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Telefilm Canada Corporate Plan

VIEWS: 26 PAGES: 30

									 Telefilm Canada
  Outreach 2005

   TELEVISION

www.telefilm.gc.ca
AGENDA – TELEVISION 2005/06
1: INTRODUCTION

2: ENGLISH DRAMA PRODUCTION

3: ABORIGINAL LANGUAGES FUND

4: FRENCH-LANGUAGE PROD. OUTSIDE QUEBEC

5: BUSINESS POLICIES

6: ENGLISH & FRENCH DEVELOPMENT

7: BUSINESS POLICIES ON WEBSITE

8: DEADLINE CALENDAR
  ENGLISH DRAMA PRODUCTION
                KEY CHANGES:

1. Completeness of Application Policy:
   a. Sufficiency of Creative Materials
   b. Viability of Financing
2. New Audience Measurement Approach
3. Broadcast License Issues
   a. Calculation of Broadcaster Interest
   b. License Terms and Conditions
4. Expanded Marketing Plan Requirements
5. Flexibility in Decision Making Process
   COMPLETENESS OF APPLICATION
Completeness of Application:
• Unchanged (6 key documents)
• Marketing plan deadline is 1 week later
Sufficiency of Creative Materials:
• Minimum documentation requirements by
   format
• Ensure best projects are financed with public
   funds
Viability of Financing:
• Definition of unviable financing source
• Demonstration of viability
        AUDIENCE MEASUREMENT


• Rewards projects with the potential to have
  highest Total Viewing Hours in Prime Time
• Acquisitions and day-time airings no longer
  count
• The track record of the broadcasters in English
  Drama in achieving TVH in prime time in the
  past 2 broadcast years will be published.
• Audience score of a project is based on
  cumulative TVH track record of all English-
  language broadcasters in the financial structure
  relative to all other complete applications.
          BROADCASTER INTEREST
• License Trigger Thresholds are unchanged for all
  formats
• Broadcaster Interest Points:
   – Low budget drama (<$800,000/hr) – the licence fee
     required to achieve the maximum broadcaster interest
     points has increased to the lesser of a licence of
     $315,000/hr or 45% of budget
   – Big budget drama (>=$800,000/hr) – the licence fee
     required to achieve the maximum broadcaster interest
     points has increased $315,000/hr (except MOWs and
     mini-series)
   – New separate calculation for MOWs and mini-series
       BROADCASTER INTEREST (cont)
                                                      Broadcaster
                                     Broadcaster
                     Licence Fee                        Interest
   Budget Size                         Interest
                      Threshold                        Maximum
                                      Step-ups
                                                         Points
   <$800,000 /hr     25% of budget    1% = 1.5 pts    45% of budget
   Low Budget                                         or $315,000/hr


   >=$800,000 /hr     $240,000/hr     $2,500 = 1 pt    $315,000/hr
    Big Budget
  (ex MOWS/MS)


