TORONTO ? Despite a marked increase in the amount of online content made available by Canadian broadcasters in 2011, online television advertising revenues have yet to make a significant impact on the bottom line, says a new report from Convergence Consulting.
Online TV advertising revenues represented just 3.3% of Canadian broadcast/specialty network TV advertising revenue in 2011, up from 2.7% in 2010. It is forecast to reach 3.8% this year, according to the report, the latest instalment of the company?s ongoing ?Battle for the North American Couch Potato? series.
Online viewing is on the rise, the report continued, with 18% of the weekly viewing audience watching an average of one to two episodes of free, full-episode TV shows at a broadcaster/specialty network website last year (this excludes iTunes, Netflix, or walled garden requiring a paid subscription). That amount was 16% in 2010, and the report predicts it will reach 19% in 2012.
Additions to Canadian TV subscribers dropped from 246,000 in 2010 to 222,000 in 2011, and are forecast to reach 180,000 in 2013. Based on its ?TV Cord Cutting Model?, (which takes into account annual subscriber additions and the digital transition), the report estimates that 0.7% (83,000) Canadian TV subscribers cut their TV subscriptions in 2011 to rely solely on on-line, Netflix, over-the-air, etc.
Netflix will continue to take market share, but cable, satellite, and telco video-on-demand revenues will increase, and by year end 2013, be the top revenue channel followed by store, online subscription (Netflix streaming), and kiosks. The report estimates that 2011 Canadian movie/TV rental market revenues broke down as follows: kiosks 2%, mail 3%, on-line transactional 3%, on-line subscription (Netflix) 7%, VOD (cable, satellite, telco TV) 25%, and store 60%.
Download movie and TV sales represented 4% and 3%, respectively, of 2011 Canadian DVD/Blu-ray/download movie/TV sales, the report added.
For more on for more on ‘The Battle for the North American (US/Canada) Couch Potato: Online, Traditional TV and Movie Distribution’ report, click here.
