Notwithstanding these successes and in the face of the profound changes confronting the music industry, FACTOR has completely overhauled its programs and systems. We began with consultations with Canadian Heritage and the music industry in 2012 and launched the new system in the spring of 2013.
In our new system, we ask music company applicants to submit revenue reports based on their exploitation of master rights to recordings. This includes revenues from all sound recording sales, including digital sales and placements in ads, TV, and film. We then rank companies based on that revenue and fund them according to their national standing. This has replaced rankings based entirely on the physical sale of CDs.
For artists, we created a national ranking based on an aggregate score on 17 separate measures of achievement. An artist's ranking on this scale determines their eligibility. This inclusive approach attempts to reflect how today's artists build their audiences and careers and position themselves for commercial success. Included in this assessment are live performance dates completed and booked, their social media success, press notices, placements in ads, films and TV, the strength of their marketing team, and sales of recordings in all forms.
Companies and artists then apply through our programs for support. FACTOR plays a critical role in providing early-stage financial assistance to Canadian artists and music companies. FACTOR operates on a merit system whereby applications are judged by a national network of juries composed of more than 1,000 music industry professionals.
In our demo program, we provide grants of $1,500 to record a single or demo track that can be used by artists to help promote themselves and professionalize their work. Any artist can apply to this program, provided they submit the requisite materials to our juries. In 2012-13 we funded 215 such projects. In the past year some 279 have received financing under this program, a 30% increase.
At the next level, our full-length juried sound recording programs allow many first-time applicants who wish to create a full-length recording to compete for support in a program that is also juried. Once approved, artists or their representative companies can access additional marketing, showcase, touring, and video funding. In 2012-13, 131 such projects were funded; this number rose to 141 in the past year.
Beyond this level, we provide comprehensive support to more established companies and artists for a funding package comprising a sound recording, marketing and promotion, showcases and touring, and videos, both traditional and digital. Support can be as much as $150,000 in matching funds per project.
It is also notable that this support and all support for sound recording projects is given in the form of matching funds, which are forgivable loans, repaid based on the overall commercial success of the project. Repayments have averaged about 20% in past years. Overall, FACTOR approved 513 sound recording projects in 2013-14, 234 of which were full-length sound recordings. I should note that sound recordings can also be released exclusively on a digital platform.
Although FACTOR supports the production of sound recordings as a primary investment amounting to about $4 million per year, the bulk of the overall budget is allocated to marketing, promotion, touring and showcasing, and videos, with $6.5 million spent on marketing, almost $3 million on touring and showcasing, and $400,000 on videos both digital and traditional.
To support the export of Canadian works, we allow half of any marketing budget to be spent outside of Canada. Additionally, $2 million of the $3 million in touring and showcasing support is spent in international markets. This ratio is growing as FACTOR sees more demand for live performance support outside of Canada.
Our funding is pan-Canadian. In the year 2012-13, we supported artists, companies, and projects in and from all provinces and territories. With respect to submissions and approvals, some 52% of projects were approved nationally. On a provincial basis, most achieved a success rate within 5% of that number. Only Saskatchewan, at 42%, and the territories, at 22%, fell outside of that range.
We also support a network of regional education coordinators with an annual grant of $360,000. They provide local guidance to artists in their region who wish to access FACTOR programs.
FACTOR also supports a wide variety of collective activities intended to celebrate our achievements, enhance the domestic and foreign market potential of artists and companies, and subsidize business development costs. There are four such Canada Music Fund collective initiative programs, which we administer, each with a specific goal in mind.
The largest component supports major awards and conferences, such as the Junos, Canadian Music Week, North by Northeast, Polaris, M for Montreal, POP Montreal, Sled Island in Calgary, the Halifax Pop Explosion, the Manito Ahbee aboriginal festival in Winnipeg, BreakOut West, and many more from all across the country, including Yukon and the Northwest Territories. These projects also receive substantial financial support derived from radio CCD contributions.
Other components include support for marketing on digital platforms, export showcases, and official language minority showcases.
We also have a $450,000 sponsorship fund that underwrites more than 60 smaller events per year, which are outside the scope of the collective initiatives, and it's funded exclusively by private radio. Recipients have included the Lunenburg Folk Harbour Society, the Alianait Arts Festival in Nunavut, the Interstellar Rodeo in Edmonton, and MusicFest Canada, a national competition focused on young artists in classical, jazz, and choral ensembles.
FACTOR staff continue to work with our federal government partners to improve our programs and services. Today, wherever an artist lives in Canada, we have a program available to help them at each stage of their career. Ultimately, we are in the business of helping the industry do what it does best: create, market, and export great Canadian music. Canadian music is one of our greatest national exports and a huge source of pride for all Canadians from coast to coast to coast.
We are very honoured to be entrusted with such an important role in ensuring this impressive legacy continues for many years to come.
We welcome your questions.