Broadcast and Cable Industry Evolution

Cable & Television

Industry Evolution

Cable & Television

Industry Evolution

MKTG 6650

Schulich School of Business

Report Prepared by:

Ebube Anizor

Cable & Television

Schulich School of Business

Report Prepared by:

Ebube Anizor (209347741)

TABLE OF CONTENTS

Table of Contents .................................................................................................................................................... 2

Industry Overview ................................................................................................................................................... 1

Trends ..................................................................................................................................................................... 3

Industry Growth and Decline .................................................................................................................................. 6

Final Assessment ................................................................................................................................................... 12

Appendix A – PESTLE ............................................................................................................................................. 15

Appendix B – Industry Trends ............................................................................................................................... 16

Appendix C – Key Players ...................................................................................................................................... 18

Appendix D - Labour ............................................................................................................................................. 21

Appendix e ............................................................................................................................................................ 23

Bibliography .......................................................................................................................................................... 24

1

INDUSTRY OVERVIEW

By way of definition the cable and television industry (“the Industry”) as used in this report encompasses all

distributors – terrestrial / traditional, cable and satellite - of digital and analog programming. In 1952 CBC sent

out Canada’s first signal to a mere 85,000 homes in Toronto and Montreal1. In the intervening 60 years the

Industry has evolved to now reach over 90% of Canadians, offering more than 700 Canadian and international

channels to home viewers via broadcast TV, satellite, cable and the internet and increasingly to mobile

viewers.2 This paper focuses on the next steps in the evolution of the Industry in Canada in the coming years.

The sectors of the Industry as discussed above and depicted in Figure 1 below – can be consolidated

into two segments: over-the-air (OTA) distributors and broadcast distributors (BD)3. In 2009 the Industry

generated revenues totalling $14.6 billion, an increase of 13.7% from 2008. $11.4 billion (or 78%) of that

revenue was attributed to BD activities and the remaining $3.2 billion to OTA activities. During this period the

revenue growth rate in the BD segment is more than twice that of OTA. Coming out of the recession, with the

exception of private OTA stations, which suffered an 8% decline; all other sub-segments experienced double-

digit growth in 2009. Heading into 2013 the Industry as a whole is expected to have a 1.5% compounded

annual growth rate in Canada compared to 1% and 5.5% in the US and Europe respectively.4

Advertising revenues are a major component of the income in the Industry. Generally, these revenues

account for between 50% and 95% of the broadcasters’ total revenues. The balance of revenue comes from

subscription fees and public funding. Between 2004 and 2008 conventional television advertising revenues

1 “Television in Canada”, Wikipedia. http://en.wikipedia.org/wiki/Television_in_canada

2 Communications Monitoring Report, CRTC (2009)

3 OTA = traditional or conventional stations like CTV, CBC, and Global. BD = cable and satellite providers.

4 Broadcasting & Cable TV in Canada, Datamonitor (2009)

increased only 0.9%; whereas, pay, pay

advertising revenues increased 9

VALUE CHAIN

In the context of this analysis it is important to distinguish

distribution medium. When over

was understandable to co-mingle the terms. This is now far from being the case when a traditional station like

CBC can be broadcast over the air, via cable or satellite; not to mention the emerging digital mediums.

KEY PLAYERS

Competition in both segments of the Industry is very concentrated.

indirectly control over 87% of all revenues.

companies the top six providers capture

national satellite distributors

the vertically integrated nature

Rogers and CTVglobemedia who both operate along the entire value chain; albei

2

increased only 0.9%; whereas, pay, pay-per-view (PPV), video

advertising revenues increased 9%.

In the context of this analysis it is important to distinguish station

. When over-the-air was the only medium for stations like CBC

mingle the terms. This is now far from being the case when a traditional station like

st over the air, via cable or satellite; not to mention the emerging digital mediums.

