Skip to main content

Evolution of the Canadian Pay-TV Market

According to Kagan Research, Canada's entrenched cable TV industry was startled when satellite TV made big inroads after its 1997 debut. Canada's two direct broadcast satellite (DBS) platforms have 2.6 million total subs today accounting for about 25 percent of the 10.3 million total subscription TV households.

"Multichannel has matured and reached a saturation of 85 percent penetration, so it's no longer a pitched battle simply to add more subscribers," says Brian Schecter, analyst at Kagan Research. "With multichannel plateauing, DBS aims to dial back on new subscriber acquisition expenditures to instead grow what it already has by raising average revenue per subscriber unit," or ARPU.

Schecter says that means offering fancier hardware, new services, up-selling existing subscribers to more expensive packages and boosting pay-per-view programs. The country's two DBS platforms are Bell ExpressVu with 1.8 million subscribers and Shaw Star Choice with 869,208 subscribers (Shaw is also Canada's second-biggest cable MSO).

In the quarter ended September 30, Bell ExpressVu lifted ARPU to C$54, from C$51 a year earlier. Satellite TV is the high-end multichannel service in many regions, including Latin America.

Kagan forecasts that Canadian DBS collectively will manage to carve out another 2 percent of the multichannel market by 2015, reaching 27 percent. Some of that gain will come from picking up cable TV subscribers dissatisfied with their low-tech analog service (DBS is all digital).

The growth is also impressive given that Internet protocol video is a new force, with Canadian telcos such as Telus rolling out IP-video (IPTV) services, which will chip away at cable's shrinking market share.

DBS ARPU is forecast to grow at low single-digit rates over the next decade. "DBS revenues are projected to increase nearly 80 percent over the next 10 years from a combined C$1.5 billion (US$1.3 billion) in 2005," notes Kagan.

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

How to Apply Sustainability to Drive Value Creation

Global climate change policy initiatives have been an emerging topic for CEOs and their leadership teams, as they look to the future. Many organizations are preparing to play their part and help reduce carbon emissions. Eighty-seven percent of business leaders expect to increase their organization’s investment in sustainability over the next two years, according to the latest worldwide market study by Gartner. Customers are the stakeholder group creating pressure for these organizations to invest or act on sustainability issues -- selected by 80 percent of executives, followed by investors (60 percent) and regulators (55 percent). Sustainability Market Development "Sustainability enables businesses to cope with disruption," said Kristin Moyer, VP analyst at Gartner . "Economic uncertainty, geopolitical conflict and escalating materials and energy costs are forcing businesses to reexamine all forms of expenditure." According to Gartner, this focus on essentialism --