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Profile 2007 Report on the Canadian Film and Television Production Industry

HIGHLIGHTS

National indicators of production

  * $4.8 billion in total production volume, a 5.8% increase over the previous period. This figure includes:
* $1.8 billion in Canadian television production (up 1% over 2005/06)
* $323 million in Canadian theatrical film production (up 75.6%)
* $995 million in broadcaster in-house production (down 9.1%)
* $1.7 billion in foreign location shooting (up 13.8%)
* International treaty co-production fell by 25%. France and the UK remained Canada’s largest treaty partners in 2005.
* The top Canadian-produced TV show in English Canada was Canadian Idol, with 1,750,000 viewers. In French Canada, the top Canadian-produced show was Star Académie, with 2,147,000 viewers.
* The top Canadian-produced film in English Canada in 2006 Trailer Park Boys: The Movie, grossing $3.9M at the box office. In French Canada, it was Bon Cop Bad Cop with $9.7M at the box office in 2006..

Jobs and Export Value

  * – 124,300 direct and indirect jobs (47,800 direct & 76,500 indirect) (up 8%)
* – $1.9 billion in export value (up 11%)

Full report availible for download at http://www.cftpa.ca/

Strike nearly ‘nail in coffin’ for Canada’s entertainment industry say experts

TORONTO (CP) _ A bitter six-week labour dispute between Canadian actors and producers was nearly the "final nail in the coffin" for the country’s already battered film and television industry, which experts say now faces a long, hard, uphill climb along the road to recovery.

The Alliance of Canadian Cinema, Television and Radio Artists went on strike Jan. 8 and later extended their protest to Quebec, Saskatchewan and Manitoba.

The dispute, which focused on wages and how actors should be compensated for work across new media platforms, lasted for more than six weeks before a tentative agreement was announced last week, to the collective relief of an industry that observers say has suffered a substantial blow.

"This labour dispute drove a lot of business away from here and it’s going to take time to bring it back," said John Barrack, the national executive vice-president for the Canadian Film and Television Production Association and chief negotiator during the strike.

"Productions are planned six months to a year in advance and the labour instability hurts, so it’s going to take some time for that work to come back."

But Paul Bronfman, chairman and CEO for The Comweb Group, said the strike was just the latest problem for an industry that was already reeling from a number of other factors.

"The strike certainly was almost the final nail in the coffin," said Bronfman, speaking from the CFTPA’s conference in Ottawa.

"That basically held everybody hostage . . . right now (the industry) is being taken off life support and it’s going to take us months to recover from this fiasco."

It’s unclear exactly how much money was lost due to the strike, though the experts agree a number of American productions took one look at the labour unrest and decided to film elsewhere. Toronto, the heart of Canada’s film industry, lost an estimated $400 million in production revenue.

Yet CFTPA figures suggest the industry has been in financial decline for several years. Film and television production dipped nine per cent in 2004-05, "an indicator that a downward trend is beginning," the association’s report says.

In that same time period, production generated 11 per cent fewer jobs than the previous year _ the third straight annual decrease.

Charlie Keil, the director of the University of Toronto’s cinema studies program, said the strike "added insult to injury" because a number of other factors are already working against the industry.

A number of "unforeseeable blights," including the Sept. 11 terrorist attacks and Toronto’s SARS outbreak in 2003, took a heavy toll that has yet to be recovered. A strong Canadian dollar relative to its U.S. counterpart has also made Canada less appealing to U.S. producers.

But what has really hurt the industry is the very thing that once gave it life, said Keil.

"Various incentives and tax breaks made Canada an appealing place to do business," he said. Then, "other municipalities (in the U.S.) figured out that they too could offer competitive tax incentives."

With jurisdictions outside Canada constantly upping the ante, Hollywood North has had a difficult time competing.

Still, there remains reason for optimism, said Stephen Waddell, the union’s national executive director and strike negotiator.

"Given that the (American) studios will be presumably beginning to stockpile productions looking forward to the potential for a Writers Guild of America or Screen Actors Guild strike in the U.S., I think we’ll see increased production in Ontario."

ACTRA & Producers reach agreement

Toronto – Following several days of negotiations the Canadian Film and Television Production Association (CFTPA), Association des producteurs de films et de télévision du Québec (APFTQ) and ACTRA (Alliance of Canadian Cinema, Television and Radio Artists) today announced that they have reached a renewed Independent Production Agreement (IPA). This deal is a win-win for Producers and ACTRA Members.

Key elements of the agreement:

• Producers have agreed to ACTRA’s wage proposal. Performers will receive a 10% increase in compensation over the new agreement’s three-year term.

• Performers will be compensated for the use of their work on the internet. Producers will share 3.6% of revenues received from the use of productions on the internet, tracked separately. The parties agreed on how producers will compensate performers appearing in productions specifically produced for the internet. An agreed provision will allow certain producers to accumulate use fee payments until a “re-opener” two years from now.

• Producers and ACTRA have reached agreement on a number of important improvements to work rules on set, including improved language governing equal opportunities for employment, harassment, rules governing child performers, and working conditions on set.

• Incentives provided in the agreement to encourage low-budget, 100% Canadian independent production were updated. Budget thresholds to qualify for these incentives and other terms were brought up to date.

