Aboriginal Peoples Television Network 2004 Annual Report · 2 Aboriginal Peoples Television Network z2004 Annual Report Chairperson’s Message 3 CEO’s Message 4 The First Steps

Aboriginal Peoples Television Network2004 Annual Report

2 Aboriginal Peoples Television Network 2004 Annual Report

Chairperson’s Message 3CEO’s Message 4The First Steps in Building a Legacy 5Financials 7

contents

APTN is the first Aboriginal televisionnetwork in the world with programmingby, for and about Aboriginal Peoplesto share with all Canadians as well asviewers around the world. APTN is amandatory service available in over10 million Canadian households andcommercial establishments with basiccable, direct- to- home (DTH) orwireless service. APTN broadcastsprogramming with 60% offered inEnglish, 15% in French and 25% inAboriginal languages.

corporate profile

mission

APTN is sharing our peoples’ journey,celebrating our cultures, inspiring ourchildren and honouring the wisdomof our Elders.

madeleine

3Aboriginal Peoples Television Network 2004 Annual Report

chairperson’s message adamsAPTN's story began with a dream to share the stories of the Aboriginal Peoples with all Canadians andthe world. With determination and vision, the dream was realized when APTN became the first nationalAboriginal television network in the world with programming by, for and about Aboriginal Peoples.

From the beginning, APTN's mission has been to share our peoples' journey, celebrate our cultures,inspire our children and honour the wisdom of our Elders. APTN provides content that is representativeof all Aboriginal Peoples because each story illustrates the diverse qualities unique to each Aboriginalnation and culture across Canada.

As a network, we have embraced our role in bridging the cultural gap that exists between AboriginalPeoples and non-Aboriginal people. Creating a better understanding of what it means to be Aboriginaltoday is key in helping to eliminate stereotypes and in building stronger relationships into the future.

I'd like to take this opportunity to thank the APTN board of directors, management team and staff fortheir continuous dedication and commitment to our network. I would also like to thank our loyal APTNviewers who keep watching in growing numbers. With your support we will continue to share thestories of Aboriginal Peoples with all Canadians and viewers around the world.

Aboriginal Peoples Television Network 2004 Annual Report

jeanLaRoseCEO’s message

4

This past year was one of the most challenging yet rewarding APTN has ever had to face. Although wehad reason to celebrate, having reached our 5- year anniversary, the network faced some financialdifficulties that challenged all of us to work as a team to face and resolve positively.

With a strong vision and fierce determination to work through the challenges, the Board,management and staff worked tirelessly to ensure that the APTN legacy would continue for generationsto come.

APTN is now concentrating on renewing our broadcast licence in 2005. In order to meet the growingneeds of APTN viewers, we are focusing on fine- tuning our infrastructure and strengthening ourpartnerships with other networks so that APTN continues to bring a wider range of programming to allAboriginal Peoples in Canada as well as all other Canadian viewers.

I want to thank the APTN Board of Directors, management and employees for their strength, dedicationand support during this past year. We have not only met the challenges with resolve, we have laid thegroundwork to ensure that APTN can move forward with confidence and promise. To our viewers, wethank you for your ongoing loyalty and encourage you to keep tuning in to APTN. The best is yet tocome.


September 1, 2004 is an important day inthe history of the Aboriginal PeoplesTelevision Network (APTN). This markedthe 5 year anniversary of the network’slaunch in 1999 when APTN became thefirst national Aboriginal television networkin the world. There has been tremendousgrowth within this young network since itsinception 5 years ago, at a time whenmany people were not even aware thatthey received APTN for free as part of theirbasic cable, satellite or direct- to- home

service.

APTN is a leader in providing Canadianswith quality Aboriginal programming andplays a unique role in bringing Aboriginaland non- Aboriginal communities across

Canada together. Although the primaryaudience is Aboriginal Peoples, thenumber of non- Aboriginal viewers has

always represented a growing segmentof APTN's viewingaudience, proof thatAPTN is fulfilling itsmandate to provideprogramming by, forand about AboriginalPeoples, to share withall Canadians.

