Telefilm Canada has introduced an online industry consultation process and is seeking comments on two major policy considerations, the proposed Service Charter for Telefilm Canada’s Clients and Standard Recoupment Policy (for CTF – Equity Investment Program-funded projects). Telefilm says the posted policies are a direct response to client recommendations, and other major policy considerations will be posted shortly.

The initial July 7 deadline for comments has been extended. Submissions should be sent to consultations@telefilm.gc.ca no later than Friday, July 25.

The agency has also published a new three-year (2003-04/2005-06) corporate plan entitled Building Audiences for Canadian Cultural Products.

Telefilm says the plan ‘is focused on one primary objective – building larger audiences for Canadian films, television programs as well as new media and music products.’

With numerous delays in the industry consultation process, Telefilm says it will push back the implementation date for its recoupment policy to the February 2004 CTF deadline.

Telefilm says the EIP recoupment policy ‘is intended to minimize negotiations between Telefilm and producers and ensure consistent recoupment practices are being applied across all of Telefilm’s offices.’

The policy is predicated on the underlying principle that the application should be ‘no less favourable, (plus or minus 5% on average), to Telefilm, producers or distributors in terms of potential share of revenue relative to historical practice, while eliminating the complexity of recoupment negotiations on a project-by-project basis.’

The policy is in part based on a modeling exercise using 46 actual projects, including projects with the highest recoupment levels and projects selected at random.

Telefilm undertook a review of all TV distribution contracts for foreign territories dating from 1997 and found that on average distribution fees were 27.75%, and that approximately 20% of the contracts reviewed had distribution fees higher than 30%.

A similar exercise was undertaken to determine average distribution expenses. Results revealed that 98% of the time there was a 10% expense cap.

Significantly, the policy also proposes, ‘The U.S.A. will remain an open territory for Telefilm and other financial participants, who will recoup pro rata pari passu in Tier 1.’

-www.telefilm.gc.ca