Category Archives: Funding

CanadaScreens.ca gets CAVCO nod

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Once upon a time if you were making films in Canada, you needed to get a theatrical release or a television deal to qualify for production tax credits, as administered by the Canadian Audio Visual Certification Office, or CAVCO.

No more.

Online distribution now qualifies and the newest approved service is CanadaScreens, owned and operated by the First Weekend Club.

Posting your film on CanadaScreens.ca will now trigger tax credits, providing eligible productions with fully refundable tax credits on their qualified labour spend.

First Weekend Club’s executive director, Anita Adams, says:

“This is exciting news for the organization as it puts us in a position to be of much greater service to the Canadian film community, providing them not only with a platform for their Canadian content, but a platform that will enable them to recoup costs through the tax credit program.”

In an email to me she goes on:

“We work directly with whoever holds the digital rights to the content — so we work both with filmmakers and distributors equally. More filmmakers are now choosing to go down the self-distribution route and are reaching out to us directly. In some cases, we may help release these films theatrically by offering promotional services, and then launch their films on our VOD platform. This is a model we quite like actually.”

Please read the CAVCO regulations carefully; I’m not clear if they require a Canadian distributor deal, or if self-distribution qualifies. See Section 30 above.

Here’s the full list of acceptable online services.

My take: this is great news for filmmakers in Canada. Keep up the great work, First Weekend Club!

del Toro and Besson make deals

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Two interesting developments in the realm of auteur filmmaking to report today.

Firstly, Adam Epstein writes on Quartzy that Guillermo del Toro is “getting his own film label at Fox Searchlight, the studio where he directed this year’s best picture winner, The Shape of Water.”

As quoted by The Hollywood Reporter, del Toro says:

“For the longest time, I’ve hoped to find an environment in which I can distribute, nurture and produce new voices in smart, inventive genre films and channel my own. In Fox Searchlight, I’ve found a real home for live action production — a partnership based on hard work, understanding of each other and, above all, faith.”

Secondly, Charles Barfield writes on The Playlist that Luc Besson‘s company is in talks to be bought:

“According to French media outlet Capital.fr , EuropaCorp is in advanced talks to be purchased by none other than Netflix. There’s no terms to the agreement, and honestly, the report is very heavily leaning on unnamed sources, but the structure of the deal is clear. EuropaCorp, founded in 2000 by filmmaker Luc Besson and Pierre-Ange Le Pogam, would be purchased by Netflix, with Besson to stay on to oversee the creative side of the company. The goal is to have the deal worked out by the summer.”

My take: once upon a time, this might be considered selling out. Now it’s monetizing your celebrity in exchange for a promise to keep moving in the same direction. It shows just how much money mini-majors and Netflix have to invest in building up their artistic credibility and aligning with like-minded creatives. That’s the short play — the long play is betting on which streaming service will rule them all.

Money for Movies

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While the independent film community in Canada waits with bated breath for Telefilm to release the latest guidelines for their excellent Talent to Watch program, the NFB reminds us there are other sources of money to help you make your movie.

Eleven, to be exact:

  1. The Bell Fund
  2. Canada Council for the Arts
  3. The Canada Media Fund
  4. The Canada Media Fund English POV Program
  5. The Hot Docs CrossCurrents Doc Fund
  6. The Hot Docs Ted Rogers Fund
  7. The Quebecor Fund
  8. The Rogers Documentary Fund
  9. The Rogers Cable Network Fund
  10. The Telus Fund
  11. Crowd-funding sites such as Kickstarter or Indiegogo

Conspicuously missing from the list is BravoFACT, which the CRTC allowed Bell Media to kill last year.

My take: thank you, NFB, for helping us not fixate on Telefilm. Nevertheless, the Talent to Watch program remains the holder of the best odds on $125K — something like 1 in 6 by my math: Telefilm has announced they’ll fund 50 projects this year and each of approximately 30 recommending partners can forward two feature and one web project for consideration — that’s 50 / (33 * 3) = 50 / 99 = 50% odds at Telefilm. I suspect that each partner will not receive more than nine projects — that’s 3 / 9 = 33% odds at your local media centre. Combining the two, we get 0.5 x 0.33 = 0.165 = 16.5% which is approximately one in six. Roll the die! Your chances of funding your first feature will never be better.

