Film and video distribution, 2023

Released: 2024-10-03

The film and video distribution industry bounces back in 2023 

Following substantial COVID-19 pandemic-related losses in 2021, the film and video distribution industry bounced back in 2023, reaching 87.6% of its pre-pandemic revenue levels from 2019.

With film and television production back in full swing and traditional distribution channels, such as theatres and film festivals, operating at full capacity throughout the year, operating revenues for the film and video distribution industry increased $156.5 million (+10.4%) from 2021 to $1.7 billion in 2023.

Operating revenues in the industry remained concentrated in 2023, with 91.6% of revenues coming from Ontario.

In 2023, increased sales were largely driven by growth in the distribution of film and video titles, which increased $236.2 million from 2021. As a result of declining consumer demand for DVDs and the continued shift to digital platforms, wholesaling of pre-recorded videos continued to decline, falling to 0.6% of total sales in 2023.

Following a large decline in 2021, operating expenses rose 8.7% to $1.6 billion in 2023, while the operating profit margin for the industry grew to 5.1% over the same period. Royalties, franchise fees and memberships remained the largest expense in the industry, accounting for 56.7% of total expenses in 2023.

Streaming surge: Digital and on-demand content continues to reshape the film and video distribution industry

The distribution of non-Canadian productions continued to dominate the industry, representing 85.4% of all distribution revenue in 2023. Most of the growth seen in the domestic distribution of non-Canadian productions from 2021 to 2023 came from video-on-demand and/or pay-per-view (+$272.8 million) and theatrical markets (+$77.4 million). While the growth of digital and streaming markets showed no signs of slowing down, conventional television market revenues continued to dwindle, falling $82.7 million from 2021 to $299.3 million in 2023.

Revenue from the distribution of Canadian productions (+2.3%) also grew from 2021 to 2023. These gains were primarily due to increasing revenue from distribution to foreign clients (+$17.7 million), since domestic distribution revenue (-$12.5 million) declined in 2023 from 2021 levels. Within the domestic distribution of Canadian productions, although there were gains in theatrical markets (+$4.0 million), these advances were not enough to offset the declines in conventional television markets (-$15.6 million) and the video-on-demand and/or pay-per-view market (-$1.6 million).

Looking ahead

The industry continues to change and adapt to increasing pressures from the digital market. External factors, such as the 2023 strikes of the Writers Guild of America and Screen Actors Guild – American Federation of Television and Radio Artists, will impact the supply of television shows and films available for distribution in the upcoming years.

Contact information

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