The Canadian broadcasting success story continues, according to the CRTC’s annual report of broadcast distribution undertakings.

Like traditional and specialty broadcasters, which were the subjects of earlier annual reports from the regulator, profitability is up for cable television, direct-to-home distribution and multipoint distribution systems in the reporting period 1999 to 2003, says Broadcast Distribution Class 1 and 2 Statistical and Financial Summaries.

In cable, profits grew 4.3% despite some volatility. While there were decreases in 2000 and 2001, profitability grew 15.8% from 2002 to 2003.

From 1999, cable distribution revenues grew 37.8% to $4.2 billion in 2003. Over the same five-year period, operating costs rose by 33.3%, and gross fixed-asset expenditures, including depreciation, rose by 56.2%. Total subscribers, however, dropped 2.1% to 6.9 million in 2003.

In the satellite business, DTH is growing strongly while MDS is dropping and is in a deficit position.

DTH growth comes from all cable classes, says the CRTC, while MDS revenue is off 13.7% in 2003 because of a decline in subscribers.

The combined revenues of DTH and MDS saw growth of 27.2% between 2002 and 2003 to $1.2 billion. In 1999, revenues were only $165.6 million. Year-over-year improvements between 2002 and 2003 were enhanced by reduced losses before interest and taxes, which dropped from $246.4 million to $110.6 million.

From 2002 to 2003, the number of basic-tier subscribers to DTH and MDS increased by 9.2% to 2.2 million. By comparison, in 1999 there were 551,000 subscribers.

According to the report, 143 BDUs made nearly $135.7 million in contributions to the creation and production of Canadian programming in 2003 – including $109.2 million to the Canadian Television Fund and $26.5 million to independent funds. Production contributions in 2003 were up 5.7% compared to 2002.

On March 31, meanwhile, the CRTC approved the renewals of broadcast licences for DTH satellite services Bell ExpressVu and Star Choice Television Network from April 1, 2004 to Aug. 31, 2010.

Among the three supporting and two opposing interventions for ExpressVu was a collective submission from Cogeco, Rogers Cable and Quebecor Media asking the CRTC to restrict ExpressVu from bundling its broadcasting and telecommunication services (available through parent BCE). The commission said concerns related to bundling should be addressed in an application under the Telecommunications Act.

Based on the letter of the Broadcasting Act, the CRTC denied a request from StarChoice to reallocate some of its fees paid to Canadian programming such as the CTF to specific broadcasters such as the Aboriginal Peoples Television Network, however, the regulator remains open to an application.