The Attention Economy and the blockchain

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Five years ago, I was thinking about a semitransparent way for creators to get paid for their work on the Internet.

Now, someone’s come along and made my dream a reality. And thrown in the blockchain and a cryptocurrency to boot.

Synero, based in Israel, is…

“…developing tools which allow content creators to easily monetize original works without having to turn their channels into advertisment real estate, while granting their followers the opportunity to be rewarded for getting the word out. Simply put, the attention you generate online is worth money. The better the content you create, the more followers you have, the more attention flows around you. Synereo’s applications and monetary models enable you to tap into this resource and reap the fair share of what you create online. Not a content creator? In a world overloaded with information, good taste is as valuable as creative talent. Help curate quality content, and earn your share by promoting creators you appreciate.”

That’s interesting enough. That they intend to use the blockchain and a cryptocurrency to accomplish their goal makes this super-interesting. They have a phased roadmap to accomplish it all.

To be honest, there’s a whiff of a ponzi scheme about the way compensation is distributed.

But wait, there’s more! You won’t get paid in cash, but in a new cryptocurrency called AMP. Super legit, right?

Here are a three more charts on the AMP altcoin.

If you want to do this today:

  1. Get the Chrome Extension
  2. Sign up as a WildSpark Creator

Before you pooh pooh this, see what CMF Trends has to say about them.

My take: I think the frictionless compensation the blockchain could deliver to creators (and potentially influencers) would go far in acknowledging their contributions to the sharing economy. Will it be WildSpark? Not sure. Will the old economy kick and scream about any and all disruption? For sure!

Become a Film Patron today!

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My buddy Bryan Skinner needs your help.

He’s making his first feature mockumentary in February 2018 and to do so he’s raising money now.

“Open for Submissions” is about the shenanigans at a film festival, so it’s only natural that Bryan would hold a “Best of the Worst” competition to get the “bad” films he needs. Of course, I’m up for that challenge.

See the trailer for my entry, “The Dolphins”:

Here’s Bryan’s pitch video for “Open for Submissions”:

And here’s Bryan’s project video for “Open for Submissions”:

My take: I have supreme confidence in Bryan and his team being able to complete this project. If you are a filmmaker or you know creative people making art, you should back their vision and become a film patron. It’s easy and you will feel great!

BellMedia kills BravoFACT and MuchFACT

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Ever since the CRTC ruled on May 15, 2017, that continued funding of BravoFACT and MuchFACT was no longer required, the indie film community in Canada has been wondering when BellMedia would pull the plug.

They acted in the middle of the night, on September 26 late last month, erasing their webpages, and thereby washing their hands of both production programs.

As quoted by Haydn Watters of the CBC, Randy Lennox, president of Bell Media and former head of Universal Music Canada, shrugged:

“The traditional viewing of a music video is… certainly not what it was. We don’t owe anyone an explanation for this…. I think after making hundreds, thousands of music videos and paying for them… I think we’re pretty good guys.”

OnScreen Manitoba reminds us:

“Since its foundation in 1995, BravoFACT has contributed $30 million to short films and emerging creators and the MuchFACT has contributed approximately $100 million since 1984. Earlier this fall, Bell Media’s Harold Greenberg Fund also closed its production equity investment program.”

Here is the current BravoFACT.com and what it used to look like two days after the CRTC’s decision.

Here is the current MuchFACT.ca and what it used to look like two days after the CRTC’s decision.

My take: I’m saddened by this news. I’ve been a recipient of a BravoFACT grant, so I know how important that funding can be to a short film. What maddens me about this news is the change management aspect. The Department of Canadian Heritage is in the midst of redesigning Canadian media in the digital landscape and has said the Broadcast Act will be overhauled this Fall. The CRTC is under its mandate. The disconnect comes when they claim: “More than ever before, our creators are ambassadors for our country. They are our inspiration at home, and reflect who we are to the rest of the world. Our new approach must continue to support a domestic space and market for Canadian content. Only by remaining strong in our approach at home will we succeed internationally. Only by playing to our strengths, by telling our stories, will we stand out in the global marketplace.” Proper change management would be to bring new programs on first before axing old ones. We just jumped off one raft and are hoping another one appears before we fall — I hope you all know how to swim!

