The upswing in the box office that began in 2006 after a dismal 2005 continues into 2007 and is expected to skyrocket this May with the release of several highly anticipated Hollywood blockbusters. But the picture hasn’t been as rosy for Canadian product, mainly due to Quebec movies lagging at the ticket wicket compared to previous cycles.

The U.S. box office was up 5.5% to $9.49 billion in 2006 over $9 billion the previous year, but increased only about 1% during that period in Canada, according to veteran industry consultant Howard Lichtman.

The president of Lightning Group, who delivers an annual state of the industry address at ShowCanada, attributes the slower turnaround in Canada to disappointing performances in Quebec.

‘Last year, native Quebec films, which are normally a large portion of the Quebec box office, were down significantly. A big portion of [Canadian] moviegoing every year comes from Quebec films playing in the Quebec marketplace,’ he says.

His figures reveal that Quebec films dropped to 17% of the French-Canadian movie market in 2006, down from 26% the year before.

Preliminary Telefilm Canada statistics reveal that Canadian movies accounted for $34.4 million of the overall Canadian box office of $830.5 million in 2006, translating into a market share of 4.1 %. That compares to $44.1 million of an overall box office of $831.31 million in 2005. Quebec product took in $22.3 million at the box office in 2006, down from $36.4 million in 2005. In English Canada, the overall box office increased to $700.3 million in 2006, up from $694.5 million in 2005.

Lichtman notes that not only were there fewer Quebec films released in 2006 – about 31, versus 44 in previous years – but the films also performed worse individually.

‘Bon Con, Bad Cop may have broken records for Canadian films, but that’s just one film and it doesn’t tell the tale of the entire year in Quebec,’ says Lichtman.

Pat Marshall, VP of communications and investor relations at Cineplex Entertainment, the country’s dominant exhibitor, says her company’s revenues increased 3.2%, versus the industry average, which she puts at 2% – slightly higher than Lichtman’s figure.

‘The first quarter of 2007 is already looking very good, and we all know that the summer blockbuster months are looking better than ever,’ she adds.

Dean Leland, VP of marketing and media at Nova Scotia-based Empire Theatres, concurs. ‘We’re on a roll right now,’ he says. ‘People love to get out of the house and go to the movies, and we’re looking forward to the films coming out in May.’

These include Spider-Man 3, Shrek the Third and Pirates of the Caribbean: At World’s End, with Harry Potter and the Order of the Phoenix due in July.

Most distributors and exhibitors, however, insist that, although daunting, this crop of Hollywood blockbusters won’t shut out Canadian product if it’s good.

‘With so many big-budget films performing well, it becomes more of a challenge for distributors to get Canadian films on the screen when exhibitors know that a fourth print of Spider-Man 3 will sell out,’ notes Mongrel Media director of theatrical releasing Tom Alexander.

Mongrel, in partnership with Capri Releasing, is distributing Sarah Polley’s directorial debut Away from Her, starring Julie Christie and Gordon Pinsent, beginning on May 4 on six screens in Toronto and Vancouver. It will expand to 15 to 18 screens in other Canadian markets on May 11.

‘We’ve secured screens for Away from Her because we think as a Canadian film it has the profile and potential to do well,’ says Alexander.

But it’s better movies from Hollywood that are driving the rebound in the box office, according to distributors, exhibitors and others in the industry.

‘When there is no one in the theaters week after week, people don’t see the trailers,’ says Syd Sniderman, GM of buying and booking at Theatre Agencies, which books films for theaters in Western Canada. ‘But now that product has brought people back, they are seeing the exciting films that are coming up.’

Lichtman points out that the box office is up because of both higher ticket prices and because admissions are up 3.3%, ending a three-year decline.

‘People aged 25-39 were going to the movies more often, as were those aged 60-plus,’ he notes, ‘It’s all about product.’

The theaters are also increasing their bottom lines by introducing alternative content, as exhibitors move toward transforming movie multiplexes into entertainment complexes.

Both Leland and Marshall were surprised by the success of the Metropolitan Opera Live in HD series launched on Cineplex screens in late December and at Empire venues in February.

‘When we started Metropolitan Live, we were going to show it in about 24 locations. We sold out in many locations before the day of the event, so we added screens. That proved to be the beginning of very regular occurrences, and it got to the point that not only did we add other locations, but we also had it on up to four screens in one location to accommodate the volume,’ says Marshall.

Cineplex and Empire also offer WWE wrestling and live concerts, and Cineplex has NHL games. Both chains are looking to expand their alternative content with more live concerts and Broadway shows.

‘We’re in discussions on a number of fronts,’ notes Marshall, who sees 3D as another opportunity, as D-cinema systems replace 35mm projectors in theaters.

She adds, ‘Some years the box office is off, but we know overall that the industry is strong and we will continue to look to capitalize on new opportunities.’

While box office in 2006 was up from 2005, it wasn’t a record-breaker. But Lichtman predicts the U.S. record of $9.54 billion in 2002 will be beaten this year, and Canada will also record a banner cycle.

As of March 22, the total box office in Canada stood at $188.3 million, according to Telefilm. Canadian films account for $4.8 million, or just 2.5% of that.