Specialty TV services post revenue growth

OTTAWA —Strong demand for pay-tv services and specialty channels helped that sector post revenue growth of 7.9 per cent in 2011, and 36.7 per cent in the past five years, the Canadian Radio-television and Telecommunications Commission reported Tuesday.

Statistical and financial summaries for Canadian specialty, pay, payper-view and video-ondemand services released by the CRTC “[reflect] a strong demand for these services,” the broadcasting regulator said.

In 2011 alone, revenues grew to $3.7 billion from 2010’s $3.5 billion, with $3.1 billion of the total generated by English-language and bilingual services, and French-language services earning revenues of $587.2 million.

“This is a result of a 10.9 per cent growth in advertising revenues, totalling $1.2 billion, and a seven per cent increase in subscriber revenues that exceeded $2.4 billion,”the CRTC said in a statement, noting that expenses also rose in 2011 to $2.7 billion, up from $2.5 billion in 2010.

Profits before interest and taxes rose to $930.5 million, up from $873.9 million the previous year.

The CRTC breaks down total revenue sources as follows:$1.7 billion from terrestrial subscribers; $698.9 million from directto-home satellite subscribers; $1.2 billion from national advertising; $30.2 million from local advertising; $94.4 million from other sources.

Specialty channels had the lion’s share, accounting for $2.9 billion of the total revenues — $2.4 billion from 49 analog services and $479.8 million from 113 digital services — up from $2.7 billion in 2010.