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New strategy needed for production sector to grow

Ottawa , February 3, 2005 – New strategies to improve the stability of production companies will be crucial if the production sector is to get out of its current slump according to an industry report released today. Film and television production volume decreased by 2.1% to $4.92 billion in 2003/2004, signalling a mixed outlook over the course of 2005 due to increased competition from other countries, and a higher Canadian dollar. However, recent tax credit hikes for the industry in Ontario , Quebec and B.C. should help boost the recently lagging sector. The industry's annual statistical report, Profile 2005, was released today at the Canadian Film and Television Production Association's annual Prime Time in Ottawa conference.

“Over the past 10 years we’ve had a staggering number of successes. We’ve created thousands of jobs, and created thousands ofhours of film and TV, but it’s a tough, cut-throat business and Canadian producers have got to fight for their turf,” said Guy Mayson , CFTPA president and CEO. “We’re moving in the right direction with the recently improved provincial tax credits, but we need to do more with the federal tax credits. And ultimately we need a business strategy for building stronger independent companies.”

“We know what the industry needs. Our key cultural agencies need to be streamlined and made more producer-friendly. And that includes everything from Telefilm, the CRTC and the Canadian Television Fund, to the CBC and NFB. The producer’s cash flow also needs to flow, right now it’s restricted by outdated administrative rules,” said Laszlo Barna , CFTPA chair, and executive producer, Barna-Alper Productions (DaVinci’s Inquest).

During the CFTPA conference panellists will be looking at various solutions including new strategies for foreign production service work, building audiences for Cancon and the future of English features as well as co-productions.

The highlights of Profile 2005, the industry's most comprehensive national, statistical report, were presented at the Westin Ottawa , where over 550 producers, industry players and government officials from across the country are attending the association's two-day conference. Analysis and data for the eighth 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 2003 to March 31, 2004 .

Profile 2005: Highlights

• $4.92 billion in total production volume, a 2.1% decrease over the previous period. This figure includes:
  

  - $1.72 billion in Canadian content CAVCO-certified production*; a 7% decrease over 2002/2003
  - $258 million in Canadian content non-CAVCO* certified productions; also a 7% decrease over 2002/2003

  - $1.04 billion in broadcaster in-house production; a 5% increase, and the only sector to show growth
  - $1.9 billion in foreign location shooting; an average decline of 1% over 2002/2003; this number does not reflect the decline in foreign location shooting since April 2004.

• Ontario ’s share of total Canadian production was 35.7% (down 9.7%); BC’s was 31.3% (up 34.6%); and Quebec ’s was 24.5% (down 14.2%).

Jobs and Export Value

• 134,700 direct and indirect jobs (51,800 direct, 82,900 indirect); a 4.5% decrease over the previous period
• $2.27 billion in export value ; a 7% decrease

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

A PDF of Profile 2005 can be found in its entirety at www.cftpa.ca in the Newsroom/Publications.

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