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Independent producers struggle while broadcasters reap rewards
Summary: Analysis of Canadian Broadcaster Financial Performance
and Programming Expenditures
Analysis of Canadian Broadcaster Financial Performance
and Programming Expenditures
OTTAWA Oct. 31, 2005 - The Canadian Film and Television Production Association has released an analysis showing that changes to the financing policy infrastructure have tipped the scales in favour of Canada’s broadcasters.
“Between 2000 and 2002 Canadian film and television producers earnings before taxes dropped from 6.7 per cent to 1.6 per cent,” said Ira Levy, CFTPA chair. “In comparison large broadcasters have maintained a consistent rate of profitability well in excess of overall Canadian industry averages.”
The figures are part of an analysis the CFTPA commissioned from the Nordicity Group Ltd. examining Canadian television broadcasts’ financial performance and their investment in Canadian television programming.
“It is particularly interesting,” said Guy Mayson, CFTPA president and CEO, “that television broadcasters now spend four times more on foreign programming, and five times more on foreign drama television programs than on Canadian drama.”
The findings also look at the reason behind this decline noting that between 1999/00 and 2003/04 broadcasters operating revenues increased 11 per cent, yet financing for Canadian Television Fund supported production dropped by 14 per cent.
“This divergence in revenues and production financing follows the CRTC 1999 Television Policy, which removed the requirement for conventional broadcasters to allocate a percentage of revenues to expenditures on Canadian television programming,” Mayson points out. “Clearly Canadian broadcasters need to be contributing more to Canadian production costs. It is essential broadcasters increase their Canadian programming budgets across the board if we are to meet the cultural objectives for Canadian broadcasting.”
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 programs and copyright initiatives.
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