rise in revenues

Montreal: Despite a reduction of $13.1 million in its parliamentary appropriation for the funding year 1993/94, Telefilm Canada invested $106.3 million in the production and development of 400 television programs and feature film projects, an increase of $6 million over the previous year.

According to the federal funding agency’s recently released 1993/94 annual report, the increase is due in large measure to a substantial rise in revenues – $26.4 million for the year ending March 31, 1994, a 32% increase over 1992/93. Of the $106.3 million total, $6.8 million was invested in project development and scriptwriting.

Telefilm spent a total of $154.3 million in 1993/94, with the breakdown as follows: Broadcast Fund, $68.7 million; Feature Film Fund, $21.8 million; Revenue Sharing Program, $5.4 million; Special Fund, $8.5 million; Official Coproductions, $1.1 million; Versioning Assistance Fund, $5.7 million; Distribution Fund, $13.5 million; Regular Fund (national and international marketing, grants to festivals, professional development, etc.), $11.7 million; and administrative expenses, $17.9 million. Administrative expenses made up 10.6% of the overall budget.

In tv, Telefilm’s average investment was 31% of production budgets in 1993/94, down from 33% for the previous year, while broadcasters’ share was 29%. Foreign partners played a growing role, contributing 23% of total budgets.

In features, Telefilm supported the production of 26 films, covering on average close to 40% of budgets, an increase of 5% over past years. The average budget for French-language features stood at $2.5 million, while the cost for English-language films fell to $1.6 million from $2.6 million the preceding year

In regional terms, the agency allotted 66% of its investments to projects based in Montreal and Toronto, and 34% to projects from the Prairies, b.c. and Atlantic Canada. As noted in the 64-page report, ‘It should be recalled that, just five years ago, in 1987/88, assistance for regional production amounted to 12.8% of Telefilm’s budget.’

Commenting on new funding cuts at the agency, slated for early 1995, Telefilm interim executive director Peter Katadotis says, ‘If cuts are at the 5% level, a `small cut’ will be made to the Broadcast Fund.’ This would require a reduction in Telefilm spending in the order of $5 million to $7 million, and, projected on a cumulative basis through to fiscal 1998/99, would mean a 28% reduction in the agency’s total budget, revenue projections included.

If the cuts in the new budget from Finance Minister Paul Martin are closer to the 8% level, Katadotis says, ‘We don’t know what we’ll do. We will have to rethink our overall position.’

A cut at the maximum 8% level would affect more than the Broadcast Fund, impacting the already decimated Feature Film Fund. An 8% cumulative cut through to 1998/99 would reduce Telefilm’s overall budget by 37%, says Katadotis.

‘There has been a gradual increase in revenues (over 30%) partly because every year we have more assets coming to maturity, more commercial activity, and we’ve also had a slight improvement in our recoupment position,’ says Katadotis.

On the now ripe question of a replacement for Pierre DesRoches, past executive director who left Telefilm in June, Katadotis says, ‘We hope a competent person will be appointed as soon as possible.’