Highlights

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1. Canada's film and video distributors reported total operating revenues of $1.9 billion in 2008, up 1.3% from 2007.
2. Firms managed to reduce their operating expenses by 2.7% to $1.5 billion. As a result, operating profit margin increased to 19.2% in 2008 compared with 15.9% in 2007.
3. The largest expenses reported by surveyed firms were royalties, rights, licensing and franchise fees which represented 34.0% of total operating expenses. Cost of goods sold accounted for 33.8% of expenses, while advertising, marketing and promotions accounted for 17.0%.
4. Film and video distributors in Ontario and Quebec combined accounted for the vast majority (91%) of total national film and video distribution operating revenue. Ontario firms earned 78.0% of total operating revenues in 2008, while Quebec firms accounted for 13.0%.
5. The two primary sources of revenue for the industry are distribution of film and video titles and wholesaling of pre-recorded videos. Revenues from the distribution of film and video titles accounted for 57.9% of total national operating revenues in 2008, while wholesaling revenues accounted for 39.7%.
6. Firms increased their distribution revenues by 13.2% from 2007 but those engaged in wholesaling, as a secondary activity, saw their wholesaling revenues drop 12.7%.
7. Film and video distributors increased their revenues in both the conventional television and motion picture theatre markets.
8. Distribution revenues earned from the conventional television market increased 20.9% over the year. This market accounted for 48.9% of total distribution revenues.
9. Distribution revenues for the motion picture theatre market increased 10.0% from 2007. This market accounted for 33.9% of total distribution revenues.
10. Firms generated 8.0% of their distribution revenues from the pay and specialty television market. In this market, revenues were down 6.1% from the year before.
11. The five largest companies, ranked on the basis of revenues earned, continued to dominate the industry in 2008. These companies accounted for about 76.0% of total national revenues virtually unchanged from 2007.
12. Expenses for the five largest companies decreased 3.0% over the two year period and as a result, profits rose from $271.7 million to $318.5 million in 2008.
13. The five largest companies enjoyed a healthier profit margin in 2008 than the rest of the industry. The top five companies' profit margin was 22.7% while the rest of the industry showed a profit margin of 9.2%
14. In terms of market distribution, the five largest companies generated the majority of their distribution revenues from the theatrical and conventional television markets. Combined, these markets accounted for 63.1% of the revenue share.