The CRTC has released its “state-of-the-nation” report on private conventional television, reporting on the industry’s revenues, expenditures and profitability from 2002 to 2006.
While television station revenues held steady across Canada, expenditures rose by 7.8%, which reduced profits before interest and taxes (PBIT) from $242.2 million in 2005 to $91 million in 2006. The PBIT margin also decreased from 11.02% in 2005 to 4.14% in 2006.
From 2005 to 2006, revenues from the sale of local advertising grew by 3.4% to $375.4 million, while national sales remained the same, at $1.5 billion. In 2006, conventional television stations generated $2.2 billion in revenue.
Expenses were up, from $1.9 billion in 2005 to $2 billion in 2006, mainly due to a 10% increase in total expenditures on Canadian and foreign programming. In particular, spending on foreign programming increased 12.2% in one year, climbing from $613.2 million in 2005 to $688.3 million in 2006.
Canadian programming expenditures recorded a more modest increase of 6.3%, from $587 million in 2005 to $623.7 million in 2006. Of this amount, $144.7 million was paid to independent producers to acquire Canadian programming, an increase from the $138.5 million paid to them in 2005.
In 2006, broadcasters spent $73.9 million on drama and $101.6 million on general interest programming. Spending on other Canadian program categories included $328.1 million for news programs, $66.3 million for other information programs, $35 million for musical and variety shows, $9.3 million for sports programs, and $5.7 million for game shows.
In 2006, the private conventional television industry employed 8,197 people and paid a total of $593.6 million in salaries.
