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TV advertising continues to grow in Canada

Originally published by Infopresse

The Canadian Radio-television and Telecommunications Commission (CRTC) released statistical and financial summaries for Canadian specialty pay, pay-per-view (PPV) and video-on-demand (VOD) television services that shows an increase in advertising revenue.

Revenues for these television services have climbed by 35.4% over the past five years. In 2012, Canadian specialty, pay, PPV and VOD television services generated revenues of $3.97 billion, an increase of 5.9% over the $3.75 billion earned the previous year. National advertising revenues increased for a third consecutive year to $1.23 billion, although its 2.4% growth is significantly less than the 10.1% increase from the previous year. In addition, subscriber revenues exceeded $2.6 billion.

While revenues continued to climb, so too did expenses, which grew from $2.7 billion in 2011 to $2.9 billion in 2012. As a result, profits before interest and taxes (PBIT) dipped slightly from $934.2 million, with a PBIT margin of 24.9% in 2011, to $916.6 million, with a PBIT margin of 23.1% during the past year.

In 2012, these television services spent $1.39 billion on Canadian programming, representing a 9.6% increase over the previous year. Spending on Canadian programming included $221 million for news programs, $233 million for programs of national interest (drama series, long-form documentaries, and Canadian award shows), $486 million for sports programming, $109 million for human-interest programming, and $241 million for other types of programming.  

As part of these investments, specialty television services paid $353 million to Canadian independent producers. During the past five years, these services have spent over $1.6 billion on independent productions. In addition, investments in non-Canadian programming increased from $278 million in 2011 to $293 million in 2012.

These investments generated 226 new jobs, directly employed 6,176 people and paid $487 million in salaries.

For more details on this report, click here.


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