Film and video distribution, 2015
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The film and video distribution industry generated total operating revenue of $2.1 billion in 2015, up 15.4% from 2013. Total operating expenses increased 16.0% to $1.7 billion in 2015, resulting in an operating profit margin of 18.5%.
The largest expense reported by firms in the industry was royalties, franchise fees, and memberships, which represented 34.9% of total operating expenses. Cost of goods sold accounted for 21.6% of expenses, while advertising, marketing, promotion, meals, and entertainment accounted for 18.8%.
The industry was mainly concentrated in Ontario (90.0%) followed by Quebec (8.7%). From 2013 to 2015, both provinces showed strong growth with total operating revenues increasing by 14.1% in Ontario and by 19.9% in Quebec over the two years.
Total sales in this industry increased 12.6% in 2015 compared with 2013, largely driven by higher revenue from the distribution of film and video titles, which represented 80.9% of total industry sales.
Revenue from the distribution of film and video titles increased 22.7% to $1.6 billion, with non-Canadian productions accounting for 87.4% of revenue and Canadian productions 12.6%.
Gains were recorded in all five primary markets. In dollar terms, the most substantial change in the distribution revenue was recorded in the conventional television market, up 16.8% to $525.0 million in 2015 for Canadian and non-Canadian productions combined. Sales in the motion picture theatre market rose 18.9% to $447.6 million in 2015 compared with 2013.
Note to readers
Data for 2013 has been revised.
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