Profile 2019: Economic Report on the Screen-Based Media Production Industry in Canada
Profile 2019 is published by the Canadian Media Producers Association (CMPA) in collaboration with the Department of Canadian Heritage, Telefilm Canada, the Association québécoise de la production médiatique (AQPM) and Nordicity. Profile 2019 marks the 23rd edition of the annual economic report prepared by CMPA and its project partners over the years. Read the complete report here.
HIGHLIGHTS FROM PROFILE 21019
TOTAL FILM AND TELEVISION PRODUCTION IN CANADA
The film and television production industry in Canada consists of four key segments: The Canadian Television Production segment, Canadian Theatrical Feature Film Production, Foreign Location and Service Production (FLS), and Broadcaster In-house Production.
In 2018-2019, Total Film and Television Production in Canada:
- Hit an all-time high in production volume of $9.32 billion (+5.8%)
- Accounted for 180,900 FTE jobs (+2.4%)
- Generated $12.8 billionin GDP for the Canadian economy (+5.2%)
FOREIGN LOCATION AND SERVICE (FLS) PRODUCTION IN CANADA
The foreign location and service (FLS) production segment is primarily comprised of films and television programs filmed in Canada mainly by foreign producers with the involvement of Canadian-based service producers. This includes the visual effects (VFX) work done by Canadian VFX studios for foreign films and television programs. For the majority of FLS projects, the copyright is held by non-Canadian producers; however, for approximately 5% to 10% of projects, the copyright is held by Canadians.
In recent years, Canada’s FLS production segment has contributed to numerous films that achieved successful global box office runs. Some recent Hollywood films that have either been shot in Canada or had their VFX work done in Canada include It: Chapter Two, Midway, Pet Sematary, Murder Mystery and X-Men: Dark Phoenix. Canada has also become a destination for the filming of many American television series and mini-series such as See, The Handmaid’s Tale, Star Trek: Discovery, The Man in the High Castle, and Tom Clancy’s Jack Ryan, which have been commissioned by US networks as well as online video streaming services.
- FLS production accounted for 52% of the total share of production volume in Canada (alongside 13% Canadian Content and 35% Broadcaster In-House).
- The total volume of FLS productionin Canada increased slightly by 3.2% reaching a record $4.86 billion.
- This increase was due entirely to a $245M increase in the volume of feature film production (including effects and animation developed in Canada).
- While the total number of FLS feature projects declined slightly, higher feature film budgets meant that total volume increased by 15.7% from $1.56B to $1.80B.
- The sector accounted for 94,400 FTEs jobs for Canadians, including 44,400 direct FTEs in film and television production and a further 50,000 production related FTEs.
- The sector generated $5.42 billion in labour income and $6.67 billion in GDP for the Canadian economy.
- The copyright for 78% of FLS projects was held by persons or companies based in the U.S., up slightly from 76% in 2017/18.
FILM AND TELEVISION PRODUCTION BY PROVINCE
BRITISH COLUMBIA
- The total production volume was $3.40 billion(37% of national share), creating 65,270 direct and production related FTEs.
- FLS production in British Columbia decreased to $2.81 billion (from $3.04 million in 2017/18), representing 58% of the national total.
Note: Production statistics by Creative BC, and included in Profile, are based on the fiscal year in which the project’s filming actually takes place, however the actual level of FLS production in BC in 2018-19 was more likely to have mirrored the 2017/18 level ($3.04B), rather than the 7.4% decline suggested. For more on how to interpret the province’s film and TV production statistics click here.
ONTARIO
- The total production volume was $3.17 billion(34% of national share), creating 56,050 direct and production related FTEs.
- FLS production in Ontario increased to $985million (from $869 million in 2017/18), representing 20.3% of the national total.
QUEBEC
- The total production volume was $2.04billion (22% of national share), creating 47,480 direct and production related FTEs.
- FLS production in Quebec increased to $771million (from $666 million in 2017/18), representing 15.9% of the national total.
MANITOBA
- The total production volume was $253million, creating 3,810 direct and production related FTEs.
- FLS productions increased to $167million (from $89 million in 2017/18), representing 3.4% of the national total.
ALBERTA
- The total production volume was $256 million, creating 5,110direct and production related FTEs.
- FLS productions increased to $86million (from $31 million in 2017/18), representing 1.8% of the national total.
FOREIGN INVESTMENT IN CANADIAN CONTENT PRODUCTION
Foreign investment in production (FIIP) tracks the value of international financial participation in the film and television production sector in Canada and includes foreign presales and distribution advances for all projects certified by CAVCO; estimates of presales and distribution advances for non-CAVCO-certified productions; and the total value of FLS production in Canada.[1] FIIP excludes the amount of revenue earned from the distribution of completed Canadian films and television programs to foreign broadcasters and distributors. However, data published by Statistics Canada (section 8 of PROFILE) indicates that these sales of completed content generated an additional $174 million in 2017 (Exhibit 8-2).
- FIIP in Canada increased by $268 million to an all-time high of $5.69 billion in 2018/19 (Exhibit 1-5).
- In addition to FLS (which accounted for 85% of all FIIP), foreign investment accounted for 13% of financing of Canadian feature films and television programs. Notably, foreign investment was on par with that of Canadian broadcasters (Exhibit 2-9).
- Foreign investment in Canadian television production was down from $434 million to $354 million (Exhibit 3-17).
- Foreign investment in Canadian theatrical feature film production virtually doubled from $28 million to $57 million; while financing from Canadian distributors fell by $7 million or 20.9% (Exhibit 4-7).
One of the key drivers of investment in Canadian content production in recent years has been the increased demand for television and film content in markets around the globe. This financing most readily takes the form of “pre-sales” of distribution and broadcast rights to international buyers, and is reflected in the growth in financing for Canadian content production from foreign sources and Canadian distributors.
Between 2014/15 and 2018/19, the sum of financing for Canadian content production derived from Canadian distributors and foreign sources increased by 18.2% – from $704 million to $832 million (Exhibit 2-9). In fact, the aggregate financing from these sources reached a peak of $894 million in 2016/17 – also the record year for the total volume of Canadian content production.
