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- The operating revenues of the television broadcasting sector totalled $6.5 billion in 2008, up 5.4% from 2007. The increase between 2006 and 2007 was 3.0%. However, the overall results for the sector do not describe the very different situations in its various industries, particularly the difficult year for private conventional television.
- The operating revenues of private conventional television broadcasters fell 1.8% to $2.1 billion in 2008. It is this industry’s largest annual decline in revenues in more than 30 years and the second year-over-year decrease in the last three years.
- During that time, the specialty and pay television segments enjoyed operating revenue gains of 6.5% and 11.8% respectively in 2008 compared with the previous year. Nevertheless, those are the lowest year-over-year increases in three years.
- The specialty television segment led the industry in revenues in 2008 ($2.3 billion), dislodging private conventional television from the top spot it had held for many years.
- The 5.4% rise in the television broadcasting sector’s total operating revenues was partly due to an ad hoc 13.2% increase in public and non-commercial television revenues, following a 5.3% decline between 2006 and 2007. The upturn was attributable to advertising revenues from the Summer Olympics and a substantial increase in grants.
- The television advertising market grew by 2.8% in 2008 compared with 2007. While advertising revenues continued to climb for specialty television in 2008 (+8.1%) and rebounded for public television (+17.8%) after a year of decline, they were down for the first time in six years for private conventional television (-2.0%).
- The profit margin before interest and taxes surpassed 20.0% for the fourth consecutive year for specialty channels and for the seventh straight year for pay channels. On the other hand, private conventional stations generated a profit margin before interest and taxes of less than 1% in 2008, the lowest in the last 30 years. Specialty and pay channels accounted for more than 99% of the private television industry’s profits in 2008.
