Application Guidelines for EM Media Investment Introduction EM…

 Application Guidelines
for EM Media Investment
Introduction

EM Media, the Regional Screen Agency for the East Midlands, works closely with many
regional media companies and individuals. We attract investment funds from a variety of
sources on behalf of the region's film and media sector, including the UK Film Council the
East Midlands Development Agency and the European Commission.

We believe the following three priority areas are key to growing the regional media economy:

·   TALENT DEVELOPMENT: Identifying, growing and supporting the cultural, creative and
    economic ambitions of the region's dynamic talent pool and enhancing the region's
    reputation for innovative practice and distinctive voices.

·   AUDIENCES AND MARKETS: Developing the range of markets, audiences and
    opportunities for consumption of digital product and encouraging participation,
    understanding and engagement with all forms of media product, especially as tools for
    learning.

·   BUSINESS: Utilising key business functions and practices (R&D, feasibility testing,
    fundraising, market intelligence and communication) to shape our business to inform and
    invest in film and media businesses.

We invest in the following sectors:

·   Film ­ long and short form, development, production, distribution, exhibition.
·   Television ­ corporate, broadcast, internet TV, production and distribution.
·   Games ­ development, prototyping, production, publishing, distribution.
·   Interactive ­ internet, mobile phone and TV software, production development,
    emerging technologies affecting all of the above sectors.

We invest in the following activities:

·   Product development
    Script development, games development and the development of media product for a
    range of digital platforms e.g. television, cinema, web, games.
·   Research and development
    Investment in R&D projects to help take a product/project or explore the feasibility of a
    product/project.
·   Production projects
    Slate development, brokerage of relationships with potential broadcasters.
·   Business services and support
    Information, advice and guidance on constructing business plans and investment in
    appropriate mentor support.
·   Individual & Company skills development
    Training courses, festival and conference attendance, information, advice and guidance,
    training needs analysis, career signposting.
·   Audience and market development
    Projects that develop audiences build content for the market place and/or improve media
    literacy.
·   New partnerships and relationships
    Organising or attending networking events with key industry speakers to support
    individuals and businesses working in film, television, games and interactive at various
    stages of their development ­ from industry entry level through to established talent
    needing to keep up to date with industry changes.
ALL APPLICANTS NEED TO CONTACT AND DISCUSS POTENTIAL APPLICATIONS
WITH A MEMBER OF EM MEDIA STAFF PRIOR TO COMPLETING AN APPLICATION
FORM.

A preliminary discussion with a staff member will ensure that your application covers both
your aims and the aims and objectives of EM Media. This discussion is designed to answer
any questions you have on the application process, to save you time and for you to submit as
strong an application as possible.

Always bear in mind that we need to see proof of your position in the industry, where
our investment is likely to take you or your organisation and what EM Media will gain
in return for our support.




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Application Procedure




                                                 Pre-application




                   If you are applying as an                          If you are applying as a
                 individual use the individual                     company use the organisation
                        application form.                                       form



                                             Complete the
                                          application form and
                                           send to EM Media
   Eight Weeks




                                                  Assessment
                                                      &
                                                   Decision




                                Application                             Application
                                Successful                             Unsuccessful




                                Investment
                                Agreement                               Feedback




                                Project
                              Completion &
                              Recoupment




                                                                                                  4
Pre-application

1. Please contact (by phone, in writing, by email or in person) EM Media to express an
   interest and arrange a meeting with a member of EM Media staff to outline, discuss and
   develop your ideas and plans. We will request a brief synopsis of the project, idea or
   development and details about you.

2. Where appropriate, we will assist you in identifying your current situation, objectives and
   development plans to reach your goals.

3. At this stage your EM Media contact will advise you on the types of support available,
   and what combination of sources of funding this might involve. EM Media will always
   seek to match the level of investment with the level of need.

4. This period of informal development will vary in length from project to project depending
   on what further information may be required or course of action is agreed between staff
   and you, the applicant.

Application

5. When the project proposal is complete, a formal application is made by completing an
   application form and submitting it to EM Media with the necessary supporting
   documentation, for example project plan, accounts, budgets, schedules etc.

6. There are no deadlines ­ applications are considered on a rolling basis.

7. We require two copies of the application form. You are welcome to complete the
   application form electronically, but you must print it out sign the declaration and send to
   EM Media.

8. When we receive your application it will be logged and you will receive an
   acknowledgement and a unique reference number that you should use in any future
   correspondence with EM Media.

Assessment and Decision

9. Once received by EM Media, the application will then proceed to internal assessment by
   EM Media staff and if appropriate, will then be sent out for additional assessment by
   external independent professional advisers.

