BROADCASTING DISTRIBUTION Cable, Internet Protocol Television (IPTV) and Direct-To-Home (DTH)
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BROADCASTING DISTRIBUTION Cable, Internet Protocol Television (IPTV) and Direct-to-Home (DTH) STATISTICAL AND FINANCIAL SUMMARIES 2012 - 2016 CONSUMER AFFAIRS AND STRATEGIC POLICY TABLE OF CONTENTS SECTION PAGE FOREWORD I - CABLE, IPTV AND DTH - BASIC AND NON BASIC SERVICES 1 Cable 2 IPTV 3 DTH 4 II - CABLE & IPTV (a) BASIC AND NON BASIC SERVICES CANADA 5 Atlantic 6 Quebec 7 Ontario 8 Prairies 9 British Columbia and Territories 10 (b) EXEMPT PROGRAMMING CANADA 11 Atlantic 12 Quebec 13 Ontario 14 Prairies 15 British Columbia and Territories 16 III - CONTRIBUTIONS TO THE CREATION & PRODUCTION OF CANADIAN PROGRAMMING 17 FOREWORD INTRODUCTION This report presents statistical and financial data compiled from the annual returns of BDUs for the broadcast year ended 31 August 2016. Section I presents statistical and financial data for basic and non basic services by type (cable, IPTV and Direct-to-Home (DTH)) and combined on a national level. Section II presents combined statistical and financial data for cable and IPTV service providers on a regional or provincial level. Section III provides financial data of the contributions made by BDUs for the creation and production of Canadian programming. "Set-top Box - Rental" and "Set-top Box - Net Sales" are reported separately starting with the 2013-2014 Broadcast Year. The CRTC no longer issues Multipoint Distribution Systems (MDS) broadcasting licences, as set out in Broadcasting Information Bulletin CRTC 2011-479 . MDS results are included with DTH for 2012 and 2013. Local Programming Improvement Fund BDUs were required to contribute a percentage of gross revenue from broadcasting activities to this fund. The fund has been discontinued as of 1 September 2014. Limitation on data collected Annual returns for the broadcast year ended 31 August 2016 were required to be filed with the Commission by 30 November 2016. Data received subsequent to the complilation date is not reflected in this publication. There are 2 entities (Novus Entertainment Inc. and Câble-Axion Digitel inc.) that failed to provide their annual return and are therefore not included in this publication. The data reported for previous years has been updated to reflect any additional or adjusted information received by the Commission subsequent to the date of prior years' publications. Definitions Basic services Basic service is the service distributed by a broadcasting distribution undertaking as a package consisting of programming services whose distribution is required by the Commission. Non basic services Non basic service is the service distributed by a broadcasting distribution undertaking consisting of programming services whose distribution is not required by the Commission. Exempt programming services Revenues derived from classified advertising, teleshopping/general services and infomercials. CRTC - FINANCIAL SUMMARY - BDU BASIC AND NON BASIC SERVICES - CABLE, IPTV AND DTH Canada ($000) 2012 2013 Var % 2014 Var % 2015 Var % 2016 Var % CAGR (%) Revenue y1 y2 y3 y4 y5 Subscription 8,061,784 8,288,838 2.82 8,034,566 -3.07 8,014,888 -0.24 7,797,080 -2.72 -0.8 Connection 30,107 22,467 -25.38 41,130 83.07 46,646 13.41 55,871 19.78 16.7 Community Channel Sponsorship & Facilities Rental 5,457 4,321 -20.82 3,780 -12.52 3,619 -4.26 2,591 -28.41 -17.0 Set-top Box - Rental 719,830 753,462 4.67 790,080 4.86 Set-top Box - Net Sales 64,954 50,781 -21.82 38,981 -23.24 Other Revenue 463,430 478,289 3.21 65,730 49,347 -24.93 49,582 0.48 Total Revenue 8,560,779 8,793,915 2.72 8,929,991 1.55 8,918,743 -0.13 8,734,185 -2.07 0.5 Expenses Community Programming 122,174 140,785 15.23 151,703 7.75 152,620 0.60 150,847 -1.16 5.4 Affiliation Payments 3,007,235 3,103,720 3.21 3,304,773 6.48 3,424,532 3.62 3,479,060 1.59 3.7 Technical 1,504,720 1,560,914 3.73 1,608,594 3.05 1,643,603 2.18 1,522,687 -7.36 0.3 Sales and Promotion 587,380 583,498 -0.66 637,955 9.33 606,045 -5.00 615,116 1.50 1.2 Administration and General 1,360,646 1,323,614 -2.72 1,423,067 7.51 1,511,629 6.22 1,570,441 3.89 3.7 Total Expenses 6,582,155 6,712,531 1.98 7,126,091 6.16 7,338,428 2.98 7,338,151 