Television broadcasting

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Operating revenues for the television broadcasting industry totalled $6.5 billion (current dollars) in 2008, up 5.4% from 2007. The overall results for the industry, however, do not describe the very different situations in its various segments, particularly the difficult year for private conventional television.

The operating revenues for private conventional television fell 1.8% to $2.1 billion in 2008. This was the second annual decline in revenues in three years for this segment.

The more difficult period faced by private conventional television in recent years is mainly due to the loss of television advertising market shares to the specialty television segment. Private conventional television captured 58.8% of the $3.4 billion advertising market in 2008, compared with 68.1% five years earlier. This market is particularly important to private conventional television since it is the source of virtually all of its operating revenues.

Meanwhile, the specialty television segment continued to grow, albeit at a slower pace than in previous years. Its operating revenues rose 6.5% to $2.3 billion in 2008, both subscription revenues (+5.4%) and advertising revenues (+8.1%) having contributed to the growth. As yet another indication of the fundamental changes occurring in television broadcasting, specialty television led the sector in revenues in 2008, dislodging private conventional television from the top spot it had held for many years.

The pay television segment also continued to advance. Its operating revenues totalled $612.0 million in 2008, up 11.8% from 2007. Growing interest in on-demand television explains this rise. Revenues from on-demand services climbed to $269.6 million in 2008, up 36.3% from 2007.

The 5.4% increase in the sector's total operating revenues was partly due to a 13.2% advance in public and non-profit television revenues. The upturn was largely attributable to advertising revenues from the Summer Olympics and a substantial increase in grants.

Private television broadcasters were less profitable in 2008 than in 2007, their profit before interests and taxes falling to $691.0 million from $763.6 million. Specialty and pay channels accounted for more than 99.0% of these profits.

The profit margin before interests and taxes surpassed 20.0% for the fourth consecutive year for specialty channels and for the seventh straight year for pay television channels.

Private conventional stations, on the other hand, generated a profit margin before interests and taxes of less than 1% in 2008, the lowest in 30 years. Nearly half of all private conventional stations posted losses before interests and taxes in 2008.

Note: The statistics presented here are for the fiscal year ending August 31. They do not reflect the impact on the television industry of the economic downturn that began in the final months of 2008.

Available on CANSIM: table 357-0001.

Definitions, data sources and methods: survey number 2724.

The publication Television Broadcasting Industries, 2008 (56-207-X, free), is now available from the Publications module of our website.

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 Sylvain Ouellet (613-951-2779; sylvain.ouellet@statcan.gc.ca), Business Special Surveys and Technology Statistics Division.