10. All assessments are made against the same criteria (see page 9 ­ Assessment of
    Applications).

11. EM Media will endeavour to complete assessments within eight weeks of receiving an
    application. However, sometimes additional information or clarification is required from
    the applicant which will inevitably extend the assessment period. It is important therefore
    that applications are submitted at least eight weeks before the project is due to
    commence.

12. Decisions on applications requesting up to £10,000 will be made by EM Media's Senior
    Management Team.

13. Decisions on applications over £10,000 will be made by EM Media's Board.




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The kinds of product or activity we invest in

Any investment EM Media makes towards a project, idea, business or individual will be part
of a longer-term development plan produced by the applicant. This means that we seek to
look at any individual project proposal in the wider context of the individual's, company's or
organisation's ambitions.

For examples of projects EM Media has invested in please refer to our website at
www.em-media.org.uk.

Audience and Market Development

We aim to develop audiences, participation, understanding and enjoyment of all forms of
media, through encouraging greater access to media experiences and opportunities

We support projects that:

   ·    develop audiences for film and media product,
   ·    develop knowledge and understanding of film and media product,
   ·    assist in getting film and media product to market.

This includes, for example, projects supporting:

   ·    access to cinema in rural areas,
   ·    film education and media literacy activities,
   ·    trade development initiatives and film festivals,
   ·    access to film heritage.

Business Development

We aim to develop and sustain an innovative and distinctive media sector, through
supporting the increase in business activity, competitiveness and employment.

We support business development through:

   ·    investment in specialist consultancies,
   ·    start-up or business re-engineering loans.

This includes, for example, projects supporting:

    ·   a range of SMEs and providers in the development of sustainable businesses,
    ·   developing products and early stage prototypes for market,
    ·   Research & Development,
    ·   pilot projects.

Product Development and Production

We aim to develop and sustain an innovative and distinctive media sector, through
developing and promoting regional talent.

We support:

   ·    the development of product for a range of platforms,
   ·    script development,
   ·    games development,


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   ·    slate development,
   ·    production co-finance for feature film.

This includes projects supporting:

    ·   job creation,
    ·   inward investment,
    ·   industry recognition.

Please note for 2007/2008, EM Media will not invest in first-time short filmmakers
outside of DV Shorts.

If your project is Artist Film and Video, then you may wish to speak to Arts Council England
East Midlands first.

We anticipate that investment levels will vary according to the type of project you are
applying with. Investment in development of larger scale projects (feature films, projects for
television, games development etc.) is likely to range from a small initial investment up to a
maximum of £95,000 for the development of slates. Production co-finance for features and
large scale projects will be up to a maximum of £250,000.

Skills Development

We aim to develop and sustain an innovative and distinctive media sector and to develop
audiences, participation, understanding and enjoyment of all forms of media, through
supporting the development of skilled and experienced practitioners and workforce.

We support:

   ·    individual skills development awards,
   ·    company skills development awards.

This includes projects supporting:

   ·    up-skilling regional talent,
   ·    improving business practice and competitiveness,
   ·    productions where the objective is for an individual with a proven track record in film
        and media to develop skills in a new discipline.




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How We Invest

We are keen to ensure that you maximise the support you get from EM Media. We would
therefore encourage you to look at your needs and consider applying for all activity for the
coming year in a single application. It is then possible to include a number of different but
related types of activity within the single application rather than making separate applications
for each type of activity. This of course does not exclude you applying for a project
comprising a single activity nor making more than one application in a year (subject to you
completing the project before you make the next application).

How much will EM Media Invest?

EM Media will typically invest up to 50% of the total project cost.

In-kind Contributions

You can make an in-kind contribution representing the reasonable costs of your time to the
project. This can be shown in the project budget at a rate proven to be appropriate to the
stage in your career and recognised industry rates. However, you present a stronger case for
EM Media investment by offering a cash investment as well as an in-kind contribution

Can EM Media pay for overheads?

Overheads include, but are not limited to, non-project related staff costs such as receptionist
or finance officer, postage, stationery, premises costs, electricity, telephones, heating and
legal fees. You can claim overheads on a proportional basis calculated by:

    Total project budget (excluding overhead costs) x Total company overhead costs in the period of project
    ------------------------------------------------------------------------------------------------------------------------------------------
                 Total company budgeted cost (excluding overhead costs) for the period of the project

As an example, if
   · the period of the project is three months,
   · the total project budget excluding overhead costs is £5,000,
   · the total company budgeted cost (excluding overhead costs) for the period of the
       project is £50,000,
   · the total company overhead costs in the period of the project are £10,000.

then the overhead costs that can be claimed for the project is:

                                                   £5,000 x £10,000 = £1,000
                                                       -----------------------
                                                             £50,000

VAT

If you are VAT registered it will be assumed, unless stated otherwise, that you will reclaim
100% of VAT, and therefore during the assessment the net budget figures will be used to
determine the level of investment. If you require any further assistance on VAT in relation to
your application please contact EM Media.