Figure 1: Cable and Television Industry Value Chain

Competition in both segments of the Industry is very concentrated.

indirectly control over 87% of all revenues. In the BD segment, a

x providers capture 90% of all subscribers

national satellite distributors the other 25%. A survey of the top firms

integrated nature of the entities along the value chain.

Rogers and CTVglobemedia who both operate along the entire value chain; albei

STATIONSPRODUCERS

Content Stations

Television

Online

Mobile

view (PPV), video-on-demand (VOD), and speciality television

stations from distributors and highlight OTA as a

air was the only medium for stations like CBC from which to broadcast it



Industry Value Chain

Competition in both segments of the Industry is very concentrated. In OTA eight large companies di

In the BD segment, although there are more than 200 cable

– 4 major cable operators own 65% and two

rvey of the top firms as detailed in Appendix C quickly

of the entities along the value chain. A couple highlights include

Rogers and CTVglobemedia who both operate along the entire value chain; albeit with different offerings.

DISTRIBUTORS

Television

Over the Air

Cable

SatelliteOnline

Mobile

demand (VOD), and speciality television

hlight OTA as a

to broadcast it



eight large companies directly or

more than 200 cable

4 major cable operators own 65% and two

quickly exposes

t with different offerings.

3

Roger’s is Canada’s largest cable and wireless distributor with regional station offerings and minor content

production assets. With 30% of the market share by revenue, CTVglobemedia is the Canada’s largest

broadcaster, has national station offerings, owns some content production assets, and with BCE‘s co-

ownership has access to distribution beyond OTA5.

TRENDS

The largest trend in the Industry can be summed up in one word: convergence. The digitization of

telecommunications (i.e. shift from analog technologies) has enabled content and services that were

previously separate, such as voice, data, audio and video, to be distributed over the same network, to share

resources and to interact with each other—convergence.6 Transformation in the Industry is then about the

blurring of the lines between television and telecommunication; between wireline and wireless; between the

TV screen, computer screen and the smartphone screen; between traditional real-time viewing, and on

demand. It is now about more content, more mobility, and more speed on the consumer’s platform of choice.

As evidence of this trend, in 2008, excluding mobile revenues, almost 44% of cable companies’

revenues were from telecommunications services. Similarly, broadcasting service revenues represented

approximately 10% of the incumbent telephone companies’ residential communications revenues.

Convergence in the broader communications industry changes the competitive landscape in Canada and

abroad as companies encroach on each others’ traditional markets.7 It is difficult to determine if this trend

precipitated the customer behaviours detailed below or was a strategic reaction to the market; perhaps both.

5 In 2008 (Communications Monitoring Report (CRTC, 2009))

6 Navigating Convergence: Charting Canadian Communications Change and Regulatory Implications (CRTC, 2010)

7 Communications Monitoring Report, CRTC ( 2009)

4

CUSTOMER HABITS, NEEDS AND DEMANDS

FRAGMENTATION

In 2000, the CRTC8 move to allow nearly 300 new specialty channels and services was the catalyst in a

transformative shift in viewing habits from conventional (OTA) television to a broad array of analog and digital

specialty, pay and on-demand offerings (see Table B1 in Appendix B). This shift has resulted in the

fragmentation of the television audience and an overall migration of viewers away from OTA stations. From

1998 to 2008, viewer share of OTA stations in English Canada decreased by 17.7%, from 46.6% to 29.3%; while

increasing for pay and specialty services 23.2%, from 14.7% to 37.9%. However, even with the proliferation of

options the average weekly viewing hours of Canadians as a whole is trending downwards9 as “entertainment

hours” that used to be spent watching television go elsewhere.

ONLINE AND MOBILE

The consumption of broadcasting content online has become commonplace, especially among youth. While

modest, upgraded wireless networks and devices have also lead to an increase in mobile TV viewership. The

Internet is now the number one medium in terms of percentage share of weekly time spent for both persons

aged 18 to 24 (40%) and 25 to 34 (33%) in English Canada. In Quebec, online is now the largest component of

time spent with media for persons aged 18 to 24 and time spent on the Internet is fast-approaching time spent

listening to the radio or watching television among persons aged 25 to 3410.

