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 2013 - 2017 CONSUMER AFFAIRS AND STRATEGIC POLICY TABLE OF CONTENTS SECTION PAGE FOREWORD I - CABLE, IPTV AND DTH - BASIC AND NON BASIC SERVICES (2013-2017) 1 Cable 2 IPTV 3 DTH 4 II - CABLE & IPTV (a) BASIC AND NON BASIC SERVICES (2013-2017) CANADA 5 Atlantic 6 Quebec 7 Ontario 8 Prairies 9 British Columbia and Territories 10 (b) COMPANIES OPERATING ONLY EXEMPT SYSTEMS WITH LESS THAN 2,000 SUBSCRIBERS (2015-2017) 11 (c) EXEMPT PROGRAMMING (2013-2017) CANADA 12 Atlantic 13 Quebec 14 Ontario 15 Prairies 16 British Columbia and Territories 17 III - CONTRIBUTIONS TO THE CREATION & PRODUCTION OF CANADIAN PROGRAMMING (2015-2017) 18 FOREWORD INTRODUCTION This report presents statistical and financial data compiled from the annual returns of BDUs for the broadcast year ended 31 August 2017. 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. 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. *NEW* The total number of subscribers from 2015 to 2017 for undertakings operating only exempt systems with fewer than 2,000 subscribers has been added to this year's publication. Limitation on data collected Annual returns for the broadcast year ended 31 August 2017 were required to be filed with the Commission by 30 November 2017. Data received subsequent to the complilation date is not reflected in this publication. There are 3 entities (DERYtelecom Inc., 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 ($000) 2013 2014 Var % 2015 Var % 2016 Var % 2017 Var % CAGR (%) Revenue y1 y2 y3 y4 y5 Subscription 8,288,838 8,034,566 -3.07 8,014,888 -0.24 7,797,730 -2.71 7,529,935 -3.43 -2.4 Connection 22,467 41,130 83.07 46,646 13.41 55,901 19.84 53,546 -4.21 24.3 Community Channel Sponsorship & Facilities Rental 4,321 3,780 -12.52 3,619 -4.26 2,591 -28.41 1,596 -38.42 -22.1 Set-top Box - Rental 728,892 n/a 764,940 4.95 794,978 3.93 874,553 10.01 Set-top Box - Net Sales 55,893 n/a 39,303 -29.68 39,004 -0.76 27,219 -30.21 Other Revenue 478,289 65,730 n/a 49,347 -24.93 49,582 0.48 50,736 2.33 Total Revenue 8,793,915 8,929,991 1.55 8,918,743 -0.13 8,739,786 -2.01 8,537,586 -2.31 -0.7 Expenses Community Programming 140,785 151,703 7.75 152,620 0.60 150,923 -1.11 149,144 -1.18 1.5 Affiliation Payments 3,103,720 3,304,773 6.48 3,424,532 3.62 3,479,728 1.61 3,503,611 0.69 3.1 Technical 1,560,914 1,608,594 3.05 1,643,603 2.18 1,522,687 -7.36 1,310,200 -13.95 -4.3 Sales and Promotion 583,498 637,955 9.33 606,045 -5.00 615,116 1.50 527,800 -14.20 -2.5 Administration and General 1,323,614 1,423,067 7.51 1,511,629 6.22 1,570,441 3.89 1,488,551 -5.21 3.0 Total Expenses 6,712,531 7,126,091 6.16 7,338,428 2.98 7,338,895 0.01 6,979,306 -4.90 1.0 Operating Income 2,081,384 1,803,900 1,580,314 1,400,891 1,558,279 Local Programming Improvement Fund 75,157 39,928 Staff Total Remuneration 2,404,717 2,503,466 4.11 2,309,861 -7.73 2,403,607 4.06 2,248,873 -6.44 -1.7 Total Staff Count 28,894.2 29,085.6 0.66 27,243.7 -6.33 26,481.0 -2.80 26,575.4 0.36 Avg Remuneration ($) 83,225 86,072 3.42 84,785 -1.50 90,767 7.06 84,622 -6.77 0.4 Avg Remuneration excl. Fringe Benefits ($) 71,646 73,592 2.72 72,312 -1.74 76,943 6.40 72,429 -5.87 0.3 Subscribers Direct Subscribers 10,951,637 10,805,670 -1.33 10,652,889 -1.41 10,427,417 -2.12 10,237,727 -1.82 -1.67 Indirect Subscribers 488,764 490,242 0.30 493,624 0.69 479,945 -2.77 464,823 -3.15 -1.25 Total Subscribers 11,440,401 11,295,912 -1.26 11,146,513 -1.32 10,907,362 -2.15 10,702,550 -1.88 -1.7 Profitability (%) Operating Margin 23.7 20.2 17.7 16.0 18.3 CAGR = Compound Annual