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Highlights

1. The operating revenues in the television broadcasting sector reached $6.2 billion in 2007, up 3.0% compared to 2006, the lowest year-over-year increase since 1997.
2. That said, the overall picture for the sector masks some substantial differences between the various industries.
3. Conventional television is losing ground. Together, public and private conventional television broadcasters reported revenues just under $3.5 billion, a 1.3% decline from 2006. This was the first decrease in revenues for this industry in 10 years.
4. It was a particularly difficult year for public and non-commercial television. Sales of air time plummeted 8.2%, and grants fell 4.9%.
5. The overall market for television advertising was sluggish. Sales of air time for Canadian television broadcasters reached $3.3 billion in 2007, a 1.8% year-over-year increase. This was only the second time in the past ten years that the annual rate of growth of the television advertising market fell below 2.0%.
6. While it was a tough year for conventional television, pay and specialty television kept its momentum. Its revenues rose 9.1% in 2007, settling at $2.7 billion.
7. The pay television segment experienced the strongest growth in 2007. Its revenues rose 13.5% to $547.4 million, largely as a result of viewers’ growing appetite for pay-per-view television and video-on-demand. Revenues from these services rose 25.8% in 2007 to $197.8 million. This accounted for close to two-thirds of the growth in the pay television segment.
8. The profit margin before interest and taxes of private broadcasters rose from 14.2% in 2006 to 15.5% in 2007, and its operating profits increased from $663.8 million to $763.2 million. Pay and specialty channels accounted for close to 85.0% of private television profits in 2007.
9. Specialty channels generated margins of over 20% for the third consecutive year, whereas those of conventional channels were under 10% for the third time in the past ten years.