Even though the total volume of film and TV production in Canada last year matched the level of economic activity in 2001, the latest trending report in Profile 2003, to be released Feb. 6 at the CFTPA’s Prime Time conference in Ottawa, indicates ’02 was the first year in many that the production industry recorded little or no growth.

Several industry observers note the market had already entered a contraction phase by the mid-to-latter part of ’02, and the trend is projected to deepen into the new year.

The total volume of film and TV production in Canada in fiscal ’02 (covering the 12-month period ending March 31) stood at $5.1 billion, of which $2.1 billion was CAVCO-certified production; $1.8 billion was foreign-location production; $973 million was in-house broadcaster production, an increase of $85 million over the preceding period; and $308 million was non-CAVCO (or CRTC) certified production.

In the overview to Profile 2003, which has input from the CFTPA, APFTQ and Nordicity Group, the zero-growth outlook is attributed to piles of post-convergence corporate debt, in broadcasting and cable, cuts in employment and production at some of the leading production companies, as well as adverse external factors in the U.S. and especially in Europe, where production financing has tightened and acquisition prices have declined.

By way of comparison, production levels in Canada increased 9% in fiscal ’01 to $5 billion, which, at that time, already pointed to a reduced rate of growth. In the previous five years, the industry experienced an average annual growth rate of 13%.

Regional breakdown

On a regional production basis in ’02, Ontario was far and away the country’s leading jurisdiction with total film and TV production of $2.1 billion, up 1% over ’01. The corresponding growth rate for Ontario in ’01 was 16%. Production in Quebec increased 5% in ’02 to $1.4 billion, while production in British Columbia decreased by 7% to $1.1 billion. The Prairie provinces recorded a 4% increase to $286 million, while production in Atlantic Canada grew 3% to $183 million.

Internationally, Profile 2003 reports the ‘export value’ of Canadian production decreased 14% to $2.3 billion, although the ’02 decline comes at the end of a 70% growth cycle for the period 1996/97 to 2001/02. In the report, export value refers to the overall dollar level of international participation in Canadian production, including coproduction and coventures. It does not reflect annual back-end or export sales of Canadian programs. The export value designation includes $1.8 billion in foreign location production in ’01/02 and $526 million in foreign broadcaster presales and distribution advances.

Treaty coproduction in ’01/02 increased 1% to $793 million, with some 80% or more of the activity centred on coproduction with the U.K. and France, while coproduction activity with Australia and China is on the rise.

Profile 2003 reports the film and TV production industry in Canada accounted for 53,000 direct jobs in the period and an additional 84,800 jobs generated in other industries.

Profile 2003 will be released as part of the Prime Time conference’s ‘State of the Canadian Industry Report,’ moderated by National Film Board chair Jacques Bensimon and Banff Television Foundation CEO Pat Ferns.

Prime Time runs Feb. 5-7 in the nation’s capital.