APTN is always mindful of the need tobalance its social mandate with therealities of operating a commercial business.APTN does not receive government fundingfor operations, but generates revenuethrough subscriber fees, advertising salesand strategic partnerships. As such, APTNupholds its independent stance on theprogramming offered, whether it be newsand current affairs, or dramaticentertainment and kids' shows. And strongpartnerships with OMNI Television, Vision,

CBC, CTV, Global and the newly- launched

national Maoris network in New Zealandcreate the opportunity to broaden therange of Aboriginal programming inCanada and around the world.

Sharing Our StoriesWith All Canadians

Canadians are celebrating the diversebackgrounds of Aboriginal Peoples, andare tuning in to APTN in increasingnumbers to experience their rich stories.

Over the last five years, APTN has workedintensely to provide a platform for allAboriginal Peoples to share their historiesand their cultures. In order to bring thesestories to Canadians, APTN had to nurtureand develop the independent Aboriginalproduction sector, an industry that wasvirtually non- existent prior to APTN's

launch in 1999. It became clear from theonset that APTN would play a key role indeveloping the Aboriginal productionindustry in Canada.

APTN quickly became a magnet forAboriginal talent from all regions of thecountry; writers, artists, directors,technicians, journalists, musicians, actorsand comedians - all wanted to be a part

of the legacy of this network. Now APTNis able to provide programming that has adistinctly Aboriginal perspective, whiletackling issues that are shared with allCanadians.

APTN's unique programming also breaksdown language barriers. With 60% of itsprogramming in English, 15% in Frenchand 25% in over a dozen Aboriginallanguages, viewers are sure to find

engaging programming in a language oftheir preference.

By taking a leadership role in bridging thecultural gap between Aboriginal and non-Aboriginal people, APTN proudly embracesthe responsibility of providing programmingthat is reflective of Canada's First Nations,Inuit and Métis Peoples. APTN's mission isto share its peoples' journey, celebrate theirculture, inspire their children and honour thewisdom of their elders. This uniquenetwork is committed to providing contentthat is representative of all AboriginalPeoples because each story illustrates thediverse qualities that are unique to eachAboriginal nation and culture acrossCanada.

As APTN continues on its journey, anincreasing number of people are turning tothe expertise of this diversified network tohelp educate Canadians about thehistories and the cultures of AboriginalPeoples. Creating a better understandingof what it means today to be Aboriginal iskey in helping to eliminate stereotypesand build stronger relationships into thefuture.

Strength in Numbers

There are more than 1.3 million peopleacross Canada that self- identify as being

of Aboriginal descent, a number thatrepresents the second largest non-European ethnic group in Canada. Assuch, there is an incredible need for anational network that the Aboriginalpopulation can tune into to share theircultures with each other and with allCanadians.

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ABORIGINAL PEOPLES TELEVISION NETWORKThe f i r s t s teps in bu i ld ing a legacy


According to Nielsen Media meter datareports, viewing numbers have grown fromweekly totals of 900,000 in 1999 to over1,750,000 in 2003, a respectable figure ina fragmented universe. These numberslargely represent the non- Aboriginal

viewing audience, as the traditionalindustry measurements do not capturerural Aboriginal viewers.

Of course, APTN remains a mainstay acrossAboriginal communities, and a trustedsource to turn to when they want to seeaccurate reflections of their uniquecultures and traditions. APTN enjoys aspecial quality that other networks strivefor, which is a strong emotional loyaltyfrom its viewing audience.

APTN is available in over 10 millionhouseholds across Canada and broadcastsa separate northern feed that reaches the96 communities in northern Canada viabroadcast towers in those centres. As aresult, APTN has access to 70% of allCanadian households. When products orservices need to reach the Aboriginalmarket, APTN is the vehicle to drive themessage home.

APTN Lends Its ExpertiseTo Other BroadcastersSharing Aboriginal stories with allCanadians is a daunting task when thereare more than 30 million people whospeak a variety of languages. Consideringthis statistic, how does one networkattempt to reach all of these people withsuch diverse backgrounds?

