News release

March 2^nd, 2004

The CRTC releases financial results for specialty, pay and pay-per-view television services

OTTAWA-GATINEAU - Canadian specialty, pay and pay-per-view television services continue to enjoy strong growth, according to an annual report released today by the Canadian Radio-television and Telecommunications Commission (CRTC). The report provides financial and statistical data on the industry for the years 1999 to 2003.

It indicates that total revenues for pay, pay-per-view and specialty services, amounting to nearly 1.9 billion dollars in 2003, have increased by 81.1% since 1999, representing an annual average increase of 16%. Canadian programming expenditures have grown at an average annual rate of 15.3% through that period.

Specialty services

Total revenues for specialty television services in 2003 were more than 1.5 billion dollars, an 11.9% increase over 2002 and a 74% increase over 1999. Throughout this time, the most dramatic growth has been in the direct-to-home (DTH) market, where specialty service revenues have grown at an average rate of 79.6% each year. Total revenues for specialty services in the DTH market were nearly 255 million dollars in 2003, a 10-fold increase over 1999. This is partially due to the fact that the number of services in operation since 1999 has more than doubled.

The level of investment in Canadian programming increased to over 640 million dollars in 2003, an increase of 72.2% over 1999, and representing an average increase of 14.6% each year.

Digital specialty services

Since their launch in 2002, 16 Category 1 and 32 Category 2 digital specialty services have been in operation. The Category 1 services drew 45 million dollars in revenue in 2003, a 124% increase over the previous year. The Category 2 services generated revenues in 2003 totalling more than 55 million dollars, a 92.5% increase over 2002.

Pay and pay-per-view television services

Total revenues for pay and pay-per-view services grew in 2003 to nearly 347 million dollars, a 121.3% increase over 1999, and representing an increase of 22% each year over that period.

In 2003, nearly 54 million dollars were expended and/or invested in Canadian programming by pay and pay-per-view services, representing a 25% increase over 2002 and a 154.2% increase over 1999.

Ethnic specialty and pay services

Total revenues for ethnic specialty and pay services have increased by 47.8% since 1999, reaching close to 43 million dollars in 2003.

Canadian programming expenditures amounted to more than 11 million dollars in 2003 for ethnic specialty and pay services, an increase of 15.9% over 2002, which is well over the average annual growth rate of 9.4% since 1999.

Background

The data used in this report were derived from the annual reports and financial statements of companies operating pay, specialty and pay-per-view television services. This report is part of the CRTC's ongoing effort to measure the impact of its regulations on the broadcasting industry. The Commission also produces other reports, including the Broadcasting Policy Monitoring Report, which reports on a number of important trends in the Canadian broadcasting system.

The Canadian Radio-television and Telecommunications Commission is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

Reference documents: Pay and Specialty - Statistical and Financial Summaries - 1999-2003 [.html] [.pdf] [.xls]
Individual Pay and Specialty - Statistical and Financial Summaries - 1999-2003 [.html] [.pdf] [.xls]

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Media Relations:
   MediaRelations@crtc.gc.ca, Tel: (819) 997-9403,
   Fax: (819) 997-4245

General Inquiries:
   Tel: (819) 997-0313, TDD: (819) 994-0423, Fax: (819) 994-0218
   Toll-free # 1-877-249-CRTC (2782), eMail: info@crtc.gc.ca
   TDD - Toll-free # 1-877-909-2782

Copies of today's documents are available through our Internet site (http://www.crtc.gc.ca) or by contacting the public examination room of any CRTC office. These documents are available in alternative format upon request.

Date Modified: 2004-03-02

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