Despite its success in generating Canadian audiences with shows like Degrassi: The Next Generation, The Eleventh Hour and Corner Gas - some of Canada's most-watched domestic programs in 2003 - CTV saw its English-language drama allocation drop to 21% in 2004 from an average of 30% over the previous three years in the May 14 funding decisions from the Canadian Television Fund, as directed by Telefilm Canada.

"It's a blow," says Bill Mustos, CTV's senior VP of drama programming. "The system this year has highlighted some more unintended consequences, rewarding volume rather than hits. Any effort and energy put into creating Canadian hits didn't get recognized. It flies in the face of what Richard Stursberg and his colleagues at Telefilm wanted to do."

Mustos questions, in particular, the new "broadcaster track record category" - which is supposed to reflect a broadcaster's ability to attract audiences to CTF dramas - as part of Telefilm's 100-point evaluation matrix, which also looks at broadcaster licence fees, creative elements of the program and marketing plans.

According to Telefilm, Showcase was awarded 30 out of 30 points for its track record, CBC was second with 20 out of 30 and CTV was a distant third with just 3.8 points out of 30.

"The broadcaster track record category is calculated on total viewing hours to English drama 24 hours a day, seven days a week in 2003," says Jeanine Basile, spokesperson for Telefilm. "This benefits broadcasters with large Canadian program requirements like CBC and Showcase and broadcasters with no simultaneous substitutions. The sheer volume of Canadian content for these broadcasters significantly outweighs the audience performance of individual airings of programming for other broadcasters."

In the final allocations, CBC got 53% of the $85.1-million fund, while CTV got 21% (including allotments to The Comedy Network) and Showcase got 8%, just below CHUM's 9%.

Returning CTV series, sharing the network's $17.9 million, include the third season of The Eleventh Hour ($6.6 million for 13 one-hours by Alliance Atlantis) and Degrassi ($3.3 million for 12 30-minute episodes by Epitome Pictures). MOWs include A Friend of the Family ($1.75 million for Slanted Wheel Entertainment/ Alberta Filmworks), One Dead Indian ($2.2 million for Sienna Films/Park Ex Pictures) and Playing House ($1.75 million for Blueprint Entertainment/Alberta Filmworks). Four other MOWs didn't make the cut.

"Overall, the competition was intense," says John Galway, television sector head for English-language programming at Telefilm. All applications received asked for in total $127 million, almost $42 million more than what was available.

Galway suggests the audience focus in the evaluation process will have some impact on marketing and scheduling of Canadian shows to win larger audiences this year and larger allocations from the CTF next year.

"The list [of successful projects] content-wise is strong," says Galway. "A lot of renewals, epic miniseries and ripped-from-the-headline MOWs and innovative projects."

According to Telefilm, all returning series that applied were funded, including venerable Canadian television series This Hour Has 22 Minutes, which appears to be on the critical list for the second year in a row.

The CBC comedy received only $200,000 - money that is supposed to help pay for 20 half-hour episodes and a one-hour New Year's special.

There are few in the Canadian television industry who believe 22 Minutes in is any danger, especially after Alliance Atlantis and CBC were able to create a budget after last year's funding crisis. Other insiders point to the CTF's original concept in which long-standing series were actually supposed to be weaned from the funding system - though international funding challenges and a loss of bonuses from the CRTC have made that more difficult.

Still, at press time, 22 Minutes was a question mark, according to CBC spokesperson Ruth-Ellen Soles, with the producers and broadcaster talking to Telefilm.

"We're thrilled with the funding allocation," says Soles, 22 Minutes aside. "The money received for our drama matches our commitment to the volume and quality of programs the CBC will be airing."

The CBC, which pulled $45.1 million of the fund, saw most of its proposed slate funded, including returning series Da Vinci's Inquest ($6.6 million for a seventh season of 13 one-hours by Haddock Entertainment/Barna-Alper Productions), season three of The Newsroom ($1.6 million for six 30-minute episodes by 100 Percent Film & Television), the fourteenth season of The Red Green Show ($878,000 for 18 half-hours by S&S Productions) and a second season of This Is Wonderland ($6.6 million for 13 one-hours by Muse Entertainment).

New CBC series making the funding grade include Northern Town ($1.5 million for six 30-minute episodes by Foundry Films/Northern Town Films) and The Tournament ($1.25 million for seven 30-minute episodes by Juste pour rire TV).