RTA 908 Final Exam Review PDF

RTA 908 Final Notes: Multiple Choice Short Answer ○ Might also involve a calculation Financing Plans ○ Rough Paper, Pencils Pens, Non-programmable calculator ○ 9 AM - arrive early Content: 1. Sources of production financing Source vs nature of...

RTA 908 Final Notes: Multiple Choice Short Answer ○ Might also involve a calculation Financing Plans ○ Rough Paper, Pencils Pens, Non-programmable calculator ○ 9 AM - arrive early Content: 1. Sources of production financing Source vs nature of financing ○ Know diff. Between public or private, know what funds are (Bell Fund, Shaw Rocket, CMF) ○ Know the difference between when something says source of financing vs nature of financing Eg. Source: OFTTC E.g Nature: Tax Credit NOT sources of financing ○ Eg. Loan from the bank, interim financing, sale you are “hoping to get” after the show is made ○ Eg. Development funds (loans - paid back in production) 2. Distribution MG/advance/presale vs. sale ○ Distributors already know they will distribute the content before it’s made or done - pay in advance VS. shopping around for distributors after the film/show is made ○ Is a presale a source of financing? YES Distributor vs sales agent ○ Go over the scenario in D2L (Omni, Jane Doe, Brazilian Broadcasting Corp.) Remember gross sales are not the same as gross receipts ○ What do each do and not do Understand the responsibilities of a distributor, as well as the responsibilities of (you) the producer Customary Approvals ○ When the distributor has a say over content/production decisions 3. CMF - Canadian Media Fund Broadcaster Envelope Program  ○ The envelope of money the CMF gives every broadcaster in Canada (annually): the share they get depends on how much Canadian content they have/make Eligible Genres Essential Requirments (ERs) and exceptions ○ For each genre, and exceptions to that rule Production Financing - license fee minimum thresholds, LFP, EIP ○ Do not need to memorize thresholds ○ Understand that it triggers LFP (license fee top-up) and EIP (equity investment program) if the license fee and minimum thresholds are met Treaty co-pros ○ Know how it impacts CanCon points ○ Director/writer (film) or showrunner (tv) has to be Canadian in a treaty co-pro 4. Tax Credits CPTC and OFTTC (GTA and Regional) ○ Cptc - federal tax credit ○ Ofttc - Ontario Provincial Tax credit ○ The percentage of OFTTC is different if filming in GTA or outside (northern ontario) Formulas ○ Know formulas for each tax credit ○ KNOW THEM!!! Assistance ○ Know what counts as assistance and what doesn't ○ Assistance for cptc is additional compared to offtc (“the previous PLUS” in the slides) CMF EIP/any gov. equity or OFTTC count as assistance for CPTC Week 11 slides Government equity grinds the tax credit Eg. Equity investment from the bell fund, does it grind the cptc? NO Eg. if you put in a producer deferral, it will grind both tax credits Building a financing plan ○ When faced with a blank template, know what to do 5. Pitching General pitch structure ○ Not the same as a structure for a series pitch deck (moreso a verbal pitch) Clear the arena ○ Step to get to a pitch meeting Gain access  ○ Step to get to a pitch meeting 6. Alternate Sources of Funding Corporate Sponsorships Merchandising Product placement / Contra Crowdfunding Deferrals FINANCING PLAN HOW TO Figure out the licence fee minimum threshold amount a. Children show i. 25% of episode budget 1. 0.25x500,000.00=$125,000.00/episode 2. Calculate % of deferral a. $1000.00/episode=1000.00/500,000= 0% 3. (assumption if CanCon) Calculate the CMF LFP (20%) a. 500,000.00x0.20=100,000.00/episode 4. (assumption if CanCon) Calculate the CMF EIP (29%) a. 500.000.00x0.29=145,000.00/episode 5. (assumption if CanCon) Calculate the OFTTC a. (Total episode budget-OFTTC considered assistance)*60%*35%*90%=Tax credit b. (500,000.00-1000.00)*0.6*0.35*0.9=$94,311.00/episode 6. (assumption if CanCon) Calculate the CPTC a. (Total episode budget-CPTC considered assistance)*60%*25%*90%=Tax credit b. (500,000.00-1000.00-145,000.00-94,311.00)*0.6*0.25*0.9=$35,058.00/episode 7. Bring these values over to the season column by multiplying by # of episodes for $$ 8. Calculate % for the season by dividing $$ by the budget/season (5,000,000.00) 9. Calculate the % for the episode by dividing $$ by the budget/episode (500,000.00) REVIEW 1 & 2. SOURCES OF PRODUCTION FINANCING & Distribution Sources of Production