FACTOR Annual Report Highlights Investments In CanCon

For the third year in a row, Broadcaster contributions to the Foundation to Assist Canadian Talent on Recordings (FACTOR) continued to slide; a fact made clear in the Foundation's newly released year-end report.

Through provisions in the Broadcasting Act, commercial radio, satellite radio and pay audio contributed a total of $9,480,379 to FACTOR during 2016-2017, fiscal that ended March 31st. All told, 18 broadcasters are responsible for this amount.  For various reasons including declines in ad revenues, the broadcast contributions declined for the third consecutive year: from  $14,131,561 in 2015 and $10,219,543 in 2016.

FACTOR continues to be the financial backbone for the great majority of Canadian recordings, contributing to 717 domestic projects between 2016-2017.

The total contributions to recordings in the latest fiscal amounted to $4,476,115 and accounted for 25% of the Foundation’s overall spend of $18,613,432 that aided 2,886 projects altogether across the spectrum of the organization’s programs.

The second most significant chunk of money spent was $3,710,542 that went towards 114 Collective Initiative Projects.

The Foundation also approved grants and loans to 162 music video undertakings, financed to the tune of just under $1M ($942,172); while $376,943 was allocated to 53 Sponsorship projects. Another $1,182,695 in industry support through Business development and Business Travel programs helped realize 415 international tour and showcase appearances.

FACTOR administered a further $9,999,901 from the Department of Canadian Heritage’s Canada Music Fund for a total revenue of $19,480,280: higher than 2016’s $18,720,144, but still well below 2015’s peak of $22,632,162.

Out of that $19.4M, FACTOR paid out $14,131,561 in loans and grants and spent a further $2,332,323 in administrative expenses. While admin costs have seen increases totalling $158,875 over the past two fiscal years, loans and grant handouts have decreased by $2,497,641 over the same time period, from a 2015 amount of $16,629,202.

Regional affiliates were also paid $396,000 in 2016-2017.

It should be noted that demand far exceeded supply: FACTOR juries approved 2,886 out of 6,007 applications, and the $18,613,432 offered in funding was well below 50% of the requested $39,030,526.

Overall, FACTOR is in much better financial health overall in 2017 than it was in in the previous fiscal: net assets total $51,989,620 over the last fiscal year’s $47,752,589 – an increase in value of $4,237,031, mainly due to a significant increase from investments.

Lenore Gibson, who is serving her final year as Chair, remarked:

“As we move forward, FACTOR will be a key vehicle for delivering on the Canadian government’s goal to build our cultural industries based on increased export activities and renewed cultural diplomacy. Already we have received an increase in our funding for export activities including international touring and showcase funding for our acts. These new funds have been the basis for new or extended foreign tours and showcases, and for additional collective activities in Europe and North America, including partnered initiatives with our colleagues at Musicaction.

“Several of the latter have been implemented or are planned for this year, including Canada 150 events in France, Germany, the UK, Eastern Europe and the US.”

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