Theatrical release becoming a loss-leader

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Today’s post is a mashup of two recent articles that got me thinking.

First, Poppy Reid reports in Australia’s The Industry Observer that Chance the Rapper earned $33M without selling a single record this year.

That places him fifth on Forbes‘ highest-paid hip hop artists list.

Not only is all his music free, but he has yet to sign a record label deal.

As quoted in Vanity Fair, Chance claims:

“My plan was to sign with a label and figure out my music from there. But after meeting with the three major labels, I realized my strength was being able to offer my best work to people without any limit on it…. I make money from touring and selling merchandise, and I honestly believe if you put effort into something and you execute properly, you don’t necessarily have to go through the traditional ways.”

Poppy concludes with:

“It should be noted that all the top earners used hip hop as a stepping stone toward their respective successful business ventures. In fact, Diddy [number one on the list with earnings of $130 million] hasn’t released any new music in the past year. He did however, sell a portion of his Sean Jean clothing company for US$70 million.”

Second, Tatiana Siegel reports in The Hollywood Reporter on Indie Film’s Financial Paradox: More Backers But Less Box Office.

She starts by singling out the weekend of September 22, 2017, when 15 mostly independent films competed against each other at the box office, resulting in no run-away winners.

She then contrasts that with, “Despite the box-office challenges, there is no shortage of funds being poured into indie films” and cites a $50 million epic.

She adds that $30 million in P&A is required to successfully break an indie film; $20 million is not enough.

She concludes:

“Many distributors continue to buy, not because it’s financially lucrative but because it feeds another side of their business or their parent company’s overall strategy. Releasing movies has become something of a side hustle. Many other distributors are really in the VOD or streaming business or have bigger interests that overshadow how their individual films fare at the box office.”

One moment please.

Releasing movies (let’s exclude blockbusters for the moment) is now a side show to the main event? Huh.

My take: I think this speaks to the fracturing of the mediascape. Long gone are the days of orderly rollouts across windows (when) and territories (where). Today there are so many more options available to distribute projects. It’s still the wild west but streaming (how) and mobile (where) are emerging as leaders. Add in Chance’s ‘give it away’ strategy. Combining the two begs the question, what could be the ‘real’ business of indie filmmakers? Hmm. Maybe it’s not the destination, but the journey? Can we monetize that? Ideas, folks?

Giant step backwards for Canadian media

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On May 15, 2017, the Canadian Radio-television and Telecommunications Commission (CRTC) renewed major television licenses for five years and also lowered the requirements for Canadian production.

In double-speak, it titled the media release “The CRTC supports the production of original content“.

Particularly troubling is the removal of the requirement for Bell Media to fund BravoFact and MuchFact (see clause 55):

“Deletion of various requirements

55. Bell Media requested the deletion of various conditions of licence and expectations for certain services. Given that the proposed changes are consistent with Commission policies, the Commission approves the following:

  • …for Bravo!, to delete the condition of licence requiring the licensee to contribute to BravoFACT;
  • for Much and Gusto (formerly M3), to delete the condition of licence requiring the licensee to contribute to MuchFACT;”

So upsetting is this that the Directors Guild of Canada (DGC) immediately launched a petition.

Bell replied that it hasn’t yet decided to kill the programs:

“Bell Media was granted flexibility by the CRTC in making contributions to MuchFACT and BravoFACT no longer conditions of license for its Much, Gusto, and Bravo specialty channels. We are currently reviewing both programs and no decisions have been made regarding their future at this time. Both programs continue to accept grant applications in anticipation of their next funding deadlines later this year.”

Tim Southam, DGC National President, said:

“For years, the CRTC has said it’s shifting focus from the number of hours of Canadian programming on air to the investment broadcasters make in original content. Now, they’re cutting the investment requirements, too. The Commission is betraying its own word and betraying Canadian creators. The CRTC got it right when they said that, in the digital world, broadcasters need to invest in innovative content that stands out in a global marketplace. So why let broadcasters slash their investments in distinctive, original content by $200 million over five years? The Commission called the right play, then absolutely blew the follow through.“

Tellingly, less than a month ago, Bell Media hinted it is about to launch a new streaming service. UPDATE: It’s television for cord cutters, called Alt TV.

