CRTC: Canadian Content Development Funds Broken Out

Canadian Content Development:

  • In the 2013-2014 broadcast year, commercial radio operators contributed 4 cents per revenue dollar to support Canadian Content Development (CCD). This was an increase of 14% over the previous period, and came in at $59 million.
  • Of this, $20 million came in through basic annual CCD contributions, $31 million through tangible benefits and $8 million in over-and-above contributions.
  • 65% of these funds were a direct result of the conditions of licence issued to new radio stations (25) and change in ownership/control of existing ones (9).
  • How did the CCD contributions breakdown?
    • $14 million to FACTOR, an 16% increase over the previous year
    • $16 million to Radio Starmaker, a 45% increase
    • $3.6 million to MUSICACTION, a 48% increase
    • $3 million to the Community Radio Fund, a 70% increase

Collectively, there was growth in the CCD contributions made to FACTOR, MUSICACTION, CRFC, local music initiatives, new spoken word content, and audio content initiatives. However, there were declines in CCD contributions made to music industry associations and ‘other’ eligible initiatives. Total CCD contributions came in at $59.5 million, up 14% over the previous year.

Annual CCD contributions reported by radio licensees in the context of changes in ownership and/or control was up 51% to $31,303.

Between Jan. 1 2010 to Dec. 31 2014, 42 radio service transactions were sealed. These will spin off the following benefits:

•The Cogeco/Corus ownership transaction, which occurred in 2010 (see Broadcasting Decision 2010-942), resulted in $8.8 million in tangible benefits relating to French-language radio initiatives;

•The BCE/CTVglobemedia Inc. ownership transaction, which occurred in 2011 (see Broadcasting Decision 2011-163), resulted in $17.5 million in tangible benefits; and

•The BCE/Astral ownership transaction, which occurred in 2013 (see Broadcasting Decision 2013-310), resulted in $71.5 million in tangible benefits. Approximately $46.5 million of this amount was committed to English-language initiatives and $25 million to French-language initiatives. In its decision, the Commission directed BCE to divest itself of 10 radio services. These divestitures are expected to generate not less than $11 million in additional tangible benefit commitments from other purchasers. In December 2013, the Commission approved the divestiture of 3 radio stations (CFQX-FM Selkirk and CHIQ-FM Winnipeg, Manitoba, and CKCE-FM Calgary, Alberta) to the Jim Pattison Broadcast Group Limited Partnership (Pattison). Pattison has committed $1.8 million in tangible benefits initiatives.





















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