TV audiences up despite new media: CMRI

In a report commissioned by four leading telcos, Canadian Media Research Inc. president Barry Kiefl responds to June’s Order-in-Council mandating a review of technology’s impact on broadcasting (see first story). In the report, titled A Review of Research Data on the Canadian Television Industry, Kiefl draws on a variety of survey data to assert that worst-case predictions about the demise of broadcasting due to emerging technologies are not coming to pass – at least not at present. Below is the summary section of the report in its entirety. TV viewing, according to Nielsen meter data, the most authoritative source, has not declined over the past decade; viewing on a per capita basis has increased from about 23 hours per week ten years ago to about 27 hours in 2005-06. The Internet is used by the average Canadian for only about 5-6 hours weekly and has not taken audience away from TV. Approximately two-thirds of Canadians use the Internet on a weekly or monthly basis but this has leveled off in the past year or two and future growth will likely be slow. Younger people watch less TV and use the Internet more than older people but even children and teens are watching as much or more TV today than a decade ago. Individual web sites tend to have quite small audiences by comparison to TV; the largest news and information sites have audiences equivalent to the smallest specialty TV channels. Downloading of music (and video) is in its infancy. Those who download from such sites as iTunes or Puretracks on a given day can be counted in the thousands rather than the millions. The majority of Canadians have adopted DVDs but only about 1 in three have a video game system and only 1 in 20 have a PVR, although interest in the main feature of PVRs, instant playback, is high and increasing. Ownership of HDTVs stood at roughly 7% in fall 2005 and interest in purchasing an HD set has increased over the past 4 years. Those who have an iPod or a Blackberry can be counted in the single digits and today these mobile devices are used by very few to access video. In the past 10 years the percentage of Canadians who subscribe to cable TV or satellite has increased by about 10 percentage points and the number of people relying solely on over-the-air reception has been cut in half. As a result many conventional broadcasters are facing greater competition and receive much less of their audience from over-the-air reception. Roughly two out of three Canadians, feel that they have the right to buy a US satellite dish; and the proportion who feel this way has not changed, despite efforts to educate consumers about the legal issues. Ad revenues of the Canadian TV industry have grown by approximately 41% in the past decade but most of the growth has been in specialty channels. Ad revenues of Canadian conventional stations, despite having almost the same audience to sell as a decade ago (because of increases in TV viewing) have not even kept up with inflation. CMRI’s analysis shows that CTV receives much more ad revenue per audience unit than other station groups, especially CHUM and CBC. Many conventional stations are receiving far less revenue per hour of audience viewing than CTV, which raises questions about the effectiveness of the sales strategies of other conventional stations.

TV audiences up despite new media: CMRI

Broadcast | September 13, 2006

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us