Growth Rate 1 CRTC - FINANCIAL SUMMARY - BDU BASIC AND NON BASIC SERVICES - CABLE Cable - Canada ($000) 2013 2014 Var % 2015 Var % 2016 Var % 2017 Var %CAGR (%) Revenue y1 y2 y3 y4 y5 Subscription 4,902,996 4,779,658 -2.52 4,642,173 -2.88 4,360,668 -6.06 4,138,938 -5.08 -4.2 Connection 21,662 18,901 -12.75 20,472 8.31 20,352 -0.58 17,154 -15.72 -5.7 Community Channel Sponsorship & Facilities Rental 4,321 3,780 -12.52 3,619 -4.26 2,591 -28.41 1,596 -38.42 -22.1 Other Revenue 461,332 428,492 -7.12 400,869 -6.45 406,589 1.43 435,772 7.18 -1.4 Total Revenue 5,390,313 5,230,830 -2.96 5,067,133 -3.13 4,790,200 -5.47 4,593,459 -4.11 -3.9 Expenses Community Programming 128,746 131,974 2.51 127,084 -3.71 121,353 -4.51 115,054 -5.19 -2.8 Affiliation Payments 1,901,770 1,945,340 2.29 1,960,064 0.76 1,934,250 -1.32 1,869,015 -3.37 -0.4 Technical 812,930 791,793 -2.60 729,159 -7.91 755,167 3.57 784,042 3.82 -0.9 Sales and Promotion 291,155 321,830 10.54 320,621 -0.38 301,541 -5.95 288,010 -4.49 -0.3 Administration and General 727,246 754,109 3.69 678,593 -10.01 630,211 -7.13 681,057 8.07 -1.6 Total Expenses 3,861,848 3,945,046 2.15 3,815,522 -3.28 3,742,522 -1.91 3,737,178 -0.14 -0.8 Operating Income 1,528,465 1,285,785 1,251,612 1,047,678 856,281 Local Programming Improvement Fund 44,697 22,891 Staff Total Remuneration 1,877,051 1,938,143 3.25 1,882,927 -2.85 1,967,569 4.50 2,016,495 2.49 1.8 Total Staff Count 23,743.8 23,856.9 0.48 22,736.1 -4.70 22,098.1 -2.81 22,749.0 2.95 Avg Remuneration ($) 79,055 81,240 2.77 82,817 1.94 89,038 7.51 88,641 -0.45 2.9 Avg Remuneration excl. Fringe Benefits ($) 66,281 67,561 1.93 68,958 2.07 73,376 6.41 75,345 2.68 3.3 Subscribers Direct Suscribers 6,899,118 6,494,095 -5.87 6,142,045 -5.42 5,786,202 -5.79 5,618,041 -2.91 -5.0 Indirect Subscribers 453,386 454,886 0.33 460,586 1.25 447,173 -2.91 433,228 -3.12 -1.1 Total Subscribers 7,352,504 6,948,981 -5.49 6,602,631 -4.98 6,233,375 -5.59 6,051,269 -2.92 -4.8 Profitability (%) Operating Margin 28.4 24.6 24.7 21.9 18.6 CAGR = Compound Annual Growth Rate. 2 CRTC - FINANCIAL SUMMARY - BDU BASIC AND NON BASIC SERVICES - IPTV IPTV - Canada ($000) 2013 2014 Var % 2015 Var % 2016 Var % 2017 Var % CAGR (%) Revenue y1 y2 y3 y4 y5 Subscription 913,652 1,061,648 16.20 1,278,929 20.47 1,447,951 13.22 1,584,125 9.40 14.8 Connection 804 5,970 642.17 8,885 48.84 20,176 127.07 22,301 10.53 129.5 Community Channel Sponsorship & Facilities Rental 0 0 n/a 0 n/a 0 n/a 0 n/a n/a Other Revenue 16,950 217,717 n/a 275,261 26.43 331,831 20.55 378,947 14.20 117.5 Total Revenue 931,407 1,285,335 38.00 1,563,075 21.61 1,799,958 15.15 1,985,374 10.30 20.8 Expenses Community Programming 12,019 19,729 64.14 25,536 29.43 29,570 15.80 34,090 15.28 29.8 Affiliation Payments 407,920 550,021 34.84 678,282 23.32 778,083 14.71 904,969 16.31 22.0 Technical 364,438 437,198 19.97 589,590 34.86 544,313 -7.68 254,984 -53.15 -8.5 Sales and Promotion 148,390 176,629 19.03 171,338 -3.00 213,637 24.69 167,951 -21.38 3.1 Administration and General 271,997 356,382 31.02 402,983 13.08 551,203 36.78 471,083 -14.54 14.7 Total Expenses 1,204,765 1,539,960 27.82 1,867,729 21.28 2,116,805 13.34 1,833,076 -13.40 11.1 Operating Income -273,358 -254,625 -304,653 -316,847 152,298 Local Programming Improvement Fund 5,537 4,677 Staff Total Remuneration 344,563 403,557 17.12 313,583 -22.30 334,820 6.77 150,356 -55.09 -18.7 Total Staff Count 3,177.4 3,388.7 6.65 2,911.6 -14.08 3,063.9 5.23 2,479.4 -19.08 Avg Remuneration ($) 108,441 119,088 9.82 107,702 -9.56 109,278 1.46 60,643 -44.51 -13.5 Avg Remuneration excl.