Industry lobby demands larger cut of Canada Media Fund for interactive projects

The Canadian Interactive Alliance (CIAIC) is calling for more public funding for the interactive digital media industry when the Canada Media Fund becomes operational next year. The Alliance is requesting at least 15%, or about $54.6 million, of the $364 million earmarked for the CMF. CIAIC president Ian Kelso issued the demand in answer to a request from the Canadian Television Fund for written submissions on key issues to guide the CMF when it becomes operational on April 1, 2010. “There can be no doubt that Canadians are spending more and more time playing and that Canada needs to develop an economy that supports the creation of high-production value Interactive Media intellectual property in genres such as video games,” said Kelso, in a statement. The CMF, which is an amalgamation of the Canadian Television Fund and the Canadian New Media Fund, kicked off a consultation process early last month. Some 52 stakeholders submitted written responses by the Sept. 4 deadline. Some key points the CMF is seeking input on include programming allocations, audience success and returns on investment, marketing and promotion, and entities that are eligible for performance envelopes. Kelso said there is a lot of “latent” demand for public sector funding for the industry because it is growing and contributes to the Canadian economy. Its revenues for last year stood at $3.8 billion compared to $5.2 billion for film and television, according to figures from CIAIC. Nearly half of the Canadian population play video games and 92% of parents report their kids as being avid video game players, Kelso said in the submission. The industry now has 3,000 active companies employing 52,000 Canadians. Taking a potshot at the CNMF, Kelso said that while it was a much-needed fund for the industry, its limited budget, which restricted contributions to a maximum of $550,000 per project, was ineffective for larger projects that require more cash. The average minimum CNMF contribution for last year was capped at slightly more than $100,000, according to the CIAIC. “High quality, commercially viable interactive digital media (IDM) content requires higher budgets,” Kelso wrote. Additionally, Kelso said that although the production of high-quality next generation video games costs less than the average film project—$15 to $30 million—“returns can and have exceeded some of the highest box-office grosses.” “Like high-quality drama, high-quality interactive digital media projects need to be funded at higher scales to achieve reach and return. Larger scale projects funded by the CMF that become hits could be able to re-invest in the system,” the CIAIC submission states. Kelso also took issue with CTF for using the term “experimental” to describe a funding stream for new platform products and services, noting that there is a “negative” connotation to the term because it suggests that the interactive industry is a money-losing venture. “IDM is a diverse industry in both its presentation and its business models: while some parts of it are on the “bleeding edge,” others are mature and viable,” he wrote. While calling on the CMF to allocate 15% of its funds for the interactive digital media industry, Kelso also suggests that the minimum cap be raised to $5 million per project.

Industry lobby demands larger cut of Canada Media Fund for interactive projects

Broadcast | September 9, 2009

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