Financing: Public funds (eg. telefilm) Private funds (eg. Rogers) Broadcast Licenses ○ CAD / International Tax Credits Grants Distributor MG Private investors Product placement Sponsorship Crowdsourcing Deferrals NOT Sources of Production Financing Banks ○ Interim financing (loan) Development funds (loans - paid back in production) Source vs. Nature of Financing Source Nature Bell Broadcaster License Telefilm Equity or Grant CPTC / OFTTC Tax Credit Mongrel Media MG Advance Equity Investment Own part of the copyright Participate in the program’s success (profit) Recoupment Distribution Advance (aka Presale) Money up front paid to the producer by the distributor  ○ Hot property ○ Exclusive right to distribute An advance on future sales of the program in domestic and international markets - distributor takes a loan Presales vs Sales Preproduction sales (presales) ○ To finance series ○ $ spent during production/post Sales ○ After show is complete (delivered) ○ Acquisitions ○ Profit Finding a Distributor Research Prestige ○ But also - small and mid-sized companies may offer personal attention ○ Do they handle your genre? ○ Market is niche driven Customary Approvals Distributors may have approval over creative choices if it’s a presale ○ Not applicable if acquisition after production Reasonable use of approvals May overlap with broadcaster approvals The Deal Standard Commissions: 30-35%, not including recoupable expenses related to promotion, dubbing, etc. Term/territory/media: case-by-case basis Sales reports: 90 days after every sales market for first year, bi-annually thereafter Corporate and personal Executive producer credits Distributors’ Recoupable Expenses Offices/overhead Marketing collateral Travel to markets Spaces at MIP / booths Dubbing Interest on Advance  Distributor Sales Agent Distributors may pay an MG No guarantee (advance) The distributor controls the copyright May only make the sale to the for a territory/time broadcaster Fee - up to 35% plus expenses 10% of that sale Corporate and personal credits No output deals May have an output deal Producer delivers to distributor Distributor’s Responsibilities To sell (license) your show To report to you on their progress Distributor may promise… “Non-discriminatory” ○ Can’t favor someone else’s program ○ Eg. eOne reps Yellowjackets, Peppa Pig, and Your Show - would it have a favourite? Cross Collateralization of expenses (negotiable) Negotiate your project as part of their output deal Output Deals Distributor guarantees a certain amount of product to certain broadcasters Broadcaster promises to take that product “Good” product (Yellowjackets) can be tied to a “Bad” production (a low-quality show) Producer’s responsibilities to Distributor Master tape delivery Publicity kit. Stills/BTS from program and/or every episode to create sales sheets, posters, and to meet broadcast delivery standards Scripts / transcripts / music cue sheets More Producer Responsibilities E&O Insurance / Production / Liability Insurance Cavco/CRTC Certification Representations & Warranties ○ Music, actors, clearances etc. Chain of Title 3. Canadian Media Fund (CMF) CMF Mandate - Promote, Foster & Develop, Finance Broadcaster Envelope Program Core of Canadian TV and transmedia production Majority of CMF funding disbursed through this program CMF allocates funds to Canadian broadcasters in an amount that reflects their track record of supporting Canadian programming. Broadcasters then commit these funds to Canadian projects they choose to greenlight. Essential Requirements (ERs) 1. 10/10 CAVCO points (some exceptions) 2. Underlying rights owned/developed by Canadians who have significant and meaningful control from concept to final script (some exceptions) 3. Project show in Canada (some exceptions) Eligible Genres DRAMA Fictional Series, mini-series, made-for-television movies, theatrical feature films shown on television, situation comedies, sketch comedy, and stage plays adapted for television (television movie) Dramatic programming targeted to adults and families Format Definition: ○ A series is defined as seven (7) episodes or more ○ A mini-series is defined as six (6) episodes or less DRAMA - Essential Requirments Live action: 10/10 Cavco points ○ THE STAR EXCEPTION: 1 point may go to a non-Canadian performer “who has significant recognition among Canadian audiences.” ○ HOWEVER - they cannot play the role of the protagonist Animation: 8/10 CAVCO