Cable, satellite profits continue to climb
CBC News
Posted: Jul 14, 2011 12:18 PM ET
Last Updated: Jul 14, 2011 2:00 PM ET
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Revenues at Canada's cable, satellite and other broadcasting distribution companies rose by $1.1 billion to $12.5 billion in the year ending Aug. 31, 2010, according to the federal broadcast regulator.
At a time when cable and satellite bills were rising — an increase the distributors attributed to a new fee they must pay to support local programming — the same companies contributed just $100.7 million to the Local Programming Improvement Fund.
Launched in September 2009, the fund supports local news and programming in non-metropolitan markets across Canada.
Satellite and cable firms tried to enlist the support of consumers in their fight against the introduction of the fund. Many cable and satellite bills still single out the LPIF for consumers.
In 2010, the distributors also contributed $367.9 million to funding other Canadian programming, including $189.1 million to the Canadian Media Fund, according to a report released Thursday by the Canadian Radio-television and Telecommunications Commission.
Meanwhile, the overall subscriber base rose to 11.2 million households.
Both cable and satellite firms showed growth in 2010:
- Cable companies' combined revenue was up 9.7 per cent to $10.1 billion, and profit rose 8.6 per cent to $2.5 billion.
- Revenue at satellite and multipoint distribution companies was up 8.9 per cent to $2.4 billion, and profits rose to $164 million.
The CRTC compiles financial data on the Canadian broadcasting and telecommunications industries annually.
A report earlier this month showed revenues at private conventional broadcasters rose 9 per cent to $2.15 billion in 2010. They increased their spending on Canadian programming, but cut their workforce by 6.3 per cent in the same period.
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