Case studies detailing how low-budget movies are financed in Canada are almost non-existent. But I found one!

Courtesy of LA’s The Film Collaborative, Rob Vroom details how he financed 2022’s $2.5M “You Can Live Forever,” a quirky tale of forbidden love. The seminal takeaway:

“We secure a pre-license TV deal that then triggers a top-up fund and the provincial and federal tax credits.“

The summary states:

“To fund Canadian narrative feature You Can Live Forever, Rob Vroom was able to utilize some of the same backers and funders he had used with previous films. They secured a pre-license TV deal that triggered Canadian federal top-up funding and Canadian tax credits. Canadian funding most of the time requires distribution to be in place beforehand, and although the film was Sarah Watts’ and Mark Slutsky’s first feature, Canadian distributor Mongrel Media stepped up and came on early.”

Robert explains:

“I proposed a CAD $2.5 million Canadian budget. I was able to raise that money through Telefilm Canada—through SODEC—which is our Quebec provincial equivalent to Telefilm, via a pre-license deal with CBC and a top-up fund through the CMF (Canadian Media Fund). If you can secure a pre-license fee of at least 5% of your budget, then CMF will top up another 15% of your budget, which for us was huge. And then of course tax credits.”

This table is very revealling:

To summarize how to finance a low-budget feature film in Canada:

1. Get Telefilm Canada funding.
2. Get a Canadian Distributor (see below.)
3. Get a TV license to trigger CMF funds.
4. Make the movie and apply for Canadian federal and provincial tax credits.

My take: Some might wait until their festival release and the hoped-for bidding war, but I think it’s a great idea to get a Canadian distributor on board as soon as possible. They can help you secure:

• A direct pitch to a foreign streamer doing business in Canada that as of September 2024 must contribute 5% of Canadian revenue to CanCon (and they can choose to direct invest 2% of that 5%.) See http://www.informediation.com/blog/2024/06/19/is-the-digital-ecosystem-starting-to-look-a-lot-like-tv/ The Big Three are Netflix, Prime Video and Disney+. (CAVCO insists you approach these through a Canadian distributor to qualify for Tax Credits!)
• A Canadian TV deal. They’ll get you in the room to pitch to CBC (includes GEM,) Bell Media (includes CraveTV,) and Rogers. This will then trigger Canada Media Fund funds.
• An Educational TV deal: Knowledge Network in BC and TVO in Ontario.
• Airlines for in-flight entertainment.
• US and International distribution deals.
• A one-week screening in Toronto to qualify for the Toronto Film Critics Association’s $50K Rogers Best Canadian Film Award, perhaps the biggest film cash prize in Canada. See https://torontofilmcritics.com/awards/signature-award-2-2/ (Hey Rogers, why did you reduce this prize by half, from $100,000? Are you goading someone else to offer more? Netflix and Prime, I’m looking at you!)