MOWs / Mini-series
  <$1,857,143 /hr     $240,000/hr     $2,833 = 1 pt   $325,000/hr
 >=$1,857,143 /hr     $240,000/hr    (see Appendix) 17.5% of budget
  Points calculations for Licence Fees over Threshold [MOWs and Mini-series]
          Production budgets <= $1,857,143/hr Production budgets > $1,857,143/hr
Points          Total License Fees/Hour         Total License Fees As % Of Budget
  0                  240,000 $                               12.9%
  1                  242,833 $                               13.1%
  2                  245,667 $                               13.2%
  3                  248,500 $                               13.4%
  4                  251,333 $                               13.5%
  5                  254,167 $                               13.7%
  6                  257,000 $                               13.8%
  7                  259,833 $                               14.0%
  8                  262,667 $                               14.1%
  9                  265,500 $                               14.3%
 10                  268,333 $                               14.4%
 11                  271,167 $                               14.6%
 12                  274,000 $                               14.8%
 13                  276,833 $                               14.9%
 14                  279,667 $                               15.1%
 15                  282,500 $                               15.2%
 16                  285,333 $                               15.4%
 17                  288,167 $                               15.5%
 18                  291,000 $                               15.7%
 19                  293,833 $                               15.8%
 20                  296,667 $                               16.0%
 21                  299,500 $                               16.1%
 22                  302,333 $                               16.3%
 23                  305,167 $                               16.4%
 24                  308,000 $                               16.6%
 25                  310,833 $                               16.7%
 26                  313,667 $                               16.9%
 27                  316,500 $                               17.0%
 28                  319,333 $                               17.2%
 29                  322,167 $                               17.3%
 30                  325,000 $                               17.5%
      BROADCASTER INTEREST (cont)
•   MOW Example 1:
    – Budget - $3,500,000 (or $1,750,000 per hour)
    – Per hour budget less than $1,857,143 so we use the
      $ step up scale
    – Licence fee is $325,000 per hour - 30 points
•   MOW Example 2:
    – Budget - $4,000,000 (or $2,000,000 per hour)
    – Per hour budget greater than $1,857,143 so we use
      the % step up scale
    – Licence fee is also $325,000 per hour, but the
      calculation is based on budget percentage.
    – Since licence totals 16.5% of the budget - 23 points
    LICENCE FEE TERMS AND CONDITIONS
•   Licence amount used in calculation of Broadcaster
    Interest is based on a Maximum Term of 5, 6 or 7 years
    depending on total licence fees committed to the
    project.
•   English-language broadcasters will no longer be
    allowed to take French-language rights for MOWs
•   Only English-language licences will be taken into
    account for meeting threshold and in the calculation of
    broadcaster interest points and determination of the
    Audience score for all formats and budget levels
•   Additional rights (i.e. rights taken by broadcasters that
    may not be acquired) – see Guidelines for an updates
    and clarifications to the Policy.
    LICENCE FEE TERMS AND CONDITIONS

Example 1
                                 7
•    License A: $240,000/hr;
                                 6
     7-year period; 3 years
     non-exclusive               5
•    License B: $75,000/hr; 3
                                 4
     year period commencing
     1 year after License A      3

•    Total license:              2
     $315,000/hr; Maximum
                                 1
     License Term: 7 years
                                year   A   B
    LICENCE FEE TERMS AND CONDITIONS
                               7
Example 2
                               6
•    License A: $75,000/hr;
     18 month period           5
•    License B: $240,000/hr;
                               4
     5 years-6 months period
     commencing 1 year after   3
     License A
•    Total license:            2
     $315,000/hr; Maximum
                               1
     License Term: 7 years

                                   A   B
    LICENCE FEE TERMS AND CONDITIONS
                                8
Example 3
                                7
•    License A: $240,000/hr;
     7 year period              6
•    License B: $75,000/hr; 7
                                5
     year period commencing
     1 year after License A     4
•    Total license:
                                3
     $315,000/hr; Maximum
     License Term: 8 years      2

                                1

                                    A   B
                  CONTENT


•   Evaluation principles unchanged

•   Marquee has been moved to Marketing
                     MARKETING
•   Expanded marketing plan requirements
•   Your marketing plan should detail an effective strategy
    for reaching the target audience with an appropriate
    range of tools, and include the following elements:
     – Target audience,
     – Marquee,
     – Media Mix;
     – Publicity; and
     – Previous Campaigns.
•   Only customized marketing plans that address the
    particular project will receive top scores. Plans should
    be developed and endorsed by both the broadcaster and
    producer.
   Flexibility in Decision Making Process

• Evaluation Grid Criteria [unchanged]:
    -   Broadcaster Interest   30 points
    -   Audience               30 points
    -   Content                30 points
    -   Marketing              10 points


• The Evaluation Grid as a Tool:
   - evaluation of application package
   - initial ranking of projects in national comparative
       process
    Flexibility in Decision Making Process
Flexibility and Judgment:
•   Telefilm will use its judgment to achieve a balanced
    portfolio of projects best able to reach Canadian
    audiences with high quality programming
•   Use of flexibility could result in Telefilm not investing in a
    project otherwise prioritized solely based on the
    evaluation grid.
Local Evaluations:
•   Up to 10% of the English Drama funds for Regional
    Comparatives
•   Relatively small requests, innovative, emerging talent,
    regional stories or points of view, underrepresented
    communities, etc.
     ABORIGINAL LANGUAGES FUND

ELIGIBLE APPLICANTS
•   The individual producer must own a minimum of 51%
    of the production company (NEW) and copyright in the
    production.


