ONTARIO MUSIC FUND Music Company Development & Music Futures

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1 ONTARIO MUSIC FUND Music Company Development & Music Futures

2 OUTLINE Overview OMF Goals Program Objectives Applicant Eligibility Funding Assistance Available Eligible Activities & Costs Business Plans Budgets & Financing How to Apply & Assessment Criteria Recipient Obligations Application Tips & Advice Deadlines Q&A

3 OVERVIEW $15M annually for Ontario s music industry Driving growth in Ontario s music sector OMF Four streams: Music Company Development Music Futures Live Music Music Industry Development Supports music companies and organizations across Ontario s music ecosystem

4 OMF GOALS Increase music production activity in Ontario Strengthen and develop the support structures that contribute to economic and cultural growth Increase performance opportunities for new & emerging artists Create opportunities for emerging artists/small music companies Support Ontario s musical diversity, with respect to music from culturally diverse, Indigenous and Franco-Ontarian communities

5 PROGRAM OBJECTIVES Objective MCD Futures Create jobs in Ontario Invest in recording and production in the province Support Ontario s musical diversity Increase company sales and build market share; Grow revenues Increase investment in, and development of, Canadian artists in Ontario Attract international talent to Ontario Grow company capacity Increase export development Support digital and organizational innovation Stimulate entrepreneurship Strengthen music production from under-represented but high-potential genres

6 ELIGIBILITY. WHO CAN APPLY? MCD (Category A) MCD (Category B) Music Futures Domestic Record Labels Music Publishers Music Managers Artist-Entrepreneurs (AE) Minimum $100,000 in eligible revenue Multi-National Record Labels Minimum $100,000 in eligible revenue Domestic Record Labels Music Publishers Music Managers Artist-Entrepreneurs (AE) $30,000 - $100,000 in eligible revenue

7 WHAT ELSE DO I NEED TO KNOW? In order to be eligible, applicants must: Be incorporated in Canada and be in operation for at least two years Have a head office in Ontario Have key management personnel who are Canadian citizens or permanent residents of Canada living in Ontario Be in good standing with Ontario Creates at time of application Be a music company!

8 FUNDING ASSISTANCE MCD (Labels, Managers, Publishers): Up to $750K per year Companies with eligible revenues of more than $5M, may apply for additional $250K in funding for strategic activities MCD (Artist-Entrepreneurs): Up to $100K per year Note: funding guidelines re: touring based on company revenues Music Futures (All): Up to $50K per year

9 ELIGIBLE ACTIVITIES & COSTS Activity Window: August 1, 2019 July, Recording & Production ***All recording costs must be incurred in Ontario*** Studio recording costs and supplies Art and copy costs Canadian technical staff, recording engineers and musicians Master license fees as long as Original recording was recorded in Ontario within past 24 months, or if The recording will take place in Ontario Foreign producers where a clear rationale is provided, foreign producers fees may be eligible (max. OMF contribution of $75K MCD only)

10 MORE ELIGIBLE ACTIVITIES & COSTS Marketing & Promotion Advertising Creation and production of promotional materials Online and mobile marketing Publicity, promotion, and radio tracking Event costs Music Videos Must be shot in Ontario, using professional services of Canadian directors, producers and production/post-production crew Business Development Costs paid for goods and services that enhance company capacity * Category B: Marketing & promotion costs must be paid to an Ontario-based company for Canadian artists.

11 EVEN MORE ACTIVITIES & COSTS For MCD Category A and Music Futures applicants only: Touring & Showcasing Direct tour costs for an artist signed to the applicant company Artist-Entrepreneurs with revenues < $750K may apply for up to $25K Artist-Entrepreneurs with revenues > $750K may not apply for tour support Administrative and Overhead Costs Staff salaries, office space and corporate services (capped at 25% of total budget in MCD, 35% in Futures) Equipment & Software Cost of new equipment, materials and software (must be pro-rated or amortized using the formula outlined in the Guidelines)

12 BUSINESS PLANS Company Business Plan is required and must contain, at minimum: Applicant profile Company Strategy Overview of business activities Company S.W.O.T. analysis A case for OMF funding

13 BUDGETS & FINANCING Applicants are required to submit two distinct budgets: 1. Comparative Company Budget Overall company financial plan outlining all corporate revenue and expenditures for a specified fiscal period (year-over-year comparative) 2. Activity Budget Ontario Creates template that includes cost breakdowns for each eligible activity, along with a summary of sources of financing for those activities List activities in order of priority, and indicate the OMF $ amount requested for each activity

14 MCD: SOURCES OF FINANCING Financing of Total Project Budget OMF Contribution Applicant Contributions 50% 10% 40% MINIMUM cash contribution from Applicant MAXIMUM amount of in-kind contributions permitted from applicant MAXIMUM OMF Contribution NOTE: Maximum public funding cannot exceed 75% of total budget

15 MCD: SOURCES OF FINANCING Applicant s Contribution 20% 80% MINIMUM cash contribution MAXIMUM amount of in-kind contributions permitted

16 FUTURES: SOURCES OF FINANCING Financing of Total Project Budget OMF Contribution Applicant Contributions 75% 10% 15% MINIMUM cash contribution from Applicant MAXIMUM amount of in-kind contributions permitted from applicant MAXIMUM OMF Grant Funding (Maximum Public Funding of 75%)

17 FUTURES: SOURCES OF FINANCING Applicant s Contribution 60% 40% MINIMUM cash contribution MAXIMUM amount of in-kind contributions permitted

18 HOW TO APPLY Application is only available through Ontario Creates Online Application Portal Company Information Company Details Activity Objectives Activity Titles and Descriptions Supporting Documents Financial statements Activity Plans & Activity Budgets Business Plan Back-up Quotes Proof of Insurance Marketing plan, Letters of support, Articles of Incorporation, etc. for technical support

19 ASSESSMENT CRITERIA Operational Capacity Organizational Impact Sustainability Activities & Proposal Economic & Cultural Impact Diversity & Inclusion

20 APPROVED! WHAT S NEXT? Short-term: A conversation Revised budget (if applicable) Proof of insurance Funding agreement Longer-term: Reporting (interim and final) Financial statements

21 TIPS & ADVICE 1. Read the guidelines and application requirements thoroughly 2. Be realistic with your funding request 3. Sell your unique business case 4. Know your competition (and let us know that you know) 5. Show how your proposed activities are new and/or expanded 6. Include measurable targets/outcomes resulting from activities 7. Don t make assumptions 8. Be transparent - don t be afraid to address obstacles & challenges 9. Double-check your work 10. Be concise and specific

22 DEADLINES Music Company Development Wednesday, April 17, :00pm Music Futures Thursday, April 18, :00pm

23 CONTACT US Ontario Music Office Program Coordinators

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