Ottawa – May 2011– Canada displays the highest degree of vertical integration in the broadcast distribution and broadcasting sectors, and the overall broadcasting and broadband communications industry, of any developed media market in the world.
In the report Analysis of Vertical Integration in the Canadian Broadcasting Sector prepared for the Independent Broadcast Group/Le group de diffuseurs indépendants, Nordicity conclusively determined that the level of vertical integration in Canada’s broadcasting and broadband communications market greatly exceeds that of the United States, the United Kingdom and Australia. The report was appended to IBG-GDI’s submission to the CRTC’s Review of the regulatory framework relating to vertical integration.
International comparison of market concentration in the broadcasting and broadband communications sector (% subscribers held by four largest BDUs)
The figure above demonstrates the extent to which Canada’s four largest broadcast distribution undertakings (BDUs) – Shaw, Rogers, Bell and Québecor – control a greater share of all national broadcasting and broadband communications subscribers than their peers in the US, UK and Australia. As illustrated, Canada’s four largest BDUs collectively control 71% of all broadcast distribution subscribers, 69% of the combined BDU and programming market, and 69% of Canada’s broadcasting and broadband communications market.
For the overall broadcasting and broadband communications sector, Canada is well above the levels in the US, UK and Australia. Canada’s top four BDUs control 69% of the overall broadcasting and communications market, more than twice that of the US and UK and 24% more than the level of concentration in Australia.
The analysis is based on Nordicity’s vertical integration measurement, which calculates company’s shares of the BDU market (cable, satellite and OTA distribution), broadcast programming market (% viewing share of all programming services owned), high-speed internet market and mobile wireless market. By focusing on reach (i.e. total subscribers and viewers) instead of revenue share, Nordicity’s measurement more accurately reveals the degree of vertical integration across the four key broadcasting and broadband communications markets and is ideal for international comparisons.
Nordicity is a leading international consulting firm that specializes in policy, strategy, and economic analysis in the cultural and communications industry sectors. Our clients are public and private organizations in the global creative and communications industries. Nordicity’s combination of extensive experience, functional expertise and international presence enables us to understand our client needs, apply innovative analysis and provide clear effective recommendations.
Nordicity was founded in Ottawa, Canada in 1979. We now have offices in London, United Kingdom; Toronto, Canada; and Ottawa; and clients across North America, the United Kingdom, Africa, and Asia.
About IBG-DGI: Independent Broadcast Group/Le groupe de diffuseurs indépendants is an association of independent Canadian broadcasters.