points ○ 2 points can go to foreign camera or in-betweening Format Buy: Non-Canadian original owner may retain approval rights and provide consulting services Can be set and/or shot outside of Canada provided it is integral to telling a Canadian story Generic or fantasy setting - can shoot outside of Canada as long as the setting is not identifiably foreign CHILDREN AND YOUTH  Children’s programming - targeted to children aged 12 years and under, designed and produced according to their needs and expectations (rather than to those of adults), reflects reality from a child’s point of view Usually have a major protagonist who is under the age of 15, or a puppet, animated character, creature of the animal kingdom, comic book character, etc. Engage the creativity of children and provide them with an entertainment and learning experience Youth programming - targeted to youths aged 13 to 17. Such programs should include youth protagonists and reflect reality from a youth’s point of view. CHILDREN AND YOUTH - ESSENTIAL REQUIREMENTS LIVE ACTION: 10/10 CAVCO Points Animation: 8/10 Cavco points ○ 2 points can go to foreign camera or in-betweening Format Buy: NOn-Canadian original owner may retain approval rights and provide consulting services Generic or fantasy settings - can shoot outside of Canada as long as setting is not identifiably foreign VARIETY AND PERFORMING ARTS Variety - entertainment consisting of on-screen artistic professional acts or performances e.g. singing, dancing, acrobatic exhibitions, comedy sketches, drama sketches, magic or stand-up comedy ○ NOT eligible: tributes, prize presentations, non-cultural award shows and galas, promotional activities or commentary, sponsored presentations, music videos and talk shows Performing arts - live or pre-recorded performances of traditional and popular music, opera, operetta, musicals, taping of live stage plays, ballet, and other forms of dance or performing arts VARIETY AND PERFORMING ARTS - ESSENTIAL REQUIREMENTS 10/10 CAVCO POINTS ○ The Star Exception Format buy: Non-Canadian original owner may retain approval rights and provide consulting services Does NOT have to be set in Canada Does NOT have to be shot in Canada if it follows Canadian artists performing outside of Canada DOCUMENTARY Features (>75 minutes) or series  Original work of non-fiction, primarily designed to inform but that may also educate and entertain, providing an in-depth critical analysis of a specific subject or point of view Eligible: Living histories, docusoap, auteur POV docs Ineligible: “How-to”, lifestyle, reality (celebrity-based or otherwise) DOCUMENTARY - ESSENTIAL REQUIREMENTS 10/10 Cavco points ○ The DOP exception - for POV docs shot outside of Canada only Format buy: Non-Canadian original owner may retain approval rights and provide consulting services Project may be set and shot outside of Canada if it is integral to the story CMF Production Financing Triggered by a broadcaster license that meets the minimum threshold CMF Production Financing The nature of CMF production financing is: Broadcast licenses ○ CAD / International Grants Tax Credits Public Funds (e.g. Telefilm) Private Funds (e.g. Rogers) Equity (investors) Product Placement Sponsorship Crowdfunding Deferrals CMF Production Financing CMF LFP - License Fee Top Up Program CMF EIP - Equity Investment Program Up to 20% of eligible costs Up to 29% of eligible costs Calculated first Calculated second No strings Recoupable Max CMF Contribution: 49% of eligible costs Treaty Co-Pros - ADMIN Separate application at Telefilm All key creative point people from either count as Canadian Co-Pro Requirements Majority - Minority partners ○ Eg. Canada - France 80:20 (Family Biz) ○ Eg. Ireland - UK - Canada 40:40:20 (Tudors) Minimum expenditure in the minority country ○ 15% to 20% to 30% Key Creatives Must be from the co-production countries ○ Citizens ○ Landed immigrants ○ Residency - dual citizens 4. Tax Credits Four Scenarios: Broadcaster Driven Sports, News, some US series, CBC in old days Broadcaster plus tax credits Docs for SLice, Office Temps, train 48 Presale Model Transplant CMF Model Trickster, Psi Cop Soft Money Any production financing that is not a… ○ Broadcast license ○ Distribution advance ○ Deferral / deficit financing ○ Private equity investment To qualify for Tax Credits Canadian Film or Video Production Tax Credit CPTC 6 points out of 10 Canadian Control Aired or Distributed in 