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. 

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.

Basic

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

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.