MCMC Networked Content Grant

MCMC gave a seminar on network content grant on 10th July 2007.

The total amount is RM 20 millions.

Keynotes:

• Malaysian market size = 4 billion (RM)
  
• Malaysia can't compete with other countries such as Vietnam and China for manufacturing power. Same applies for software outsourcing which India has taken the big pie.
  
• The only area Malaysia can be competent is the area of knowledge market.
  
• This grant is to spur the content creation economy.

Grants Details:

It is a fund established by SKMM to render assistance in the form of grants to develop Malaysian content for a networked environment.

Types of content ?

The term 'networked content' is for all text, audio, audio-text, still pictures, moving pictures and software that is accessible over publicly accessible electronic networks which includes:

• Broadcasting (TV)
  
• Moving pictures (excluding cinema, distribution & VCD/DVD sales)
  
• Online content
  
• Mobile/wireless data services (3G, mobile TV etc)
  
• Interactive digital TV
  
• and other content that can be created, manipulated, stored, retrieved, and communicated through the use of a network facilities and services

Focus ?

3 Es.
Entertainment - such as multiplayer gaming, folklore music and stories, funny video clips
E-Commerce - transactional based content such as e-shopping, interactive advertising and etc
Education - such as quick notes & formulae, interactive education.

Eligible:

Applicants must be a Malaysian individual or registered business or small & medium sized company as defined by SMIDEC
Applicants have yet to be given grants or subsidies from other content development funds
Applicants are not blacklisted or have records of failure in their past project implementation upon receiving similar types of grants from other goverment agencies
Applicant's proposal is in line with the focus areas of NCDG

Fund Size:

The amount of funding will be up to a maximum of 70% of the total project size
The procurement of infrastructure (consisting of hardware and software) is allowed up to 20% of the approved grants
Only one grant per applicant (the applicant can apply for subsequent grants but not more than three times based on the successful commercialization of the first project funded by the grant)

How will the application be assessed ?

1. Concept
- Creative & appealing
- Unique value proposition
- Demonstrate export potential/universally.

2. Business potential (ability to be exploited through:
- Different platforms/channels
- Market size
- Marketing strategies, potential revenues
- subscribers

3. Operational capacity of the applicants
- Key manpower experiences
- Technical & technology knowledge
- Strategic collaborations with any third party.
- Financial commitments and investment

What MCMC need from you...

Eligible applicants will be invited to submit project proposals to MCMC for consideration. Companies are to submit duly completed application form together with the following:

1. Concept
- Full description of the content's concept and its unique value proposition.
- Focus area of that content (i.e education, information-based, entertainment or e-commerce)

2. Business Potential
- Business model, target market
- Potential revenue & number of subscribers
- Anticipated market size
- Cost breakdown i.e manpower, hardware, software, IP licensing fee, training etc.
- International collaborations (if any)

3. Operational capacity
- Track record (if any), experience & profiles of key manpower.
- Project timelines i.e trial, launch etc
- Technology & technical arrangements/agreements (if any)
- Strategic collaborations with third party (if any)
- Financial commitments and investments

How will the fund be disbursed ?

• 30% upon approval
  
• 70% drawn down in phases based on delivery and milestones as agreed by both parties; and
  
• funding will not exceed 12 months. An extension will be considered on a case-by-case basis.
  
• Effective funding period will commence from first drawndown to last drawndown within a calendar period based on proposed milestones.

How will the project be monitored ?

• Monthly progress reports to be submitted to MCMC.
  
• Monthly meetings with MCMC to evaluate progress in terms of timeliness and quality
  
• Site visit for auditing purposes

What about Intellectual Property ?

• If more than one party is involved in the project, a binding letter of understanding between project partners setting out existing and proposed ownership, disposition of intellectual property rights associated with the project, and exploitation of the project result must be submitted to the MCMC before funds are disbursed.
  
• The IP shall be owned by the content developers with MCMC being recognized as a partner in the development of the content and would be allowed to use the content for other purposes except for commercial use.

Other terms and conditions

• Successful applicants shall enter into a contract with MCMC upon approval.
  
• MCMC shall be acknowledged in the credits upon successful distribution/commercialization of the product.
  
• MCMC shall seek full reimbursement of funds disbursed in the event of the incompletion of the project or termination due to failure to meet the milestones agreed or contravention of terms and conditions.
  - The full amount is to be repaid based on 0% interest rate
  - Repayment period is determined by both parties
  

The Vital Ingredients for Content Development in Malaysia:

The ingredients are important for the seed to grow.

1. Financial investment
2. Nurturing talent.
3. Demand for content.
4. Industry-bridges.
Sharing of talent and resources
Ease of communicatoin between firms
5. Concerted regulation.

Roslan Mohamed(Director of content development for MCMC) talked about "Current Initiatives to Build the Landscape"

I. 1 billion Internet users in the world.
II. 2 billions mobile phone users in the world.
III. 3.8 billions people in the world watch T.V
IV. Currently, contents can be classified as:

• Filmed content
  
• TV content
  
• Business content
  
• Education & training content
  
• Games.

V. Content must be seen as an industry.

Kamil Ahmad Othman(VP of Creative Development for MDeC) talked about "Bringing Malaysian Content to the Global Threshold"...

1. Malaysia don't have a culture of story telling.
2. malaysia don't respect creative people.
3. Malaysia has an "import" mentality.
4. The world is your market.
5. We must establish strategic alliances.
6. He suggested to bring back the poetry of old school days.

Conclusion:

1. Software can be a content, but not business software, it has be something like games or multimedia.
2. Data can become content but it cannot be confidential data, it has to be publishable data.
3. Portals to publish content is not eligible, it has to be the content to be published by portals such as Yahoo, Alibaba, Sohu and etc.

Download the application form from here.

Good luck. This is opportunity of the lifetime.