Report profiles financial picture

film and broadcasting revenues increased dramatically between 1980 and 1991. That according to a preliminary report drafted by the Canadian Film and Television Production Association and Statistics Canada and presented at the cftpa conference, held Dec. 2-4 in Ottawa.

cftpa president Sandra Macdonald offered conference attendees a sneak preview of an interim report examining the economic impact of the film and television industry in Canada. The full document will be made available in the new year.

The preliminary report shows that revenues earned by the film industry between 1980 and 1991 increased by 225%, or 12% annually, to $2.7 billion in 1991. In comparison, total operational revenues in the broadcast sector increased by 140% (a 9% annual growth) to exceed $5.2 billion.

Although overall revenues for both sectors increased over the last 11 years, performance tapered off after 1990.

The drop-off in performance was also mirrored in the labor market. Last year, the film industry generated 31,000 jobs while the broadcast sector was responsible for 38,000 jobs. Both sectors generated fewer jobs than the year before. However, it should be noted that while employment numbers decreased at the cbc, they remained stable for other conventional broadcasters and increased in the cable sector.

Macdonald also presented data showing that the Canadian film production industry generated $582 million in production revenue in 1991/92. Broken down, the tv market accounted for $139 million, pay-tv was responsible for $34 million, the theatrical market brought in $30 million and the non-theatrical sector, which includes both advertising agencies and sponsored productions by government and educational institutions, accounted for $264 million or 45% of total industry revenues in 1991/92, of which $137 million came directly from ad agencies and $49 million from government and educational bodies.

The remaining $138 million in production revenue was generated by other foreign clients and work contracted from other companies.

The direct impact of the industry as measured by the gnp in 1991/92 was valued at $839 million for the film sector and $2.8 billion for broadcast.

Export sales are increasing. In 1991, export sales for tv broadcast programming totaled over $33 million, up substantially from the $17 million recorded in 1986. In addition, producers reported $80 million in monetary receipts from foreign clients. In 1986, producers reported less than $40 million in receipts. However, the highest peak was in 1989 when producers rang up $116 million in sales.

During a panel discussion held at the cftpa conference, The Cinar Group chairman and ceo Micheline Charest remarked that the drop in export receipts was due to the decline in Canada/ France coproductions following the tightening of content rules in France. She also blamed Telefilm Canada for neglecting coproduction projects in favor of projects deemed entirely indigenous.

Revenues from the sale and rental of both Canadian and foreign films and videos by distributors and videocassette wholesalers in Canada reached almost $1.4 billion in the 1991/92 period. Theatrical revenues, licensing from tv, pay-tv and home video rental represented $613 million while another $547 million was derived from videocassette wholesaling. Not surprisingly, videocassette sales are on the rise whereas theatrical receipts are declining.

Revenues from the sale and rental of Canadian films still represent a small share of distributors’ total source of income. Overall, Canadian product earned about 12.8% or $79 million of total distribution revenues in 1991/92. Although the figure is dismal, the performance of Canadian product in ’91/92 is considered one of the best to date.

The bad news on the statistics is that private broadcasters are spending less money acquiring Canadian drama. In 1992, broadcasters (cbc excluded) spent $55 million to acquire Canadian shows compared to $71 million in 1991. The good news for independent producers is that more money is being thrown their way. Purchases from the independent production sector increased 15% to $36 million between 1991 and 1992. The amount of money spent on non-Canadian drama is in the neighborhood of $200 million.

In addition, the report confirms that Canadian and u.s. conventional broadcasters are losing audiences to Canadian and u.s. pay and specialty channels.

The document also examines broader shifts in the economy. Among the highlights:

– Canadian families are spending more money on culture. Between 1981 and 1989, recreation and culture showed an annual average growth rate of 5%, while total consumer expenditures increased by only 3.4% annually. The report suggests that these monies are decreasing and may continue to decrease due to the recession. The percentage of total budgets families spent on recreation, entertainment and culture increased from 6.7% in 1982 to 7.4% in 1992.

– Home entertainment equipment sales increased from $189 million in 1982 to $323 million in 1990, but then dropped to $289 million in 1992.

– Expenditures on videotapes jumped from $6 per family in 1982 to $101 in ’92, representing an annual increase of 40%.

-Expenditures for cable more than tripled, from $56 per family per year in 1982 to $186 in 1992.