Canadian broadcasters cash in

Revenues at Canada's cable, satellite and other broadcasting distribution companies rose by $1.1 billion to $12.5 billion in the year ending 31 August, 2010, according to the federal broadcast regulator, says CBC News.

At a time when cable and satellite bills were rising - an increase the distributors attributed to a new fee they must pay to support local programming - the same companies contributed just $100.7 million to the Local Programming Improvement Fund.

Launched in September 2009, the fund supports local news and programming in non-metropolitan markets across Canada.

Profit before interest and taxes was $2.5 billion for the cable distributors while PBIT was $163.9 million in fiscal 2010, writes the Toronto Star.

The broadcasting distribution companies contributed a total of $367.9 million to fund Canadian programming, including $189.1 million to the Canadian Media Fund. A further $52.3 million went to independent funds and $126.5 million to cable community channels.

At the same time, some telecom companies expect the huge growth of online video growth will lead to greater revenues and profit from their high-speed Internet divisions - particularly Telus, which does not own any broadcast or media properties, like its rivals Rogers, Bell, Shaw and Quebecor, says The Globe and Mail.

Satellite TV services, such as BCE's Bell TV and Shaw Direct, meanwhile, increased revenues by nearly 9% to $2.4 billion.

Despite the fact that operating costs increased by 9% to $5.5 billion, cable and satellite companies also increased their total amount of profit, before interest and taxes.

Cable companies pulled in $2.5 billion in 2010, compared to $2.3 billion in 2009, while satellite companies reaped $163 million, according to the CRTC.