[opendtv] Bright picture for specialty TV (Canada)
- From: John Golitsis <jgolitsis@xxxxxxxxxxxxxxx>
- To: OpenDTV <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 4 Jul 2007 14:29:20 -0400
Bright picture for specialty TV
July 04, 2007
CANADIAN PRESS
OTTAWA – Television broadcast revenues eclipsed $6 billion in 2006,
up 8.2 per cent from 2005 – the third largest year-over-year revenue
increase in the past decade as specialty and pay TV recorded big
revenue and profit gains.
Industry advertising revenues rose 7.6 per cent to $3.3 billion,
while subscription revenues jumped 11.3 per cent to $1.6 billion.
Private conventional television broadcasters reported revenues of
$2.2 billion in 2006, unchanged from the previous year.
While private broadcasters still ranked first in revenues, the gap
between them and specialty television is closing rapidly –
advertising sales accounted for almost 92 per cent of private
conventional television revenues.
Pay television had the strongest growth in 2006, with revenues
climbing 17.7 per cent to $482.3 million, largely due to the growing
popularity of pay-per-view television and video-on-demand, whose
income soared 41 per cent to $157.4 million in 2006.
Specialty television revenues increased 11.2 per cent to just over $2
billion while their advertising revenues jumped 14.7 per cent to $900
million and subscription revenues totalled $1.1 billion, an 8.9 per
cent jump.
Revenues for the public and non-profit television segment rose 15.6
per cent in 2006 to $1.4 billion after falling 5.2 per cent in 2005.
The resumption of National Hockey League play after a year-long
players' lockout helped boost advertising revenues 44.2 per cent to
$351.1 million.
Profits also varied widely among segments.
Profits before interest and taxes for private conventional television
fell 62.5 per cent to $90.9 million in 2006 from $242.7 million in
2005, the first time in 15 years that this segment generated less
than $100 million in profits. The 4.1 per cent profit margin was the
smallest posted in the last 30 years.
Specialty television made $447.8 million in profits before interest
and taxes, slightly less than the $449.2 million it earned in 2005.
However, the segment's 22.2 per cent profit margin was the second
best in 10 years.
Pay TV also had the industry's best profit margin for a fifth
straight year, generating for its owners more than 25 cents in
profits before interest and taxes for every dollar of revenue.
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