Revenue for Canada’s private local television stations fell below $2 billion for the first time since 2009 last year, according to new data released this week by the CRTC.
Advertising revenue for the 92 stations across the country fell $74 million in fiscal 2013—to $1.63 billion from $1.70 billion—as the industry continued to operate within what the CRTC characterized as a “challenging” market, characterized by fragmenting audiences, ad-skipping and the continued emergence of alternate entertainment sources.
The loss of ad dollars contributed to a 4.6% decline in overall revenues, to $1.94 billion from $2.04 billion in 2012.
Although local airtime sales held relatively steady at $351.2 million, national time sales fell 5.3% to $1.27 billion. National airtime sales have posted a compound annual growth rate (CAGR) of -0.8% over the past five years, while local sales have posted a CAGR of 0.2% in the same period.
While comprising less than 1% (0.9%) of total revenue, infomericals were a bright spot for local stations in 2013. Revenues grew 15.6% to $17.4 million after nose-diving 13.7% to $15.04 million the previous year.
Investment in Canadian-made programs decreased 8.5% in fiscal 2013, to $605.4 million from $661.8 million the previous year, although investment in sports-related programs was higher because of coverage of the London Olympics.
Stations within CBC/SRC generated $331 million in revenues in fiscal 2013, an 11% decline from $327.7 million and a figure destined to fall even further with the impending loss of lucrative NHL revenues. CBC/SRC’s programming expenditures totaled $724.6 million, 97% of which was spent on Canadian shows.
Broadcasters invested a combined $355.3 million in news programming last year, followed by $73 million for human-interest programming, $66 million for drama series, $31.1 for “other information programs, $24.5 million for music and variety shows, $19.4 million for game shows and $6.5 million for sports programming.
The CRTC recently released financial results for Canada’s specialty, pay and pay-per-view, and video-on-demand services, and will soon publish results for both cable and satellite companies and AM and FM radio.
