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According to Statistics Canada's 2008 Television Broadcasting Report (for the fiscal year ending August 31), operating revenues for the industry totaled $6.5 billion (current dollars) in 2008, up 5.4% from 2007. The operating revenues for private conventional television fell 1.8% to $2.1 billion in 2008. This sector captured 58.8% of the $3.4 billion advertising market in 2008.
The specialty television segment's operating revenues rose 6.5% to $2.3 billion in 2008, with both subscription revenues (+5.4%) and advertising revenues (+8.1%) contributing to the growth. Specialty television led the sector in revenues in 2008, dislodging private conventional television from the top spot it had held for many years.
The pay television segment also continued to advance. Its operating revenues totaled $612.0 million in 2008, up 11.8% from 2007. Growing interest in on-demand television explains this rise. Revenues from on-demand services climbed to $269.6 million in 2008, up 36.3% from 2007.
The 5.4% increase in the sector's total operating revenues was partly due to a 13.2% advance in public and non-profit television revenues. The upturn was largely attributable to advertising revenues from the Summer Olympics and a substantial increase in grants.
Private television broadcasters were less profitable in 2008 than in 2007, as their profit before interests and taxes fell from $763.6 million to $691.0 million. Specialty and pay channels accounted for more than 99.0% of these profits.
The profit margin before interests and taxes surpassed 20.0% for the fourth consecutive year for specialty channels and for the seventh straight year for pay television channels.
Private conventional stations, on the other hand, generated a profit margin before interests and taxes of less than 1% in 2008, the lowest in 30 years. Nearly half of all private conventional stations posted losses before interests and taxes in 2008.
Source: Broadcaster, 07/09/2009
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