Buoyed mainly by more foreign business, film and TV spending in Ontario jumped 7% in 2004 to $934.5 million, up from $874.1 million in ’03, according to a year-end report from the Ontario Media Development Corporation. The numbers appear to signal a turnaround in the province hit hard two years ago by the SARS outbreak in Toronto.

‘While the industry has not fully recovered from a difficult 2003, we hope that the worst is finally behind us,’ says OMDC chair Marcelle Lean.

The foreign side was up 31% to $486.3 million, due mainly to the high-spending Hollywood pictures that shot around Toronto last year, such as Cinderella Man, Assault on Precinct 13 and The Pacifier. Thirteen foreign features shot in Ontario last year, up from 12 in ’03, yet spending almost tripled to $331.3 million.

Foreign MOWs and miniseries were also up, while series dropped, down by more than half to four titles worth $53.2 million.

The numbers seem to contradict claims made by lobbyists last year that service work was a dying business in Canada. But OMDC acting manager Donna Zuchlinski says the argument holds, noting that the total number of foreign shoots is still down compared to 2002.

Domestic business was also down in ’04. Overall spending dropped 11% to $448 million, with the heaviest losses in features, down 56% to $39.7 million. Minis and MOWs also sunk, 34% to $50 million. The only domestic winners were TV series, rising 6% to $358 million.

The numbers are similar to the 2003/04 stats recently released by the CFTPA, which show a slight country-wide slump countered only by a rise in in-house TV shows.

Zuchlinski blames the at-home numbers on the province’s tax credits, set uncomfortably low until late last year, and on increased competition from other jurisdictions. She believes 2005 will be different, pointing to a busy spring that includes the feature Silent Hill, the new CHUM series Blood Ties, and three MOWs by Blueprint Entertainment.

‘It’s too early to tell, but we’re encouraged,’ she says. ‘We’re in recovery mode.’

Lean also hopes the new credits will fuel more foreign spending, although the province will face new challenges in 2005. California governor Arnold Schwarzenegger is preparing what is said to be a generous ‘anti-runaway’ tax credit that could be on the books by July. New York City is also drawing more business thanks to its new 5% tax break, introduced on Jan 1.

-www.omdc.on.ca