Is my project or activity within the definition of media?

EM Media supports projects or activities that have an impact on the media culture and
economy within the East Midlands. For example, film, television, video games, interactive
sectors, media education and training development, production, distribution, exhibition and
archiving are all media activities EM Media supports.

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Assessment of Applications

EM Media assesses all applications against the following conditions and criteria:

1. How does the project contribute to EM Media's objectives?

How the project contributes to one or more of the following.

   ·   Business development.
   ·   Audience development.
   ·   Market development.
   ·   Talent development.
   ·   Access.

2. What are the short and long term impacts of the project?

How the following is affected by the project going ahead (or not).

   ·   The proposed or existing partnerships in the application.
   ·   Individual career development.
   ·   The target markets of the application.
   ·   Your staff of organisation.
   ·   The regional supply chain, or spread of media businesses.
   ·   Diversity.

3. What are the risks associated with the project?

How you identify and mitigate risks.

   ·   The targets of the project being realistic and achievable.
   ·   Your previous experience of the type of activity in the application.
   ·   The external risks and how they affect the project.
   ·   If EM Media has invested in you before, the outcomes of that investment.

4. How solid is the financial package?

How the financial information matches the scale and scope of the project

   ·   The suitability of the budgets to the level of activity.
   ·   The cost/benefit and value for money of the total project cost and the amount
       requested from EM Media.
   ·   The proposed suppliers and their costs.
   ·   The levels and sources of other income and the other investors identified.
   ·   If applicable, the amount of earned income predicted.




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Sources of investment

We attract investment funds from a variety of sources on behalf of the region's film and
media sector, as well as having a number of investment partners (for example, First Light's
Mediabox Project). We distribute Lottery funds on behalf of the UK Film Council and
European Regional Development Funds.

Depending on the source(s) of investment funds supporting your project or activity, you will
be required to provide credit to both EM Media and the source(s) of investment in any
publicity materials. Guidelines will be provided by EM Media.

Specific areas in the East Midlands are eligible for support through the European Regional
Development Fund (ERDF) Objective 2 Programme. EM Media has sourced significant
levels of resource through ERDF funds and it is therefore important to know if you are
located in an eligible postcode area (please see question A4 for individuals or question A6
for organisations). We can check your eligibility prior to submission of your application.

The East Midlands region covers the counties of Derbyshire, Leicestershire, Lincolnshire,
Northamptonshire, Nottinghamshire and Rutland.

What we expect in return for our investment

We understand that not all projects are the same. Some have a commercial focus, some
have a cultural focus and some are aimed to develop individuals. In addition, many projects
and activities are a mix of all of these.

We seek to recoup on our investment, in line and appropriate to the scale and nature of the
project we are investing in. For example, we seek a definite financial return on our large
scale commercial investments, but we expect a time commitment from people involved in
smaller scale projects - by helping us write case studies for promotional material, or
attending a conference on our behalf, for example.

Repayment
The repayment depends on the type and level of investment. This can be a combination of
the following:

Financial returns
   · Equity investment recouped pro rata pari passu with the other equity investors.
   · Loan repaid with a premium of up to 5% APR (variable) for all or part of the
       investment.

Other returns
   · Goodwill.
   · Commitment to attend EM Media events, and/or submit a project case study.
   · Jobs created/secured.
   · Increase in audience numbers.
   · Additional investment (co finance) secured.




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Eligibility

    ·   To be eligible to apply to us you must be either resident or have a trading address in
        the East Midlands region.
    ·   If you are applying as an individual you must have been demonstrably working in the
        media industry for at least six months.
    ·   If you are applying as an individual you must not be in full-time education.
    ·   You must be over 18.
    ·   Your project, idea, or business must be focused on/within the media industry.


EM Media will not invest in the following:

    ·   Projects that have no strategy for reaching an audience.
    ·   Projects in which EM Media's finance becomes pure subsidy i.e. a grant, and is not
        expected to neither have recoupment potential nor generate future economic benefit
        for the region.
    ·   Projects where EM Media's finance is replacing or topping up commercial money with
        no additional benefit to the region.
    ·   Capital projects.
    ·   Retrospective activity.
    ·   Individuals or organisations that have already received over 200,000 worth of public
        sector support in the past three years (if you require further information or advice on
        this matter please contact EM Media).




                                      -end of document-

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