A brand new report suggests Canadians’ tv viewing habits proceed to shift towards streaming platforms on the expense of conventional cable and satellite tv for pc subscriptions, at a time when the federal regulator is contemplating new guidelines to assist stage the enjoying discipline throughout the sector.
The annual Sofa Potato Report launched Monday by Convergence Analysis says 42 per cent of Canadian households didn’t have a TV subscription with a standard supplier by the tip of final yr. It forecasts that by the tip of 2026, half of all households gained’t be conventional TV watchers.
In the meantime, the report says greater than 80 per cent of Canadian households subscribe to a streaming service, whereas 70 per cent subscribe to each TV and a number of streaming providers.
Final yr noticed 2.6 per cent of Canadian TV subscribers lower the wire, because the income introduced in by conventional TV suppliers declined three per cent to $7.2 billion — a tempo the report predicts will proceed by way of 2026.
In the meantime, streamers’ Canadian subscription income rose 14 per cent in 2023 to $3.73 billion and is forecast to achieve $4.25 billion this yr.
“It’s form of a no brainer that the choice goes to be, and continues to be, the Netflixes and the Amazons and the Apples of the world. That is the place your content material lives,” mentioned Convergence Analysis president Brahm Eiley.
“That is the place the massive spending is occurring for programming. These guys are clearly form of successful the battle on the finish of the day.”
The continued progress of streaming in Canada got here regardless of the typical value of these providers rising 12 per cent final yr throughout the ten largest suppliers.
The report famous Canadians discovered “vital” financial savings related to streaming packages that require the viewer to look at commercials. Prospects with these packages paid a median of 42 per cent lower than these subscribed to ad-free options.
Streaming prospects pay for a median of two.5 platforms per family.
The report estimates simply 4 in ten Canadian households had a subscription to a standard supplier on the finish of 2023 — a determine it forecasts will decline to one-quarter by 2026.
Eiley mentioned the shift from TV to streaming platforms is occurring much less quickly in Canada than within the U.S.
He added one of many causes that decline has been much less extreme in Canada is as a result of excessive variety of new individuals transferring to the nation annually, which is fuelling Canada’s inhabitants progress.
“On the TV facet, it’s saved issues from actually falling off the cliff,” he mentioned.
However the struggles felt by Canada’s broadcasting sector have been vital sufficient to immediate requires reform — and assist — from the CRTC.
The federal regulator held a 15-day listening to late final yr that targeted on modernizing the regulatory framework for broadcasters.
It was a part of a public session in response to the On-line Streaming Act, which obtained royal assent final April and is supposed to replace federal laws to require digital platforms to contribute to and promote Canadian content material.
The fee is exploring whether or not overseas streamers needs to be requested to make an preliminary contribution to the Canadian content material system. It has mentioned that might assist steadiness the scales for native tv and radio corporations which can be already required to assist Canadian content material.
Main Canadian broadcasters and telecom giants, akin to Rogers Communications Inc., BCE Inc., Telus Corp. and Quebecor Inc., had urged the CRTC to amend the regulatory framework to account for subscribers and revenues shifting from the normal system to overseas streaming providers.
In the meantime, streamers largely inspired the regulator to carry off on imposing such contributions. Netflix argued the CRTC ought to acknowledge the function it already performs in serving to fund Canada’s broadcasting business and reject calls to mandate an extra cost from the corporate.
The CRTC is aiming to develop and implement its new regulatory framework by the tip of this yr.
Eiley mentioned it’s unsurprising that the recognition of streaming continues to develop, noting there are dozens of choices accessible to Canadians, when accounting for the various smaller providers that provide area of interest programming.
“It’s not simply the massive gamers, Eiley mentioned. “There’s particular film choices, there’s sports activities choices, there’s horror choices, there’s all the pieces. There’s fairly a variety on the streaming facet.”
