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.
Government funding (66% of sources in 2015-2016): Government funding of $1,026.9 million was recognized during the year, including $94.6 million of amortization of deferred capital funding. A freeze of salary inflation funding for 2015-2016 was confirmed by the government in its November 2013 Economic Update. This meant that any salary increases for our employees were managed through cost reductions in other areas.
Advertising revenue (16% of sources in 2015-2016): Revenue from selling advertising on our conventional and specialty television channels, CBC Radio 2, ICI Musique, and other platforms. Advertising revenue is decreasing as a proportion of our total revenue and sources of funds as a result of the end of our broadcast rights contract with the NHL and the market shift away from conventional advertising platforms (the Canadian television advertising market decreased by 4% during the fiscal year).(1)
Subscriber fees (9% of sources in 2015-2016): Fees from our specialty services – CBC News Network, documentary, ICI EXPLORA, ICI ARTV, ICI RDI, the new ICI Tou.tv EXTRA premium package and Curio.ca.
Financing and other income (9% of sources in 2015-2016): Includes income from activities such as rental of real estate assets, leasing of space at our transmission sites, host broadcasting, contributions from the Canada Media Fund and program sales.