Television drama production in Canada jumped a stunning 85% in 1997 and pushed total indigenous volume over the $1.4-billion mark.

Based on responses from Canadian film and television prodcos to Playback’s 10th annual survey of production levels, tv drama budgets rang in at $770.8 million, up from $415.7 million in 1996, and accounted for the lion’s share – 54% – of total 1997 indie activity.

All other genres of indigenous production posted healthy gains, in the range of 20% to 30%, except animated television, which saw only an 8% increase in activity. tv documentary budgets totaled $54.7 million, a 31% rise from the $41.6 million reported in 1996; spending on kids’ programs increased 26% to $163.7 million from $129.8 million a year earlier; and info-mag budgets came in at $31.4 million, a 20% gain from 1996’s $26.2 million. Animated television programs accounted for $132 million in activity as compared to $122.2 million in ’96.

Prodcos invested $297.2 million in feature filmmaking, a healthy 33% higher than the previous year’s $224 million.

Overall production volume, based on responses from 110 companies, rang in at just under $1.5 billion, a 56% gain over 1996’s tally of $959.6 million from 93 participating prodcos. Investments in development showed a marginal gain to $24.9 million from $24 million in ’96. Service work dropped to $88.2 million from $108.4 million.

Playback’s results are in line with other industry studies. With the injection of money into the Equity Investment Program, Telefilm Canada reports a 47% increase in its ’96/97 fiscal contribution, spending $163.8 million on production and development.

The Coopers & Lybrand/ Nordicity Group pegs 1997 production activity at $2.8 billion, which includes certified and non-certified and in-house broadcaster productions and location shoots.

The Royal Bank’s Robert Morrice reports an increased number of producers banked their projects for the first time in 1997. The Royal’s entertainment division recorded over $600 million in new loans in last year, up from $500 million in ’96. New business loans and deposits rang in at $1 billion.

The bolstered volume is reflected in the activity of individual companies such as Alliance, which once again holds the top producing spot and saw its total budgets grow 78% to $242.5 million from $136 million in ’96.

But whereas in previous Playback surveys, Toronto and Montreal companies had a stronghold on the top 10 spots, Vancouver-based Shavick Entertainment entered the fold in 1997, taking 7th place with $39 million in production spent on drama and kids’ tv series. Also hailing from the West Coast, Vidatron/ Sugar Entertainment’s expenditures skyrocketed to $39 million from $12 million a year ago.

Stats from provincial funding agencies indicate growth in most provinces. B.C. Film-financed projects rang in 40% higher than 1996, totaling $43.9 million in ’97 over $31.3 million a year earlier.

Manitoba Film & Sound reports ’97 activity totaled $19.2 million, a 14% gain over the previous year’s $16.8 million.

However, lacking a tax credit and provincial funding mechanism, Alberta’s volume fell to $19.1 million in ’97 from $50 million in ’96, and Saskatchewan saw production levels drop to $12.9 million from $13.6 million in the same period.

Nova Scotia’s local industry doubled its production budgets to $87.1 million from $43.4 million worth of projects serviced by the Nova Scotia Film Development Corporation.

The fledgling indigenous community in New Brunswick saw levels grow from $500,000 to $15 million and the Newfoundland and Labrador Film Development Corporation reports $7.2 million worth of indigenous production.

The Ontario Film Development Corporation reports servicing $414.3 million worth of budgets as opposed to $277.4 million in 1996 (animation, not included in the ’96 totals, accounted for $30.9 million in 1997).

Quebec film and tv productions eligible for the province’s refundable production tax credit were $387.5 million for fiscal ’97, up slightly from $355.8 million in ’95/96.

Producers are crediting stepped-up production levels not only to the injection of money into the ctcpf and increased appetite for product from local and foreign broadcasters, but also to the Canadian producers themselves, who are taking an increasingly aggressive approach to increase annual output.

‘Canadian companies are developing far more sophisticated business plans and taking a leadership role in greenlighting properties,’ says Charles Falzon, ceo of Catalyst Entertainment, which saw its budgets jump dramatically to $23 million in ’97 from $1.3 million in ’96.

Cash flow or deficit financing, putting up advances against foreign distribution, consolidating with other production sectors, or creating internal distribution divisions are the avenues producers are traveling to bolster output.

An increasing number of companies are going public to raise capital, with Salter Street Films and Cambium Film & Video Productions the most recent to announce ipos. Sugar Entertainment president Larry Sugar agrees that the purchase of his company by pubco Vidatron Entertainment Group has spurred growth, as has developing properties that can travel internationally.

Interim financing has always been a stumbling block for small to mid-sized Canadian prodcos, says Telescene exec vp Paul Painter. The Montreal-based prodco more than doubled its 1996 expenditure of $20.5 million to $44.5 million last year, and Painter says his company’s growth and that of companies across the board is being fueled by working with banking institutions which in turn are becoming more familiar with the entertainment business.

The Banque National de Paris, Toronto Dominion, and City Bank are eager to get in on the game, and cibc and Scotia Bank are coming back to the table because it is a growing market, says Painter. .

The appetite of the world market is an increasingly important factor. The Nordicity study shows foreign financing and revenues have increased steadily since 1991/92, when it represented $446 million, to $862 million in ’95/96.

According to the latest data from Statistics Canada, Canadian film and video production revenues reached $867.6 million in ’95/96, up 8.8% from a year earlier and the third straight annual increase. Foreign sales jumped from $82.8 million in ’91/92 to $320.7 million in ’95/96.

At Alliance, series such as Due South and Once A Thief could not have been greenlit without presales to Germany (and bbc in the case of Due South), says Ian McDougall, senior vp of production.

‘This means we do not have to be totally reliant on a u.s. sale and gives us more flexibility,’ he says.

Coproductions are also on the rise. In ’96/97, 47 copro projects with budgets totaling $284 million obtained official accreditation from Telefilm compared with 38 the year before. Of these projects, 19 involved France as a partner.

Long-term investment in development activity is beginning to bear fruit for Canadian prodcos and translating into production activity. Housekeeping deals and development partnerships with outside producers, writers and directors are becoming a bigger part of the game, many of the companies report.

‘With these housekeeping deals we are taking more of a manufacturing approach to production,’ says Painter. ‘You end up with a backlog of projects and can schedule deals as opposed to the desperation that you have to get going with any project just to pay your overhead.’

Atlantis stepped up its development activity in 1997 to $7.5 million,from $2 million in 1996. Seaton McLean, says housekeeping deals are where a large chunk of the money is being spent. ‘If you don’t ante up and roll the dice you get left behind in the rush,’ says McLean. A two-year deal with Pat Sullivan, the creator of Dr. Quinn: Medicine Woman, ‘wasn’t cheap,’ he says, and numerous first-look deals have been locked.

‘Output deals and locked relationships are important because a company is only as good as the product flow and we are all competing for those sources,’ says Falzon.

‘Reinvesting money to develop more product and larger output will help more Canadian companies become viewed as significant suppliers for the world market and key competitors on the global stage.’