According to the MTM data for 2021, the subscription rate for online viewing services (77%) has surpassed the subscription rate for traditional television services (70%), which has been declining since 2012.
This decrease results in lost revenues for companies that distribute broadcasting, such as cable companies, and consequently in their contributions to funds that support Canadian programming, such as the Canada Media Fund or the Certified Independent Production Funds that support the production of Canadian content.
- Between 2016 and 2020, these contributions dropped from $431 million to $397 million.
Advertising revenues for private television companies are also declining:
- As a result, spending on Canadian programs decreased by 6.7% for traditional services and by 9.3% for discretionary and on-demand services.
As the funds available for Canadian productions decrease, Canadian programs are competing with foreign series, some with budgets of $10 million per episode!
- Average budget for a Canadian English-language fiction program (1 hour): $2,227,000
- Average budget for a French-language fiction program (1 hour): $546,000!
Despite an increase in domestic production volumes, Canadian independent productions now represent only 31% of total production.
C-11 will require online broadcasters to invest in the creation and production of Canadian content. It will also increase the availability of Canadian content on foreign platforms and thereby offer greater choice to Canadian audiences.