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Media and Internet Concentration in Canada

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MEDIA AND INTERNET CONCENTRATION IN CANADA, 1984-2017 REPORT DECEMBER 2018 (UPDATED JANUARY 2019) Canadian Media Concentration Research Project Research Canadian Media Concentration www.cmcrp.org Canada’s Top Media, Internet & Telecom Wireline % MARKET SHARE Wireless Companies by Market Share (2017) Internet Access Cable cmcrp.org | [email protected] Broadcast TV & Pay TV 47% 31% Radio * Newspaper & Magazine 25% Internet Advertising & Subscriptions Over-the-top (OTT) Subscriptions 16.5% 29% 27.5% 28% 29% 16.5% 0.1% Twitter 30% 1.4% 21% Wireline 3% 12% 0.1% GROUPE Wireless CAPITALE 33% 11% 9% Internet Access MEDIA 15% Cable 5% 18% Wireline Broadcast TV & Pay TV 13% Wireless Radio 72.5% Internet Access Over the top (OTT) Subscriptions 0.2% POWER CORP 7.3% Cable 12% 6% 8% top 5 players5% 2% Wireline 12% Wireless 23% Internet Access 0.8% EastLink control 72.5 % of the entire15% media economy Cable 3% GLOBE & MAIL 8% Broadcast TV & Pay TV 2% 0.2% Wireline Radio 0.9% POSTMEDIA 1% 7% Magazines Wireless 1.4% SaskTel 30% 4.7% Internet Access 2.0% Facebook 1% Cable 2% Broadcast TV & Pay TV 23.3% 3% Radio 2% 0.9% TORSTAR 9% 2% 27% 12% 2% 1.0% NETFLIX 6% Wireline 4.3% Google Wireless 2.0% CBC 1.6% COGECO 7% Internet Access 6% 6% Cable 85% Broadcast TV & Pay TV Newspaper & Magazine 50% *market share is based 16% 16% on revenue 1% 5% 0.1% CONTENT OWNERSHIP: BELL Discovery World HD) TSN Radio, Énergie and Sportsnet (formerly Rogers SHAW Fyi (Twist TV) TreeHouse TV addikTV (formerly Mys- Canadian Living Calgary Herald The Hamilton Spectator POWERCORP Broadcast TV & Pay TV E! (formerly Star! TV) Rouge FM brands Sportsnet) & Hockey Night in Canada Broadcast TV & Pay TV H2 (The Cave, Men TV) Univision Canada tère) Clin d’oeil Cornwall Standard Freeholder Niagara Falls Review La Press CTV (22 stations, 2 affiliates) ESPN Classic OTT Subscription Sportsnet One Global (15 stations, 3 affiliates) HGTV Canada W Network Canal Indigo Coup de pouce Edmonton Journal Peterborough Examiner CTV Two (7 stations, 2 regional MTS Video on Demand CraveTV Sportsnet PPV ABC Spark History Television YTV Casa - (formerly Les idées de Échos vedettes London Free Press St. Catharines Standard GROUPE CAPITALES MÉDIAS cable channels) MTV2 Sportsnet World ACTION La Chaine Disney Shaw on Demand ma maison) Elle Canada (51%) Montreal Gazette Waterloo Region Record Le Nouvelliste, Trois-Rivieres Animal Planet MTV (Canada) ROGERS Viceland BBC Canada Lifetime (Showcase Diva) Radio Illico sur demande Elle Québec (51%) Ottawa Citizen Welland Tribune” La Tribune, Sherbrooke Bell TV on Demand Space Broadcast TV & Pay TV Radio BC News 1 Movie Time (Lonestar) 39 stations in British Colum- Le Canal Nouvelles (LCN) Good Times (50%) Regina Leader-Post Grand River Valley Record La Voix de l’Est, Granby BNN Bloomberg The Comedy Network City (6 stations, 1 regional 55 stations in five provinces, includ- Cartoon Network National Geographic Channel bia, Alberta, Manitoba and Moi&cie (formerly Mlle) Le Guide de l’auto The StarPhoenix “StarMetro Toronto Le Soleil, Quebec Bravo! The Movie Network cable channel, 3 affiliates) ing Sportsnet brandÉnergie and CMT Nickelodeon Ontario, including Global Prise 2 (formerly Nostal- La Semaine The Vancouver Sun StarMetro Calgary Le Quotidien, Chicoutimi CablePulse 24 (CP24) The Sports Network OMNI (5 stations) Rouge FM brands Cooking Channel OWN: The Oprah Winfrey Network News Radio brand gie) Star inc. Windsor Star StarMetro Edmonton Le Droit, Ottawa/Gatineau Câblevision du Nord de Québec (TSN) FX (formerly FX Canada) Newspapers & Magazines Cosmopolitan TV Series+ TVA Sports Star Système Calgary Sun StarMetro Vancoucer inc., Val d’Or Z (formerly Ztélé) FXX (Canada) Maclean’s Crime + Investigation Showcase QUEBECOR YOOPA (formerly TVA Ju- Style at Home Edmonton Sun StarMetro Halifax Canal D Leaf TV G4 (Canada)Outdoor Life Chatelaine DejaView Slice Broadcast TV & Pay TV nior) TV Hebdo Ottawa Sun Winnipeg Sun Canal Vie NBA TV Network (OLN) Hello! Canada D.I.Y. Network Telebimbi TVA (6 stations, 4 affiliates) Newspapers & Maga- Quebecor Media Book Group Toronto Sun CINÉPOP Comedy Gold Radio Rogers on Demand Key Publishers Co. Ltd. DTOUR (TVtropolis) Teleninos (All Spanish Children’s Évasion zines Groupe Librex Winnipeg Sun GLOBE & MAIL News Channel 109 stations in eight prov- Sportsnet 360 (formerly The EuroWorld SPORT television) TV5 - Unis 7 jours POSTMEDIA TORSTAR Globe & Mail Discovery Channel inces, including Virgin Radio, Score) Food Network Canada Teletoon/Teletoon Zeste (formerly Cuisine) Canadian Gardening National Post Toronto Star Candian Media Concentration Research Project x The Canadian Media Concentration Research project is directed by Professor Dwayne Winseck, School of Journalism and Communication, Carleton University. The project is funded by the Social Sciences and Humanities Research Council and aims to develop a comprehensive, systematic and long-term analysis of the media, internet and telecom industries