CO-PRODUCTION

International co-productions enjoy significant production financing incentives, tax credits, and other financial benefits that considerably reduce the costs of production. These productions typically generate proportionately higher pre-sale license fees from domestic broadcast buyers than other programming. Each of these factors will contribute towards the financial viability of the ultimate television production.

Co-producing with a Canadian partner assists in creating a truly internationally marketable television series for world audiences. It ensures that a European series maintains a North American look and feel, even though thematically it may have originated from foreign characters and content. North Americanization of television programming also improves the monetary value of series, since world audiences gravitate toward the contextual nature of TV programming produced with a North America perspective.

Co-production benefits:

Access to international equity financing as well as domestic presales

Access to international talent and expenditure which is exempt from the CAVCO

Canadian content point system and Canadian expenditure requirements

Access to a larger pool of creative talent

Canadian content recognition, domestic content in the partner country, and where applicable, European status for production


Methodology

International co-production offers the optimum solution for creating cost-effective programming through value added partnerships

International co-productions enjoy significant production financing incentives, tax credits, and other financial benefits that considerably reduce the costs of production

Most developed co-production market is Canada offering highest incentives, lowest production cost & largest pre-sales

Canada-based Cameron Thomson Entertainment specializes in offering co-production opportunities for television companies internationally

International Co-pro
Why Canada?
Canada is the recognized world leader in the international co-production of television series

Well developed television production and post production industry

Attractive tax regime and broadcast environment that offers premium prices price for locally produced television programming

Financial infrastructure is well developed for funding TV (ie. GAP, Bonding, Completion Guarantees, Banks, Insurance)

Canadian partner assists in creating internationally marketable television series for world audiences ensuring the Scala series maintains a North American look and feel

The UK as a Minority Co-Production Partner

In addition to being able to offer our international partners a Canadian minority co-production position on foreign projects we can also provide our International partners with the opportunity to participate as (minority) co-producers in projects originating from CTE in Canada.

ENHANCED LICENSE FEES

As an official Canada/UK treaty co-production, a series, which originated in Canada, is recognized as domestic content for the EEC, thus triggering the higher "content" broadcast license versus the lower domestic non-content "acquisition" fees.

INTEGRATION

Minority co-productions offer an effective means to integrate international distribution activity with content ownership. International co-production partners can pre-sell and distribute "domestic" proprietary content for which they have helped shape creatively, into their respective territories which thereby enhances its marketability.

Integration creates a value added development process, enhances library growth and minimizes financial risk for a given TV property

LEVERAGE AND RISK MINIMIZATION

Providing there is at least 20% of the total budget spent in the UK, a Canadian producer can look to receiving approximately 20% Canadian tax credits on its "Canadian" production percentage and 9% to 10% of the "total" budget from the UK side from Tax shelter funds Simply put, the UK Sale Leaseback Tax shelter can offset up to 10% of the 20% financial commitment for the UK partner. A minimum production budget of $3,000,000 Canadian is required.

The remaining 10% can often be covered off from a combined terrestrial /basic domestic license fee. This results in 100% coverage of the minimum 20% financial investment plus the UK producer retains a residual copyright ownership, domestic distribution rights and pro-rata profit participation in world sales after recoupment by the co-producers. For investment positions above the minimum 20% co-production level, additional territories, rights ownership and work splits would be negotiated.

Other

In addition, CTE can assist with accessing and factoring the lower level production service tax credits on non (CAVCO) content co-ventures