FACTOR is proud to partner with Canada’s private radio broadcasters to administer a portion of their Canadian Content Development (CCD) investments. In 2018-19, radio broadcaster contributions amounted to $10 million of FACTOR’s budget.
While some of these funds top up programs that FACTOR administers on behalf of the Department of Canadian Heritage’s Canada Music Fund, there are also three programs and one component entirely supported by broadcaster funding, including:
- Comprehensive Artist
- Marketing and Promotion for Non-FACTOR-Funded Sound Recordings
- Radio Marketing component
History of Canadian Content Development
As part of the long-running federal commitment to the development and promotion of Canadian cultural products, the Broadcasting Act requires that private commercial radio broadcasters make a financial contribution toward the development of Canadian music for play on commercial airwaves. This requirement is administered by the Canadian Radio-Television and Telecommunications Commission (CRTC).
Since the early 90s, Canada’s private radio broadcasters have contributed to FACTOR’s annual budget through what was previously known as the Canadian Talent Development Fund. Substantial revisions to this policy were made in 1995, 1998, and most recently in 2006. In the Commercial Radio Policy, the CRTC ruled that a percentage of contributions, now called Canadian Content Development contributions (CCD), must be directed to FACTOR or its Francophone partner, Musicaction. Each station’s contribution requirements are dictated in their Conditions of License. You can find a copy of these licenses on the CRTC’s website. Canada’s private radio broadcasters contribute to a number of other important initiatives in the music industry in addition to FACTOR.
Make a Contribution
There are three types of CCD payments: Basic, Over and Above, and Tangible Benefits. If you are a Radio Broadcaster looking to make a contribution, please visit our CCD payment page for the easiest way to make your payment! You can also download our CCD Contribution Form.
Please take note of your Broadcast License Decision number and your total broadcast revenues when filling out your payment.
The Basic contribution is mandatory for English language broadcasters whose revenues exceed $1,250,000. The required contribution amount is $1,000 plus 0.5% of revenues in excess of $1,250,000. 45% of the total amount must be directed to FACTOR or Musicaction, and at least 15% to the Community Radio Fund of Canada. The remaining 40% can be directed to any eligible CCD initiative (including FACTOR). This 40% makes up the Over and Above contribution.
Over and Above
Broadcasters seeking a new license or a license renewal may choose to make an Over and Above contribution. If the license is approved, this undertaking becomes a condition of license. At least 20% of over and above contributions must be directed to either FACTOR or Musicaction. The remaining amount can be directed to any eligible CCD initiative (including FACTOR).
The Over and Above contribution is typically stated as a flat amount.
Tangible Benefits contributions are for radio stations purchasing or acquiring broadcast assets. Under the Commercial Radio Policy, the purchaser must commit at least 6% of the value of the transaction to CCD. Of that amount, 1.5% must be directed to FACTOR or Musicaction, 3% must be directed to the Radio Starmaker Fund or its Francophone counterpart Fonds Radiostar, 1% can go to any eligible CCD initiative at the buyer’s discretion, and 0.5% must go to the Community Radio Fund of Canada.
This calculation takes place at the time of purchase. When a company applies to the CRTC to purchase broadcast assets, it provides a valuation of those assets to the CRTC for approval. Then, a percentage of that value is set aside as a Tangible Benefits package.
FAQ for Radio Broadcasters
Contributions from English-language stations should come to FACTOR; French-language stations contribute to Musicaction.
The CRTC condition of license is that you must make the contribution every year, based on the preceding year’s gross revenues.
No, but they are easily found on the CRTC website.
Yes, we can give you a statement that sets out your total contributions to date. However, it is up to you to keep records of how much of the contribution was for your Basic contribution and how much was for any Over and Above contribution that you are required to make.