OTTAWA-GATINEAU – Cable companies reported modest growth in revenues and subscribers in 2013, while satellite companies recorded a decline in both categories, according to the CRTC’s statistical and financial results for the industry released Thursday.
According to Broadcast Distribution 2009–2013: Cable, Multipoint Distribution Systems and Direct-to-Home, combined revenues for both cable and satellite companies increased by 4.8% from $14.1 billion in 2012 to $14.8 billion in 2013. The total number of subscribers, (which includes customers subscribed to IPTV services such as Bell’s Fibe TV or Telus’ Optik TV, but excludes independent cable companies with less than 2,000 subs and who don't offer a community channel ), remained relatively stable at 11.5 million.
Cable/TelcoTV companies
Cable companies reported revenues of $12.3 billion in 2013, which were drawn from basic and discretionary television services as well as Internet access and telephone services. That’s an increase of 6.1% over the previous year’s total revenues of $11.6 billion. Operating expenses were 5.1% higher during the same period, rising from $6.6 billion to $6.9 billion. Profits before interest and taxes (PBIT) also increased, from $2.4 billion to $2.7 billion, as did the PBIT margin, which climbed from 20.8% to 21.5%.
Canadian households subscribing to a cable company’s basic television service increased by 1.5% to reach 8.82 million.
In 2013, the total number of cable company employees rose by 11.5%, increasing employment figures from 26,659 to 29,714 people. Total employee salaries also increased, by 11.3% from $2.2 billion to $2.5 billion.
Satellite companies
Revenue for satellite companies dipped by 0.9% from $2.5 billion in 2012 to $2.48 billion in 2013.
Operating expenses also declined from $1.7 billion to $1.6 billion. As a result, these companies (Shaw Direct and Bell TV) experienced an increase in PBIT, from $389 million in 2012 to $439 million in 2013. In turn, the PBIT margin rose from 15.6% in 2012 to 17.7% in 2013.
Canadian households subscribing to a satellite company's basic television service dropped by 4.8% to 2.69 million. These companies employed employed 1,973 people and spent $183 million on salaries, both of which were lower than the previous year. In 2012, satellite companies had 2,098 employees and spent $189 million on salaries.
Contributions to Canadian programming
In 2013, broadcasting distribution companies spent $477.7 million on the development of Canadian content, a 5.6% decrease compared to the previous year. Of this amount, $216 million was directed to the Canadian Media Fund, $61 million to independent funds, $75 million to the Local Programming Improvement Fund and $125 million to cable-based community channels and other sources of local content.
Affiliation payments
In 2013, cable companies spent $2.3 billion on affiliation payments for the pay and specialty services they carry, which represents a 5.2% increase compared to the $2.2 billion spent the previous year. The fees paid by satellite companies decreased by 2%, from $812 million to $794 million.