PERSONAL VIDEO RECORDER (PVR) USE AND VIDEO ON-DEMAND

2008 numbers indicated that 1.7 million Canadian homes (13%) had a PVR and 9% of viewers had watched

8 The Canada Radio and Telecommunication Commission regulates the broadcast and telecommunications systems in Canada

9 Navigating Convergence: Charting Canadian Communications Change and Regulatory Implications, CRTC (2010)

10 IBID

5

video on-demand (representing a 30% growth rate in both cases). Much has been said about the viewers

ability to now easily forward through commercials when watching recorded or on demand programming.

However this concern is mitigated by data from the Television Bureau of Canada which indicates that “more

than half of the people…who use their PVR to fast forward or skip commercials, stop and watch relevant or

entertaining ads” 11 Regardless of where the truth is along the spectrum, these trends put broadcaster’s

advertising revenue at risk.

COMPLEMENTARY INDUSTRIES

With convergence and the broad market footprint of many firms in the Industry it is increasingly becoming

difficult to draw clear lines of distinction between broadcasters and telecommunications service providers. As

the CRTC has noted “traditional and regulated entities are availing themselves of new opportunities through

both horizontal and vertical integration. Content with mass appeal and the most common communications

tools…are increasingly obtained from multiple-service providers that integrate Internet, telephony, wireless

and television distribution under one corporate umbrella. Some of these multi-service providers are also

significant content producers.” 12 Furthermore, these multi-service providers also own several complementary

media assets in radio, publishing, interactive and the like. This configuration allows for the leveraging of

content, talent and other assets to improve cost structures and provide barriers to would-be competitors.

11 Television & the PVR, TVB. http://www.tvb.ca/pages/tv-pvr.htm

12 Navigating Convergence: Charting Canadian Communications Change and Regulatory Implications (CRTC, 2010)

6

ONLINE AND MOBILE DISTRIBUTION

While the shift towards online viewership does represent a threat to the ad revenues of broadcasters, it also

represents an opportunity to re-distribute programming and add additional value with blogs, interviews,

opinions, cut scenes and webisodes. So online can be leveraged to extract more value from existing content.

Similarly mobile provides alternate distribution for content providers and broadcasters. The

smartphone revolution and improvement of wireless networks means both the devices and transport are in

place to have quality mobile TV (see Figure F1 in Appendix F). For example, in 2009 Rogers added 1.5 million

smartphone.13 The looming “pad” revolution can only increase the uptake of mobile broadcasts.

These complementary opportunities tend to favour the larger multi-media companies like BCE, Rogers,

Quebecor, and Shaw who already have an entrenched position in broadband distribution; but the power of

content owners also is magnified as the construct of a television “station” is off less importance in the

presence of new mediums (see Final Assessment below)

INDUSTRY GROWTH AND DECLINE

In light of the integration that is occurring in the Industry an examination of growth and decline will be looked

at across the entire value chain with an emphasis on OTA and broadcast distribution. In doing so, it would be

profitable to examine what traditionally drives growth along the chain and then examine what trends, along

with broad economic factors, may spur growth or induce decline.

13 Rogers 2009 annual report.

7

DRIVERS

CONTENT

In 2008 viewing of Canadian programs on Canadian English-language services remained relatively unchanged

at 43%, whereas viewing of Canadian programs on French language decreased slightly to 64%. Drama and

comedy continued to be the most popular types of programming; however it is of predominantly non-

Canadian content. According to the CRTC, in 2008, “80% of English-language drama & comedy programs were

non-Canadian and 67% of the French language drama & comedy programs were non-Canadian.”14

The right content for the right audience has always been the aim for broadcasters; and while digital helps

to better determine what audience is being reached and tailor content accordingly; the challenge of satisfying

the tastes of increasingly fragmented audiences, profitably, still remains. Technology provides broadcasters

(and content providers) a few advantages here. The draw of large screen, HD programming and pending

arrival 3D televisions to the home creates unique opportunities for content creators and owners to draw

viewers back – and also somehow leverage those properties on the other distribution channels.