DEVELOPMENT FINANCING
•    Up to 10% of the CTF's Aboriginal-language
    production envelope will be set aside for development
    financing.
•   (NEW) If there is a surplus in development fund, we
    will consider special initiatives targeted to
    professional development.
FRENCH LANGUAGE PRODUCTIONS
     OUTSIDE OF QUEBEC

CHANGES:
•   Licence Fee Thresholds have increased from
    15% to 20% for French Language Drama
•   Level of CTF Participation under this special
    initiatives stream for Drama has increased from
    $900,000 to $1,200,000
•   To improve the level of co- productions with
    French Quebec producers or with a non-eligible
    outside Quebec producer, flexibility in eligibility
    has been added
          BUSINESS POLICIES


• Treatment of Tax Credits

• Standard Recoupment Policy
               TAX CREDITS

• Provincial and Federal tax credits are not
  required to be within the financial structure but
  are usually needed to close the financial
  structure for dramatic programming,
  particularly if financed solely within Canada.
• Applicants must demonstrate a closed financial
  structure with confirmed financing that
  includes sources from outside of Canada or
  Canadian distribution advances for foreign
  territories to keep tax credits outside of the
  financial structure - otherwise the CTF will
  reduce its participation.
               RECOUPMENT

• The Standard Recoupment Policy 2005/06 will
  be published soon;
• No major changes;
• Primarily clarification of policy and business
  affairs issues;
• If your distribution arrangement/recoupment
  proposal does not fit into the Models outlined in
  the Policy, or you have an International co-
  production with a distribution advance, please
  contact the Telefilm office in your region for
  further information in advance of your
  application.
    BUSINESS POLICIES ON THE WEB

www.telefilm.gc.ca (under Funds and programs/Business policies)
•    Standard Recoupment Policy

•    Completeness of Application Policy

•    Producer’s Fees & Corporate Overhead Policy

•    CTF Chain of Title Assessment

•    Deferrals safeguards

•    Treatment of Tax Credits (now included in Main Document)

•    Completion Protection Policy

•    Default Policy

•    Accounting and Reporting Requirements

•    Policy regarding outside readers
    ENGLISH TV DEVELOPMENT

English-language TV development has been
completely restructured in order to focus on the
following objectives:
· the reduction of administration costs;
· giving the marketplace a significant voice in the
   process;
· focusing on audiences; and
· ensuring the best quality projects are financed.
ENGLISH TV DEVELOPMENT


 Two streams of funding:

AUTOMATIC COMPONENT

SELECTIVE COMPONENT
     ENGLISH TV DEVELOPMENT

            Automatic Component
• Single broadcaster at or above 50% of budget
• First come and first served -- regionally
• No deadlines and no creative assessment
• Telefilm’s contribution will be up to 50% of the
  budget up to a project cap of $100,000 ($200,000
  for big budget series)
• Limited to a maximum percentage of total
  resources
      ENGLISH TV DEVELOPMENT

                Selective Component
•   Broadcaster < 50% of budget or multiple broadcasters
•   Thresholds unchanged (Drama 20%; Other genres: 15%)
•   There will be three deadlines (specific dates to be
    approved by the CTF Board)
•   Decisions will be based on a regional comparative
    process
•   Criteria: content, creative team, potential for audience
    success
•   Telefilm’s contribution will be up to 60% of the budget up
    to a project cap of $100,000 ($200,000 for big budget
    series)
     FRENCH TV DEVELOPMENT

• No major changes to French development as
  was revamped in 2004-05
• Threshold for drama and pilots (all genres)
  raised to 25% of budget
• Selective process based on criteria with 3
  deadlines during the year
• French development funds will be reserved for
  each application deadline, subject to demand
• All applications submitted to Montreal office of
  Telefilm
    TV DEADLINE CALENDAR
      ENGLISH DRAMA: MARCH 2ND, 2005


ABORIGINAL LANGUAGES and FRENCH OUTSIDE
                QUEBEC:
                MARCH 16TH, 2005


          ENGLISH TV DEVELOPMENT:
             To be announced shortly


             Guidelines and Policies at:
www.telefilm.gc.ca and www.canadiantelevisionfund.ca
        TO CONTACT TELEFILM

• [each office to include local team and contact
  information]

								
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