From this seat, it’s too bad our Year in Review had to come in late November. (Don’t ask why. It’s an ad sales thing.)

SARS, an historic blackout, forest fires in B.C., funding cuts and a clambering Canadian dollar have contributed to a precipitous drop in domestic TV production, service work, commercial production, and post-production, not to mention a general chill on the liver.

But, just now, even as we sum up what a nightmare 2003 was for so many in the production community, we have begun to see signs of what’s in store for 2004.

In the last issue we reported that the CTF had revamped funding guidelines, making the process simpler and with an eye on achieving better audience results. Meanwhile, the federal government has agreed to a better deal for Canadian producers by increasing eligible labor costs in the Canadian Film or Video Production Tax Credit program. There is strong indication that the federal government will restore its $100 million in CTF funding in the next budget.

Of course, in some sectors, 2003 wasn’t so bad. The Quebec feature film biz has never looked healthier. With $23.5 million in box-office receipts so far this year, Quebec’s film biz looks poised to carry the domestic business on its own back all the way to box office heaven.

Ask a CTV exec to recap 2003 and you’ll hear about the success of Canadian Idol and how the national net has firmly established itself as number one in the country. Craig Media’s launch of Toronto 1 with no casualties, if some negative press, was an accomplishment worth trumpeting as well. CHUM, Corus and Astral have acknowledged a profitable 2003 and project improved ad revenues and better days still ahead.

Over at CanWest Global, 2003 wasn’t so rosy. The industry mourned the loss of founder Izzy Asper last month and the Global network has been dealing with canceled new U.S. series including Coupling and Skin, while several others are struggling to find viewers.

We are also seeing signs that the strain of 2003 is beginning to take its toll. In this issue, we report that Groupe Moliflex-White, the Quebec affiliate of William F. White International, has applied to for bankruptcy protection from creditors owed $23.4 million. CTF cuts are cited as a factor.

It’s not the first piece of such news and it won’t be the last. Earlier, Regina-based Minds Eye Entertainment was forced to seek credit protection as well.

Across the industry, there are business people who in the high times saw the opportunity to expand and found creditors to finance their dreams. Due to the lightning decline in production, many are struggling now. Others have been able to keep their heads above water thanks to historically low interest rates. If interest rates begin to rise sharply, some could find themselves in trouble.

You can bet that even as prospects begin to improve, there will be those who have extended themselves too far too quickly to pull back from the brink.

You can bet this story ain’t over yet.