Category Archives: Funding

Drama is not selling

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Naman Ramachandran reports on Variety that Sales Agents Shift Away From Drama Films Amid Market Challenges: ‘It’s Led Us to Diversify Our Slate’.

“The global appetite for drama films has significantly diminished, according to a panel of international sales agents at the BFI London Film Festival.”

He quotes Sophie Green, head of acquisitions and development at Bankside Films, as saying: “The big sort of takeaway at the moment from the market is anything but drama. That really is kind of like double underlined everywhere that we go.”

Drama has become increasingly difficult to finance and sell, leading to a shift toward genre films and comedies.

My take: the pendulum swings this way and then that way. Dramas will be back, but perhaps they demand too much empathy from audiences just right now.

The numbers behind Telefilm’s Talent to Watch 2024-25 projects

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Telefilm Canada has selected 17 Talent to Watch projects to share $3.45 million from 150 submissions.

It’s quite revealing to look at the numbers in detail.

Let’s start with Genre.

Documentary 8
Drama 4
Science Fiction/Fantasy 3
Drama-Comedy 1
Thriller 1

Province?

Quebec 7
Ontario 7
British Columbia 1
Alberta 1
Manitoba 1

Let’s look at Language next.

English 9
French 3
English/Sudanese Arabic 1
Portuguese (Azorean dialect)/French/English 1
French/English/Algonquin 1
French/English 1
French/Creole 1

And let’s finish up with Stream.

Filmmaker Apply-Direct 11
Industry Partner 3
Festival 2
Indigenous 1

In addition, if Gender is assumed from names and excluding Executive Producers:

Female approx. 25
Male approx. 15

Some observations:

  • The number of submissions rose almost 20% from last year.
  • Non-fiction continues to be almost as successful as Fiction.
  • Almost all of the successful projects are from Quebec and Ontario.
  • Almost one third of the successful projects include world languages in addition to English and/or French.
  • The vast majority of successful projects continue to be Filmmaker Apply-Direct.
  • Less than 20% of the successful projects are from Industry Partners.
  • Women far outnumber men and other expressions of gender.
  • No projects are selected from Atlantic Canada.

The cynical might posit that Telefilm’s Talent to Watch program continues to compensate for the broader industry.

My take: this is the third year that filmmakers could apply directly and Telefilm has rewarded them well! Therefore, if you can apply direct, bypass your local industry partner, for odds of approximately one in nine.

How do you finance a low-budget movie in Canada?

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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:

equity / grant / TV licence / tax credit amount
SODEC CAD $750,000
Telefilm CAD $550,000
CBC Films CAD $125,000
CMF CAD $373,500
Provincial Tax Credits CAD $402,000
Federal Tax Credits CAD $80,000
COVID Support Fund CAD $195,000
Producer Investment CAD $15,000

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!)

Telefilm funds Lim’s “The Bryce Lee Story” for $500K

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Local Victoria, BC, filmmaker Arnold Lim has just secured $500,000 from Telefilm Canada towards the funding of his second feature film “The Bryce Lee Story“.

Arnold is in Paris currently, preparing as Photography Manager for the Paris Olympics — his fifth! He graciously replied to my questions by email.

Q: Congratulations, Arnold! What’s the log line for “The Bryce Lee Story”?
A: The Bryce Lee Story is the story of a young Asian boy named Bryce Lee, who lies about being related to Bruce Lee in order to fit in at school.

Q: What’s your budget and how much has Telefilm committed?
A: We are aiming for a $1.5-million budget, which will be my first low budget film as a Director after working predominantly in micro-budget filmmaking and Telefilm has committed $500,000 to our project.

Q: Where in the world and when are you filming?
A: I love Vancouver Island and feel my home island is vastly underrepresented on film despite literarily being one of the best places on earth. We plan to shoot most of the film in Greater Victoria and Chemainus. My goal is to shoot here for every film if possible.

Q: What’s the biggest issue you face right now?
A: The biggest challenge is funding! Always funding, but equal to that my biggest issue is probably going to be casting. Finding Asian actors in Canada, especially young Asian actors is very challenging for a lot of reasons: from there not being many opportunities for them to begin with, so there aren’t a ton of opportunities to gain on-set experience and grow as an actor; to the performing arts not necessarily being a focus for some Asian parents as an activity for their children. There are of course exceptions but largely casting is always one of my biggest fears going into any film I make that has an Asian lead.

Q: Are there any locations or props in the script that you know are going to be difficult to find?
A: I am going to be looking for working versions of some 90’s cameras so props and production design are going to be a major challenge because our film is set in the late 90’s ish — but I am also excited by the proposition, and grinding those challenges out with a group of dedicated and like-minded artists is something I am excited about.

Q: Are there any cameo roles and do you have folks in mind?
A: I do have at least one in mind. But I can’t say who it is quite yet. 😉 Sorry!

