for B.C.

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vancouver: That $1,000 cuppa cappuccino could soon be a thing of the past for Western producers in need of a face-to-face chat with a distributor. British Columbia Film has launched a million-dollar program to help capitalize and stimulate the development of local distribution companies while revving up revenues for producers.

The initiative, which has up to $1 million this year to invest in the local distribution industry, aims to bring together a consortium of b.c. distributors with the clout to trigger federal funding programs.

‘What we’re trying to achieve,’ says Wayne Sterloff, president and ceo of B.C. Film, ‘is to create more solid companies in the province, and we’re going to do that through the building of distribution networks and more vertically integrated production companies.’

According to Sterloff, assistance will come in two forms: ‘a purchase of up to 25% of the shares of a theatrical distribution initiative or up to 30% of the shares in a non-theatrical distribution initiative.’

As well, emerging distribution companies exhibiting growth potential may be eligible to receive preferred loans on a project-by-project basis to assist with direct distribution expenses. The distribution fund will also advance up to 75% of the costs of acquiring and promoting a b.c. film or television program, to a ceiling of $350,000.

The b.c. distribution industry has languished for several years. In 1991, the province’s last full-service distributor, Festival Films, sold its catalogue to C/FP Distribution of Toronto.

One of the biggest problems, says Sterloff, has been the inability of Western distributors to accumulate catalogues. ‘Every time a production company produced a program it divested itself of any ongoing rights in the exploitation of the product, and without that kind of asset base, a distribution company is just not feasible. You must have cash flow being generated by that catalogue of titles.’

The second problem, he says, is that the distributor must invest in the production, and that takes substantial capital. And once the company acquires the title, it must have the cash and expertise to promote it worldwide.

Sterloff says the b.c. government has not addressed the problem until now because ‘there was an understanding that someone else had the responsibility to do it. The federal government has had a program for several years to stimulate distribution; however, no Western-based distributors have been able to access those funds because their operations were not large enough.’

What B.C. Film can do with its very modest resources, says Sterloff, ‘is to get a couple of consortiums developed to the point where they can trigger the federal programs.’

‘We’re trying to integrate production and marketing in b.c. and promote our products worldwide, and this is the first major program that B.C. Film has established to achieve this.’

Sterloff says B.C. Film’s $1 million investment in distribution could in turn stimulate $3 million to $4 million in revenues to local producers.

According to the program guidelines, applicant companies must be owned and controlled by b.c. residents, demonstrate sound business plans under the guidance of ‘experienced managers and possess a sufficient capital base with which to support aggressive distribution activities.’

Among the emerging distribution companies which hope to take advantage of this new program are Northern Lights Releasing, North American Releasing, Everest Entertainment and newly formed Crescent Releasing.

Tony Allard, ceo of Pacific Motion Pictures, is also rumored to be establishing a distribution arm that could take advantage of the new program.

Reaction from local distributors is enthusiastic. Tim Gamble, whose Northern Lights Releasing currently handles only non-theatrical distribution, says: ‘I’m glad they recognize that there is a real need for an infusion of cash into the distribution business in b.c.’

He says the program could allow Northern Lights to expand its operations and ‘become more aggressive in competing with eastern-based distributors to acquire product. I think this will also trigger an exponential increase in production,’ he adds.