One way APTN achieves this goal isthrough strategic partnerships with othernetworks. Recently, APTN and Rogers-owned OMNI television signed a 12 monthcultural alliance, which will see bothbroadcasters working together to furtherdevelop the understanding of AboriginalPeoples and ethnocultural communities inCanada.

Of course, OMNI is just one of manynetworks that have noticed APTN's strongleadership qualities. Because APTN is atthe forefront of a growing movement toprovide Aboriginal programming that isboth reflective of all Aboriginal Peoples,and universal in its appeal, networks suchas the CBC have sought APTN's expertiseto further develop their Aboriginal content.

The secondment agreement between CBCand APTN signals a new phase in thispartnership. Not only does this open thedoor to other mentorship opportunities, itemphasizes the desire of both nationalnetworks to work together on generatingand selecting high- impact programming.

The partnerships APTN forms with othermajor networks not only benefits thebroadcasters but all Canadians in general asit will bring a wider range of perspectives toCanadian television.

The Future of APTNFrom a strong vision over 5 years ago, toa comprehensive and representativeservice, APTN has taken many strides tobecome a national leader in broadcasting.Although APTN has accomplished morethan many networks have in theirformative years, APTN knows audienceexpectations are growing.

APTN is now preparing for the next phaseof its journey - one that will allow it to

fine- tune its programming, focus on

infrastructure and continue to meet theneeds of viewers. Here are some of theprojects APTN is working on to meet theseneeds:

APTN currently broadcasts a northernand southern feed. The goal is to obtaineastern and western feeds that will allowviewers to watch prime time programmingin their time zone.

APTN is moving towards High-Definition

Television (HDTV).

APTN is working to offer SecondaryAudio Programming (SAP). SAP willprovide viewers the opportunity to viewAPTN programming in a language of theirchoice.

These are just some of the major stepsAPTN is working towards to build on alegacy that is already well on its way.APTN will continue to share AboriginalPeoples' stories from across this land, sothat children for generations to come, willalways remember who the AboriginalPeoples are and what the future holds forthem.

I think APTN is one of the best channelson the air. I really like most of theprograms, but especially Bingo and AMovie, Contact, Buffalo Tracks, North ofSixty and the Rez. I watch APTN about98% of the time I spend watching TV. Ithink you all do a great job.Rose J.

I have only recently encountered yournetwork and I have to say how thrilled Iam... As a non- native person very

interested in the issues and lives ofNative people, I find this station to bean excellent way for me to learn andstay informed.Lindsay P.

My husband and I have been watchingAPTN every evening, and we are soproud to have a station that is finallyinteresting, informative, entertaining andmuch more.André and Angela R.

We are a non- Aboriginal family in B.C.'s

Okanagan Valley and we wanted to letyou know how much we appreciate theprograms on APTN. My children loveAPTN Kids - Inuk, Prairie Berry Pie and

Teepee Tales. Keep up the good work!The Rolke Family

What Our ViewersHave To Say

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(thousands of dollars) 2000 2001 2002 2003 2004 REVENUE Advertising Revenue $619 $909 $1,199 $996 $849 Corporate Grants $410 $2,145 $2,800 $2,600 $2,600 Government Grants $2,100 $2,100 $2,110 $2,100 $2,100

Subscriber revenue (Cable & DTH) $13,994 $15,136 $15,768 $15,943 $16,146

Other revenues $2,027 $999 $97 $113 $69 $19,150 $21,289 $21,975 $21,752 $21,764 EXPENSES Network Operations $5,427 $5,866 $5,226 $5,306 $5,108 Network Programming $6,604 $8,800 $12,266 $12,383 $11,896 General and Administrative $2,635 $2,801 $3,692 $3,803 $4,109 $14,666 $17,467 $21,185 $21,492 $21,113 Net Income for the year $4,484 $3,822 $790 $260 $651

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APTN was launched as a not for profit TV broadcaster on September 1, 1999 and is located in Winnipeg, Manitoba. APTNwas licensed by the Canadian Radio-television and Telecommunications Commission (CRTC) to undertake satellite to cable

broadcasting and to broadcast across to northern Canadian communities using the existing low-power rebroadcast

transmitters from its predecessor, Television Northern Canada.