STATIONS

As mentioned earlier station revenue – especially for OTA broadcasters – is heavily dependent on advertising

revenues. As such, a recovery in the overall health of the economy will increase marketing budgets and aid

Industry growth. Ad revenue is dependent on overall quantity and ‘quality’ of the audience as deemed by the

advertiser. Fragmentation and a decline in overall audience only exacerbate the threat. Producing content

that audiences find attractive and best enjoyed on televisions (i.e. large screen) can help mitigate migration.


8

DISTRIBUTION

With 90% of Canadians having access to cable services, the segment is approaching saturation and growth is

forecasted to decelerate. That being said revenue growth is dependent on:

• New home starts and moves for new customer acquisitions

• Growth in revenue / profit for existing customers (i.e. not from new customer acquisition). This

increases in importance as penetration increases.

• Complementary products that aid in customer retention (i.e. bundles)

INDUSTRY GROWTH

DIGITAL TV

The digital television (DTV) market is forecast to record strong growth in coming years as the shift from analog

distribution continues. The market growth is driven by increased adoption of video on-demand, high-definition

content, and IPTV, among others. For instance, out of 1.2 billion TV households worldwide, 29% are estimated

to be digital in 2008. By the end of 2013, half the world’s TV households (636 million out of a global estimate of

1.3 billion) are expected to receive digital signals. In particular, the DTV penetration in North America is

forecast to exceed 77%.15

The growth of IPTV, a two-way digital television signal delivered over the Internet via broadband, is of

significance in Canada because the service may be supplied by a telephone, cable, satellite or Internet service

provider – further intensifying competition in the telecommunications sector. IPTV has the potential to change

the way consumers watch TV as viewers will have limitless choices of programs, content providers create very

targeted programming, and the viewing experience becomes more interactive and personalized (e.g. photo

15 BCE 2009 Annual Report

9

sharing, social networking etc). Furthermore, Internet enabled television creates a means for online “stations”

to compete with traditional stations for content and viewers – without the same fixed costs.

MOBILE DEVICES AND SERVICES

With over 90% of households capable of utilizing mobile broadband Canadians are increasingly demanding

access to audio, video, and data content. Spurring this development is the availability of high powered multi-

function consumer devices. There is a flurry of devices that now allow users to more fully utilize new media

broadcasting offerings, and the adoption rate of these devices and services is a good indicator of the usage of

these new platforms.16 So while the battleground for mobile supremacy often appears to be about network

reliability and speed – at the core of the battle are the services, “apps” and devices, that high-speed, high-

reliability networks enable.

Recent activity from two industry giants illustrates the point. BCE’s recent purchase of The Source and

Virgin Mobile is an indicator of its belief in the market potential for mobile services and content, especially in

the youth demographic. In 2009 Rogers experienced 44% wireless data growth – which now makes 22% of

wireless revenue – this share was in the low single digits just a few years back.

ADVERTISING

The recession saw both a removal of net television advertising dollars and a migration to cheaper marketing

platforms such as the internet. However, as audiences shift online, the advertising dollars do not follow; this

is for a couple reasons. One, the number of ads per online program is 3 to 5 times fewer. Two, it is often at

least 2 to 4 times more expensive to advertise on television for the same program – so even for multi platform


10

players the revenue loss is not offset in broadcasting online. Fortunately for stations first quarter 2010 results

have shown an 11% year of year increase in ad spend – of note is the 75% increase coming from the auto

sector17. Mega events of 2010 like the Olympics and World Cup will increase ad fortunes for broadcasters on

all platforms, especially television; it is however not sustainable.

