Montreal: With public funding deadlines coming early this year, Canada’s growing coproduction community arrives at mip-tv more prepared than ever to mix it up at the spring program market.

In the first 10 weeks of 1999 alone, Telefilm Canada reports more than 60 new coproductions received advanced rulings.

With an oversubscribed crunch on for domestic programs, the need for offshore financing grows daily. Between Jan. 1 and Feb. 24, the federal funding agency had reported 55 projects with cumulative coproduction budgets of $316.3 million (48% Canadian) had received advanced ruling. Of the 55, 12 are feature films with combined budgets of $113.2 million and 43 are tv projects with aggregate budgets of $203 million.

In ’98, the Canadian coproduction tally was 72 projects with total budgets of $576.1 million, 59% from the Canadian side. The corresponding figure for ’97 was $505 million.

In trending terms, Telefilm says the high level of business with France is being sustained, or increased, with continued growth in both u.k. coproduction and in the children’s program sector, specifically animation.

Deborah Drisdell, Telefilm director, international relations, says it’s too early to project the ’99 numbers, with more business certainly to come following mip-tv. ‘A lot of people have decided to at least try for Canadian Television Fund money,’ she says.

Canada/u.k. budgets in ’98 grew to $188 million for 17 projects, up from 16 projects with combined budgets of $107 million in ’97. Projects with Germany held steady at four, for both ’97 and ’98, while coproductions with the rest of Europe declined, but increased with the rest of the world.

In 1998, half of all Canadian coproductions, 36, were with France.

In animation, Canadian coproduction projects increased to 25 in 1998, up from 20 in 1997, a nominal 25% growth rate. Total budgets for animation projects in 1998 is $206.1 million, 57% from Canadian sources. Three additional non-animation children’s projects were also coproduced in ’98 for a total of 28 children’s projects.

Summary totals in ’98 for other program categories include:

* 51 tv projects, including eight drama projects, with combined budgets of $138.1 million, 63% Canadian;

* 20 or 21 feature film projects with budgets of $198.3 million, 59% Canadian; and

* 15 or 16 documentaries with budgets of $12.7 million, 61% Canadian.

This year, as of March 12, Telefilm Canada had issued 28 advanced rulings for 1999 children’s coproductions, including 23 in animation.

In animation, Canada/France coproductions continue to dominate, but clear signs of a wider diversification have emerged, with more projects from the u.k. and Germany and good prospects for new business with Spain.

With Spain’s strong developing tradition in animation, Drisdell says more projects are anticipated.

Drisdell says there were 13 advanced rulings for documentary coproductions in the first 10 weeks of ’99. ‘The new interest in the past few years is for high-quality, international-caliber production,’ she says.

And while specialty channels are fueling demand for documentary and informational programs, Drisdell says the same programmers are in competition for higher production-value documentaries.

Treaty issues

Canada’s coproduction treaty with Germany was amended at a Mixed Commission last fall to include tv, a reduction in the minimum threshold to 20%, and a formalized ‘twinning’ arrangement. ‘The treaty revisions are `in effect’ pending ratification,’ says Drisdell.

Canada is the first country to have a tv component in its coproduction treaty with Germany, an undertaking which in many ways is exceptional from the German perspective, both in legislative and philosophical terms, says Drisdell.

While hopes are high, the German Economic Ministry has raised a flag in protest against a new $10-million ceiling or cap on ’99/2000 ctf coproduction funds. A letter to that effect has been sent to Canadian Heritage Minister Sheila Copps. At Playback International press time, the response to the German side’s concerns was still unknown.

‘We’ve worked closely with Germany for the past few years on developing this relationship so it’s a little unfortunate to be in this position,’ says Drisdell.

Canada currently has 46 coproduction treaties covering 54 countries. Other treaties or treaty revisions signed since last fall include Singapore, Spain (which now includes tv and a minimum 10% provision for inter-European coproduction), and the Philippines (covering film, tv and multimedia).

Inter-European

coproductions

The issue of financial coproduction was specifically raised in negotiations with Spain, which asked for the option of being a 10% partner in inter-European coproductions, says Drisdell.

In effect, it was decided the European Convention would prevail, leaving the Canadian producer’s contribution at no less than 20% and the contribution by eu members at 10%, but only in the case of multi-partnered or trilateral coproductions.

‘Because of the European Convention, we believe de facto this [10% minimum] would be applied, but the Spanish actually wanted it clearly indicated in our treaty,’ says Drisdell.

The combined European side continues to have a minimum 20% participation requirement because of the second European partner.

In general terms, most coproduction treaties with Canada have been revised from a 30% minimum to 20%, 15% in the case of the People’s Republic of China.

The exception is a Canada/France ‘pilot’ program restricted to French-language feature films with budgets of over $3.5 million. The minimum in these cases is 10%.

‘This was in response to the industry telling us the Quebec market could not support them becoming minority partners of big-budget French movies,’ Drisdell says.

Partnering perspectives

Decode Entertainment partner Neil Court says one of the problems in the u.k. has been a lack of available coproduction funding, ‘unlike France where a coproduction deal will trigger up quite significant amounts of funding. That’s really not the case in the u.k., although there is the lease-back arrangement that kicks up a bit of cash.’

That perception tends to be offset by significant licence or commissioning fees from both bbc and the itv network, and sometimes Channel 4.

Louis Fournier, vp sales and coproduction at Montreal-based Cinar Corporation, says the youth market in Germany has retrenched following the withdrawal of Nickelodeon and cutbacks or withdrawals in children’s fare at Super rtl and Pro Sieben.

‘France is the most prolific coproducer for Canadians,’ says Fournier. ‘Their system of subsidies is well adapted to what we do and they have a vibrant animation industry.’

Andre Belanger, president of Montreal-based Coscient’s youth and animation division, says there have been fewer complaints from the French side on the imbalance in animation coproduction expenditures.

‘There is a bit more calm around the issue now and I think that’s a good sign,’ says Belanger. ‘There was the complaint that we had too many Canadian products, but historically there has been a lot more European product within the coproduction agreements.’

U.S. interest in Europe

Fournier says the u.s. is not exempt from the international supply-side crunch. ‘The days of the network deal where they’ll finance over half of your show are gone. So they also are short of money,’ he says.

For the international producer, Fournier says the situation in the u.s. opens doors for new partnerships at the same time the u.s. is increasing its competition for European cofinancing or coventure dollars.

‘There’s an overabundance of programs, and the Europeans are doing exactly what we are doing, scouring the u.s. to find homes for their shows.’

Fournier says Canadian coproduction is growing, ‘but the business is increasingly difficult and requires more and more work.’

‘The easiest access slots pay less but there are very few slots available for the big money. So it’s very competitive.’

1999 agenda

Canada’s coproduction agenda in ’99 includes a Mixed Commission with France, tentatively set for June prior to the Banff Television Festival, and a Canada/U.K. Mixed Commission in September at the Toronto International Film Festival.

The issue of ‘expenditure balance’ is likely to be high on both agendas, says Drisdell.

Telefilm’s European office in Paris and its partners are also preparing two new Industry Immersion programs, probably for later this fall. A proposal for the u.k. would examine the potential and requirements of transatlantic screenwriting, while the immersion session with France would look at the growing documentary sector.

Other working-group meetings, including sessions with delegations from Spain and Germany, are planned for the Cannes Film Festival, May 12-23. And Drisdell says the ‘Producer Breakfast’ program (where industry players from one country meet their Canadian feature film counterparts) is also on the drawing board.

Telefilm has published a comprehensive coproduction guide – Partnerting With Canada – available for the first time at this year’s spring program market.