Operating revenues in the television broadcasting sector reached $7.1 billion in 2010, up eight per cent from 2009, marking the largest annual increase since 2003.

TV advertising revenues grew 9.2 per cent last year to $3.4 billion, reaching a level close to that set in 2008, before the current economic slowdown.

Statistics Canada says in its Television Report for 2010 that pay and specialty television also continued its upward trend in 2010, with operating revenues increasing 11.1 per cent to $3.5 billion.

The profit margin before interest and taxes of the pay and specialty television segments rose to 25.4 per cent in 2010, for profits before interest and taxes of $877.3 million.

In terms of profits, private conventional television posted a profit margin before interest and taxes of 0.2% in 2010 to $5.4 million in profits before interest and taxes. This result follows on losses before interest and taxes of $113.4 million in 2009. Those losses were the first posted by the private conventional television segment in 30 years.

Pay and specialty television continued its upward trend in 2010, with operating revenues increasing 11.1% year over year to $3.5 billion. This growth exceeded that of private conventional television (+8.8%) and public and non-commercial television (+0.4%). In 2010, the operating revenues of pay and specialty television represented 48.8% of the industry's operating revenues, up from 47.5% in 2009. A decade earlier, this segment accounted for one-third of the television industry's operating revenues.

The profit margin before interest and taxes of the pay and specialty television segments rose to 25.4% in 2010 for profits before interest and taxes of $877.3 million. In 2009, this margin was 23.4% for profits of $728.6 million. The profit margin before interest and taxes for pay and speciality television has been above 20% since 2004.

Advertising revenues have long been the largest source of revenue for the television industry. However, in 2009, for the first time in several years, these revenues represented less than half (47.7%) of the sector's total operating revenues. Although these revenues accounted for close to 60% of the sector's total operating revenues 10 years ago, that proportion stood at 48.2% in 2010.

Subscription revenues for pay and speciality television accounted for 31.7% of the television industry's total operating revenues in 2010, up from 22.5% 10 years earlier.

Despite the importance of subscription revenues for specialty television, this segment has also continued to grow its share of the television advertising market, from 32.0% in 2009 to 32.6% in 2010. In 2001, specialty televisions share of the television advertising market stood at 17.1%.

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MOVEMBER

BCE Reports Q3 Results

2011-11-03
BCE Inc., Canada's largest communications company, today reported BCE and Bell results for the third quarter (Q3) of 2011.

Strong Adjusted net earnings(1) attributable to common shareholders of $724 million, up 18.5%; Adjusted EPS up 14.8% to $0.93
Bell revenue up 10.1% and EBITDA(2) up 7.5%, reflecting strong contribution of Bell Media; free cash flow(3)exceeds $1 billion in the quarter
Bell Wireless service revenue growth of 6.1% and ARPU increase of 2.7% on wireless postpaid net additions of 126,854
Robust wireless data revenue growth of 34% reflecting accelerating smartphone adoption, Bell Mobile TV and other data service growth
TV subscriber acquisitions driven by growing traction for Bell Fibe TV with net additions up 40.5%; broadband IPTV service footprint encompasses 1.5 million households across Montréal and Toronto
Bell Wireline EBITDA growth of 1.7% and margin expansion to 40% reflects 6.1% reduction in operating costs
BCE delivered strong financial performance, with net earnings attributable to common shareholders of $642 million in Q3 2011, a 41.4% increase from $454 million in Q3 2010; Adjusted net earnings attributable to common shareholders of $724 million for Q3, an increase of 18.5%; EPS (earnings per share) of $0.83, up 38.3% compared to $0.60 in Q3 2010; and Adjusted EPS of $0.93, up 14.8% compared to $0.81 in Q3 last year.

Bell had revenue growth of 10.1% and EBITDA growth of 7.5%, with significant contribution by the Bell Media business unit formed in Q2 2011 following Bell's acquisition of CTV, Canada's premier media company.

