Montreal: Evidence of the convergence of the film and multimedia industries has become increasingly obvious: media-savvy content producers are looking beyond theatrical and video releases. But content producers looking to get into interactives must deal with the constraints of a new medium and a slow market, where many hopeful novices find they need to pay now and recoup later for the wave of the future.

Fonds de l’autoroute

Given that only 10% of Quebecois and 25% of North Americans are currently ‘wired,’ the wait for clients to get online or for that e-money to roll in may be a long one. With market saturation estimated at 45%, and an annual growth rate of 8.3% (estimated North American cd-rom/modem), the industry is not expected to reach maturity for at least two to three years.

The Quebec government’s Fonds de l’autoroute de l’information (fai), or Information Superhighway Fund, may help some of Quebec’s content producers and service providers bridge the gap between the early adapters and mainstream acceptance.

While last year fai’s focus was on establishing infrastructure, this year the central mandate is to develop a ‘new industry,’ one that promotes Quebec’s online services and products, be they cultural, educational or pure entertainment. This proviso may prove crucial for Quebec film producers looking to take their businesses beyond their front door.

Film and multimedia

While the bulk of the fai money ($20 million annually over three years) is earmarked for the Internet, there is a separate category for multimedia production. Administered by sodec, this $1 million envelope is predominantly aimed at assisting film and tv producers’ transition into multimedia, whether they are producing new material or repurposing existing audiovisual products ­ a move many are making already. And Quebec’s tax credit incentives are helping producers offer something back to their investors.

At Blackwatch Communications, producer Bill Mariani is considering an interactive based on Asylum, a feature Blackwatch currently has in development. While many worry that the cost of producing a multimedia title is prohibitive, Mariani focuses on the positive aspects.

‘Our talent is often held back by our cautiousness or fear of doing something,’ Mariani says. ‘I’m looking at the gains, not the risks.’

The governmental incentives boost Mariani’s ability to raise capital, meet his budget requirements and give a tax write-off to investors. Over the course of this past year, Mariani has already proven his ability to get a film production and distribution company off the ground, and is now prepared to bring interactives into the fold. ‘I guarantee Blackwatch will have an interactive division within the next three years.’

Film vs. multimedia

However, the transition from the screen to the computer monitor isn’t always a simple one, and unfortunately having a great film d’esn’t necessarily guarantee a killer interactive.

One major consideration is the innate difference in the audience relation to the two media. Footage shot and cut for a linear narrative d’esn’t usually work with an interactive medium ­ the needs of both products must be part of the original production plan.

Producers looking to amortize the costs of initial production by recycling pre-existing material through interactives will likely find large gaps left in their interactive storylines. This often means a complete overhaul, including rescripting, reshooting, and generally refinancing as if the project were based on wholly original material.

Over at Megatoon, one of Quebec’s leading game developers, the team is busy putting the final touches on an interactive derived from a Malofilm live-action tv series.

While the Mighty Machines cd-rom is based on the same concept and includes some excerpts from the original series, 80% to 85% of the content is brand new.

‘The excerpts are considered complementary material. The game is a whole different story ­ the characters and environments are done from ground zero,’ explains production manager Francois-Dominic Laramee. But despite the differences in characters and narrative, Megatoon plans to cross-market the series (now distributed on home video) with the cd-roms, and is looking into publishing supplementary coloring books.

Experience with Wallabee Jack (an earlier Megatoon title) helped Laramee bring Mighty Machines in under budget and on target for the release date in the first quarter of ’97.

And access to Redisoft, Malofilm’s interactive distribution arm, has helped keep recoupment figures feasible. ‘Considering we now have our own distributor, the numbers will not need to be too high,’ says Laramee. ‘Fifteen thousand to 20,000 copies in North America would do.’

For now, Quebec’s multimedia producers have to look for sales outside the province because, unlike the local tv audience, Quebec cd-rom consumers have yet to show a preference for local product. In Quebec, 80% of all the titles sold are English-language, and 90% of those are u.s. imports ­ the result being that locally produced ‘best-sellers’ have top-end sales of only 1,000 to 3,000 units provincially. With break-even margins closer to 10,000 units, producers and distributors have to go abroad for recoupment.

And for French-language product in general, the entire global market is weak: in 1995, worldwide sales of all French-language titles was a paltry $12 million to $15 million compared to the $132 million sold in English-language titles in the games and education categories alone. With only one in 10 French titles being produced in Quebec, we’re looking at an international market share of $1.2 million to $1.5 million.

sodec’s 10% top-up for French-language product makes it more realistic for producers to consider the additional costs of developing multilingual titles.

Quebec content

There are an estimated 100 to 150 companies active in interactive content creation in Quebec, and despite the present lag in the market, many producers are optimistic about the future.

One positive indicator, as Megatoon’s Laramee point out, is that no single format seems likely to dominate over the next five years. Console and pc games are still strong, growth is expected in multiplayer activity through the emerging Web tv, and the advent of dvd (digital video disc) may change the shape of both linear and interactive narratives. This leaves room for the development of a diverse range of services and products.

In Laramee’s words, ‘There’s money to be made everywhere in the next couple years.’

(melissa malkin is an interactive writer and producer. She can be reached at malkin@microtec.net.)