2 years CAVCO CanCon  Excluded genres eg. sports, news, ads, talk shows, pep rallies Canadian Film or Video Production Services Tax Credit PSTC Copyright can be owned by the US, UK, France, etc Prodco is based permanently in Canada for at least 50% of its works 16% of Canadian Labour Excluded genres Reality & Tax Credits Is there a game or task that has an objective outcome? ○ Yes - Character development ○ No - Eligible Test: Is there character development over time? ○ CPTC = CanCon ○ PSTC = NonCanCon Ontario Tax Credits 60% * 45% (regions) 60% * 35% (Toronto) Tax Credits - Calculate to the max CMF - 90% rule ○ Allows only 90% into the financing plan OFTTC/Toronto = (Budget - Assistance) x 60% x 35% x 90% OFTTC/Regional = (Budget - Assistance) x 60% x 45% x 90% CPTC = (Budget - Assistance) x 60% x 25% x 90% = Feds First time producer bonus = $12,000 per season OFTTC Assistance Grants/Donations ○ Crowdfunding ○ Public or private organizations that give financing in the form of a grant Recoupable advances ○ Public or private organizations that give financing in the form of a recoupable advance First-Time Producer Bonus Deferrals CPTC Assistance The previous, PLUS: Government Equity ○ CMF EIP ○ Some Telefilm Funding programs OFTTC Tax Credit NOT Assistance for OFTTC or CPTC License fees License fee top-up (CMF LFP) Distribution MGs Non-govt equity investors eg. Rogers Doc Fund, Rich aunt Contra, product placement, corporate sponsorship 5. Pitching Pitching is sales Sell the idea Sell you What makes your take the one? General Pitch Structure (TV Series) Attention grabber (2-3 mins) Overview (2-3 mins) - stay out of the weeds Comps/References (1 min) World of the show (2-3 mins) Main Character(s) (2-3mins) Supporting Character(s) (2-3mins) - avoid grocery list Season arc(s) (2-3 mins) Wind-up (1-2 mins) TOTAL 14-21 mins Step 1: Clear the arena Research What are they looking for/need? Annual Report / Website / Markets Market intel - trades Is your project a fit? Do your homework ○ Has broadcaster done this basic idea before?  ○ What is buyer looking for? ○ Is your project original? Broadcaster resources ○ Underwater epic - CGI Cost ○ Scope of proposal beyond resources? ○ Need other elements/partners ○ Is your project practical? Step 2: Gain Access Agents and managers Networking Partners with access (studios/prodcos/talent) Markets (MIP, Banff, Kidscreen) Query emails Reputation 10 TIPS Tip 1 - Passion Are you excited by your idea? Physically animated Hand gestures to make a point Modulated voide BUT… Passion does not mean over the top Watch for their interest Match their energy Tip 2 - Grab their attention Personal conection Set piece Relevance Amazing fact Tip 3 - Colourful, visual specifics Pitching uphill ○ Could be the grabber Visual images ○ Emotional reaction / memorable / sticky Tip 4 - Rehearse Rehearse, rehearse, rehearse Get feedback  Listen to advice Watch their eyes Tip 5 - Engage in Dialogue Let buyer build on your idea Discuss unresolved issues ○ Setting ○ Character arcs Incorporate the input - buyer more invested ○ Rewrite and resend Tip 6 - Be succinct Concise logline Clear / avoid the weeds Persuasive Speed pitching / cocktail party ○ Thirty seconds (elevator pitch) ○ Three minutes ○ Thirty minutes Creative vs greenlight pitch (avoid the weeds) Creative - First Pitch ○ Maybe audience and marketing Production Issues - Last pitch ○ Budget ○ Financing ○ Location, CGI, physicality Tip 7 - Address Flaws - Weaknesses Don’t be defensive ○ Admit flaws ○ How do you plan to address them Realistic expectations ○ Newer writer/producer team up ○ Mentors / outside resources ○ Production issues Tip 8 - Pay attention to Hierarchy Easy to say no Hard to say yes Easiest to say nothing at all  Who is the decision maker? ○ Can you jump the queue? ○ NO, that will alienate the execs Tip 9 - Know Thyself Track record Credibility Marketing yourself Your idea and you Why you? Why are you the best team for the job (show)? What does buyer get by going with you… and not an established producer Advance their career? Favour returned later Great work… delivered on time Why not you? Level of risk ○ What will your idea cost the buyer if it works? ○ And if it goes wrong? Barriers to entry ○ Even at low cost - measure of risk Tip 10 - Pitch for Zoom Easier to access BUT there are constraints Maintain eye contact Maintain good body language and posture Maintain passion Don’t just read off the screen