New media could be main beneficiaries under proposal to create “super fund”

The federal government has initiated a review of the Canadian Television Fund that could result in more equity funding and less paperwork for new media producers. In comments filed with the Department of Canadian Heritage, industry support appears to be growing for the idea of either increasing the amount of public money available for new media, or giving it a slice of $200 million spent annually by the CTF on television productions. Canadian Heritage received 33 written responses to its call for comments on the structure, operation and future administration of the CTF. Two reports issued over the past year have urged the government to streamline the CTF and make it more accountable.The television fund receives $50 million from cable operators and other broadcast distributors, $50 million from Telefilm Canada and $100 million from Canadian Heritage. Telefilm administers $100 million of that budget through its Equity Investment Program, while the CTF distributes the rest through its Licence Fee program.The Canadian Cable Television Association is emerging as one of the biggest champions for increased funding for new media. In its brief to government, the CCTA recommends that a larger share of the CTF funding pie be allocated for new media. "The CCTA recommends that new media applications that incorporate an interactive component for television be considered for funding, given the need for content development for digital television," the cable association writes. "The CTF’s record in assisting program development in specific genres such as children’s programming has been very successful. This same approach should be consciously applied to the new media area." The CCTA also wants regulatory changes that would allow cable companies to take part of the five per cent of gross revenues they’re currently required to give to the CTF and related TV production funds, and convert it to equity in new media companies (CNM, April 6/00). Other industry groups are urging Canadian Heritage to take a broader look at the whole issue of public-private sector funding for all forms of production. Of interest to Canada’s new media community is a recommendation that the CTF be replaced by a new "super fund" that would provide one-stop shopping for television, film and new media projects. "In an era of increasing convergence in media carriage and delivery systems, and cross-platform production, we see little reason for separating production financing into different funding bodies," The Canadian Film and Television Production Association (CFTPA) states in its Sept. 15 comments to Canadian Heritage. This new agency, it adds, would be responsible for managing all public and private funds, whether they be equity, licence fee top-up or other mechanisms. The CFTPA suggests two possible models – one that would create a new not-for-profit company, or one that transforms Telefilm into an organization more akin to the CTF, with private sector representatives on its board of directors. The idea has merit, particularly for new media producers frustrated with Telefilm’s loans-based model for project funding. The proposed new funding models would likely give multimedia producers access to more money – including equity capital – and provide them with a stronger voice in how such funds are administered. The Interactive Multimedia Producers Association of Canada (IMPAC) has been lobbying for months to have Telefilm’s $30-million multimedia fund changed to an equity-based model – like the CTF. Industry insiders have also expressed frustration at the slow pace of those discussions, which were expected to have been concluded by early summer (CNM, May 31/00). How the government proceeds immediately will be limited by timetables. The CTF’s current funding mandate expires March 31, 2001, so at a minimum, the government is expected to renew its funding for another year, and provide some interim measures to make it more accountable. The idea of creating a "super fund" will likely require more thought, and more consultation. In a legal opinion prepared for the CFTPA, lawyer Bob Buchan says the federal government may prefer a model that puts Telefilm – a crown corporation that is directly accountable to government – in charge of hundreds of millions of dollars in public and private sector money. "We believe it is unlikely that the federal government, if it is planning to alter the future direction and possibly the organizational structure of the CTF, would want to see programs representing discretionary disbursements of approximately $200 million per year managed and administered over an indeterminate period by a private sector corporation, even one that is not-for-profit." He also notes that the Canadian Film Development Corporation Act (which governs Telefilm) would have to be "radically overhauled" if Telefilm were to become a single federal funding agency for TV, film and new media.

New media could be main beneficiaries under proposal to create “super fund”

Broadcast | October 18, 2000

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