Budget commitments for new media, television production fall short of expectations

Stakeholders in the new media and broadcast industries say they welcome commitments in this year's federal budget to spur growth but warn that the money is still not enough to enable both sectors to realize their full potential. The federal government budget allocated $28.6 million over the next two years to the Canadian New Media Fund (CNMF) and $14.3 million annually thereafter. The Canadian Television Fund (CTF) received $200 million over the next two years while $225 million was allocated for broadband development. Kenton Low, president of New Media B.C, a federally incorporated non-profit organisation that promotes the digital media industry in BC, welcomed the continuation of funding for the Telefilm-managed CNMF, saying it will help small digital media companies get a foothold in the marketplace. But he added that details on the new money are still sketchy. "What are the particulars and procedures for administering it? You can't apply unless you know how to," he says, adding that the amount has not increased significantly since last year's budget. "In the past it's been about $14 million . It remains pretty much intact and that's favourable news. In the age of budget cuts, anything remaining intact is favourable." The Canadian Interactive Alliance (CIAIC) says it welcomes the renewal of the CNMF - and the fact that it's become a permanent program - but expressed regret that the $14.3 million annually represents a small reduction from previous levels. The CNMF's two-year extension was set to expire on March 31 this year. New applications were no longer being accepted and the fund was preparing to shut operations, including recalling any money that was not spent by investors, says CIAIF. "It is crucial now that the Conservative government and Telefilm announce plans for the fund's 2009-2010 fiscal year without delay, to ensure there is no gap in funds available at a time they are most needed," Ian Kelso, president of CIAIC said in a statement. "On the whole, we are very disappointed that the Canada New Media Fund has stagnated at 2005 levels while global markets have grown exponentially and the need for innovation across many interactive platforms has risen enormously." The Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) says while it is pleased to see a renewed funding commitment to the CNMF and the CTF, it is still concerned at the failure to increase the funding. "We are relieved to see signs that the Conservative government is taking the cultural sector more seriously. However, we are disappointed that they passed on the opportunity to maximize the potential of the film and TV industry to stimulate the economy," says Stephen Waddell, national executive director. Before the budget was tabled on Jan. 27, ACTRA had called on the government to provide long-term, increased investment in the CTF, Telefilm Canada, the CBC and the National Film Board, including an ISP levy to promote the new media industry. It had also called for an increase in the value of the Canadian Film Tax and Video Production Tax Credit (CFVPTC) and the Production Services Tax Credit (PSTC), while also calling for the introduction for a system of income averaging for tax purposes over a five-year period, to help artists who are self-employed. For its part, the Canadian Film and Television Production Association (CFTPA) welcomed the continuation of funding for the CNMF and the CTF, but also echoed ACTRA's calls for tax breaks for independent producers. "We know there is much more work to be done for our sector to realize our full potential as leading contributors to the creative economy," says Sandra Cunningham, chair, CFTPA. The government also announced $650 million in funding for the 2010 Winter Olympics in Vancouver. Canadian broadcasters are expected to benefit from $20 million of this money earmarked for domestic advertising.

Budget commitments for new media, television production fall short of expectations

Broadcast | January 29, 2009

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