in Canada to better inform public and policy-related discussions about these issues. Professor Winseck can be reached at either [email protected] or 613 769- 7587 (mobile). Open Access to CMCR Project Data CMCR Project data can be freely downloaded and used under Creative Commons licens- ing arrangements for non-commercial purposes with proper attribution and in accor- dance with the ShareAlike principles set out in the International License 4.0. Explicit, written permission is required for any other use that does not follow these principles. Our data sets are available for download here. They are also available through the Dat- averse, a publicly-accessible repository of scholarly works created and maintained by a consortium of Canadian universities. All works and datasets deposited in Dataverse are given a permanent DOI, so as to not be lost when a website becomes no longer avail- able—a form of “dead media”. Acknowledgements Special thanks to Ben Klass, a Ph.D. student at the School of Journalism and Communi- cation, Carleton University, Lianrui Jia, a Ph.D student in the York Ryerson Joint Gradu- ate Program in Communication and Culture and Han Xiaofei, also in the Ph.D. program at the School of Journalism and Communication, Carleton University. They helped enormously with the data collection and preparation of this report. Ben wrote key as- pects of the wireless section. Sabrina Wilkinson, a graduate of the School of Journalism and Communication at Carleton University and currently doing her doctoral studies at Goldsmiths University in the United Kingdom, also offered valuable contributions to the sections on the news media. Agnes Malkinson, another Ph.D. student in the Media and Communication program at Carleton University, is responsible for the look and feel of the reports, and keeps the project’s database in good working order. Recommended Citation Winseck, D. (2018, December 11). Media and Internet Concentration in Canada Report 1984 – 2017. Canadian Media Concentration Research Project (CMCRP). doi:10.22215/ cmcrp/2018.2. www.cmcrp.org i Media and Internet Concentration in Canada, 1984-2017 Executive Summary This report examines the state of competition in the mobile wireless market, internet access, broadcast, pay and streaming TV services, internet advertising, advertising across all media, newspapers, browsers, online news sources, search, social media, operating systems, etc. in Canada over the period from 1984 until 2017. We call the sum-total of these media “the network media economy”. We then use two common metrics—Concentration Ratios and the Herfindahl-Hirschman Index (HHI)—to deter- mine whether these markets—individually and collectively—are competitive or concen- trated. This year’s report adds a whole new section on advertising spending across all media in Canada, i.e. TV, radio, online, newspapers, magazines and out-of-doors. In addition, and for the second year now, this report delves deeper into the state of competition in local and regional mobile wireless, retail internet access and “cable TV” services. We examine the state of mobile wireless competition where the big three national carri- ers—Rogers, Bell and Telus—now face strong regional rivals in most provinces across the country from, for example, Videotron (Quebec and Ottawa), Freedom Mobile (Ontar- io, Alberta, BC), Eastlink (Atlantic provinces) and SaskTel (Saskatchewan). We show that competition has improved considerably in Quebec, for example, where Videotron has carved out a 13% market share for itself in the mobile wireless market (and about 15% based on subscribers). Since being acquired by Shaw, Freedom Mobile has also expanded its subscriber base from 940,000 in 2016 to 1.1 million last year earli- er, while its revenue jumped from $490 million to $605 million over the same period. Its share of the national wireless market also jumped from 2.1% to 2.4%, while in Ontario, Alberta and BC where it operates, it has carved out an estimated market share of be- tween 5% and 6%. Nonetheless, however, the big three national carriers’ market share actually increased in 2017, mostly due to Bell’s acquisition of MTS. Concentration levels are even higher in local retail internet access and cable TV mar- kets, where the legacy cable companies and telecoms operators generally account for 87% and nearly 100% of the market, respectively. In short, there are strong reasons for concern in all these markets. Now is not the time to let up on policy measures that have begun to bear at least some fruit, and perhaps good reason to double-down on them— whether the CRTC will do that, however, is increasingly looking doubtful and mixed messages are coming from other quarters such as the Competition Bureau and Innova- tion, Science and Economic Development. We also identify features of the network media economy that set Canada apart from other countries. In this regard, two things stand out: the sky-high levels of diagonal in- tegration and the extremely high levels of vertical integration that exist in this country.
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