International Digital Media Co-Production: A Guide for Canadian Companies

Key insights

5 takeaways

01
Official co-production treaties do not cover interactive digital media; under the Canadian funding agencies' Working Framework for Digital Media Co-Production, not less than 75% of the financial contribution from Canada must be spent in Canada or on Canadians.See it on page 7
02
The guide reports that some producers suggested raising co-production budgets by 10-20% to cover added project management, legal fees and travel.See it on page 15
03
Canada is reported to have more digital media financing than any reviewed jurisdiction, which means foreign producers often approach Canadian producers with fully developed projects seeking extra funding.See it on page 20
04
The Ontario Interactive Digital Media Tax Credit generally requires that 90% of the project be developed in Ontario by the Ontario producer, and every Ontario producer interviewed expressed frustration with this rule.See it on page 19
05
Producers reported that Canadian broadcasters typically seek small digital extensions to television programming, which are too small to justify a co-production.See it on page 21

Summary

The Interactive Ontario guide, prepared by consultant Kelly Lynne Ashton and funded by the Ontario Media Development Corporation, the Canada Media Fund and the Bell Fund, examines international co-production of interactive digital media by Canadian companies. Its focus countries are France, Germany, the United Kingdom, Australia and New Zealand. The study drew on a review of public information and interviews with Canadian and non-Canadian stakeholders, and it states that the sample is too small to identify statistically valid trends, so its findings are anecdotal. The document notes that existing official co-production treaties do not cover interactive digital media, so the study takes a broad view of co-production that includes true co-productions, split responsibilities, broadcaster collaboration, service work and NGO financing.

The guide identifies several reasons producers pursue co-production, including financing gaps for large-scope projects, access to larger audiences and missing non-financial resources such as animation talent. It also lists challenges, among them the extra time and cost of managing co-productions, which some interviewed producers suggested offsetting with a 10-20% budget increase. Producers also cited differences in funding deadlines, genre rules and terminology across countries, and the Ontario Interactive Digital Media Tax Credit's 90% development requirement as a barrier.

The guide reports that none of the digital media funds reviewed outside Canada contemplated digital media co-productions, and that most require levels of domestic spending that would prohibit a co-production from applying. Its country information is current as of January to March 2014.