avril 7, 2016
The CMF held a webcast last Tuesday to present the recent changes in the program guidelines and respond to producers questions.
Highlights from the CMF 2016-2017 Guidelines
The CMF announced the allocation of its $371.2M program commitment, guidelines and deadlines earlier this week. This is the CMF Summary of Changes 2016-2017 and below are some highlights. The changes are largely reflected in the recommendations in the evaluation of the CMF by Canadian Heritage published earlier this year.
On Screen Manitoba is pleased to note that as requested, the top-up licence fee in the English Regional Production Bonus was increased from 10% to 15% (to a project maximum of $1M).
Other changes to the ERPB include: the maximum amount any one province can access is 35% of the total fund (up from 30%) and any funds remaining after the first window will be made available only to those provinces, which have not accessed the maximum amount. Note that the definition of regional production is now “the overwhelming majority of principal photography” and/or “key animation activity” for the television component occurs in the regions”.
Changes to All Convergent Production Programs
A new lowered minimum threshold for eligible digital media (DM) components called “Value-added” has been added as an alternative to “rich and substantial” DM components. Projects under a 100K in the English market and under 50K in the French market will be considered value-added and are to be submitted with the Television Component application and budget.
Increase of the Marketing Expenses Cap
The amount of allowable Television Component marketing is increased of 2%, from 3 to now 5% of the categories B+C of the television component’s production budget, or $300K. In the case of marketing expenses of $10,000 or less, however, no % cap will be imposed.
Clarification on eligible Marketing Expenses
Media/viral marketing expenses will no longer be considered eligible marketing expenses rather they will be included in the DM component. Also “basic website” now qualifies as a value-added DM component.
Broadcasters may spend either 60% of their Performance Envelopes on rich and substantial DM components or have a minimum of 60% of their projects include a value-added or rich and substantial DM component.
Qualification for Audiovisual Treaty Coproductions
The CMF is now offering more flexibility for certification. If a production receives a preliminary recommendation from the Telefilm Canada Coproduction office to be certified by CAVCO as an official audiovisual treaty coproduction – and ultimately receives such certification – the project will be considered eligible for CMF Financing.
A separate Licence Fee Threshold for English-language theatrically released dramatic feature films has been introduced. It will be the lesser of $230K or 5% of the total budget and must include Canadian theatrical release distribution agreement.
Changes to All Convergent Selective Programs
Projects with “rich and substantial” DM components will be weighted at 10 points (previously 15 points) and “value-added” DM components 5 points; Creative Elements will now be weighted at 40 points (previously 35) and originality and creativity 20 points (15 points previously) in the evaluation grid.
Best efforts must be made to shoot an average of 20% (previously at least 20%) of the original version in an Aboriginal language. The market interest and program objectives weights have each increased from 15 to 20 points.
Francophone Minority program
Only development support (not pre-development) support will be available through the distinct development allocation.
The CMF has qualified and amended the list of eligible costs related to television development and pre-development and DM requirements, which can be found in the Development Program Guidelines
CMF Convergent Project Recoupment Policy
As previously announced the CMF has adopted the former model B as the standard recoupment model and a designated list of provincial screen-based production incentives will be treated similarly to provincial tax credits on Tier 2 calculations. Details can be found on pages 6.1 and 6.2 of the CMF Business Policies (Appendix B 2016-2017).
Introduction of the new Commercial Projects Pilots Program (C3P): marketing support will be limited to projects that have received production stage CMF support and will cover up to 50% of the Eligible costs or $1,2M.
Innovation Program: the team evaluation criteria will relate to respective funding stages; for projects seeking development support the Business Plan and Distribution Strategy sections have been combined for a 10% weight; the maximum contribution per production is decreased to 75% of eligible costs or $1M (previously $1.2M); and “casino-type” games will be include din the ineligible project list.
Some changes have been made to the Evaluation Grid to provide more clarity on items that are devaluated.
Change in eligibility for Marketing and Promotion support: previously, projects could apply at every stage of development. Now, only projects which have received Production-stage CMF support will be eligible to apply for Marketing & Promotion support.
Innovation Program Recoupment Policy: applicants may deduct commissions, fees and expenses related to exploitation up to a maximum of 75% of the gross exploitation revenues in the first year of exploitation and up to a maximum of 50% in all subsequent years.
Accelerator Partnership (A2P): A2P is now a regular program; the eligible accelerator list is revised; and now to be eligible for A2P the project must have received CMF production and/or marketing support.