CRTC Releases 2015 Communications Monitoring Report

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The Canadian Radio-television and Telecommunications Commission (CRTC) has released the full 2015 Communications Monitoring Report, providing the public, industry and stakeholders with a glimpse into the state of Canada’s communications system.

While we gave you a quick synopsis of the initial findings that were released last week when Part 1 of the report was published, we now have the full report to share!

Key statistics:

Viewing statistics:

  • For the first time ever, more Canadian households are subscribing exclusively to mobile wireless services (20.4%) than to landline/wired telephone services (14.4%).
  • Despite clear evidence of a slow and steady shift away from landline technology in favour of mobile services, the data also shows that affordability is another key consideration for Canadian consumers.
  • While overall viewing levels for television have remained fairly constant over the period of 2010-2014, younger Canadians (18-34) are watching significantly less ‘traditional’ television. Currently, Canadians aged 18-34 saw a 12.3% decline in the number of hours spent watching traditional TV. Interestingly, given the fact that children and teens are following a similar pattern, there appears to be a digital divide emerging between Canadians under 50 and above.
  • So, how are Canadians now watching television? Online television viewing is growing, especially among younger cohorts. The data shows that 58% of Anglophones aged 18-34 subscribe to Netflix, while only 14% of Anglophones aged 65+ have a subscription. This is the case in French-language populations as well, with 24% of the 18-34 cohort having a Netflix subscription, compared to only 1% for the 65+ cohort.

Financial statistics:

  • Overall, total communications revenues increased by 2.1% in 2014, to a total of $63.2 billion. Of this total, 73% of the revenues are generated by the telecommunications sector and 27% by the broadcasting sector.
  • In broadcasting specifically, revenues grew by 1.4% ($17.3 billion). Drilling down further, 53% of these revenues were associated with BDUs, 38% for television, and 9% to radio.
  • TV revenues grew by 1.9% and BDU-related revenues by 1.4%, but there was a decline of -0.5% in radio.
  • When looking specifically at radio, the sector had $1.6 billion in revenues in 2014, with Canadians listening to 17 hours of radio per week on average.
  • This -0.5% decline in revenues is coupled with declines in profitability as well (PBIT, PBIT margins).
  • When broken down further, declines were experienced in English-language FM and AM, French-language AM, and Third-Language AM. The only types of stations currently experiencing growth are French-language and Third-Language FM stations.

 

Canadian content development:

  • In the 2013-2014 broadcast year, commercial radio operators contributed 4 cents per revenue dollar to support CCD. This was an increase of 14% over the previous period, and came in at $59 million.
  • Of this, $20 million came in through basic annual CCD contributions, $31 million through tangible benefits and $8 million in over-and-above contributions.
  • 65% of these funds were a direct result of the conditions of licence issued to new radio stations (25) and change in ownership/control of existing ones (9).
  • How did the CCD contributions breakdown?
    • $14 million to FACTOR
    • $16 million to Radio Starmaker
    • $3.6 million to MUSICACTION
    • $3 million to the Community Radio Fund
    • $23 million to ‘other’ initiatives.
  • Collectively, there was growth in the CCD contributions made to FACTOR, MUSICACTION, CRFC, local music initiatives, new spoken word content, and audio content initiatives. However, there were declines in CCD contributions made to music industry associations and ‘other’ eligible initiatives.

 

For more information on the 2015 Communications Monitoring Report, please click here.