FINANCIAL SUSTAINABILITY
REVENUE AND OTHER SOURCES OF FUNDS
We have four sources of direct funding: government appropriations for operating and capital expenditures, advertising revenue, subscriber fees, and financing and other income.
2017-2018
Total revenue: $1,780.8 million
$1,207.7 million: Government funding
$573.1 million: Self-generated revenue
Self Generated revenue breakdown:
$127.6 million: Financing and other income
$127.2 million: Subscriber fees
$318.3 million: Advertising
Advertising:
$42.6 million from digital advertising
$275.7 million from television advertising
2016-2017
Total revenue: $1,656.0 million
$1,099.1 million: Government funding
$556.9 million: Self-generated revenue
Self Generated revenue:
$125.1 million: Financing and other income
$131.2 million: Subscriber fees
$300.6 million: Advertising
Advertising:
$36.6 million from digital advertising
$264.0 million from television advertising
Government funding (68% of sources in 2017-2018): Government funding of $1,208 million was recognized during the year, including $93.5 million of amortization of deferred capital funding. In March 2016, the federal government announced an important reinvestment in CBC/Radio-Canada: an additional $75 million in 2016-2017 and $150 million per year thereafter on an ongoing basis. In addition, we received salary funding of $34.1 million this year for 2016-2017 and 2017-2018.
Advertising revenue (18% of sources in 2017-2018): This includes both ongoing and events-driven sales of advertising on our conventional television channels, specialty television channels and other platforms. Advertising revenue driven by events can have a material impact on the Corporation’s self-generated revenue. This year’s revenue benefited from our broadcast of the PyeongChang 2018 Olympic Winter Games.
Ongoing advertising revenue is decreasing as a proportion of our self-generated revenue and sources of funds mainly due to the increase in government funding and as a result of the market’s shift away from conventional advertising platforms. Despite being a rising source of self-generated revenue, digital advertising growth is not significant enough to offset the decline observed in TV advertising.
Subscriber fees (7% of sources in 2017-2018): Fees from our specialty services: CBC News Network, documentary, CBC TV App, ICI EXPLORA, ICI ARTV, ICI RDI, the new ICI TOU.TV EXTRA premium package and Curio.ca. Subscriber fees are experiencing downward pressure from the continuing cord-shaving trend and the effects of recent regulatory changes enacted by the CRTC (affordable basic TV package, small TV packages, and pick-and-pay TV channels).
Financing and other income (7% of sources in 2017-2018): Includes both ongoing and events-driven income from activities such as the rental of real estate assets, content sales, leasing of space at our transmission sites, host broadcasting sports events such as Olympic Games or World Championships and contributions from the Canada Media Fund.
