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Methodology and Definitions

Description

This annual sample survey collects the financial and operating data needed to produce statistics on Performing Arts in Canada. Commencing with reference year 2004 and every two years thereafter, the survey also collects detailed information on the characteristics of the businesses, such as attendance and sources of funding.

These data are aggregated with information from other sources to produce official estimates of the national and provincial economic production of all performing arts establishments in Canada. The results from this survey provide data to governments and cultural associations on not-for-profit performing arts in Canada, to help in the development of policies, the conducting of program evaluations and policy reviews, and in the area of advocacy in the performing arts sector.

For purposes of research and analysis, the performing arts sector has been grouped into two components: not-for-profit and for-profit. The not-for-profit component used to be surveyed under the auspices of the Culture Statistics Program. Commencing with reference year 2004, the new survey, which now comprises both the for-profit and not-for-profit establishments, is administered by the Service Industries Program, in collaboration with the Culture Statistics Program. Historical time series data from the previous Culture Statistics Program are available in The Guide to Culture Statistics (online, free of charge, at catalogue number 87-008-GIE). It should be noted that data from this historical time series should not be compared with data from this new survey due to significant differences in coverage and methodology.

Since 2004, the survey has covered a somewhat different set of businesses than in previous years so that data generally cannot be expected to be comparable. The list of names and addresses of businesses is now drawn from a central Statistics Canada data base. Also, a much more rigorous delineation of those companies that are considered part of the culture sector has been applied through the implementation of the North American Industry Classification System (NAICS). This industry-based classification is a departure from the activity-based classification that was used previously. In addition to these changes in coverage, commencing with 2004, the data are based on a sample of businesses which has affected our ability to publish in detail some culture variables.

Target population

The target population consists of all establishments classified as performing arts establishments (NAICS 7111) according to the North American Industry Classification System (NAICS) during the reference year.

The survey covers those publicly and privately owned performing arts companies classified as theatre (NAICS 711111), musical theatre, dinner theatre or opera (NAICS 711112), dance companies (NAICS 711120), musical groups or artists (NAICS 711130), or multi-disciplinary and other performing arts companies, such as circuses, ice skating shows, etc. (NAICS 711190). This survey excludes promoters and presenters of performing arts events (NAICS 7113).

Instrument design

The survey questionnaire includes generic modules that have been designed to cover several service industries.

The annual survey questionnaire covers detailed financial and operating characteristics. In addition, every two years, questions on such topics as attendance, employment and sources of revenue are asked. For 2006, a long questionnaire was used for this industry. The questionnaire was developed in consultation with potential respondents, data users and questionnaire design specialists.

Sampling

This is a sample survey with a cross-sectional design.

The basic objective of the survey is to produce estimates for the whole industry for incorporated and unincorporated businesses, as well as for not-for-profit and for-profit businesses. The data come from two different sources: a sample of all businesses with revenue above or equal to a certain threshold and administrative data for businesses with revenue below the threshold, which are excluded from sampling. It should be noted that for this excluded portion, only certain financial information is obtained from administrative sources; e.g., total revenue, expenses such as depreciation and salaries, wages and benefits. Characteristics such as detailed revenue by type of service and employment are collected only for surveyed establishments. (Note: the threshold varies between industries and between provinces in the same survey.)

The frame is the list of establishments from which the portion eligible for sampling is determined and the sample is taken. The frame provides basic information about each firm including address, industry classification and other administrative information. The frame is referred to as the Business Register and is updated regularly using administrative data.

Prior to the selection of a random sample, establishments are classified into homogeneous groups (i.e., groups with the same NAICS codes, same geography (province/territory) and designated as for-profit or not-for-profit).

The sample size for reference year 2006 was 702 establishments for performing arts.

Data sources

Responding to this survey is mandatory. Data are collected directly from survey respondents and extracted from administrative files.

Data are collected through a mail-out/mail-back process, while providing respondents with the option of other filing methods such as telephone or electronic filing methods.

Follow-up procedures are applied when a questionnaire has not been received after a pre-specified period of time.

Error detection

Data are examined for inconsistencies and errors using automated edits coupled with analytical review. Where possible, data are verified using alternate sources.

Imputation

Partial records are imputed to make them complete. Data for non-respondents are imputed using donor imputation, administrative data or historical data.

Estimation

As part of the estimation process, survey data are weighted because some units in the sample represent a certain number of establishments that were not selected in the sample. These data are then combined with administrative data to produce final industry estimates.

Quality evaluation

Prior to dissemination, combined survey results are analyzed for overall quality. In general, this includes a detailed review of individual responses (especially for the largest companies), of general economic conditions and historic trends, and comparisons with other data sources.

Disclosure control

Statistics Canada is prohibited by law from releasing any data that would divulge information obtained under the Statistics Act that relates to any identifiable person, business or organization without the prior knowledge or the consent in writing of that person, business or organization. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Definitions

Industry estimates are based on the surveyed portion and are augmented by administrative data for establishments that were too small to be eligible for sampling.

The surveyed portion includes only data for surveyed establishments weighted to represent other establishments that were eligible for sampling but were not selected. The surveyed portion represents approximately 92% of total industry revenue.

The establishment, as a statistical unit, is defined as the most homogeneous unit of production for which the business maintains accounting records from which it is possible to assemble all the data elements required to compile the full structure of the gross value of production (total sales or shipments, and inventories), the cost of materials and services, and labour and capital used in production.

For-profit establishments are defined as those which operate primarily for profit-making endeavours.

Not-for-profit establishments exclude those which operate primarily for profit-making endeavours.

Operating revenue excludes investment income, capital gains, extraordinary gains and other non-recurring items.

Operating expenses exclude interest on borrowing, write-offs, capital losses, extraordinary losses, and other non-recurring items.

Operating profit margin is derived as follows: total operating revenue minus total operating expenses, expressed as a percentage of total operating revenue.

Salaries, wages and benefits include employer contributions to pension, medical/life insurance plans, employment insurance, etc. for all employees who have been issued a T4 statement.

Performance revenue includes revenue from performances at home: subscription ticket sales, single ticket sales, contract production of live performances (include guarantees) and from touring: touring admission sales and contract production of live performances on tour.

Sales of goods and services includes revenue such as rental and leasing income, commissions, fees, admissions, services revenue, technical artistic services, advertising and related services, food and beverage sales and sales of merchandise.

Grants, subsidies, donations and fundraising include public sector support and private sector support.

Personnel costs include salaries, wages and benefits (including vacation pay) for all employees for whom a T4 supplementary form was completed. Data also include freelance and contract personnel expenses.

Other sales includes technical artistic services (e.g., backstage and post-production services), advertising and related services, rental of facilities (include theatre, rehearsal space), food and beverage sales, merchandise sales and other sales.

Other revenue excludes revenue from the sale of goods and services and grants, subsidies, donations and fundraising. Royalties, rights, licensing and franchise fees is included.

Contract production includes guarantees.