Vancouver: The results are in and Canadian films are the big winner, says the researcher behind The Canada Rack Program, a $40,000 study of Canadian films in video stores.
Richard Baumgartel, Canadian nationalist and Vancouver filmmaker, started the program four years ago to test this thesis: Does identifying and separating Canadian titles (as certified by cavco) into Canadian film sections at video stores increase their rentals?
Yes, according to the tabulations. Results published in May show that Canadian films increased their rentals by up to 62% when singled out in a video store.
And there is a lot more room to move. Baumgartel says Canadian titles represent less than 1% of the average store’s inventory, yet the domestic video market is valued at $2 billion per year.
A supplementary consumer questionnaire suggests that 85% of renters support the notion of a separate section for Canadian videos, while nearly half of consumers rented from the section because they were interested in renting a Canadian video. Fifty-five percent had not heard of the title before renting it.
‘We examined the rental of Canadian titles on a title-by-title basis,’ explains Baumgartel. ‘While the overall effect of the Canadian films section on Canadian title rentals was positive, the effect was not the same for all titles. In fact, the results indicate that it may be possible to predict how different types of titles will perform when identified as Canadian and put into the Canadian films section.’
The 56 films used in the research include The Adjuster, American Boyfriends, Liar Liar, The Lotus Eaters, Black Robe, The Company of Strangers, Forbidden Love, Grey Fox, Naked Lunch, The Outside Chance of Max Glick, Porky’s and Ski School.
‘We were also able to determine that the Canadian films section in chain stores could reduce the decline in rental that one would expect over the life span of a title,’ says Baumgartel.
The research was conducted over a six-month test period in 10 video outlets in the Greater Vancouver area including video locations of Save-On Foods and Drugs, 24 Hr. Video and a number of independent video stores.
The video stores with in-store promotion in addition to the Canadian films section showed a much larger growth in rentals than video stores with just a Canadian films section. ‘That leads us to conclude that the performance of the Canadian titles relates directly to the level of in-store support,’ says Baumgartel.
The Canada Rack Program makes seven recommendations:
– Identify titles as Canadian and integrate them into the video store’s existing catalogue sections;
– Establish a central marketing authority to co-ordinate the promotion and implementation of Canadian film sections in all Canadian video stores;
– Encourage the Canadian film industry to promote Canadian titles;
– Promote a section of critically acclaimed Canadian films in select video stores;
– Encourage Canadian distributors to expand their promotion of Canadian titles into the video rental market;
– Encourage Canadian distributors, wholesalers, and retailers to increase the profile of Canadian titles in the video stores; and
– Define the market for Canadian videos through further study.
Sponsorship was provided by Alliance Communications, Astral Entertainment Group, Malofilm Distribution and Norstar Releasing.
Financial assistance came from British Columbia Film, the Canada-B.C. Agreement on Communications and Cultural Industries, the National Film Board and Telefilm Canada.
Baumgartel is selling the report through his company, Red Light Filmworks of Vancouver.