Let me clarify PolyGram’s position and address some inaccuracies in the article that ran in your Sept. 23 edition (‘PolyGram controversy escalates,’ p. 1).

PolyGram Filmed Entertainment is in the business of producing local indigenous films with independent producers and presenting them to audiences around the world.

PolyGram has been operating in Canada for over 30 years. We also have a clear track record in producing, marketing and distributing local indigenous film products in other countries. For example: in Australia, Priscilla Queen of the Desert; in England, Four Weddings and a Funeral and Trainspotting; in France, le Ridicule, and the recently released Belgium film Le Huitieme Jour.

Many of these films would not have been made without PolyGram’s vision and investment, nor would they have achieved their huge international success without PolyGram’s distribution and marketing.

Distributors in these territories applaud our efforts and have directly benefited from these films by partnering with us. PolyGram is committed to sourcing its films from local autonomous independent producers from around the world, not from one central source like the Hollywood studios.

PolyGram has proven that our approach in other countries has worked to the benefit of local distributors and the domestic film industry in which we invest. Our hope is that the model, if applied in Canada, will increase the film sector’s credibility in the international marketplace.

We have an application and business plan that commits us to reinvesting one of every five dollars of our projected film revenue in Canada over the next five years. u.s.-based studios, which currently control 84% of Canada’s film distribution market and are permitted to distribute ‘non-proprietary’ products in Canada, are not required to reinvest in Canada. What is required of PolyGram to reinvest in Canada is substantially more than what the u.s. studios are expected to undertake in Canada.

PolyGram will establish an advisory board of management to advise the filmed entertainment division. We are offering Canadian filmmakers a solution to obtaining international marketing reach and access to much-needed investment in Canadian programming at a time when government subsidies are dwindling, and government is looking to the private sector to partner with Crown corporations such as the cbc.

Approximately one-quarter of PolyGram’s 1% share of the Canadian theatrical distribution business will be non-proprietary product. PolyGram’s competition for these products is almost entirely the large u.s.-based studios – not Canadian independents. PolyGram hardly serves as a ‘massive threat’ to Canadian independents.

PolyGram is working within the confines of the rules and is working within the guidelines of Investment Canada and certainly is not ‘attacking’ government policy or anything else.

PolyGram is asking for the non-proprietary policy to be set aside pending the results of the review of the Canadian cultural film policy in its entirety. This non-proprietary policy has never before been tested and wasn’t designed to stand on its own back in 1987 when it was part of a much larger proposed legislation.

The legislation was never passed, and the resulting policy was amended to exempt or ‘grandfather’ the existing u.s. Hollywood studios.

We feel that any other approach to setting up distribution in Canada circumventing the Investment Canada review procedure would be ‘cheating’ and not in the interests of the film community.

Despite much healthier revenues, the Canadian distributors do not appear to be achieving success on meeting Canada’s film goals. PolyGram is offering a solution to help loosen the vice-grip the u.s. film studios have on the Canadian industry by providing Canadian filmmakers with the resources they require to develop the quality products that can compete for screen time and video revenues, without having to leave Canada.

Contrary to (cafde president) Dan Johnson’s view, PolyGram has not had access to (Industry) Minister (John) Manley, as our request for a meeting has not been granted. I’m sure this is in fairness to the cafde members, who also have not been granted a meeting.

cafde’s comments on PolyGram’s business ethics are outrageous. Our relationship with Canadian producers will speak for itself. These comments should not be dignified with further comment.

cafde does not seem to be able to differentiate between PolyGram’s strategy of operating local autonomous film companies from the u.s. studio branch or outpost satellite offices.

There are opinions in the film community that must be heard, and the government must look beyond the traditional associations and interest groups, that are heavily reliant on cafde members, to make sure that all interests in the film sector are addressed. We are also confident that in the future, the merits of having a company such as PolyGram invest in this country will become clear.

We look forward to working with Canadian independents including cafde member companies in support of local indigenous products and international marketing and distribution, a formula which has proven successful in all the other territories that we operate in. We feel that our presence will increase and augment the opportunities for emerging filmmakers in Canada to become the next Arcand, Egoyan, Cronenberg, or ultimately, Jewison.

We hope that these points help to clarify the current discussions and we welcome any discussion of them.

darryl iwai,

president,

polygram filmed entertainment,

markham, ont.