While PVR use does increase ad skipping by as much as 50%, it is increasing audiences as viewers aren’t

bound to original airdates.18 Some argue that rather than cannibalizing television viewing, emerging digital

platforms, such as broadband and mobile TV, are complementary and act as audience multipliers. 19

INDUSTRY DECLINE

BROADCAST DISTRIBUTION

Increased penetration and high levels of competition have slowed growth in cable and satellite subscriptions.

In addition, the recession slowed new home construction and increased unemployment, especially in Ontario,

the Prairies and British Columbia.20 This is significant because moves and new constructions are two of the

largest sources of new product subscriptions.

17 Television Bureau (2010)

18 CBS Research, http://www.tvb.ca/pages/tv-pvr.htm

19 “The Power of Television”,http://www.mercurymedia.com/About_Us/Press_Realeases/The%20Power%20of%20Television.pdf

20 “December Housing Starts”, CMHC. http://www.cmhc.ca/en/corp/nero/nere/2010/2010-01-11-0815.cfm

11

EMPLOYMENT

GROWTH

According to the Bureau of Labour Statistics21 in the US, growth is expected across all general areas of

broadcast industry over the next decade; ranging from management, professionals, sales, administration and

technical positions. The areas with highest growth are highlighted below; see Appendix D for more details.

• Installation, Maintenance, and Repair. Telecom equipment installers and repairers, and line installers and

repairers are expected to grow at 22.9% and 23.1% respectively. There will be ongoing employment in the

building and maintenance of advanced wireless networks (see Appendix E) as current network technology

will not sufficiently support the future requirements for quality video and other applications. Telecom

networks will now drive the growth as more distribution of content is sent over IP networks to televisions,

PC’s or mobile devices. These jobs are expected to be national.

• Sales, and Related Occupations. Advertising sales agents will grow at 4.8% and sales rep (account

executive) growth at 19.3% over the next decade. The growth is due to the integral part advertising and

subscriptions will continue to play in the health of broadcast industry. Jobs focus will be near major cities.

• Customer Service. The need for customer service reps is expected to grow an astounding 33% to match

sales growth and the complexity of service offerings. Additionally, excellent customer service is a pre-

requisite to customer retention and increasing same customer sales. Service becomes even more

important as new customer acquisitions slows. Call centre jobs tend to centralized, so growth will be

regional.

21 http://www.bls.gov/oco/cg/cgs017.htm. Labour numbers for broadcast industry in Canada unavailable.

12

• Digital Content Production. While Canadians have demonstrated early-adopter characteristics and a huge

appetite for digital offerings, the production industry has lagged behind. In Canada, the market for digital

content rights has not developed at anywhere the same rate as the US or the UK. It is estimated that the

Canadian marketplace is two years behind the US in terms of breadth and depth of digital offerings. This

gap presents a growth opportunity for jobs in this sector; especially for Canadian content. There are

several occupations related to production growth over the next decade: Actors (10%), Producers and

Directors (13%), Multi-media artists and animators (14%)22. Growth in this type of employment within

Canada will be centred around production cities in British Columbia and Ontario. However, because so

much of the content Canadians consume is purchased from outside the country, its not clear how much

the Canadian production industry will benefit from the content gap.

DECLINE

The recession forced companies to bring employee count down to match revenues. Rogers, Bell, and others

either consolidated operations or offered earlier retirement to senior staff to re-align employee expenses with

anticipated revenue. These cuts tended to be in non-customer facing positions and were generally higher cost

employees. As such the most notable area of decline will be in the executive ranks with an anticipated 5.4%

decline over the next 10 years

FINAL ASSESSMENT

The digitization of the Industry and its convergence with telecommunication presents different challenges for

22 http://www.bls.gov/emp/ep_table_102.pdf

13

companies in the value chain. Their will be two clear winners, content owners and distribution channel

owners – stations, as they are currently constructed (and broadcast distributors to an extent) will be disrupted.

