Question Period Note: Canada Media Fund – The Liberals' hold over Media Fund
About
- Reference number:
- PCH-2023-QP-00001
- Date received:
- May 29, 2023
- Organization:
- Canadian Heritage
- Name of Minister:
- Rodriguez, Pablo (Hon.)
- Title of Minister:
- Minister of Canadian Heritage
Issue/Question:
The Canada Media Fund (CMF) is funded by the Government of Canada and cable, satellite and Internet Protocol Television (IPTV) distributors to support the creation of Canadian audiovisual content across multiple platforms. The CMF’s total budget for 2023-24 is approximately $397 million, including a total Federal Government contribution of up to $216.6 million. Budget 2023 provides $40 million over two years, starting in 2023-24, to the Department of Canadian Heritage (PCH) for the CMF to make funding more open to traditionally underrepresented voices, and to increase funding for French-language screen content.
Suggested Response:
• The audiovisual sector is essential to telling Canadian stories and is a major driver of the economy.
• Budget 2023 provides $40 million for the Canada Media Fund to make funding more open to traditionally underrepresented voices, and to increase funding for French-language screen content.
• This funding will support Canadian audiovisual content while the government continues modernize its support for the sector.
Background:
• The Canada Media Fund (CMF) is the largest fund for television and digital content production in Canada. In 2022-23, the CMF contributed approximately $365 million – including funding from both the Government of Canada and CRTC regulatory charges from Canadian broadcast distribution undertakings – to finance the prototyping, development, production, promotion, and export of 1,272 television and digital media projects. This investment in turn triggered $1.8 billion in production across the country.
• While the Government of Canada sets the guiding principles and broad objectives for the CMF, the CMF is delivered by the CMF Corporation, an independent not-for-profit corporation. It is solely responsible for funding decisions for specific projects.
• The CMF delivers financial support mainly through three funding streams:
o The Convergent Stream (2023-24: $298.7 million budgeted) supports the creation of television content. Genres funded are drama, documentary, children’s and youth, variety and performing arts.
o The Experimental Stream (2023-24: $44.9 million budgeted) supports the creation of leading edge interactive digital media content and software applications, like videogames.
o The Sector Development Stream (2023-24: $6.1 million budgeted) supports projects that are primarily for the benefit of the sector. It also aims to support efforts that provide opportunities for industry-related training, development, mentorship, promotion, or other similar activities.
• The Government of Canada allocates $134.1 million annually to the CMF program on an ongoing basis.
• Through CRTC regulations, cable, satellite and Internet Protocol TV distributors (also known as broadcasting distribution undertakings - BDUs) must contribute around five percent of their broadcasting revenues to Canadian programming, about half of which goes to the CMF. These revenues have been in decline since 2013 14 as a result of declining cable and satellite subscription revenues.
• In Budget 2018, the Government announced it would stabilize the CMF by allocating a top-up of up to $172 million over five years and up to $42.5 million ongoing thereafter to offset the declining revenues. To date, the Government has invested an additional: $17 million in 2018-19; $23.5 million in 2019-20; $26.3 million in 2020 21; $29.7 million in 2021-22; and $33.5 million in 2022-23. The contribution for 2023-24 will be confirmed in fall 2023.
• As part of Budget 2021, $60 million is being provided over three years ($20 million per year starting in 2021 22) to the CMF to increase support for productions led by people from equity-deserving groups working in the Canadian audiovisual industry. The 2021-22 contribution agreement with the CMF Corporation was updated to reflect this additional funding, including new performance indicators to report on the funding’s results.
o This investment provides opportunities for equity-deserving creators to build skills and experience, and to support greater diversity in top-tier productions.
o Targeted funding for the CMF is being used to directly benefit underrepresented professionals in the industry, including women, people with disabilities, 2SLGBTQQIA+ people, Black, racialized and Indigenous creators.
• Budget 2023 provides $40 million over two years, starting in 2023-24, to PCH for the CMF to make funding more open to traditionally underrepresented voices, and to increase funding for French-language screen content. The actual implementation of this funding has yet to be determined.
o The AQPM welcomes this funding but says it is insufficient to address the underfunding of Quebec television production in the francophone market and to increase its share to 40 percent of the CMF envelope. The CMPA applauded the increase « to make funding more open to traditionally underrepresented voices in Canada’s screen industry ».
• For the fiscal year 2023-24, the Government’s contribution is estimated at $174.1 million to the CMF ($134.1 million base investment, $20 million in support for equity-deserving groups, $20 million as per budget 2023), plus a top-up amount of up to $42.5 million, for a total of $216.6 million.
Additional Information:
None