And the numbers are… down. Again.

The results of Playback’s annual Independent Production survey indicate that the volume of Canadian film and TV production and development was down 8% in 2002 compared to 2001, and the overriding feeling among producers is that this year’s numbers will be worse still. Last year, Playback reported $1.765 billion in 2001 spending, while the new data shows a volume of $1.624 billion in 2002.

The figures were compiled from information provided to Playback by individual Canadian production companies. We asked them to disclose how much they spent on production and development in the previous calendar year, and then they were asked to break down production spending in terms of genre, and finally, list the cumulative budgets of projects they handled in a service capacity.

While the list does contain most of the largest production companies across Canada, there are a few omissions. Some of the organizations that chose not to submit their information were forthright that 2002 was not a busy year for them, preferring not to see that in print. Other no-shows likely did not want their reputation as quality boutique shops tarnished by a middle-of-the-pack showing. One hundred and seventy-five companies appear on the list this year, compared to 154 last year.

According to optimistic prognosticators, 2002 was supposed to be the year in which production got back up to speed after an anomalous 2001 marked by an economic slowdown. But the 2002 numbers show that not only did the level of activity not return to the glory days of 2000 (for which Playback reported $1.831 billion in Canadian production), but that the biz declined for the second year in a row after half a decade of strong growth.

The encouraging news comes in the realm of dramatic production, for both the big and small screens. Spending on drama series was up in 2002 by 5% over 2001 and feature dramas recorded growth of 26%. Meanwhile, MOW, pilot and miniseries production was down a staggering 47%, and comedy and variety programming was down 48%. Animation was down by 29%, but children’s live action was up a healthy 49%.

In the factual arena, documentary production is down 13%. Although reality programming seems to be usurping the airwaves, the magazine/lifestyle/reality category reports a decline of 24%. Perhaps Canada hasn’t yet caught up to the U.S. in this format, but several Canuck producers confirm that they have a number of new reality-style shows in development. Overall spending on project development is up 17%.

Perennial top producer Alliance Atlantis Communications added to its lead in the market, increasing its production output by 13% to $304 million, ahead of runner-up Fireworks Entertainment at $128 million. The 2003 numbers might tell a different tale for AAC, however, as it appears to be paring down production in favor of its broadcasting and distribution businesses. Two months ago, AAC let go of 33 employees in its Entertainment Group production wing.

The most dramatic jump for AAC is in drama series – 65% – with a total of $198 million spent. AAC continued rolling dramas Cold Squad, Riverworld and the hugely successful CSI, and launched The Eleventh Hour and CSI: Miami. Meanwhile, AAC’s investment in MOWs, pilots and miniseries is down from $90 million to $23 million.

‘The people who used to buy and air miniseries have declined, and those that are continuing to buy and air them have reduced the volume of their appetite,’ says Peter Sussman, CEO of AAC’s Entertainment Group. Sussman exec produced this year’s Hitler: The Rise of Evil mini, to go to air shortly (see story, p. 1). ‘I do like the format. What the marketplace likes about the format is the ‘event-ness’ of it.’

Sussman expects that, going forward, high-end programs will be more extreme in theme and treatment.

‘You either have to be CSI or a cooking show, or a Hitler miniseries or a cooking show,’ he says. ‘If you’re going to make something, better to make it at one end of the spectrum and not be in the middle.’

The shift in the international market is illustrated dramatically in the case of Montreal-based prodco and service provider Muse Entertainment, which placed fifth on last year’s list with more than $78 million in production, but dropped to 22nd spot with $15 million in production. The decline can be attributed to Muse not producing any drama series in 2002, compared to a $52-million cycle the previous year.

The series that vanished for Muse include Tales from the Neverending Story, Twice in a Lifetime, Largo Winch and Doc (now being produced independently by former Muse affiliate Pebblehut Productions). Muse president Michael Prupas sees the chief reason for the series’ disappearance as a new climate of market stinginess.

‘Conservatism is the order of the day and budgets need to be cut back,’ Prupas says. ‘Financing plans need to be scaled back and there’s a general reluctance of people to put in risk money.’

Prupas anticipates a rebound for Muse, with a couple of series it is coproducing recently approved by the LFP, along with the completion of the cable movie copro The Clinic, which it hopes to have picked up as a series.

Despite the inconsistency of relying on foreign projects, Muse’s service work meanwhile allows it to keep operating and keep its key creative personnel employed until its own projects fall into place. Problem is, foreign locales such as Lithuania, Romania, Slovakia and Mexico are becoming increasingly attractive alternatives for Hollywood productions.

Patrick Whitley, president of Toronto-based service giant Dufferin Gate Productions (The Big Dance), expects his service numbers, which were up by $4 million in 2002, to decrease in 2003, citing the decline in MOW production.

‘We were in the television movie business for the most part, and it’s just not [U.S. cable net] Showtime being down in their production of TV movies, it’s across the board with many studios,’ Whitley says. ‘They can’t sell these movies in the foreign market… There’s a lot of emphasis now on series.’

The lessons Whitley has learned on the service side have helped inform his plans for his prodco Temple Street Productions (Queer as Folk), which places 10th on this year’s list.

‘We’re in development on factual and documentary stuff,’ Whitley says. ‘This has been in the works for almost a year now in anticipation of our volume of TV movies decreasing.’

Another factor that will contribute to less production in 2003 is the recent $25-million per year cuts to the CTF over the next two years, unless those amounts are restored by any of the candidates angling for Jean Chretien’s job.

One company not overly concerned with shrinking government support is 49th Parallel Films, a Toronto feature boutique that launched its activity in 2002 with Nothing, Ginger Snaps 2 and 3 and Paper, Scissors, Stone. The prodco debuts in our Top 50.

‘We’re not crying about any of that stuff,’ says 49th Parallel partner Steve Hoban. ‘Telefilm could go away tomorrow and it would make our jobs harder, no question, but as a taxpayer, would I necessarily think it’s a bad thing? I’m not sure I would.’

49th Parallel has clued into what is perhaps the key to Canuck prodco survival – come up with something the international market will support. Nothing, the sci-fi follow-up from cult director Vincenzo Natali (Cube), was financed through German distributor Senator International, Japan’s Klockworx and AAC.

‘Our plan always has been to capitalize on and strengthen our relationships with foreign distributors and foreign sales companies,’ Hoban says. ‘It’s always to start with foreign and then come back with projects that creatively originate at home. But the financing always begins outside of Canada for us.’

-www.allianceatlantis.com

-www.muse.ca

-www.dufferingate.com

-www.49thparallel.ca