Q: How does going to the Olympics as Photography Manager impact your time?
A: I am very privileged to have the opportunity to be a part of the Olympic experience, but it is always a time of hyper focus for me because it is such a challenging job. In my opinion the amount of time and energy and love and artistry and passion and gruelling grind necessary is akin to making a feature film and I love the challenge of it, but it is a marathon and takes a lot of time and energy and pulls me away from my family. I really miss my wife and children when I am away.

Q: Is there anything else you’d like to add?
A: I can’t thank Telefilm enough for the opportunity to make a second feature film, but I am also extremely proud of and grateful to the amazing artists on Vancouver Island and in B.C. who work in and support independent film. I have this opportunity because of amazing people like the producer Lynne Lee and many, many other cast and crew, especially on Vancouver Island, who have chosen to work with me and share their passion and artistry even when the prospects of making money are low and the challenges are high. I can’t thank them all enough.

My take: What can’t Arnold do? Next week I’ll look a ways to raise $1M — if you have ideas, let’s hear them!

The “Netflix Tax” is very near

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The CRTC has announced that streamers doing business in Canada will help pay for CanCon by contributing 5% of their revenues starting September 2024.

“The CRTC is requiring online streaming services making more than $25 million to contribute 5% of their Canadian revenues to support the Canadian broadcasting system.”

The 5% contributions from online streaming services will go to:

  • 2% to the Canada Media Fund and/or direct expenditures towards certified Canadian content;
  • 1.5% to the Independent Local News Fund;
  • 0.5% to the Black Screen Office Fund, the Canadian Independent Screen Fund for BPOC creators, and/or the Broadcasting Accessibility Fund;
  • 0.5% to the Certified Independent Production Funds supporting OLMC producers and producers from diverse communities; and
  • 0.5% to the Indigenous Screen Office Fund.

The 5% contributions from audio streaming services will go to:

  • 2% to FACTOR and Musicaction;
  • 1.5% to a new temporary fund supporting local news production by commercial radio stations outside of the designated markets;
  • 0.5% to the Canadian Starmaker Fund and Fonds RadioStar;
  • 0.5% to the Community Radio Fund of Canada;
  • 0.35% to direct expenditures targeting the development of Canadian and Indigenous content and/or a variety of selected funds; and
  • 0.15% to the Indigenous Music Office and a new fund to support Indigenous music.

The CRTC feels this decision balances the playing field in Canada:

“For decades, traditional Canadian television and radio services have financially supported the creation of content made by and for Canadians, and have showcased that content on their services. Meanwhile, online streaming services, which have been operating in Canada for well over a decade, have not been required to contribute in similar ways. In the Commission’s view, online undertakings that benefit from their place in the Canadian broadcasting system by generating significant revenues and drawing significant Canadian audiences should contribute to the system.”

There is a silver lining. Streamers can count their Canadian projects as 2% of their 5%. “Online streaming services will have some flexibility to direct parts of their contributions to support Canadian television content directly.”

My take: This 5% is not actually a tax that will be added to consumers’ bills. However, I’m almost positive streamers will raise their prices by at least 5%, so perhaps it’s a corporate levy, and not a consumer tax. Just get ready to pay more.

Canadian Box Office over 20%!

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A curious thing happened at the Canadian theatrical box office during the week of April 5-11, 2024: over 20% of the screenings were Canadian movies. This number is usually between three to ten percent of screenings.

In BC, Monkey Man had over 55% of the Canadian screenings, with Dune: Part Two pulling in over 40%. In other words, those two movies represented over 95% of the Canadian screenings in BC for the week of April 5-11, 2024.

Canadian movies, eh?

Monkey Man was produced by Canadian motion picture company Bron Studios. Netflix declined and shopped it, and Jordan Peele picked it up. Unfortunately, Bron may be having financial difficulties.

Dune: Part Two was co-written and directed by Canadian Denis Villeneuve. It probably earns its maple leaf because the special effects were done by three Canadian companies:

  • DNEG has offices in both Toronto and Montreal.
  • Wylie Co. has offices in Montreal.
  • Rodeo FX has studios in Montreal, Quebec City, and Toronto.

Yes, these are Canadian films in the sense that Canadians had a big hand in making them. Not sure they reflect the Canadian identity and experience though.

My take: I always watch the credits to the very end. It’s always worth the chuckle when a Canadian government logo scrolls by on a patently non-Canadian film. Canadian tax dollars at work!

 

Victoria’s connection to Letterboxd

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On September 29, 2023, co-founder Matthew Buchanan of Letterboxd announced, “we have accepted an offer for Tiny to acquire a 60 percent stake in Letterboxd, securing the platform’s future as an independently run company and part of the Tiny stable.”

Matthew elaborates:

“Something else that began around this time, courtesy of Tumblr’s flourishing design community, was my friendship with Andrew Wilkinson and his brother Will, both involved with MetaLab. There was no-one paying attention to the design scene at that time who wasn’t aware of their digital agency in Victoria and the quality of work it was delivering. We first met in person at XOXO in Portland, then kept in touch, as we both continued to build: us with our studio and Letterboxd, and Andrew with MetaLab and then Tiny, which acquires and supports great, creative businesses.”