0.00 2.8 Operating Income 1,978,624 2,081,384 1,803,900 1,580,314 1,396,034 Local Programming Improvement Fund 111,818 75,157 39,928 Staff Total Remuneration 2,396,298 2,403,728 0.31 2,503,466 4.15 2,309,861 -7.73 2,405,590 4.14 0.1 Total Staff Count (FTE) 28,793.04 28,894.17 0.35 29,085.59 0.66 27,243.67 -6.33 26,512.81 -2.68 Avg Remuneration ($) 83,225 83,191 -0.04 86,072 3.46 84,785 -1.50 90,733 7.02 2.2 Avg Remuneration Excl. Benefits ($) 70,133 71,630 2.13 73,592 2.74 72,312 -1.74 76,943 6.40 2.3 Subscribers 11,528,860 11,517,350 -0.10 11,404,591 -0.98 11,246,669 -1.38 11,121,828 -1.11 -0.9 Profitability (%) Operating Margin 23.1 23.7 20.2 17.7 16.0 CAGR = Compound Annual Growth Rate 1 CRTC - FINANCIAL SUMMARY - BDU BASIC AND NON BASIC SERVICES - CABLE Cable - Canada ($000) 2012 2013 Var % 2014 Var % 2015 Var % 2016 Var % CAGR (%) Revenue y1 y2 y3 y4 y5 Subscription 4,996,012 4,902,996 -1.86 4,779,658 -2.52 4,642,173 -2.88 4,360,018 -6.08 -3.4 Connection 29,285 21,662 -26.03 18,901 -12.75 20,472 8.31 20,352 -0.58 -8.7 Community Channel Sponsorship & Facilities Rental 5,457 4,321 -20.82 3,780 -12.52 3,619 -4.26 2,591 -28.41 -17.0 Other Revenue 448,981 461,332 2.75 428,492 -7.12 400,869 -6.45 406,416 1.38 -2.5 Total Revenue 5,479,735 5,390,313 -1.63 5,230,830 -2.96 5,067,133 -3.13 4,789,377 -5.48 -3.3 Expenses Community Programming 115,561 128,746 11.41 131,974 2.51 127,084 -3.71 121,277 -4.57 1.2 Affiliation Payments 1,915,863 1,901,770 -0.74 1,945,340 2.29 1,960,064 0.76 1,933,611 -1.35 0.2 Technical 790,918 812,930 2.78 791,793 -2.60 729,159 -7.91 755,167 3.57 -1.2 Sales and Promotion 290,743 291,155 0.14 321,830 10.54 320,621 -0.38 301,541 -5.95 0.9 Administration and General 884,258 727,246 -17.76 754,109 3.69 678,593 -10.01 630,211 -7.13 -8.1 Total Expenses 3,997,342 3,861,848 -3.39 3,945,046 2.15 3,815,522 -3.28 3,741,808 -1.93 -1.6 Operating Income 1,482,393 1,528,465 1,285,785 1,251,612 1,047,569 Local Programming Improvement Fund 69,271 44,697 22,891 Staff Total Remuneration 1,950,292 1,876,062 -3.81 1,938,143 3.31 1,882,927 -2.85 1,964,861 4.35 0.2 Total Staff Count (FTE) 24,683.3 23,743.8 -3.81 23,856.9 0.48 22,736.1 -4.70 22,049.1 -3.02 Avg Remuneration ($) 79,013 79,013 0.00 81,240 2.82 82,817 1.94 89,113 7.60 3.1 Avg Remuneration excl. Benefits ($) 66,097 66,261 0.25 67,561 1.96 68,958 2.07 73,438 6.50 2.7 Subscribers Direct Subscribers 7,181,970 6,899,147 -3.94 6,494,148 -5.87 6,142,049 -5.42 5,783,037 -5.85 -5.3 Indirect Subscribers 514,960 530,306 2.98 563,512 6.26 560,738 -0.49 664,804 18.56 6.6 Total Subscribers 7,696,930 7,429,453 -3.48 7,057,660 -5.00 6,702,787 -5.03 6,447,841 -3.80 -4.3 Profitability (%) Operating Margin 27.1 28.4 24.6 24.7 21.9 CAGR = Compound Annual Growth Rate. 2 CRTC - FINANCIAL SUMMARY - BDU BASIC AND NON BASIC SERVICES - IPTV IPTV - Canada ($000) 2012 2013 Var % 2014 Var % 2015 Var % 2016 Var % CAGR (%) Revenue y1 y2 y3 y4 y5 Subscription 573,347 913,652 59.35 1,061,648 16.20 1,278,929 20.47 1,447,951 13.22 26.1 Connection 822 804 -2.10 5,970 642.17 8,885 48.84 20,145 126.72 122.5 Community Channel Sponsorship & Facilities Rental 0 0 n/a 0 n/a 0 n/a 0 n/a n/a Other Revenue 14,448 16,950 17.32 217,717 n/a 275,261 26.43 327,085 18.83 118.1 Total Revenue 588,617 931,407 58.24 1,285,335 38.00 1,563,075 21.61 1,795,181 14.85 32.2 Expenses Community Programming 6,601 12,019 82.10 19,729 64.14 25,536 29.43 29,570 15.80 45.5 Affiliation Payments 279,181 407,920 46.11 550,021 34.84 678,282 23.32 778,053 14.71 29.2 Technical 310,330 364,438 17.44 437,198 19.97 589,590 34.86 544,313 -7.68 15.1 Sales and Promotion 114,151 148,390 29.99 176,629 19.03 171,338 -3.00 213,637 24.69 17.0 Administration and General 131,449 271,997 106.92 356,382 31.02 402,983 13.08 551,203 36.78 43.1 Total Expenses 841,712 1,204,765 43.13 1,539,960 27.82 1,867,729 21.28 2,116,775 13.33 25.9 Operating Income -253,095 -273,358 -254,625 -304,653 -321,594 Local Programming Improvement Fund 4,574 5,537 4,677 Staff Total Remuneration 257,135 344,563 34.00 403,557 17.12 313,583 -22.30 339,512 8.27 7.2 Total Staff Count (FTE) 2,011.7 3,177.4 57.95 3,388.7 6.65 2,911.6 -14.08 3,144.7 8.01 Avg Remuneration ($) 127,819 108,441 -15.16 119,088 9.82 107,702 -9.56 107,962 0.24 -4.1 Avg Remuneration excl.