While the bandwidth requirements for quality broadcasts are not yet available for mobile or internet

viewership (see Appendix F) clearly the distribution channel will ultimately be a single IP based “pipe” that is

“connected” to an end device – television, PC, mobile device. The device will eventually be irrelevant and

simply a matter of choice or location – not a trade off in content or performance. Cable and satellite

companies understandably will want to continue to wall off their networks and provide access through their

“set top boxes” to protect their margins, but the move towards open IP standards will remove the need for

those devices and television sets will be ‘freed’ and internet connected like a PC.

In this scenario, the key distributor becomes the Internet Service provider; in Canada, this means the

top telecom firms that already have broadcast and Internet offerings stand to win. Nonetheless, they will have

to figure out a means of replacing some of their lost cable revenue with Internet or data revenue. The “set

top” box will be replaced with a browser or similar app that enables a viewer to choose what “channel” (or

site) they would like to watch. In this brave new world, a “station” becomes any entity that can create or

obtain rights to content – so the battle then becomes one of content acquisition and quality of delivery. Yes,

incumbent stations with their resources and relationships have an advantage, but they are now exposed to a

plethora of new competitors – even the content producers themselves!

Success in the cable and television industry of the future, like today, will favour companies that are

vertically integrated in the broadcast industry and have complementary assets in media and

telecommunications as a whole. Whereas definitions such as “telephone company”, “cable company” and

“station” will give way to “Internet Service Provider” and “Content Provider” – incumbents that align

themselves to fit into one, or both, of these camps will succeed.

14

APPENDICES

15

APPENDIX A – PESTLE

Area Detail

Political • CRTC

o Proliferation of speciality channels

o Opening competition in telecoms

• Local television rulings – distributors have to pay stations for signal

• Consideration of foreign ownership limits easing in telecoms

Economic • Coming out of a recession (2008/2009) that saw overall media spend drop. This

directly effected Cable/TV companies whose primary revenue source is

advertising.

• Shift of advertising dollars online results in few ad dollars (3 to 5 times)

• Splitting of Canwest assets after bankruptcy

Social • Migration away from TV sets or watching shows when originally broadcasted

• Growing acceptance of online or alternate delivery of media

• General drop in weekly viewing hours

Technological • Wireless networks in place or planned allowing for quality video to be streamed

to mobile devices

• Fibre from Bell allows them to deliver multiple services over the same wire

(phone, cable and internet)

Labour • Some consolidating internally in telecom’s to align costs with revenue

• Loss of senior managers and higher-paid staff

• Resurgence of jobs in sales, customers service, technicians

Environmental • N/A

Table A2 – Stakeholder Advantages

16

APPENDIX B – INDUSTRY TRENDS

SPECIALTY CHANNELS AND FRAGMENTATION

Source: 2009 CRTC Communications Monitoring Report

1998 2008 Difference

Specialty TV 37 150 +113

Pay, Pay-per-view

and On-demand 12 54 +42

Total 49 204 +155

Table B1: Available Television Services (Source: CRTC Reports 2002 and 2008)

Figure B1: Broadcasting Revenues ($millions) (Source: CRTC Communications Monitoring Reports, 2009)

Cable & Television Industry Analysis – Ebube Anizor

17

• Over time audience fragmentation may lead to declining or stagnant revenues for conventional

television, which for nearly 50 years held sway over viewers‘ broadcasting consumption. Private

broadcasting revenues—subscription and advertising—have been growing at a healthy rate in the

discretionary sector, but are largely stagnant compared with inflation in the conventional system.

• Between 2004 and 2008, advertising revenues for OTA stations increased by a modest $112 million

compared to the growth realized by pay, PPV and specialty stations, which saw advertising revenues

increase by $317 million over the same period.

