Film and video distribution, 2025

Released: 2026-09-29

The film and video distribution industry continues to recover in 2025

Following a strong rebound from the COVID-19 pandemic in 2023, the film and video distribution industry saw continued growth in 2025, with operating revenues increasing by $154.3 million (+9.0%) from 2023 to $1.9 billion in 2025. While operating revenues have continued to recover since the pandemic, they were 1.1% below the pre-pandemic levels seen in 2019, as ongoing structural changes in content consumption and traditional film and video distribution channels have continued to reshape the industry.

Total sales in the distribution industry increased by $157.6 million in 2025, up 9.5% from 2023. Growth was increasingly driven by emerging and diversified revenue streams, as distributors have continued to expand their presence across digital platforms. Revenue from the distribution of film and video titles fell to 80.6% of sales in 2025, down from 89.3% in 2023. Demand for physical media (such as DVD and Blu-ray discs) remained weak, representing 2.0% of sales in 2025.

Operating expenses rose 6.2% from 2023 to reach $1.72 billion in 2025. The growth of operating revenues outpaced that of operating expenses, resulting in the operating profit margin in the industry increasing 2.4 percentage points from 2023 to 7.7% in 2025. Royalties, franchise fees and memberships remained the industry’s largest expenditure, representing 55.9% of expenses in 2025.

As in previous periods, industry revenues remained concentrated in Ontario, which represented 92.1% of total revenue in 2025.

Increased focus on digital and on-demand content continues to influence the film and video distribution industry

The distribution of non-Canadian productions continued to make up the majority of industry sales, accounting for 82.3% of all distribution revenue in 2025. While the total distribution revenue of non-Canadian productions declined 2.0% from 2023 to 2025, domestic distribution revenues from non-Canadian productions were unchanged. Among domestic revenue streams, the theatrical market (-12.6%) saw the largest decline in 2025, with revenues falling $24.0 million from 2023. Declining revenues were also recorded for video-on-demand productions (-$10.2 million) in 2025, partly because of the increasing production and distribution of original content by streaming platforms. While video-on-demand and theatrical revenues fell, the conventional television market maintained its place as the largest market for non-Canadian productions, increasing 7.2% from 2023 to reach $468.6 million in 2025.

Distribution revenues from Canadian productions increased by $7.1 million (+2.8%) over the two-year period, rising from $250.4 million in 2023 to $257.5 million in 2025. Gains were primarily attributable to increased revenue from distribution to foreign clients, up 3.1% from 2023. Domestic distribution revenues from Canadian productions also saw a gain in 2025 (+2.4%), driven by increases in revenue from the distribution of specialty television productions (+$2.6 million) and from video-on-demand and pay-per-view productions (+$2.3 million).

Looking ahead: Film and video distributors adapt to an evolving marketplace

The film and video distribution industry is expected to remain in a period of transition as it adapts to evolving consumer preferences and increasing pressures from the digital market. While theatrical releases continue to play a significant role in the film distribution industry, the growing prevalence of direct-to-streaming or digital-first releases may limit future growth in traditional distribution channels.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).