2021-2022 Annual Report
Revenue and Other Sources of Funds
Financial sustainability
CBC/Radio-Canada depends on both its parliamentary appropriation and a range of commercial revenue, including advertising, to support the programs and services it provides to Canadians. While we expect the post-pandemic revenue to be sustained in the short-term, the long-term prospects of the advertising market remain a concern.
Advertising revenue from conventional TV will continue to be under pressure as big digital players attract a larger share of this revenue.
Revenue and Other Sources of Funds
CBC/Radio-Canada has four sources of direct funding: government appropriations for operating and capital expenditures, advertising revenue, subscriber fees, and financing and other income:
Government funding: This year, operating funding was $1,139.7 million, capital funding recognized in income was $96.3 million and working capital was $4.0 million.
Advertising revenue: This includes ongoing sales of advertising on our conventional television channels, digital platforms and discretionary television services. Advertising revenue driven by events, such as the Olympic Games, can have a material impact on the Corporation’s self-generated revenue. Over the long-term, TV advertising revenue is decreasing as a proportion of our total source of funds, mainly as a result of the market’s shift away from conventional advertising platforms.
Subscriber fees: These are fees from our discretionary services: CBC News Network, documentary, CBC Gem, ICI EXPLORA, ICI ARTV, ICI RDI, ICI TOU.TV EXTRA and Curio.ca. Subscriber fees from our traditional platforms are experiencing downward pressure from the continuing cord-cutting and cord-shaving trends. Subscribers to our digital platforms are increasing.
Financing and other income: This includes ongoing income from activities such as the rental of real estate assets, content sales, leasing of space at transmission sites and host broadcasting sports events.
In 2021-2022, CBC/Radio‑Canada recognized $1,240.0M of government funding (65.6% of total revenue and other sources of funds) and $651.4M of self-generated revenue (34.4% of total revenue and other sources of funds). Self-generated revenue comprised $419.6M of advertising revenue (64.4% of total self-generated revenue), $122.2M of subscriber fees (18.8% of total self-generated revenue), and $109.6M of financing, investment and other income (16.8% of total self-generated revenue). Advertising revenue comprised $333.9M of TV advertising (79.6% of total advertising revenue), and $85.7M of digital advertising (20.4% of total advertising revenue).