Broadcast revenues fell 1.6% to $17.9 billion last year, according to the CRTC’s comprehensive 2016 Communications Monitoring Report, as Canadians increasingly look to digital sources for their audio and video entertainment
The drop was more pronounced in the TV sector, as revenues fell 3.4% to $7.1 billion, while radio revenues fell 1.2% to $1.9 billion. Revenues for television service providers remained stable at $8.9 billion, despite a 1.4% drop in subscribers, to 11.2 million.
TV viewing falls among younger Canadians
The report said Canadians watched an average of 27.2 hours of TV per week via a combination of over-the-air, cable, satellite and IPTV in 2015, representing a slight 0.7% decrease from the previous year.
Not surprisingly, the declines are more pronounced among younger viewers, falling 5.5% for 12-17 year olds and 4.4% for 18-34 year-olds. Canadians 65 and older consume the most TV (42 hours per week), while 12 to 34 year-olds consume the least (19 hours per week).
U.S. conventional channels accounted for 4.8% of Canadian tuning, up slightly from 4.5% the previous broadcast year, while discretionary services accounted for 7.2% of tuning, down from 8% the previous broadcast year.
Conventional TV advertising down, specialty up
Conventional TV services saw advertising revenues fall by $337 million – from $1.95 billion to $1.61 billion – between 2011 and 2015, while revenues for specialty, pay, pay-per-view and video-on-demand services grew slightly, from $1.23 billion to $1.24 billion.
Ad revenues for CBC conventional television fell by $150 million, from $370 million in 2011 to $220 million in 2015, likely exacerbated by the public broadcaster’s loss of lucrative NHL rights.
The country’s six largest TV broadcasters accounted for more than 86% of the sector’s total revenues, a figure that includes advertising, subscriptions and other commercial revenues, as well as parliamentary appropriations for the CBC.
Bell Media accounted for nearly one third of all TV revenue (31%), followed by Corus Entertainment, including Shaw Media (20%), CBC (18%), Rogers Media (11%) and Quebecor Media (5%).
Five of the top 10 highest-grossing individual specialty services were sports related, with the broadcast of NHL games helping both Sportsnet One and TVA Sports crack the top 10 for the first time in their history. The top 10 highest grossing services accounted for 37.7% of the total revenues generated by discretionary services last year.
Radio remains stable, though AM struggling
Canada’s 704 commercial radio stations generated revenue of $1.6 billion last year, relatively unchanged from 2011. However, there were 12 additional FM services in operation last year compared to 2014, bringing the total number of FM services to 580.
Revenues for FM services have grown an average of 0.3% a year since 2011, with total combined revenues of $1.32 billion.
Last year also marked the second year of national advertising eligibility for CBC’s Ici Musique and Radio 2. The two stations generated $1.4 million in advertising revenue in 2015, a 27.2% increase from 2014. However, that represented just 0.5% of the public broadcaster’s total radio revenue in 2015.
The country’s five largest commercial broadcasters accounted for more than 68% of total radio revenues in 2015, led by Bell Media (26%), Rogers Media (15%), Newcap Radio (10%), Corus Entertainment (10%) and Cogeco Media (7%).
The report noted AM stations had been “struggling” for the past five years, with revenues dropping by an average of 2.1% per year between 2011 and 2015 (when total revenues were $286 million). There were 124 AM services operating in 2015, down from 127 the previous year.
Country and AC the most popular radio formats
The report said country and contemporary music formats garnered the largest listener share, noting the popularity of the two genres had been “steadily increasing” over the past several years.
Today’s country is the leading format for the 103 stations reported in the country’s English-language diary markets, accounting for 16% of the audience share, ahead of CBC Radio One (15%) and adult contemporary (10%).
News/talk is the leading format for the 11 stations measured in English-language PPM markets, accounting for 17% of all tuning – ahead of adult contemporary (15%) and CBC Radio One (13%).
