Canada’s total production volume dipped 5% in 2020/21, FLS held steady: report

The CMPA's annual Profile report gives a breakdown of the impact of the months-long production shutdowns in the initial wave of the COVID-19 pandemic, including the discrepancies between the domestic and service sectors.

Despite a months-long production halt, Canada’s screen industry saw modest declines in its annual production volume, according to the latest Profile report from the Canadian Media Producers Association (CMPA).

The 101-page report, which tracks production volume in Canada between April 1, 2020 to March 31, 2021, paints a portrait of the impact the initial wave of the COVID-19 pandemic had on Canada’s screen industry.

Overall production volume in 2020/21 fell to $9.09 billion, down 5% from $9.52 billion in 2019/20. There were 216,660 jobs created that fiscal year, an 11% decrease from 244,500 in the previous year, and $11.27 billion generated in gross domestic product (GDP), down 10% from the $12.2 billion generated in 2019/20.

“Canada’s independent producers demonstrated incredible resilience and the ability to adapt to new realities in the face of a global pandemic, all while continuing to create content that reflects the people and places that make up this country,” said Reynolds Mastin, CMPA president and CEO, in a statement. “While we saw an overall decrease in production due to COVID-19, thanks to unprecedented collaboration by stakeholders and the establishment of the Short-Term Compensation Fund, media production came roaring back faster than many other sectors.”

However, the annual report also shows the discrepancies between the effect on domestic production compared to foreign location and service (FLS).

Looking at the domestic industry, Canadian content production volume came to $2.75 billion, a 12% decrease from $2.92 billion in the previous year, while in-house broadcaster production volume came to $1.07 billion in 2020/21, down 8% from the previous $1.15 billion. However, the declines are on par with pre-pandemic levels seen in the previous 2019/20 report, where Canadian content production volume similarly saw a 12% decrease.

The number of Canadian TV series produced in that time period came to 710, down 12% from 757 in the previous period; a total of 75 theatrical films were produced, down 41% from the 112 produced in 2019/20.

The reduction in TV production volume was more prominent for English-language content, which fell by 18.6%, compared to a 7% increase in French-language productions. French-language theatrical film production volume increased by 13.7%, while English-language films fell by 14.6%.

On the flip side, FLS production volume hit $5.27 billion, a less than 1% increase from $5.25 billion in 2019/20. Overall foreign investment in production hit $6.05 billion, on par with the $6 billion invested in the previous year. FLS was also the only part of the sector to see an increase in the number of television projects at 277, up 24% from 224 seen in 2019/20. However, it did see a 15% reduction in the number of theatrical films produced, coming in at 141 compared to 166 in the previous period, and a 6% reduction in the number of jobs created.

In a broader context, production volume of Canadian television series has fallen by an average of 0.8% per year over the last decade, Canadian film by an average of 2.6% and broadcaster in-house by 1.9% per year, while in the same period FLS has increased on average by 13.5%. FLS production volume accounted for 58% of total production in Canada in 2020/21, up from 55% in 2019/20.

The value of private broadcaster licence fees in the English-language market saw a sharp decline at $116 million, compared to $247 million in the previous year, largely due to a temporary relief of their programming expenditures. Those shortfalls will need to be made up by large broadcast groups by August 2023, according to the CRTC. In comparison, private broadcaster fees in the French-language market remained stable at $165 million, compared to $164 million in the previous year.

B.C. makes a comeback

As for regional performance, British Columbia saw a significant increase in production volume in 2020/21, coming to $3.25 billion compared to $2.87 billion in the previous year. The province made up 36% of total production volume in Canada, the highest of any province or territory, up from 30% in 2019/20. B.C. had fallen to the second-highest province in terms of production volume in 2019/20, with Ontario coming in as the highest.

Both Ontario and Quebec saw a production volume decline. Ontario had a total volume of $3.16 billion, down from $3.63 billion in 2019/20, while Quebec came in at just under $2.1 billion, down from $2.31 billion in the previous year. Ontario accounted for 35% of total production volume while Quebec accounted for 23%.

Quebec saw a sharp decline in FLS production volume, falling to $922 million in 2020/21 compared to $1.14 billion in 2019/20, due to the impact production shutdowns had on the VFX pipeline.

The combined production volume of Alberta, Saskatchewan, Manitoba, Yukon, Nunavut and Northwest Territories came to $416 million, down from $538 million in 2019/20, accounting for 5% of Canada’s total production volume. Alberta, however, saw a rise in FLS production volume due to the budget increase of its tax credit, as well as the per-project cap, bringing in $67 million in 2020/21 after seeing zero FLS production in 2019/20.

Production volume in Nova Scotia, Newfoundland and Labrador, New Brunswick and Prince Edward Island came to $153 million in 2020/21, a slight decrease from $160 million in 2019/20, accounting for a combined 2% of production volume in Canada. Nova Scotia also saw an increase in FLS production, however, coming in at $46 million compared to $40 million in the previous period.

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