Overall production in Canada declined 2% in the period from April 2003 to March 2004, down to $4.92 billion from $5.03 billion in the previous 12-month cycle, according to Profile 2005, the industry report from the CFTPA and Quebec’s APFTQ.

‘It’s a real cause for concern, and it’s time for a whole new strategy for the production sector,’ says Guy Mayson, president and CEO of the CFTPA.

The full breakdown by sector will be provided Feb. 3 at the CFTPA conference in Ottawa, in a presentation by Mayson and APFTQ president and CEO Claire Samson.

Production was down in both the domestic and service sectors, says Mayson. The only area of growth was in broadcaster in-house production, which hovers around the $1-billion mark, providing little consolation to the indie producer body.

According to the CFTPA, Profile 2005 is the first to show a drop in domestic production since the annual study launched in the late 1990s.

A decline is hardly surprising, given that the time frame was marked by the federal government’s reduced contribution to the Canadian Television Fund and a surging loonie. Toronto’s service biz took a further hit in the summer of ’03 with the SARS scare.

Given these factors, some might find the decrease smaller than expected. Mayson warns, however, that the industry has taken a further downward turn in the past 10 months. But while times have been tough on many local producers, he believes the current global climate tells a different story.

‘The international market’s picking up, and there’s some real potential for the industry to get back on a growth curve,’ Mayson says. ‘But at the same time, it’s very hard to keep a [production] company viable.’

The CFTPA will take the occasion of Prime Time in Ottawa, its annual conference, slated for Feb. 2-4, to take that up with policy makers.

While regional figures were mostly unavailable at press time, Samson confirms that Quebec is down 1% for domestic production, and a whopping 52% for foreign location shooting. She suggests that the growth of in-house broadcaster production might account for the slight dip in indigenous production, which she finds ‘not alarming.’

On the service side, Quebec’s prospects for this summer might be sunnier now that the provincial government has upped its production service tax credit to 20% from 11%, putting it two points higher than increased rates in B.C. and Ontario. While Samson has heard of one or two productions that have committed to Quebec on the heels of the tax-credit announcement, she remains uncertain it is enough to turn business around.

‘It’s a very competitive environment out there [with B.C. and Ontario],’ she says. ‘We have no clue, really.’

According to the CFTPA, Prime Time has sold out this year. For more on Prime Time in Ottawa, see our special report, starting on p. 17.

-www.cftpa.ca

-www.apftq.qc.ca