A television remote control shows buttons to access streaming services Netflix and Amazon Prime, in a photo illustration made in Toronto, Friday, March 22, 2024. THE CANADIAN PRESS/Giordano Ciampini
A recent report indicates a significant shift in Canadians' television viewing habits, with an increasing preference for streaming platforms over traditional cable and satellite subscriptions. This trend comes at a time when federal regulators are considering new rules to address disparities within the sector.
The annual Couch Potato Report, released by Convergence Research, reveals that by the end of last year, 42 percent of Canadian households had forgone traditional TV subscriptions. The report predicts that by 2026, half of all households will have abandoned traditional TV in favor of alternative viewing methods.
Streaming services have gained considerable traction, with over 80 percent of Canadian households subscribing to at least one streaming platform. Additionally, 70 percent of households have opted for both traditional TV and streaming services.
Last year, 2.6 percent of Canadian TV subscribers cut ties with traditional providers, resulting in a three percent decline in revenue for these providers, amounting to $7.2 billion. The report anticipates this downward trend to persist through 2026.
In contrast, streaming platforms experienced a 14 percent increase in subscription revenue in 2023, reaching $3.73 billion. This figure is expected to climb to $4.24 billion this year.
Brahm Eiley, president of Convergence Research, emphasized the dominance of streaming platforms in the current media landscape, attributing their success to substantial investments in programming. Eiley stated, "This is where your content lives. This is where the big spending is happening for programming. These guys are obviously kind of winning the battle at the end of the day."
Despite a 12 percent increase in the average price of streaming services across the ten largest providers last year, Canadians still find value in these platforms. Notably, customers opting for ad-supported streaming packages saved an average of 42 percent compared to those choosing ad-free alternatives.
On average, Canadian households subscribe to 2.5 streaming platforms, indicating a diverse range of preferences among consumers.
The report also highlights a similar trend in the United States, where only four in ten households maintained traditional TV subscriptions by the end of 2023. This figure is projected to decline to one-quarter by 2026. However, Eiley noted that the shift from TV to streaming is occurring at a slower pace in Canada, partly due to population growth fueled by immigration.
Despite the rapid growth of streaming, challenges persist within Canada's broadcasting sector, prompting calls for regulatory reform. The Canadian Radio-television and Telecommunications Commission (CRTC) recently conducted a 15-day hearing focused on modernizing the regulatory framework for broadcasters.
This initiative was spurred by the Online Streaming Act, which aims to update federal legislation to ensure digital platforms contribute to and promote Canadian content. The CRTC is considering whether foreign streaming services should be required to contribute to the Canadian content system, potentially leveling the playing field for local broadcasters.
Major Canadian broadcasters and telecom giants have urged the CRTC to revise the regulatory framework to account for revenue shifts to foreign streaming platforms. In contrast, streaming companies have advocated against such contributions, citing their existing support for Canada's broadcasting industry.
The CRTC aims to finalize its new regulatory framework by the end of the year, acknowledging the evolving landscape of media consumption in Canada.
Eiley emphasized the diverse array of streaming options available to Canadians, ranging from mainstream platforms to niche offerings catering to specific interests. He noted, "It's not just the big players. There's quite a diversity on the streaming side."
