CRTC releases report on the broadcasting sector in Canada

Canadians continue to shift towards digital platforms

OTTAWA and GATINEAU, QC — The Canadian Radio-television and Telecommunications Commission (CRTC) today released a report that shows how the viewing and listening habits of Canadians are transforming the broadcasting industry. The report is the first part of the CRTC’s 2016 Communications Monitoring Report.

Canadians are consuming more audio and video content on digital media and over devices connected to the Internet. Twenty percent of Canadians report listening to online music streaming services, and 57% of Anglophones and 49% of Francophones report watching online TV.

In general, Canadians are still listening to traditional radio, however, a closer look at the data shows that younger Canadians have different listening habits than other age groups. In fact, those between 12 and 24 years old listen to half the amount of traditional radio than other Canadians do.

The same phenomenon is occurring in the television sector. Even if, overall, Canadians are still watching television the traditional way, those in the 12-17 and 18-34 year-old age groups are watching less traditional television than in previous years. Conversely, Canadians 65 years and older watch more than twice the amount of traditional TV than younger ones do.

Quick Facts

The Communications Monitoring Report

• The 2016 Communications Monitoring Report provides a detailed overview of the Canadian communication industry, as well as industry data and information, including emerging trends and issues.
• This year, the CRTC is releasing the report in two parts. The first release represents data for the broadcasting sector. On October 26, 2016 the full report will be released.

Broadcasting sector

• Broadcasting revenues, which include radio, TV and television service providers’ revenues, decreased slightly by 1.6% to $17.9 billion.
• Revenues from the radio sector decreased by 1.2% to $1.9 billion.
• Revenues from the television sector decreased by 3.4% to $7.1 billion.
• Revenues for television service providers remained stable at $8.9 billion.

Radio sector

• Canadians are listening to an average of 16.2 hours of radio per week, which represents a slight decrease of 1.8% from 2014.
• 12 to 24 year olds only listen to an average of 8.2 hours of traditional radio per week (half of the time other Canadians spend listening).

Television sector

• Canadians watched an average of 27.2 hours of television per week by traditional means in 2015 (over-the-air, via cable, satellite and Internet Protocol television (IPTV). This represents a minor decrease of 0.7% from 2014.
• The age groups that have seen the most significant decreases in traditional TV viewing are 12-17 year olds (decrease of 5.5%) and 18-34 year olds (decrease of 4.4%).
• 12 to 34 year olds watch the least TV (19 hours per week), while those who are 65+ years old watch the most TV (42 hours per week).
• Cable, IPTV and satellite TV services had 11.2 million subscribers in 2015, a 1.4% decline from 2014.

  Broadcasting distribution undertakings subscriber numbers (thousands)

                                                             Growth (%)   CAGR (%)
  Type of service      2011    2012    2013    2014    2015   2014-2015  2011-2015
  -----------------  ------  ------  ------  ------  ------  ----------  ---------
  Cable               7,862   7,701   7,445   7,062   6,707        -5.0       -3.9
  IPTV                  657   1,003   1,382   1,784   2,165        21.4       34.7
  DTH and MDS         2,877   2,826   2,691   2,559   2,375        -7.2       -4.7
  -----------------  ------  ------  ------  ------  ------  ----------  ---------
  Total subscribers  11,397  11,529  11,517  11,405  11,247        -1.4       -0.3

  Source: CRTC data collection

• Canadians who subscribed to a TV service mostly subscribe to cable (60% in 2015). However, subscriptions to cable TV are declining (from 69% in 2011).
• IPTV service, conversely, is rapidly growing, obtaining 19.2% of total subscribers in 2015, compared to 5.8% in 2011, representing a 34.9% growth. Moreover, IPTV providers reported, for the first time, over 2 million subscribers in 2015.
• Collectively, TV broadcasters invested nearly $3 billion in the production of Canadian programming in 2015.

Digital platforms

• 23% of Canadians stream AM/FM radio online, an increase of 1% over 2014.
• 55% stream music videos on YouTube, an increase of 3% over 2014.
• 20% of Canadians listen to music on online streaming services, an increase of 2% over 2014.
• Between 2014 and 2015 the percentage of Anglophones who watched online TV increased by 6% reaching 57% while Francophones increased by 7% reaching 49%.
• Canadians watching TV exclusively online remained stable at 8% in 2015. This number has doubled since 2012.

Jean-Pierre Blais, CRTC Chairman and CEO: “This year’s report clearly shows that viewing and listening habits are continuing to shift. Younger Canadians are the ones who consume the least amount of audio-visual content using traditional ways. Online platforms are increasingly attractive and accessible to Canadians. The broadcasting industry must ensure that it meets the changing needs of Canadians, who increasingly want to watch and listen to content on the platform of their choice.”