Montreal: Higher caps on big-budget drama series and significantly more money for program development are among the major changes to Canadian Television Fund guidelines in 2002/03.

The new CTF guidelines also introduce a series of incentives for small and medium-sized production and distribution companies, worth more than $11 million. One of the biggest changes in Equity Investment Program regulations permits broadcast-affiliate distributors to distribute on EIP-supported projects, subject to a number of safeguards.

In an effort aimed at countering financing difficulties for big-budget drama series and TV movies, Licence Fee Program guidelines for 2002/03 increase the maximum contribution levels, from 33% to more than 50% in the case of a one-hour drama series, on a one-year trial basis. At the same time, the overall LFP and EIP funding allocation for drama, relative to other genres, is being reduced by approximately 10%, which could mean more money for fewer projects depending on how overall CTF resources play out in the year ahead.

The reduction reflects an averaged-out decline in demand for drama funding on the English side over the past three years and a transfer of youth drama funding from drama to a newly expanded children’s and youth category. Demand for French-language drama funding has not decreased, while demand, and next year’s allocation, in other program categories, including children’s and youth and documentaries, are up.

Louise Baillargeon, LFP VP, says the increased support for big-budget drama series and MOWs, and drama in general is meant to counterbalance higher production costs, including increases in wages and location expenses, and a general decline in international presales.

‘If we don’t raise our caps producers won’t be able to finance high-budget drama series and these really are the programs in competition with the foreign series we see on our airwaves,’ she says.

Baillargeon points out the actual dollar allocation for drama won’t be known until the overall CTF funding level for 2002/03 is determined.

‘It might mean there will be one less series made, but those that are made will be done with the necessary budget,’ says Baillargeon, adding: ‘If we are renewed but at a lesser rate, or not renewed, we will have to review the guidelines. All the guideline are conditional on [government] renewal at the same rate as last year.’

Broadcaster-distribs

The safeguards for the new broadcaster-distributor program are meant to ensure ‘fair dealing’ with producers and other distribs in instances where the distrib is part of the broadcast group triggering CTF funding. The guidelines state distribution negotiations must be separate from licence fee negotiations and take place at a later time (at least two weeks), while the producer may approach other distributors without penalty or reprisal on the part of the broadcaster. Furthermore, the broadcast-distributor is prohibited from soliciting information from the broadcaster resulting in ‘an undue advantage.’

Telefilm Canada will review the program annually and is charged with enforcing safeguards, which includes the authority to disqualify a distributor for up to two years.

Drama changes

In English-language drama, the allocation is 62.3% of EIP funds, down from 69.9%, while LFP’s drama allocation drops to 52.3% from 63.8%. The EIP percentage allocation by genre anticipates a 10% ‘margin of flexibility.’

As a countervailing measure aimed at encouraging dramatic production, LFP has increased its maximum contribution caps for both English- and French-track big-budget drama series.

In one-hour drama, the EIP cap is set at $185,000 per hour up to $2.4 million per series.

The LPF top-up and cap for SME’s producing 13 hours or less is increased to $275,000 per hour up to $3.6 million per series; $250,000 per hour up to $3.3 million for large companies. Over 13 hours, the maximum series cap for SME-produced series is $5.1 million, $4.7 million for large companies.

The minimum (base) LFP contribution for MOWs increases to 17% of the budget from 13%, up to $750,000.

There are also new incentives for French teleromans producing 26 to 32 episodes.

SME incentives

Both EIP and LFP will introduce new pilot incentives for small and medium-sized producers and distributors, worth an estimated $11 million or more in 2002/03.

On a one-year trial basis, LFP’s bonus calculation for SME producers increases to 3% from 2%, representing $6.5 million in additional support. EIP support for script development increases $2 million to $6 million, available exclusively to SME producers. The existing overall development cap per company is abolished. Telefilm is also expected to announce a new $3-million distribution initiative.

In the Aboriginal-languages module, the LFP envelope increases 50% to $1.5 million while EIP holds at $1 million.

The new CTF guidelines will support new media costs as part of TV production budgets if the new media component is deemed fully integrated, contributes value-added content, and is non-promotional.

Guidelines for the CTF feature film module will be published shortly.

-www.canadiantelevisionfund.ca