TV subscriptions shrink slightly in 2013

The CRTC released fresh numbers Thursday that showed the number of Canadians who signed up for cable television service increased 1.5 per cent to 8.8 million last year, but that figure was offset by a decline in satellite television customers.

Across the industry as a whole, cable companies took in more revenue and scooped up more customers last year, the CRTC said.That contrasts with satellite television stations, whichearned less money and saw their subscriber numbers decrease.

Cable companies took in $12.3 billion in revenue "from basic and discretionary television services, as well as internet access and telephone services," the broadcast regulator said.That was a six per cent increase from $11.6 billion the year before.

On the satellite business side, the picture wasn't as rosy. Revenuesdecreased almost one per centfrom $2.5 billion in 2012 to $2.48billion in 2013. And in terms of customers, satellitecompanies recorded a 4.8 per centdecrease to a total of just under2.7 million subscribers last year.

Cord-cutting

Adding the two numbers together shows more than 126,000 new people signed up for cable service, but that was offset by 134,000 people who cancelled their satellite service. All in all, the decrease adds up to a net loss of7,602 people.

That's the first time that number has ever decreased, and a possible hint that the so-called practice of "cord-cutting" which holds that consumers are starting to turn away from conventional broadcasters in favour of online streaming servicessuch as Netflix may bestarting to happen, albeit slowly. (It's also possible that 2013's figures are a statistical anomaly that won't continue into 2014 and beyond.)

• Forget cord-cutting: Canadians happy to pay for more TV
• 16% of Canadians say they're willing to ditch pay TV

Netflix's most recent quarterly earnings showed the company now has48.3 millioncustomers around the world an increase of 4 million since the previous quarter of which 12.6 million are outside the U.S.The companyno longer breaks out its Canadian subscriber numbers, but it's known the company signed up onemillion customers in Canada within a year of launching in September 2010.

The Canadian TV industry employed 29,715 people in 2013 (an11.5percent increase from 2012's level) andpaid out 11 per cent more in salaries, rising from $2.2 to$2.5 billion.But the major broadcast companies spent $477.7 million developing Canadian content last year,a 5.6percentdecrease compared with2012.