Class 6

Question 1

what are these refering to?

• Public funds (e.g.
  Telefilm)
• Private funds (e.g.
  Rogers)
• Broadcast licenses
• CAD / International
• Tax credits
• Grants
• Distributor MG
• Private investors
• Product placement
• Sponsorship
• Crowdsourcing
• Deferrals

Answer 1

Sources of Production Financing

Question 2

name 2 sources that are strictly NOT sources of production financing

Answer 2

• Banks
  - Interim financing (loan)
• Development funds
  (loans - paid back in
  production)

Question 3

connect the source to the nature of its financing:

source: bell

Answer 3

nature: broadcaster liscense

Question 4

connect the source to the nature of its financing:

source: telefilm

Answer 4

nature: equity or grant

Question 5

connect the source to the nature of its financing:

source: CPTC / OFTTC

Answer 5

nature: tax credit

Question 6

connect the source to the nature of its financing:

source: Mongrel Media MG

Answer 6

nature: advance

Question 7

what nature of financing are these points describing:

• Investment
• Own part of the copyright
• Participate in the program’s success (profit)
• Recoupment

Answer 7

equity

Question 8

what is this describing?

• 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

Answer 8

Distribution Advance
aka Presale

Question 9

sale vs pre sale?

preproduction sales?

Answer 9

presales

Question 10

sale vs pre sale?

$ spent during production/post

Answer 10

pre sale

Question 11

sale vs pre sale?

After show is complete (delivered)

Answer 11

sale

Question 12

sale vs pre sale?

aquisitions/profit

Answer 12

sale

Question 13

what are the following:

• Elevation Pictures
• LevelFILM
• Photon Films
• WildBrain
• Mile End
• TVA Films
• Mongrel Media
• Lionsgate
• NBC Universal / Sony
  Pictures / Paramount /
  BBC Studios

Answer 13

distribuitors

Question 14

• Distributors may have approval over creative
  choices if it’s a presale

– Not applicable if acquisition after production

• Reasonable use of approvals
• NOTE: May overlap with broadcaster approvals

Answer 14

customary approvals

Question 15

• Offices/overhead
• Marketing collateral
• Travel to markets
• Space at MIP / booths
• Dubbing
• Interest on advance

Answer 15

Distributors’ Recoupable Expenses

Question 16

distributor vs sales agent?

may pay an MG
(advance)

Answer 16

distributor

Question 17

distributor vs sales agent?

controls the copyright
for a territory/time

Answer 17

distributor

Question 18

distributor vs sales agent?

Fee – up to 35% plus expenses

Answer 18

distributor

Question 19

distributor vs sales agent?

Corporate and personal credits

Answer 19

distributor

Question 20

distributor vs sales agent?

May have an output deal

Answer 20

distributor

Question 21

distributor vs sales agent?

Producer delivers to this person

Answer 21

distributor

Question 22

distributor vs sales agent?

no guarantee on paying an advance

Answer 22

sales agent

Question 23

distributor vs sales agent?

may only make the sale to the broadcaster

Answer 23

sales agent

Question 24

distributor vs sales agent?

fee is about 10% of the sale

Answer 24

sales agent

Question 25

distributor vs sales agent?

no output deals

Answer 25

sales agent

Question 26

what are 2 of the distributors main responsibilities:

Answer 26

• To sell (license) your show
• To report to you on their progress

Question 27

explain an output deal:

Answer 27

• Distributor guarantees certain amount of product to certain broadcasters
• Broadcaster promises to take that product
• “Good” product (Yellowjackets) can be tied to “bad“ product (a low quality show)

Question 28

who’s responsibilities are the following:

• E & O Insurance / Production / Liability Insurance
• CAVCO / CRTC Certification
• Representations & Warranties
• Music, actors, clearances etc.
• Chain of Title

Answer 28

producer’s