Categories: Articles, Broadcast, Cable, DTH/Satellite, IPTV, Markets, OTT, Pay TV, Research