Zeros2Heroes

Business partner or ATM?

Given the current climate — which is extremely favorable for procuring funding – it can sometimes be easy to lose sight of the fact that the industry is quite fortunate to have so many entities like Telefilm Canada, British Columbia Film, the Bell Fund, etc. willing to help you succeed. In addition to providing funding, these bodies also advocate for better regulations, programs and conditions to help foster a healthier industry.

But some producers occasionally fall into the trap of taking these funds and funding agencies for granted. It is important to remember that as economic and political tides rise and fall, so too do the abilities of these agencies to provide support: it is not uncommon to suddenly find oneself on the wrong side of a significant funding cutback.

So how do you stay aligned with their business objectives to ensure that you can continue to move forward even when times get tough?

Work with partners that already consult with these agencies on a regular basis and are plugged into developments concerning their digital funds.

Always keep in mind that these funding bodies also want reach their own goals and objectives. Make sure that you are aligning your project with the agency most likely to consider it a win.

Wherever possible, develop a dialogue with those funding officers directly connected to the various digital programs. While they won’t offer any “exclusive” information, these people can often help you understand their priorities.

When it comes time to apply for funding, make their lives as easy as possible. Use your knowledge of their priorities to position your ideas in the best way possible. Prepare thorough, detailed proposals that are both easy-to-read and well researched.

As with any potential partner, make sure you invest some time and energy in the various funding bodies… or work with someone who already has this sort of professional rapport. It will almost certainly benefit the inception of your project.

Thank you. Before I begin, I’d like everyone to notice that my report is in a professional, clear plastic binder…When a report looks this good, you know it’ll get an A. That’s a tip kids. Write it down.
—Calvin, of Calvin & Hobbes

Proposals

There are all manner of digital funding bodies across Canada: one thing they have in common is that they are all mandated to assist in the development of innovative digital extensions for film and television. Another thing that they have in common is the incredible volume of material they are required to filter through every time an application window closes.

Do yourself a favor: make their life a little easier when the time comes to consider your application. Imagine that it’s late on a rainy Thursday night and the last thing the funding officer wants to do is read one last proposal before they make their way home. And there’s yours, right on top of the pile. How do you turn this into a win?

Structure matters

From the structure of your thoughts to the structure of the binder itself, the easier you make it for your potential partners to absorb your ideas, the better your chances of success.

Let’s assume that the idea for your digital extension is solid, and that you have the time, team and expertise to pull it off. This may not matter if it doesn’t come through clearly in the application.

Start with a one-sheet approach
You should be able to explain the gist of your concept and the benefits to all parties involved in one page. If not, you’ve got some refining to do — and better to find out now than halfway into a 50 page proposal! Drop back to the basics and keep asking yourself why anyone else would care.

Lots of ideas, one voice
In preparing your proposal, you will probably want to solicit input from all the members of your team and various senior stakeholders. It’s great to draw in that expertise, but have one person be responsible for the writing: you need clarity and cohesion. Your digital strategist is probably the best person for the job.

The quality of your words
You don’t need your application to be written by a PhD, but you will be absolutely killed if what the reader takes away is crappy structure, grammatical errors and fractured sentences. And there is just no excuse for typos.

Chunk up your content
Reading long, unbroken paragraphs is a drag, especially if the subject matter has an overly technical bent. Short bursts of writing around a single concept will make the pages turn that much faster.

A picture instead of 1000 words
Remember: it’s a rainy Thursday night. Careful use of pictorials and infographics can cut through the worst post-caffeinated end-of-day haze.

Sanity check
Get a more-or-less neutral third party — ideally, someone unfamiliar with the details of your proposed digital extension — to read over the rough draft of your application. Restrain yourself from the urge to explain stumbling points. If they don’t get it, chances are no one else will.

Put it all together in a neat little package
Hire a print designer to properly lay out your document. Make a cover page. Tab separate sections for easy reference. And, yes, the binder does matter, whether it’s clear plastic or not.

Sound like a lot of work? It is. If you’re not in a position to take it on yourself, make sure that there are people on your digital team able to make it happen. After all, you’re asking for thousands of dollars — better make sure that your idea looks like a million bucks.

Timelines and paperwork

Remember: everything takes longer than you expect it. And when it comes to getting documentation that requires third-party signatures — particularly broadcasters — you can double your initial estimate and add 30.

Oftentimes, getting such documents in order is essential to triggering the financing for which you are applying… so start early and, if necessary, be politely persistent in chasing things down. It doesn’t matter how perfect your proposal might be if you don’t get the broadcaster license agreement before their deadline!

A Somewhat Sober Second Thought

We’ve heard that a million monkeys at a million keyboards could produce the complete works of Shakespeare; now, thanks to the Internet, we know that is not true.
—Robert Wilensky

Without question, the world is going digital and changes to the financing landscape mean that the television industry in Canada is about to play considerable catch-up. Which is a good thing… but there can definitely be too much of a good thing.

