Canada’s Big Media Still Big

I know with the long weekend ahead, you’ve been wondering about the state of media in Canada - now you can rest easy and enjoy that extra day off.

Big Media in Canada is doing just fine.

Again.

Still.

The CRTC today released its Communications Monitoring Report. In the past the Commission published one report on the state of broadcasting, and one on the telecommunications industry, and this is the first of their ‘converged’ reports - presumably to reflect the state of the industry.

The report makes it clear that the Canadian broadcast sector is doing just fine, despite dire warnings of its impending demise thanks to the internet. The report also shows just how big a role the internet plays in our every day lives and consumption of entertainment.

Here are some facts pulled from the CRTC report.

Money…

• Revenues for private commercial radio stations increased by 6.2%, from $1.4 billion in 2006 to $1.5 billion in 2007.
• Commercial television revenues increased 4.3%, or $218 million, from $5 billion in 2006 to $5.3 billion in 2007. This was largely due to increased subscriber revenues of $152 million.
• Revenues for specialty, pay and pay-per-view television and video-on-demand services increased by 9%, rising from $2.5 billion in 2006 to $2.7 billion in 2007.
• Revenues for private conventional television broadcasters went from $2.1 billion in 2006 to $2.2 billion in 2007, an increase of 1.3%. During this period, revenues for English-language stations grew by 2% to $1.8 billion, while those for French-language stations fell by 2% to $381 million
• Online advertising continued to experience growth, with spending rising from $900 million in 2006 to $1.2 billion in 2007.

English Canadian use of…

• RADIO: 18.3 hours of per week
• TV: 26.8 hours of per week
• INTERNET: 13.4 hours per wee

Habits…

• The number of Canadians who have watched a video online has more than doubled over the past three years, with user-generated content being more popular than professionally produced programs.
• Among the more popular online activities in 2007, 36% of Canadians watched a video, 16% listened to a streaming radio station and 17% downloaded music.
• 11% of Canadians reported downloading and listening to a podcast on either their computer or an MP3 player, an activity that is seen as a complement to conventional broadcasting.

It may just be a case of bad timing, but just a couple of weeks ago, a CBC submission to the CRTC more-or-less argued Canadians aren’t using the Internet for entertainment. (you can read the CBC’s full position here)

Today’s CRTC report shows that we are in fact using the internet for entertainment. One of the most popular online activites happens to be…watching videos. At the end of the day, regardless of the facts, the CBC’s argument in it’s submission seems to be that since it hasn’t figured out how to make money online, online shouldn’t be considered a business opportunity for Canadian broadcasters.

Given that traditional broadcast is still showing yearly increases in revenue, I’m not sure they’re in any hurry to try figure out how to make money online, despite the fact that Canadians are consuming a huge amount of content online. To my mind, that bodes well for smart nimble companies that can jump into this obviously ripe market while the ‘big boys’ sit back and wait for it to be a more predictable business opportunity.

(cross posted here)

Internet Radio Cracks ?

Bloomberg’s reporting that AOL and Yahoo may pull the plug entirely on their web radio. Why ? A 38% increase in royalties to air music.

Yahoo and AOL stopped directing users to their radio sites after SoundExchange, the Washington-based group representing artists and record labels, began collecting the higher fees in July. Those royalties may stifle the growth of Internet radio, which increased listeners 39 percent in the past year, according to researcher ComScore Inc. in Reston, Virginia. full story here

The wheels started coming off the bus back in March when the copyright board brought in pay-for-play fees based on recommendations by record companies.

If more internet radio stations follow suite, the people who’ll be hurt the most are the artists themselves as they watch their online exposure dwindle.

Now that makes sense.

CBC’s Chalmers Resigns

Looks like CBC Radio VP Jane Chalmers is pulling the plug, and will be out of the corner office on Front Street at the end of December. When I posted this at 11:55 pacific “InsideTheCBC” had yet to mention it, but it is on the main CBC.CA site here.

It’ll be interesting to see how things shake down with a new President coming soon.