My take: Is the CRTC trying to kill CanCon? I have won two BravoFACT grants, for my film ‘i luv spam’ and for Scott Amos’s ‘Scratch’. We were honoured and grateful we could finally pay our cast and crew on those productions. Thumbs down on both Bell Media and the CRTC. Also, I find the timing of the CRTC’s decisions suspect, as the government is about to release its new vision for Canadian culture in the digital age. Is the CRTC making an end run on behalf of its major stakeholders, or is this just a preview of more cuts to come?

Top Streamers Become Mini-Majors

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Netflix/Amazon/Ringer illustration

Sean Fennessey, Editor-in-Chief of The Ringer, has just posted The End of Independent Film As We Know It.

It’s a fascinating, if long, read that concludes Amazon and Netflix have become mini-major studios.

The ramifications are that independent film may be dead on two fronts:

  • these new exhibitors are wealthy enough to green-light and finance indie films, so how independent are those films actually, and,
  • because they’re streaming services, premieres in actual cinemas, long agreed as the christening of all ‘real’ films, may be a thing of the past — no more theatrical window!

“Technocratic distribution companies like Netflix and Amazon have upended the state of independently produced movies. Film festivals that screen these movies were once the bastion for work created beyond the perception of Hollywood’s studio structures — films that were either unable or unwilling to penetrate the cast iron gates that lead to the moviemaking seats of power. The festivals were a home for insurgents, temples that hoisted Tarantino, Michael Moore, Sofia Coppola, Kevin Smith, Allison Anders, Robert Rodriguez, Todd Solondz, Todd Haynes, Ava DuVernay, Paul Thomas Anderson, Wes Anderson, Richard Linklater, and dozens more into the frame. Today, a movie that has been bought, paid for, and strategized against a global calendar by a massive public company is dissonant with the spirit of independent movies.”

Sean includes a quote from Joe Swanberg that is very telling:

“Drinking Buddies honestly found its biggest audience on Netflix. It’s become pretty clear to me over the last few years that the work that I’m making is finding its audience there. Do we go where the audience is or do we make the audience come to us? If there’s a big audience over there that wants to watch it, and we already made the movie we want, that makes the most sense to both of us.”

Ted Sarandos has a goal of 50% original content on Netflix and envisions more ‘day and date’ or simultaneous releases:

“There’s a romantic notion about the film being on a big screen. There’s definitely something about a premiere at [main Sundance venue] Eccles that you can’t replicate — that I can’t replicate — but the fact is, that happens for a couple hundred people once a year. We’re doing it every day for the world. People who are discovering a movie that might change their life; that’s who they’re talking to. We have to get rid of the romantic part. I don’t really think that they’re mutually exclusive. I think over time that these films will get booked into theaters at the same time they’re on Netflix.”

My take: with $6 billion in its production pockets, there doesn’t seem to be any stopping Netflix. Even Jerry Seinfeld has jumped from the Crackle ship, for a reported $100 million.

Equity Crowd-funding in Canada

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When we think of crowd-funding, Kickstarter and Indiegogo come to mind.

For instance, over 20,000 film and video projects have been successfully funded on Kickstarter, with an average goal of approximately $5,000-$10,000 and pledges of about $25-$30.

But what if you want to raise much more money, and instead of giving away ‘rewards’ (otherwise known as perks or swag) you want to give away shares in your project company? Enter Equity Crowd-funding or Crowd-investing.

There are two options when crowd-investing in Canada: the Start-up Crowdfunding Exemption and the Regulation Respecting Crowdfunding.

The maximum value that can be raised is $250K twice a year with the first, and $1.5 million with the second.

Four provinces allow both, four don’t allow either and the rest allow one of each.

FundingNomad is the new kid on the block in Ontario:

“FundingNomad is a crowdfunding platform that presents exclusive deals to investors that have been fully vetted and selected by our professional team of experts. Many angels and institutional investors choose to invest through FundingNomad because of the increased efficiency and access to deal flow.”

My take: keep in mind, most investors are in the game to make money. When you invite investors into your company, you’re competing with all the other investment opportunities out there. So, your promise needs to be unique and the return attractive, or you need to appeal to other motivators. For docs, that might be the cause, for narrative projects, that might be the stars, for instance.