Television broadcasting

Revenues of the television broadcasting industry surpassed the $5-billion mark for the first time last year thanks to the strong performance of private conventional television and specialty television.

Overall, industry operating revenues reached $5.2 billion, up 8.8% from 2002.

Revenues in private conventional television rose 10.6%, the first double-digit gain since 1988, while those in specialty television increased 11.9%.

In contrast, revenues for public and non-commercial television grew a more modest 3.4%.

Private conventional TV revenues hit $2.1 billion following a 0.5% decline in 2002. In addition, the profit margin (before interest and taxes) of this segment of the industry improved to 14.3% in 2003 from 9.4% the previous year. This was the best result since 1999.

Specialty television experienced another year of strong growth in revenues last year. In particular, advertising revenues reached $606.2 million, up 19.2%, surpassing the gains of 16.1% in 2002 and 15.1% in 2001.

Specialty television captured 21.3% of the TV advertising market last year, continuing a steady ascent that began with the creation of the industry. The growing proportion of viewing time spent by Canadians watching Canadian specialty channels explains this shift.

The profit margin of the specialty segment was 12.6% in 2003, up from 8.4% the previous year. Despite the increase, the profit margin of this segment remained below the industry average for the second consecutive year, largely as a result of the losses incurred by digital channels launched in 2002.

The digital channels are slowly carving a niche for themselves in the Canadian television landscape. Their customer base has expanded to an average of just over 500,000 subscribers per channel at the end of August 2003, up 34.8% from the previous year. The revenues of digital channels reached $100.1 million, more than twice the level in 2002.

It was expected that the early years would be difficult financially. As a group, digital channels have incurred a loss before interest and taxes of $85.2 million in 2003, still significantly less than the $140.5 million loss in 2002.

Revenues in pay television went up 4.3%, compared with a 16.3% gain in 2002 and 33.8% in 2001. Pay-TV still managed to improve its profit margin (before interest and taxes) in 2003 to 26.4% from 24.2% the previous year. It remained the most profitable segment of the industry by a wide margin.

Available on CANSIM: table 357-0001.

Definitions, data sources and methods: survey number 2724.

The 2003 issue of the Broadcasting and Telecommunications Bulletin, Vol. 34, no. 2 (56-001-XIE, $11/$35) is now available.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Daniel April (613-951-3177; daniel.april@statcan.gc.ca) or Dany Gravel (613-951-0390; dany.gravel@statcan.gc.ca), Science, Innovation and Electronic Information Division.