APTN is a digital channel that the CRTC has designated for mandatory carriage on all large cable systems and direct tohome satellite systems. APTN is accessible to over 10 million subscribers, in addition to the free service provided inNorthern communities.

For fiscal year 1999, operations were just getting started and financial results were not meaningful. For the next 5 years,the financial resources were deployed rapidly, resulting in a whole new outlet for Aboriginal producers, employees andreporters:

Revenues from subscribers have been consistent from year to year reflecting the mandatory nature of the broadcastdistribution mandated by the CRTC. Corporate Grants include contributions from other broadcasters relative to theircommitments to the CRTC for benefits for the Aboriginal envelope on license renewal and acquisistions. Contributionswere received from Bell Canada, CTV, Global and Canadian Satellite Communications.

Expenses have grown 44% since the year 2000. Programming expenses grew by 80%. News programming had to be donein house, and higher costs were incurred compared to other broadcasters as APTN became a primary source of funds tothe expanding Aboriginal film producers industry, almost doubling Network Programming expenses in that time frame. Asthe physical backbone of the network was established quickly and solidly, Network Operations expenses remainedrelatively flat over the five years. General and Administrative costs rose 56% as the increased sophistication of thenetwork grew and the need for oversight and control increased.

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While the first couple of years yielded excess cash flows, the network was building up its programming inventory andexpanding its reach. APTN overcommitted to programming in fiscal 2002 and 2003, leaving the network in a significantcash crunch at the beginning of the 2004 fiscal year.

APTN worked with its bank (the Royal Bank), and its creditors to bring its commitments into line with its revenues.Payments were temporarily lengthened, a new term loan and an increased line of credit were negotiated, operatingexpenditures were cut, programming commitments were reduced and new commitments were minimized. As a result,APTN's liquidity at the end of the fiscal year of 2004 greatly improved.

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APTN has entered its final year of its first license with renewed vigor and dedication. From a revenue point of view, it isfocused on significantly increasing its advertising revenue, having completed extensive research on its audience andselling that good news to the media buyers.

On the expense side, APTN is watching its budgets carefully while focusing on critical areas of success: Programming; Licence renewal; Expansion of news and current affairs.

LLoonngg- tteerrmm

"APTN is sharing our peoples' journey, celebrating our cultures,inspiring our children, and honoring the wisdom of our Elders."

The strategic plan of APTN is the expansion of the network in terms of more and better Aboriginal programming - so thatAPTN becomes the voice of the Aboriginal peoples of Canada and carries the message to the world.

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October 13, 2004

Auditors’ Report

To the Directors ofAboriginal Peoples Television Network Incorporated

We have audited the statement of net assets of Aboriginal Peoples' Television Network Inc. as at August 31,2004 and the statements of operations, changes in net assets and cash flows for the year then ended. Thesefinancial statements are the responsibility of the Company's management. Our responsibility is to express anopinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standardsrequire that we plan and perform an audit to obtain reasonable assurance whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overall financialstatement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of theCompany as at August 31, 2004 and the results of its operations and its cash flows for the year then endedin accordance with Canadian generally accepted accounting principles.

Chartered Accountants


Aboriginal Peoples Television Network IncorporatedStatement of OperationsFor the year ended August 31, 2004






Aboriginal Peoples Television Network IncorporatedStatement of Cash FlowsFor the year ended August 31, 2004


Aboriginal Peoples Television Network IncorporatedNotes to Financial StatementsFor the year ended August 31, 2004











Documents

Aboriginal Peoples Television Network 2004 Annual Report · 2 Aboriginal Peoples Television Network z2004 Annual Report Chairperson’s Message 3 CEO’s Message 4 The First Steps