Federal Heritage Minister James Moore, on the Toronto set of Flashpoint to announce the rebranding of the Canadian Television Fund, joked that cast member Enrico Colantoni promised not to lob a grenade in his direction if he said something disagreeable. But it turns out the minister lobbed a few grenades of his own, as he outlined Ottawa’s fix for TV financing: to support more ratings-driven Canadian content on more digital platforms with a rebranded $310-million Canada Media Fund, which merges the existing CTF and the Canada New Media Fund.

The announcement raised as many questions as it answered, however, primarily due to suggestions that broadcasters would be able to access funding for in-house productions, and because it would be headed by a new, smaller board, consisting of seven members – five of whom would represent the fund’s largest cable and satellite contributors.

That particular part of the announcement hasn’t gone over well with some. Stephen Waddell, national executive director of ACTRA, said giving cable and satellite operators control of five board seats is ‘like putting the fox in charge of the henhouse, especially if the board maintains the power to make funding decisions.’

Moore said the CTF and the digital-oriented CNMF will be combined into the CMF by April 2010. Ottawa will contribute no new money to the replacement fund, putting in $134.7 million, with the rest coming from domestic cable and satellite TV providers.

Moore said he wants to see content funded by the CMF streaming on the Internet and mobile platforms. ‘The future is digital,’ said the 32-year-old minister. Applicants to the CMF will need to offer at least two distribution platforms, including TV, for projects to receive subsidies. Acceptable platforms include webisodes, interactive games and podcasts.

The CMF’s early focus will be on funding dramas, comedy and kids programming, and the heritage minister urged that CMF-funded shows use ‘predominantly Canadian talent,’ including writers, directors and performers – vague wording that portends a possible greater use of foreign talent in future productions.

Other surprises: the CBC will no longer receive a guaranteed envelope from the revamped fund. The pubcaster will be forced to compete with rival broadcasters for CMF financing. Broadcasters will also be able to access funds for in-house production.

‘The realigned fund will favor projects that have achieved and demonstrated the most potential to achieve success, in terms of audience and return on investment,’ Moore said of the new ratings-driven investment criteria.

Judging by the wide smiles on Rogers Communications’ Phil Lind and Quebecor’s Pierre Karl Péladeau at the press conference, the cable and satellite providers liked what they heard. Moore’s fix promises them far more say over which homegrown shows receive CMF subsidies. ‘It’s pretty good news,’ said Péladeau. ‘The industry will be more efficient.’

It was threats in December 2006 by Quebecor-owned Videotron and rival cablecaster Shaw Communications to end their required CTF payments that first prompted Ottawa’s review of the industry fund.

Moore said the CMF will be subject to guidelines – funding decisions will be based on ratings as well as the seven-member board.

In opting for the CMF, Moore ignored a June 2008 CRTC recommendation that the CTF be split into dual funding streams, one for private networks and another for non-profit broadcasters.

The CTF and the CNMF will remain in place until the CMF is up and running in April 2010.

Envelopes grow for 2009/10

In the meantime, the CTF will dole out $285 million to producers and broadcasters for 2009/10 – an increase of about $10 million over last year, reflecting greater BDU revenue recently – according to recently unveiled Broadcaster Performance Envelopes. English-language TV will receive the lion’s share of the money at $194 million, while the funder allocated $91 million to the French side. Genres supported by the fund are drama, children’s and youth, variety and performing arts, and documentary.

The CTF has designated $98 million for English drama, compared to $88 million last year, followed by children’s and youth with $32 million. Documentaries collected $28 million, while variety and performing arts received $3 million. Drama is also the largest recipient on the French side at $41 million.

As usual, independent productions airing on CBC are the top collector of CTF cash at $71 million, with $47 million earmarked for drama. The second-largest envelope belongs to CTV’s main network at $16 million – on par with last year – followed by Canwest’s Global and E! networks, and its specialty channel Showcase with $10 million each. Astral Media’s Family Channel obtained $9 million.

Meanwhile, Radio-Canada, with $33 million, commands most of the money on the French side, followed by TVA with $21 million, and cabler Canal D with $5 million.