CRTC reports drop in broadcast revenue for 2020

With advertising revenues battered by the pandemic -- particularly the second half of the year -- the CRTC Friday reported widespread drops in broadcast revenues for the 2019-2020 year, with total revenues coming in at over $15.7 billion. The commission’s report indicated that total broadcasting revenues declined by 6.6 per cent compared to 2019’s total of $16.8 billion, with commercial radio and private conventional television revenues diving by 20.9 per cent and 14.3 per cent, respectively, making them the most impacted. The majority of the broadcast sector’s $15.7 billion was made through broadcasting distribution undertakings (BDUs), with that category accounting for just over $8 billion in revenue. It decreased by $270 million, a continuation of a steady decline in the category since 2016. The “consistent erosion” of cable and Direct-to-Home subscribers, combined with a slowdown in subscribers signing up for IPTV services as well as the impacts of the pandemic on consumer habits, “has resulted in a significant year-over-year decline in television service providers’ subscribership and revenue growth,” according to the report. Of subscribers to those entities with at least one licensed undertaking in 2020, about 10.6 per cent paid $25 or less per month for their TV services -- not including equipment and taxes, the report said. Another 22.9 per cent paid between $25 and $50, while almost half of their total subscribers paid between $50 and $100, and 16.6 per cent spent over $100. The average monthly subscription revenue was $58.16, up less than one per cent from 2019. Discretionary and on-demand broadcast services brought in $3.9 billion contributing to the $15.7 billion total, down from $4.2 billion in 2019. Private conventional television brought in $1.3 billion -- down from $1.5 billion. Meanwhile, more than 700 commercial radio stations made $1.1 billion in 2020, down from $1.4 billion. French-language radio stations reported the smallest revenue decline of 15.4 per cent, followed by Ethnic stations at 18.1 per cent and English-language stations at 22.2 per cent. Larger markets including Toronto, Montreal, and Vancouver fared worse than smaller markets, the report said, as profit margins decreased significantly overall during the year. CBC’s conventional television service, which the report said makes the “vast majority” of its revenues from advertising and parliamentary appropriations, made $926 million in 2020, compared to $947 million in 2019. Last year, CBC’s radio service brought in $337 million, up from $325 million or 3.6 per cent from 2019 as it was somewhat saved from the pandemic-driven decline in revenue as it has no reliance on advertising revenues, the report said. In all service categories, spending on and contributions to Canadian programming was down, with the total coming in at almost $2.98 billion, compared to about $3.23 billion in 2019. Private commercial stations spent $625 million on Canadian programming in 2020, down from $670 million in 2019. Of that, $428 million was spent on “information” programming, which includes news, analysis/interpretation, and long form documentary, while $192 million was spent on music and entertainment, and $5 million was spent on sports and “other.” - Reporting by Hannah Daley at hdaley@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

CRTC reports drop in broadcast revenue for 2020

Broadcast | July 16, 2021

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CRTC reports drop in broadcast revenue for 2020

Broadcast | July 16, 2021

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