Telefilm Canada’s Talent Fund, the Shaw Rocket Fund and the Bell Fund are among the Certified Independent Production Funds (CIPFs) eligible to receive base contributions from foreign online streaming services for diverse and official language minority communities (OLMCs).

On Friday (Aug. 8), the Canadian Radio-television and Telecommunications Commission (CRTC) confirmed that six CIPFs were approved: the Bell Fund, the Independent Production Fund, the Telus Fund, the Quebecor Fund, the Talent Fund and the Shaw Rocket Fund.

The funds come from the CRTC’s decision in June 2024 to have eligible foreign-owned online undertakings contribute 5% of their Canadian revenues to the broadcasting system. Of the 5%, 0.5% (or roughly 10% of overall contributions) were to be provided to CIPFs with envelopes supporting diverse producers and producers in OLMCs.

The remaining contributions are targeted to the Canada Media Fund (CMF) and other Canadian funds. A total of 2% will go to CMF, 1.5% to the Independent Local News Fund, 0.5% to the Indigenous Screen Office Fund and 0.5% to the Black Screen Office Fund, the Canadian Independent Screen Fund for BPOC creators and the Broadcasting Accessibility Fund.

While the decision confirms which funds are eligible, the CRTC noted that eligibility does not guarantee funding, as foreign-owned streamers were given the flexibility to determine which CIPFs would receive their contributions.

Despite that, all eligible CIPFs must still have an envelope directed to diverse and OLMC producers encompassing 10% of their annual budgets. The CRTC said the envelopes must be established by Oct. 7, with or without receiving contributions from foreign-owned streamers. In its decision, the Commission said that the reasoning is that the Broadcasting Act policy’s intent is “to incentivize change within CIPFs.”

The first wave of contributions is due on Aug. 31. However, its decision is currently being considered by the Federal Court of Appeal after a number of parties, including Amazon, Spotify and Motion Picture Association – Canada, filed a motion to appeal. On Dec. 24, 2024, a judge issued a stay of payments until a ruling was handed out. A ruling had not been made as of press time.

In light of the tentative funding, the Shaw Rocket Fund requested that its envelope be determined by 10% of funding received rather than its annual budget. The Fund argued that, since it is poised to lose its annual funding from Rogers this year, it cannot commit to allocating 10% of its budget without certainty that it will receive contributions from eligible streamers.

The CRTC rejected the proposal, arguing that it would “diminish support for equity-deserving groups,” since that would remove admin and other non-programming budgetary expenses from the overall 10% envelope calculation.

Ellen C. Desmond, commissioner for the Atlantic Region and Nunavut, published a dissenting opinion on the matter. She argued that forcing the Shaw Rocket Fund to establish the new envelope under its tenuous funding circumstances is “untenable and contrary to good governance practices.”

She added that requiring CIPFs to create the envelope in the next 60 days “creates a barrier for some CIPFs, such as the Rocket Fund, as opposed to an incentive for change.”

Shaw Rocket Fund president and CEO Agnes Augustin told Playback Daily in a statement that the board of directors is reviewing the CRTC’s decision, noting that Rogers has confirmed its funding will cease at the end of this month.

“We are very pleased that the CRTC has made its decision that Rocket Fund can be an eligible CIPF to receive base contributions, subject to some conditions,” said Augustin. “As stated in our application, the Rocket Fund fully endorses the Commission’s goals to support the needs and interests of OLMCs and Canadians from diverse communities. The Rocket Fund has a long-standing record of successfully prioritizing such programming for many years within the Canadian children’s and youth media sector, without a dedicated envelope.”

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