During this fall's industry consultation, we took note of some observations from various stakeholders. One of these is that many Canadians are in fact migrating from cable and satellite to consuming content over the Internet. In fact, you may have noticed in this morning's Globe and Mail that a “Report on Business” column talked about a reporter's own experience of how he was unplugging.
This trend is beginning to have an impact on the CMF's revenue stream. As you may know, the CMF contributions provided by cable and satellite companies are based on a percentage of their broadcasting revenue. As things shift from the regulated to the unregulated, our revenues over time will decrease.
We're beginning to see that happening now, in that the percentage of growth in the BDU revenue—and this is also included in the chart in the document we provided you—has already started to diminish. We've seen recent year-over-year growth at 10%, for 2008-09; it went down to 6% in 2009-10; this year we expect it to go down to about 2%. This decline is being seen on both the cable side and the DTH side. It's a little more dramatic, at this point in time, on the cable side.
The other source of revenue, of course, that we have is from the Government of Canada. It has remained stable at $120 million since 2006-07. In 2010-11, the current year, we received an additional $14 million, which was provided to support the expanded mandate, and it was the funding that went to the Canada New Media Fund.
As far as the impact of consolidation in the broadcast sector and the impact on the CMF are concerned, particularly in the English market what we've seen is that the share of CMF funding allocations provided through what we call “performance envelopes” is increasingly received by broadcasters who are part of one of those vertically integrated groups. The broadcasters have the ability to direct their envelopes towards productions, in addition to providing a broadcast licence, and then in turn the CMF engages and contracts with that producer. So there are fewer players directing a lot of the production.
For example, in the English market, if we look at the performance envelopes that we calculated for this year and apply what we know are probably going to be the new ownerships, including that of Bell, the broadcasters within those vertically integrated groups received 50% of the CMF performance envelopes. That includes Bell, obviously, for CTV; Quebecor; Rogers; and Shaw, for both Corus and CanWest.
When we also consider that 35% went to CBC, that leaves 15% of our English performance envelopes allocated to 10 channels that weren't part of a vertically integrated broadcast group. Obviously, that's only for channels that have a performance envelope and that we deal with.