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1. Total operating revenues in the film and video distribution industry declined 4.5% to $2.0 billion in 2010. Total operating expenses declined 9.6% to $1.5 billion in 2010. As a result, the operating profit margin for the industry rose to 24.4% in 2010, up from 20.2% in 2009.
2. The largest expense item reported by surveyed firms was licensing costs, which represented 40.5% of total operating expenses. Cost of goods sold accounted for 31.0% of expenses, while advertising, marketing and promotions accounted for 13.0%.
3. Film and video distributors in both Ontario and Quebec accounted for the vast majority (98.6%) of the national operating revenue. Ontario firms earned 87.2% of total operating revenues in 2010, while Quebec firms accounted for 11.4%.
4. The two primary sources of revenue for the industry are distribution of film and video titles and wholesaling of pre-recorded videos. Revenues from the distribution of film and video titles accounted for 65.8% of total national operating revenues in 2010, while wholesaling revenues accounted for 32.6%.