The Hollywood Reporter reports the deal at $30,000,000 USD.

My take: fascinating! I can’t help but think the world is smaller than I once thought.

The numbers behind Telefilm’s Talent to Watch 2023-24 projects

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Telefilm Canada has selected 18 Talent to Watch projects to share $3.6 million from 126 submissions.

It’s quite revealing to look at the numbers in detail.

Let’s start with Genre.

Documentary 9
Drama 5
Comedy 3
Horror 1

Province?

Quebec 5
Ontario 4
British Columbia 3
Alberta 2
Manitoba 1
Nova Scotia 1
NWT 1
PEI 1

Let’s look at Language next.

English 6
French 2
English/Farsi 2
English/French/Kinyarwanda 1
English/Hungarian 1
English/Plains Cree 1
English/Punjabi 1
French/English/Arabic 1
French/Vietnamese 1
Spanish 1
Wayuunaiki/Spanish/English 1

And let’s finish up with Stream.

Filmmaker Apply-Direct 11
Industry Partner 5
Indigenous 2

In addition, if Gender is assumed from names:

Female approx. 26
Male approx. 16

Some observations:

  • Non-fiction is as successful as Fiction.
  • Half of the successful projects are from Quebec and Ontario.
  • More than half of the successful projects include world languages in addition or instead of English and/or French.
  • For the first time, the vast majority of successful projects are Filmmaker Apply-Direct.
  • Less than one third of the successful projects are from Industry Partners.
  • Women far outnumber men and other expressions of gender.
  • A project with only one director/screenwriter/producer is successful.

It appears Telefilm’s Talent to Watch program continues to compensate for the broader industry.

My take: this is the second year that filmmakers could apply directly and Telefilm has rewarded them well! Therefore, if you can apply direct, bypass your local industry partner, for odds of better than one in fifteen.

Is Ben Affleck a socialist?

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Amos Barshad, writing for WIRED, reports Ben Affleck Has a Plan for a Fairer Streaming World. (Spoilers in trailer below.)

The article is fascinating because it briefly explores Capitalism, Socialism, and fair pay in an economic environment where streaming has vastly reduced the likelihood of residuals.

Of course, Affleck‘s new streaming project, Air, concludes with Michael Jordan becoming the richest athlete ever, due to profit participation. Spoiler: Jordan gets 5% of every pair of Air Jordans sold anywhere in the world. To date, this has amounted to over $1.3 billion.

He quotes Affleck:

“Air, in many ways, is critiquing that aspect of capitalism which historically has been exploitative or patently unfair because it’s rooted in a notion that says, well, if you invest the capital, you get the reward. That needs to change. That’s what I’m trying to accomplish, and that’s what the WGA is trying to accomplish in a much bigger way. If we are going to practice capitalism, which has led to real iniquities, at the very least we ought to recognize the human beings who actually do the work and create a better world. They should be rewarded at least as well as the investors.”

I know of at least three ways cast and crew can share in potential profits:

  1. Shares: own a slice of the production company that owns the project (and all the related corporate drama that might arise)
  2. Deferrals: accept less (or volunteer your efforts) in exchange for a promise of greater pay later when the project makes a profit (if it ever does)
  3. Points: own a percentage of the projects profit, subject to previous payouts in the “waterfall.”

All risky. (The UK seems to have a tax scheme similar to the one Canada used to have that mitigates film investment risk.)

My take: I’ll leave the last words to Ben Affleck: “It’s been the greatest pleasure to see people capture bonuses based on their own work, that reflects their merit — and to not have people feel like anonymous drones. I’ve worked in this business for a long time. I know that anyone who’s really good has put their work before their self-interest as a matter of course. But they want to be empowered.”

Talent to Watch: NEW STRATEGY!

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Telefilm has just released this year’s guidelines for its Talent to Watch first feature film program and I believe your best strategy to secure this $250,000 has changed.

Previously I’ve blogged about this excellent program and suggested you join your local media cooperative to apply. That was when that was the only way. Now things have changed! (Of course, there are a myriad of other reasons to join your local media cooperative!)

Last year was the first year people from underrepresented groups could apply directly to Telefilm, bypassing the Industry Partner stream. And they were rewarded with half of the sixteen projects.

This, then, emerges as the best strategy for Talent to Watch: pull your team (Producer, Writer and Director) together from underrepresented groups and apply directly between April 17 and May 1, 2023.

Telefilm considers people from these groups as underrepresented:

  1. Indigenous
  2. Black
  3. People of Colour
  4. Women
  5. Gender-diverse individuals
  6. 2SLGBTQIA+ individuals
  7. Persons with disabilities
  8. Members of an Official Language Minority Community

For instance, Indigenous filmmakers should review Telefilm’s Indigenous initiatives.

My take: still the best odds for getting your first feature financed! I predict this may be the last year for the Industry Stream. Certainly, if your full team qualifies, you should definitely apply directly to Telefilm Talent to Watch.