There’s an ongoing shift in favour of streaming platforms over cable and satellite subscriptions among Canadians, according to an annual report on TV viewing patterns.
The annual Couch Potato Report by Convergence Research found a growth in over-the-top (OTT) revenue of 14 per cent to $3.73 billion in 2023, up from $3.3 billion in 2022, and forecast a further 14 per cent growth in 2024 to $4.24 billion in Canada.
OTT refers to over-the-top media services, platforms providing programming directly over the internet, bypassing cable, broadcast and satellite television.
“Based on a number of factors explored…we expect double digit growth rates will sustain through at least 2026,” the report said.
As in previous years, non-Canadian players will benefit most from OTT revenues. Furthermore, based on the 10 largest OTT providers, average Canadian prices increased by 12 per cent in 2022 and 2023. The report expects 2024 to follow a similar trend.
Despite fees for streaming services rising in 2023, Canadian cable, satellite and telecommunications TV subscriptions saw a decline of 2.6 per cent. The report is forecasting an increase in declines through 2026.
According to the report, Canadians made significant savings on streaming subscriptions by opting for packages that include advertisements.
At the end of last year, the report estimated that 42 per cent of Canadian households did not have a TV subscription with a cable, satellite, or telecommunications TV access provider, and predict a rise to 50 per cent of households by the end of 2026.
However, compared to the United States, Canadian TV subscribers and access revenues are not seeing as steep a rate of decline, but this could change“depending on new or expanded OTT offers in Canada,” the report says.
According to the report, Canadian population and immigration increases are also having, and will continue to have, a positive impact on mitigating TV subscriber losses and maintaining broadband and wireless profits.
In addition, Canadian TV providers also offer broadband and therefore benefit from OTT services.
The report found that annual Canadian residential broadband revenue has more than doubled over the last decade and that between 2019 and 2023 providers reported record years for new Canadian residential broadband subscriptions.
Convergence Research expects broadband providers to see robust additions between 2024 and 2026.
