analysis:

revenue

up 45%

Although the number of producers and production companies were down, and theatrical receipts, lab and production revenues on a steady decline, revenues generated from television production jumped 45% in 1992/93, according to an analysis of the film, television and video industries compiled by Statistics Canada.

Overall production revenues were up .08% to $586 million in 1992/93 from the previous year. Revenue from television production (not including production for pay-tv) more than doubled from $89.9 million in 1988/89 – which accounted for 17% of total production revenue – to $200 million in ’92/93, representing more than 34% of the year’s total in production.

Theatrical production declined from $27.7 million in 1988/89 to $3.7 million in ’92/93. While Canadian content films held only 18% of the distribution share in 1992/93, it was up significantly from the previous 10% share in ’88/89. Canadian features numbered 15 in 1992/93, down by five films from the year previous.

A 45% increase in tv-generated revenue in one year meant that, despite a 19% decline in the number of productions to 16,113 in 1992/93, revenues were up overall, albeit by less than 1%.

Non-theatrical production (advertising, government, education and industrial) – a sector that accounted for 50% of production revenue in ’90/91 and 42% in ’92/93 – dropped to $249.2 million in 1992/93.

Producers of theatrical material showed a loss of 64% of total revenue in ’92/93 while tv, commercial and industrial producers averaged a 10%-plus profit margin the same year. Overall, the bottom line for Canadian producers that year showed a profit margin of $60.4 million, or 9.7% of total revenue.

The news was not so good for motion picture labs: the profit margin for labs and related services dropped from $54 million in 1988/89 to $15 million in ’92/93. The decrease in profitability in part was attributed to a 64% capacity average between 1988/89 to ’92/93. In 1988/89, labs and related services showed a profit margin of 24% of total revenue while in ’92/93 it dropped to 5%.

In 1992/93, the export market for Canadian producers, after fluctuating around $80 million in previous years, rose to $132 million. Television productions accounted for 85% of exports in ’92/93.

Distribution revenue for home video increased from $24.8 million in ’88/89 to $132.8 million in ’92/93.

Attendance at movie theaters sank to 72 million in 1991/92, down from 76 million in ’88/89, and then rose to 74 million in ’92/93. With an increase in admission prices, receipts for regular theaters were up 13% in 1989/90 to $409 million, but dropped each year to $365 million in 1992/93, down in that time by 9%.

The theatrical market, after a 42% increase in ’89/90 over the previous year, declined every year to $170.8 million in revenue in ’92/93, averaging a decrease of 24% in that time.

While the number of distributors decreased from 182 companies in 1988/89 to 154 in ’92/93, with most dropouts listed as Canadian-owned companies, revenue was up 1% to $650 million in ’92/93 over the previous year. Home entertainment (video, tv, pay-tv) accounted for the lion’s share of distribution revenue with a 2% leap from previous year to $443.7 million.

The number of theaters continued to drop while screens increased. In 1992/93, screens totaled 1,613, up from 1,490 in ’91/92. Expenses were down 1% while profit before tax tallied at 12.6% in ’92/93, up almost 1% from the previous year. PC