Bell Wireless reported service revenue growth of 6.1% and a 3.0% improvement in EBITDA, the result of healthy postpaid net additions of 126,854, and increased average revenue per user (ARPU) and robust data revenue growth (up 34.1%) driven by accelerating smartphone penetration and customer usage of broadband mobile services such as the industry-leading Bell Mobile TV.

Bell Wireline delivered EBITDA growth of 1.7%, due to a 6.1% reduction in operating costs resulting from strong cost control efforts. TV revenue grew 3.9%, reflecting net subscriber activations of 26,037, year-over-year growth of 40.5% as next-generation Bell Fibe TV rolled out to almost 1.5 million households across Montréal and Toronto by the end of Q3 2011.

Bell Media had revenues of 5 million this quarter, benefitting from solid advertising demand in all media properties along with strong subscriber fee revenue generated from Specialty TV channels such as TSN and digital services. Bell Media's EBITDA was million in the quarter, reflecting good revenue performance in a low-season quarter for media and careful management of conventional TV programming costs and general and administrative expenses. Bell Media's EBITDA for the quarter reflects a non-cash charge of million to amortize the fair value of programming rights, recognized at the acquisition of CTV.

CTV built on its leadership position as Canada's #1 TV company with the most top-20 programs in both the summer and fall seasons and seven of the top 10 most-watched new programs, including Canada's #1 new series The X Factor. The rebranded CTV Two was the only Canadian conventional network to experience growth nationally and in all local markets with all viewers. Building on its national sports media leadership, Bell Media launched RDS2, a companion sports channel to #1 French-language specialty channel RDS, and rebranded TSN Radio 990 in Montréal and TSN Radio 1290 in Winnipeg, all coinciding with the start of the NHL hockey season and leveraging content partnerships with the Montréal Canadiens and Canada's newest NHL team, the Winnipeg Jets. In October, Bell Media secured exclusive Canadian media rights to FIFA World CupTM Soccer - including 2018 FIFA World Cup RussiaTM, 2022 FIFA World Cup QatarTM and FIFA Women's World Cup Canada 2015TM - to be available across Bell Media platforms including CTV, TSN and RDS as well as online, radio and mobile properties.

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Rogers to Test Flexible TV Packages

2011-11-01

Rogers Communications Inc. announced today the launch of the first Digital Starter Pack, an innovative, new trial that gives Rogers cable customers the choice and flexibility they want.¿¿

"Customers have told us they want to build their own TV packages and only want to pay for the channels they watch," said John Boynton, Executive Vice President and Chief Marketing Officer, Rogers Communications Inc. "We have been looking at offering more customized solutions for some time that give customers more flexibility with all the benefits of reliable, digital cable, including Rogers on Demand. This trial gives us the chance to hear from our customers about the packages that work for them."¿¿

Available beginning November 8 as a trial in London, Ontario, the Rogers Digital Starter Pack delivers a standard set of 86 core TV channels, including government mandated channels, for a base price of $20.29/month including all monthly fees.* Customers can order the Digital Starter Pack and then choose any additional 15, 20 or 30 channels from more than 100 options, starting at $26.38/month including all monthly fees. ¿¿

The Digital Starter Pack trial will run until the end of March 2012. Recently, the Canadian Radio-television and Telecommunications Commission has asked Canada's vertically integrated companies to submit a report examining flexible TV packaging by April 1, 2012. The Digital Starter Pack trial program is the first step in providing customers with more flexible choices.¿

"We think this Rogers-first is a very positive step forward for the industry and for consumers," said Boynton. "Delivering customized, affordable digital TV is just one of the ways we're continuing to innovate for customers. We look forward to working with our content providers to measure the results of this trial to ensure it works for everyone."¿

* Includes CRTC Local Programming Improvement Fund Fee of 1.5% of the recurring TV monthly service fee. Taxes extra.¿ Rogers Trials New Flexible TV Package¿

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