• The global credit crisis and ensuing recession have played a clear role in the decline in Canadian

television advertising revenues. Automotive manufacturers and dealers, key players in both national

and local advertising, have been generally hard-hit by both the credit crisis and the contraction in

consumer spending.

• The movement of audience from traditional broadcasters to the pay, PPV and specialty stations will

likely begin to subside given the more modest introduction of new specialty stations since the initial

wave following the November 2000 decision and the fact that many of these stations have now

reached maturity.

ONLINE

• According to the Interactive Advertising Bureau of Canada‘s most recent Canadian Media Usage Trends

study published in February 2009, the landscape for advertising and consumption has been profoundly

changed by the introduction of the Internet:

o the Internet stands third behind television and radio in terms of total weekly time spent with all

media;

o the Internet is now the number one medium in terms of percentage share of weekly time spent

for both persons aged 18 to 24 (40%) and 25 to 34 (33%) in English Canada. In Quebec, online is

now the largest component of time spent with media for persons aged 18 to 24 and the

Internet time is ―fast-approaching radio and television time among persons aged 25 to 34;

o the Internet now reaches more adults each week than either magazines or newspapers; and

o the Internet is now ―neck and neck with television for weekly reach among persons aged 18-

24 nationally.

• Canadians have consistently ranked among the highest users of online video, as measured by metrics

company Comscore. According to the company‘s data, in January 2009, 21.1 million unique viewers

(88% of online Canadians) viewed 3.1 billion videos, or 147.1 each. This compares to 135 videos per

viewer in the U.K., 107.5 in Germany, 90 in the France and 87.9 in the U.S.


18

Figure 3.

Figure B2: Downloading, streaming or watching television on the Internet

APPENDIX C – KEY PLAYERS

KEY PLAYERS

OVER THE AIR

Company Share(2008) Value Chain Participation General

CTVglobemedia 30% • Content

• Stations

• Distribution

o OTA

o Satellite (Bell

ExpressVu)

o Mobile (Bell)

o Online

• BCE still has 15% ownership – so

strategic work with Bell Canada still

done (e.g. broadcasting Olympics on

mobile networks)

• Operates radio stations and

newspapers

Canwest 17% • Content

• Stations


19

CBC 10% • Content

• Stations

• Operates numerous radio stations

across Canada

Rogers 9% • Content

• Stations

• Distribution

o OTA

o Cable

o Online

o Mobile

• Stations include several multicultural

stations, regional sports channels and

‘The Shopping Channel’

• Operates 51 radio stations across

Canada

• Operates magazines and trade pubs

Astral 7% • Stations

• Operates 82radio stations across

Canada

• Outdoor

Corus 6% • Content

• Stations

• 2009 Revenues of $789 million

• The content division participates in

the distribution of television programs

and the sale and licensing rights.

Primarily through Nelvana many

programs distributed globally

• Television group consists of specialty,

premium pay, and 3 local stations

• Operates 52 radio stations across

Canada

Quebecor Media 6% • Stations

• Distribution

o OTA

o Cable

o Online

o Mobile

• The broadcasting segment operates

French and English language general

interest television networks,

specialized television networks

• Operates magazine publishing and

movie distribution


20

Remstar 2% • Content

• Stations

BROADCAST DISTRIBUTORS

Share(2009) Value Chain Participation General

Rogers 23% See above

Shaw/Star

Choice

23%/9% • Distribution

o Cable

o Satellite (Star

Choice)

BCE 18% See CTVglobemedia above STRATEGY: Leverage wire into home and

laying of new fibre optics to ultimately

deliver multiple services over the same

wire (phone, cable and internet)..an

approach used by cable operators

successfully to encroach on Bell’s

traditional home telephone business.

