Ad revenue dipped for conventional TV in 2014: CRTC

Local TV stations lost 5% in local advertising and nearly 8% in national advertising last year, according to a new report from the regulator.
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Conventional broadcasters in Canada continued to feel the pinch of a changing media landscape in 2014, with private TV stations earning $117.1 million less in advertising revenue last year, according to a new report from the CRTC.

Advertising revenue went from $1.94 billion in 2013 to $1.8 billion in 2014. That loss lead to a dip in overall revenues for the stations of 7.2% from 2013 to 2014.

Across Canada, overall local advertising revenues on private local TV stations dropped by 5% in 2014, from $351.2 million in 2013 to $333.6 million in 2014. National advertising revenue on local TV stations dropped 7.8%, moving from $1.2 billion in 2013 to $1.1 billion in 2014.

Quebec’s private local TV ads sales were the only area that saw a positive number in the country last year, jumping 1.4% from 2013 to 2014. National TV sales on local channels in the area dropped 4.6% from 2013 to 2014.

Ontario saw local TV ad sales drop 1.1%, and national TV sales on local TV channels dip 4.2%.

In Atlantic Canada local TV ad sales was down 1.3%, while national TV sales on local TV stations in the area dropped 7.1%.

The Prairies saw a dip of 2.1% on local TV ad sales, while national TV sales on local channels for the area dropped 6.4%.

In British Columbia and the Territories local TV ad sales dropped 4%, while national TV sales on local channels for the area dropped 7.2%.

On the flip side, CBC/Radio-Canada brought in 43% more advertising revenue in 2014, jumping from $331.1 million in 2013 to $474.6 million in 2014. That change was attributed to the Sochi Winter Olympic Games, FIFA Soccer World Cup, and having its final last half season of NHL hockey advertising revenue on the pubcaster.

CBC/Radio-Canada spent a total of $810 million on programming in 2014, 97% of which was on Canadian shows.

Investment in programming on conventional TV stations was basically even, with an increase of less than 1% in 2014 for a total of $1.3 billion. Sales and promotion was also up slightly over 2013, coming in at $188 million in 2014.

Conventional broadcasters spent a total of $717 million on non-Canadian programming in 2014.

Investment in the Local Programming Improvement Fund (LPIF), which is being phased out, was down 45.49% in 2014, coming in at $21 million.

Canadian private local TV stations invested more in Canadian programming in 2014, jumping from $605.4 million in 2013 to $619.3 million last year. The industry employed over 5,900 people in 2014.

Local TV stations invested $60.4 million in drama series, $5.3 million in feature films, $84.7 million in general interest programs, $361.1 million in news programs, $6.3 million in long-form documentaries, $29.3 million in other information programs, $22.3 million on music and variety shows, $1.1 million on sports programming, $19 million on game shows, $25.5 million on reality TV shows, $3.7 million on award shows and $500,000 on other programs.

As part of those investments, local TV stations paid $138 million to Canadian independent producers.

The CRTC will be releasing 2014 numbers for cable and satellite companies, specialty, pay, pay-per-view, video-on-demand services and AM and FM radio.