• Rules governing the number of background performers were nationally harmonized, providing more of a level playing field in this area between Toronto, Montreal and Vancouver. Under the new rules producers working under the IPA in major centres will hire 25 background performers for large-budget features, and 20 for most other productions.

• The agreement sets out new terms for “reality” programming. The new terms make it clearer which performers in such shows are included in rates and terms; sets up a fee system geared to the way reality shows are produced; and provides a uniform use fee appropriate to this type of production.

The three-year agreement is subject to ratification, however the agreed-upon rates take effect immediately.

This collective agreement covers all the terms and conditions of employment with respect to all film and television production in Canada, except for British Columbia which has a separate collective agreement.

ACTRA and producers reach tentative agreement

TORONTO (CP) _ Canadian actors and producers reached a tentative agreement Friday to end a bitter labour dispute that some feared would bring down the country’s once-thriving film industry.

"Canadian actors are big winners in the deal we reached today," Stephen Waddell, ACTRA’s chief negotiator, said in a release late Friday.

Members of the Alliance of Canadian Cinema, Television and Radio Artists walked off the job in January, largely over wages and a dispute over how they were to be paid for work in new media such as broadcasts for Internet and mobile phones.

Under the terms of the tentative deal, actors will get a 10 per cent wage increase over three years plus residuals on Internet use. The deal still has to be ratified.

A leading supplier of film services and equipment in Canada and abroad said he was pleased to hear of a deal but wondered what kind of legacy the labour woes would leave.

"The fact that it went on for six weeks is ridiculous, and now the challenge is to undo the very serious damage that’s been done," said Paul Bronfman, president and CEO of Comweb Group.

"It’s going to take several weeks, if not months, to get things back on track. Production is not going to start flowing back here immediately."

Actors went on strike in Ontario on Jan. 8 and later extended their protest to Quebec, Saskatchewan and Manitoba, but no actual picket signs were ever seen.

ACTRA, which represents 21,000 members across Canada, said it made sure current productions such as "Deal or No Deal," "Little Mosque on the Prairie" and the upcoming season of "Canadian Idol" were not affected by the dispute by signing special deals with individual producers.

But the producers association complained that the strike significantly hurt potential projects, pointing to prospective U.S. movie deals that have been scuttled by the labour woes.

Earlier Friday, Bronfman called for an immediate end to the standoff, warning that continued strife would jeopardize the country’s film industry.

The strike cost the city of Toronto at least two feature movies and as much as $400 million in lost production, while film revenues so far this year are significantly lower than those of last year.

The country’s film industry has already been struggling in the aftermath of 9-11, SARS, the surging Canada loonie against the U.S. dollar and growing international competition.

Bronfman said news of a deal doesn’t assure him that dwindling business would be restored.

"It still doesn’t solve the problem of Canada’s lack of a competitive edge," he said. "We have completely lost many of the competitive advantages we used to have, and people are out-hustling us from other jurisdictions all the time. Hopefully, this will be a wake-up call to the film industry that we have a lot of work to do to get back to where we used to be."

Unionized actors complained of being asked to work for free on Internet and cellphone broadcasts, with "Corner Gas" star Eric Peterson, comedian Colin Mochrie and actress Wendy Crewson among the Canadian performers leading the charge.

CFTPA remains ready to bargain

TORONTO, – The Canadian Film and Television Production Association (CFTPA) has been in discussions with ACTRA over the last several days, urging ACTRA to return to bargaining as soon as possible.

Several conversations between Chief Negotiators, John Barrack, CFTPA and Stephen Waddell, ACTRA have taken place over the weekend and into the early part of this week. The intent of these conversations was to explore new ideas and new approaches to resolve the remaining issues including Wages and New Media.

The Producers’ bargaining team consists of staff and representatives from the CFTPA and the Association des producteurs de films et de télévision du Québec (APFTQ). The US member companies taking part in negotiations are required to become members of the CFTPA when they choose to work in Canada. To date, the number of Canadian companies participating in negotiations is 18.

The number of American companies represented is 7. It should be noted that Steven Waddell explicitly requested that the CFTPA include our American partners in all aspects of bargaining.

"The CFTPA Board of Directors has full confidence in our negotiating team and fully supports the efforts of all of our bargaining partners," said Ira Levy Chair, Board of Directors, CFTPA, "It really is time for ACTRA to stop the mudslinging and take a good long look at our proposal and follow the lead of its members who seem to get it."
"Our messaging to ACTRA and the entire industry has been clear and consistent from the beginning of negotiations. We are ready to bargain. We’ve shown extreme flexibility with this proposal and don’t have much more room to maneuver," said John Barrack, Chief Negotiator, CFTPA, "On a regular basis we hear from concerned ACTRA Members who are tired of the lack of clear communication coming from ACTRA to its members. As a result we are looking for ways to speak directly to ACTRA Members, so they understand how good our package really is."

A recent example of the strength of the Producers’ deal is outlined in a letter circulated by Paulino Nunes, a concerned ACTRA member. In the letter, Mr. Nunes states that his update is intended for ACTRA members who are interested in becoming better informed on the issues around bargaining. This is a thoughtful and articulate letter that breaks the CFTPA proposal down into issues that matter to individual actors. In an effort to help Mr. Nunes reach more ACTRA Members, the CFTPA has posted his letter to www.cftpa.ca.

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