Videotron 17% Subsidiary of Quebecor (see above)

Cogeco 9% • Distribution

o Cable

o Online


21

APPENDIX D - LABOUR

BROADCASTING LABOUR OUTLOOK, UNITED STATES

Occupation

Employment, 2008

Percent Change, 2008-18 Number Percent

All occupations 316.0 100.0 7.4

Management, business, and financial occupations 30.3 9.6 9.3

Top executives 8.2 2.6 -5.4

Advertising, marketing, promotions, public relations, and sales managers

6.9 2.2 11.8

Accountants and auditors 3.0 1.0 15.6

Professional and related occupations 166.7 52.8 4.4

Computer specialists 9.3 3.0 18.8

Producers and directors 27.2 8.6 4.7

Radio and television announcers 34.2 10.8 -9.5

Broadcast news analysts 5.7 1.8 5.1

Reporters and correspondents 9.8 3.1 7.3

Public relations specialists 5.0 1.6 19.9

Writers and editors 7.4 2.4 12.7

Broadcast technicians 25.2 8.0 -0.1

Photographers 4.4 1.4 13.0

Television, video, and motion picture camera operators and editors

11.3 3.6 2.3

Sales and related occupations 42.1 13.3 6.2

Advertising sales agents 30.6 9.7 4.8

Sales representatives, services, all other 4.2 1.3 19.3

Office and administrative support occupations 49.1 15.6 10.4


22

Occupation

Employment, 2008

Percent Change, 2008-18 Number Percent

Customer service representatives 8.7 2.8 33.1

Receptionists and information clerks 3.7 1.2 9.6

Secretaries and administrative assistants 9.9 3.1 5.5

Office clerks, general 8.0 2.5 7.1

Installation, maintenance, and repair occupations 25.1 8.0 21.9

Telecommunications equipment installers and repairers, except line installers

6.8 2.2 22.9

Telecommunications line installers and repairers 11.7 3.7 23.1

SOURCE: BLS National Employment Matrix, 2008-18. US Department of Labour

EMPLOYMENT HIGHLIGHTS IN BROADCASTING AND CABLE, CANADA (2009)

• In 2009, BD companies employed 25,631 people compared to 22,823 people in

2008.23

• In 2009, Conventional stations employed 6,747 people compared to 7,406 people

in 2008.24

23 CRTC, http://www.crtc.gc.ca/eng/com100/2010/r100318.htm

24 IBID


23

APPENDIX E

Figure E1: Internet Applications Bandwidth Requirements (Source: CRTC)


24

BIBLIOGRAPHY

1. CRTC. Navigating Convergence: Charting Canadian Communications Change and Regulatory Implications. Ottawa :

CRTC, 2010.

2. Datamonitor. Broadcasting & Cable TV in Canada: Industry Profile. 2009.

3. IAB. IAB Canada Newsletters. Interactive Advertising Bureau of Canada. [Online] February 3, 2009. [Cited: June 8,

2010.] http://www.iabcanada.com/newsletters/020309.shtml.

4. CRTC. Communications Monitoring Report. s.l. : CRTC, 2009.

5. TV Ad Revenue: First Quarter 2010. TVB. [Online] [Cited: June 14, 2010.]

http://tvb.org/rcentral/adrevenuetrack/revenue/ad_figures_1.asp.

6. Television in Canada. Wikipedia. [Online] [Cited: June 13, 2010.] http://en.wikipedia.org/wiki/Television_in_canada.

7. US Department of Labour. Career Guide to Industries, 2010-11 Edition - Broadcasting. Bureau of Labour Statistics.

[Online] [Cited: June 13, 2010.] http://www.bls.gov/oco/cg/cgs017.htm.

8. CFTPA. Towards a Framework for Digital Rights. Canadian Film and Television Production Association. [Online] [Cited:

June 15, 2010.] http://www.cftpa.ca/newsroom/pdf/CFTPA_DIGITAL_RIGHTS_STUDY_June_2010.pdf.

Broadcast and Cable Industry Evolution

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