CNM Update

Telefilm announcement significantly changed new media funding guidelinesTelefilm Canada finally announced details about its new Canada New Media Fund late Dec. 6 to replace the default-ridden loans-based assistance program that preceded it. While little in the new fund will come as a surprise – Telefilm officials have been touting the new fund at conferences since this summer, and draft guidelines produced this fall have fallen into wide circulation – some industry observers will likely take interest in several notable changes from a preliminary version. Significant changes between September’s draft guidelines and the final policy are examined below. Canadian NEW MEDIA will explore the implications of those, and solicit industry feedback, for its next edition, to be published mid-next week. A media release announcing the fund, and a webcast slated for Dec. 13, can be viewed at http://www.telefilm.gc.ca/en/gen/qdnfcomm/c011206.htm. Proposed deadline dates for product assistance, which included a Nov. 12 round and another on Jan. 28, has been moved up to Jan. 7, while the November date, because of delays in releasing the guidelines, was eliminated altogether. Next year, however, dates have been changed from April 22, Sept. 3 and Dec. 16, from a proposed schedule of May 6, Sept. 3, and Jan. 13. The deadline for distribution assistance, which had been slated for Nov. 12, has been moved to Jan. 7/02. As had been proposed, there are no deadlines for sectoral assistance, applications for which will continue to be accepted on an ongoing basis. Several changes have been made to the proposed eligibility for applicants to the fund’s production assistance. Gone is wording that opened the fund to "offline publishing or online operating companies" contained in the original draft proposals, as is a guideline that applicants "operate principally as a new media entity." Wording that had given priority to SMEs has been strengthened, however, and the eligibility guidelines on that subject now include a stronger paragraph reading: "Telefilm Canada intends to give priority to applications from small and medium-sized production companies by reserving for them a minimum of 75% of the Product Assistance financing available and enhancing their score in the evaluation grid". The evaluation grid now includes a line which indicates SME status will increase an applicant’s total score by 10 per cent. Further, the eligibility appears to have been broadened to now include all "Canadian private companies actively involved in new media content development, production and distribution". Wording that included "independent" alongside private companies has also been eliminated, likely an attempt to clarify potentially confusing language. Wording governing eligible products has also been changed slightly to now include game cartridges. A requirement that product components be 75% Canadian, however, has been retained. A small change has been made in Telefilm’s rules for multi-phase financing. Draft guidelines were modified to include the combination of pre-development support with other phases, including the addition of a new guideline for the combination of pre-development and development support, which won’t normally exceed the lesser of 50% of the aggregated pre-development and development budget, or $100,000. Otherwise, the schedule for combining different phase support remain substantially the same. Repayment guidelines have also been substantially re-worded. For projects in the pre-development and development phases, there are apparently no longer provisions to put off the repayment of the loan if further Telefilm assistance continues to be used. Multi-part guidelines governing repayment of those loans has been replaced in the current guide with the curt statement that: "Such advances must be repaid upon commencement of the production of the product or upon the transfer, sale, reversion of rights, assignment or other disposition of the developed material." For loans on the production, marketing and distribution phases, wording has been tightened from the vague rule that investments will be repaid according to gross revenues "generated" by the project to revenues "received or receivable." For distribution assistance, language has also been changed from the draft guidelines to remove the requirement that applicants "operate principally as a new media entity." Two prominent Canadian industry events are no longer mentioned as qualified for distribution assistance (such as participation in umbrella stands). While Cannes’ MILIA, E3 in Los Angeles, and London’s European Computer Trade Show continue to be listed in the final guidelines, MIM in Montreal and the Baddeck International New Media Festival have been dropped. There is no indication, however, that applicants applying to participate in those shows will be denied, but many are likely to look askance at the de-listing of those events from the draft to final guidelines. For sectoral assistance, eligible applicants have again been modified to omit the requirement that they operate principally as a new media entity. The new guidelines also contain an annex, the expected loan agreement conversion policy. As expected, the fund now has provisions to move those companies that had received straight loans – not the new loans repayable against revenue – to the new program. Parties wishing to take advantage of those provisions, however, are advised to hop to it. Telefilm has set a Jan. 15, 2002 deadline for application. Telefim makes top appointment officialAlready public knowledge after leaks to the national media, Telefilm has made official its two top appointments. Charles Bélanger will assume the position as chair of the board in Feb./02, and Richard Strursberg will take over as executive director on Jan. 1. Both are broadcast veterans.

CNM Update

Broadcast | December 7, 2001

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CNM Update

Broadcast | December 7, 2001

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