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Production Industry's Growth Period on Hold

A downturn in global markets, the failure of convergence strategies and a drive towards cheaper television programming have all played a role in the slow down of the Canadian production industry according to a report released today. For the first time in a decade film and television production volume did not increase, but remained at the 2000/2001 level of $5.1 billion. After nine years of impressive growth - production volume was at $2.3 billion in 1994/95 - the industry seems to have reached a plateau. The industry's annual statistical report, Profile 2003, was released today at the Canadian Film and Television Production Association's Prime Time in Ottawa conference.

"The industry is still a healthy one, but there are some trends which I find disconcerting, particularly the downturn in English-language drama, children's programming and the increase of in-house production by the broadcasters," said Elizabeth McDonald, CFTPA president and CEO.

"Times are tough for everyone, so it stands to reason that Canadian producers are going to be hit just as hard as those in Germany or Italy. But we're also suffering as a result of the changes the CRTC made in 1999," said Julia Keatley, CFTPA chair, and executive producer, Keatley Film. In 1999 the Canadian regulatory body eliminated broadcaster expenditure requirements and broadened the definition of priority programming, allowing cheaper information and entertainment programming to qualify as Canadian content. Consequently broadcasters have licensed fewer children's programs, and dramas and comedies, which tend to be more expensive to produce.

The highlights of Profile 2003, the industry's most comprehensive national, statistical report, were presented at the Westin Ottawa, where almost 600 producers, industry players and government officials from across the country are attending the association's two-day conference. Analysis and data for the seventh annual report was compiled by the CFTPA, the Quebec producers' association - the APFTQ, the Department of Canadian Heritage and consultants Nordicity Group Ltd. The data covers the period from April 2001 to March 31, 2002.

Profile 2003 Highlights
$5.1 billion in total production volume includes:

• Just under $2.1 billion in Canadian content CAVCO-certified production, a 3% decline; and $308 million in non-CAVCO certified production, also a 3% decline
• Foreign location shooting dropped $2 million to just under $1.8 billion; of that, foreign location theatrical production dropped 10% to $737 million
• Broadcaster in-house production increased 9% to $937 million.

• Direct and indirect jobs rose to 137,800 from 134,400 in the previous period
• A 14% decrease in export value to $2.3 billion
• Production declined in BC and the Prairies, and increased slightly elsewhere: Ontario was     up 1% with $2.1 billion; Quebec up 5% with $1.4 billion; Atlantic Canada up 3% with $183     million; BC down 7% with $1.1 billion; and the Prairies were down 4% with $286 million

The CFTPA is a non-profit, trade association representing almost 400 companies involved in the Canadian production industry. The association promotes the general interests of Canadian producers by lobbying government on policy matters, negotiating labour agreements, offering mentorship programs and copyright initiatives.

A PDF of Profile 2003 can be found in its entirety at www.cftpa.ca in the Newsroom.

For more information on this, please contact:

Jane L. Thompson
Director of Communications
Canadian Film and Television Production Association

Tel: 613 233 1444 ext 227