As a producer, you need to be able to stand a bit apart from the stampede and decide where, when and what kind of digital extension makes sense for you… if any!

This may seem like heresy in an age where audiences are spending more and more time online and, granted, there is tremendous pressure not to be left behind. But, on the other hand, take a second to ask yourself these questions:

• - Who is your target audience?
• - How are they using technology, if at all?
• - Will digital work distract key staff during production?
• - Will this property have a life span beyond a single season?
• - Can you count on your broadcaster or distributor for ongoing support?
• - Are you ready to navigate the sometimes inscrutable guidelines for digital funding?

The answers might give you pause and allow for that somewhat sober second thought. But you should probably cut a bit closer to the center and ask yourself this:

Does a digital extension make any business sense?

The answer will change depending on which of the following three scenarios applies to your production:

Funded by Cultural Agencies

This is the most common form of digital extension to be found in Canada and it shows. Both Telefilm Canada and the Bell Broadcast and New Media Fund have been big players over the past ten years and several provincial bodies have also had key roles. Their support has made a lot of digital ideas possible — some good, some bad, some indifferent — and all indications are that they will be in the game for years to come.

That, in itself, is a definite plus: the Canadian entertainment industry is not awash in cash and being able to unlock (potentially) hundreds of thousands of dollars for websites, iPhone apps, games or social applications is a huge boon.

There are, however, downsides to this possible largesse.

The application itself can be a big task. Despite efforts to streamline documentation and make the decision-making process more transparent, don’t underestimate the amount of work involved.

Their agenda might not be yours. Government bodies will quite often be chasing a different colored rabbit than yours and will be reluctant (or simply unable) to change direction. Be careful that you don’t bend too far to align your goals with their political dictates.

Dollars don’t always equal market validation. Being on the receiving end of a large government grant might make you feel like a million (alright, a few hundred thousand dollars), but keep your expectations within reason. Conditions change and what may have been a hot idea during the application process might be yesterday’s news by the time you hit the market.

Speaking of timing… Depending on the agency, the time between submitting your application and getting that first drawdown can be as much as six months. In digital terms, that can be an eternity. Be advised.

The paperwork… oh, the paperwork. Government agencies take their responsibilities as guardians of the public purse quite seriously. I hope you like auditors because you will be expected to account for every penny.

Even with all this to consider, government funders can be great, great partners… and, with a dearth of private financing in Canada, they are probably your best bet to get more dollars behind your project.

If you don’t already have a hit show or a strong brand, ambitious multiplatform extensions may not generate the extra revenue required to cover the cost.
—Brian Hamilton, Omni Film

Sponsored by Third Parties

This is a model that seems much more popular — or plausible — in the United States: productions that draw in a certain demographic regularly launch digital applications that are sponsored by various commercial companies.

Heroes is perhaps the best example that leaps to mind, as is Lost, but there many other shows who have enlisted Sprint, Verizon, Jeep: Patriot, Tetley and others. Many of these partnerships are brokered via the show’s broadcaster, who can wield considerable influence when it comes to negotiating one-off sponsorships or sales as part of an integrated ad package.

There are signs that Canadian broadcasters are moving in this direction too… but they are coming to the game a little late. This is partially due to a “crowding out” effect: with so much government funding generally available, why pursue private partners?

But with increasingly stringent requirements for matching funds rather than deferrals as a trigger condition — and with broadcasters feeling the pinch themselves — this option may become more common. But to make this happen, you will need to have either:

this season’s hit show; or
a longer-standing show with a strong brand

Even with those conditions in place, you may want to consider how much business development effort you want to commit to securing these partnerships. Remember:

• - Such deals won’t come quickly
• - The pursuit might become a distraction
• - The dollars involved may not seem great
• - You will have another stakeholder involved in your production

Still, developing a track record with private advertisers can become steadily more lucrative and opening up an alternate revenue source is never a bad thing… especially given the ebb and flow of government financing for such undertakings.

Self-Financed

Clearly, no one wants to reach into their own pocket to fund a digital extension… especially if the return on that investment is, well, unclear. And even more especially when there are other funding options seemingly within reach.

Times, however, have changed in the digital space and a lot can be done with much less than was previously the case. And many times, these low-budget options can be a better fit with your goals. You can build a very worthwhile digital media strategy around:

• - Third party sites like Facebook or MySpace
• - Free online publishing systems like Blogger or Twitter
• - Simple iPhone applications
• - Coordinating existing fan sites

The bottom line is: don’t feel you have to go for the home run if a few well-timed base hits will win the game.

Not only is the funding required much more modest, you may find it an easy task to unlock small grants from the various funding bodies. The idea is to be smart, not big… but you will need to work with an experienced digital strategist. (see Chapter 3b for more on working with digital strategists.)