The Canadian television landscape continues to shift towards streaming platforms, with 42 percent of households not having a traditional TV subscription by the end of last year. The annual Couch Potato Report by Convergence Research predicts that by the end of 2026, half of all households in Canada won’t be traditional TV viewers. Over 80 percent of Canadian households now subscribe to a streaming service, with 70 percent subscribing to both TV and streaming services. The report also notes that 2.6 percent of Canadian TV subscribers cut the cord last year, leading to a decline in revenue for traditional TV providers.
Streaming services in Canada saw a 14 percent increase in subscription revenue in 2023, reaching $3.73 billion. This figure is expected to rise to $4.25 billion in the current year. While the average price of streaming services rose by 12 percent last year, customers who chose ad-supported packages saved significantly, paying on average 42 percent less than those subscribed to ad-free options. On average, Canadian households subscribe to 2.5 streaming platforms. The report forecasts that only one-quarter of Canadian households will have a traditional TV subscription by 2026, as the shift from TV to streaming platforms continues.
The decline in traditional TV subscriptions has not been as severe in Canada compared to the U.S., due to the country’s population growth fueled by new immigrants. However, the struggles faced by Canada’s broadcasting sector have prompted calls for reform and assistance from the Canadian Radio-television and Telecommunications Commission (CRTC). The CRTC held a 15-day hearing last year to modernize the regulatory framework for broadcasters in response to the Online Streaming Act, which aims to update federal legislation to require digital platforms to contribute to and promote Canadian content. The CRTC is exploring whether foreign streaming services should be asked to contribute to the Canadian content system.
Canadian broadcasters and telecom giants have urged the CRTC to amend the regulatory framework to account for the shift in subscribers and revenues to foreign streaming services. Major players like Rogers Communications Inc., BCE Inc., Telus Corp., and Quebecor Inc. want foreign streamers to contribute to support Canadian content. However, streamers like Netflix argue that they already play a role in funding Canada’s broadcasting industry and oppose additional contributions mandated by the CRTC. The regulator aims to develop and implement the new regulatory framework by the end of the year.
The popularity of streaming in Canada continues to grow, with a wide range of options available to consumers. In addition to major players like Netflix and Amazon, there are niche streaming services offering specific movie genres, sports content, horror movies, and more. Convergence Research president Brahm Eiley notes the diversity of offerings in the streaming market, highlighting the variety of content available to Canadians. As the industry continues to evolve, the CRTC is working to level the playing field between traditional broadcasters and streaming services, ensuring that Canadian content is supported and promoted across all platforms.
