Canadians watching more, distributors making more, says CRTC

There’s been a significant growth in the number of Canadians who watch satellite TV, according to a new report from the CRTC that says profits and market share were up for DTH satellite and multipoint distribution systems in the period between 2001 and 2005.

DTH and MDS ventures made a profit before interest and taxes for the first time last year, say the feds, while the number of subscribers to their basic services grew by 7.3% to nearly 2.5 million from 2004 to 2005.

Total revenues from basic and non-basic services grew by 8.1% to $1.5 billion between 2004 and 2005, up from a combined total of $1.2 billion in ’03.

The outlook is less favorable for cable TV providers in terms of growth, as the number of Canadian homes subscribing to basic service decreased slightly by 24,000 to 6.61 million in 2005.

Despite higher revenues, cable profits also slipped to $926 million, before taxes and interest, down from $1.1 billion in ’04. The annual distribution report says this is mainly due to a 7.1% increase in total expenses over the same period.

Cable, DTH and MDS undertakings contributed $247.3 million to the creation and production of Canadian programming, says the regulator, with $125.2 million going to the Canadian Television Fund and $29.7 million allotted to independent funds.

Meanwhile, the CRTC also recently released its annual Broadcasting Policy Monitoring Report, noting a slight rise in TV viewership and continued growth online, especially among seniors.

Canadians watched an average of 25.1 hours of TV a week last year, up slightly from 24.7% in 2004.

We are also dedicating more time than ever to online activities, with 78% of Canucks having accessed the Internet in 2005, a 2% rise from 2004. The number of Canadian homes with a personal computer also rose, from 71% to 74%.

By comparison, in 2000 just 55% of households owned a computer.

The CRTC noted a substantial rise in the number of seniors with access to their own computer, with more than 65% of Canadians aged 55-64 having accessed the Internet last year, a 15% increase from 2004.

Digital handheld devices such as cell phones, MP3 players, iPods and PDAs are also increasingly popular. In 2005, nearly 60% of Canadians used a cell phone, while 12% said they owned an MP3 player. *

www.crtc.gc.ca