British Columbia Film
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British Columbia Film ANNUAL ACTIVITY REPORT 2004/2005 Contents A C 01 A Changing Environment 03 Industry Overview 13 A Catalyst for Industry Growth 01 Board of Directors 03 Level of Production 14 Building Capacity through 04 Economic Impact Industry Partnerships 05 Competitive Advantage 15 A Forward Looking Orientation 16 Spotlight on the Professional Internship Program B D 07 Film and Television 19 Program Activity 2004/05 Industry Value Chain 19 Provincial Tax Credit Program 07 Creative Development 20 Creative Development 09 A changing Role in the Industry 24 Marketing/ Export Development Value Chain 27 Industry Partnerships 11 Girl Racers and the Industry Value Chain Godiva’s A Changing Environment In response to fiscal realities and changing industry needs, British Columbia Film repositioned its core activities for fiscal 2004/05. Faced with a 35% reduction in funding available for film programs relative to the previous year, the Society undertook a comprehensive review of its programs and services in support of the film and television industry. Following a strategic planning session, the Society met with key industry stakeholders to determine current industry needs and priorities. In addition, staff surveyed financing, development and marketing programs offered by other provincial, national and international jurisdictions. Based on these findings, the Society In order to meet these objectives, the Society an increase implemented late in 2004 by the developed four core objectives for fiscal re-designed its program menu to focus on key province of Ontario. The tax credit incentives 2004/05: areas of activity including script development continue to act as the key driver of film and (both slate and individual project), professional television production in the province, serving To sustain and grow a competitive domestic skills development and marketing/export to keep British Columbia competitive film and television industry in British Columbia development. Programs were developed to nationally and internationally. complement the ongoing activities of the tax To support the development and marketing credit program which British Columbia British Columbia Film continues to seek out of high quality, commercially viable British Film administers on behalf of the partnership opportunities in order to leverage Columbia film and television projects provincial government. financial resources and enhance program effectiveness. A new convergence initiative To enable British Columbia production The launch of the Slate Development Fund, with New Media BC, the Media companies to foster existing and establish the first of its kind in Canada, marked an Entrepreneurship Incubator with Women new relationships with national and innovative new direction for the Society. in Film and Television, and the First Shots international co-financing partners This program provides development and Training DVD with CTV are just some of the marketing support to British Columbia industry development initiatives launched To enhance the ability of British Columbia production companies related to a slate or this fiscal year. production companies to secure portfolio of film and television products. financing outside the traditional Canadian funding system In January 2005, the provincial government announced the enhancement of the film and television tax credit program for both foreign Michael Francis and Canadian content production, matching Chair, Board of Directors, British Columbia Film Board of Directors 2004/ 05 Michael Francis – Chair Nini Baird Daryl Duke Catherine Murray Brigitte Prochaska Gerry Rutherford Shelley Tratch – Vice-Chair, Secretary/Treasurer Norman Jewison and Friends 01 A Changing Environment AIndustry Overview 35,000 British Columbians are employed in the motion picture industry The Crew at work on Tatoo Artists Level of Production 2004 proved to be a challenging year for the British Columbia film and television industry. After a record high $1.4 Billion in overall production in 2003, production decreased by 43% to a total of $801 Million in 2004. This decrease was a direct result of a 52% drop in foreign (service) production caused primarily by a rise in the value of the Canadian dollar and increased competition from other film jurisdictions. The domestic industry faired better with production increasing by 26% to a level of $214 Million. Despite these challenges, film and television production continues to be a major Foreign Production Domestic Production contributor to British Columbia’s creative content industries. The labour intensive Initiated, owned and controlled by Created, developed, owned and nature of this unique manufacturing sector producers from jurisdictions controlled by British Columbia contributes to significant levels of employment outside of Canada production companies for highly educated, highly paid workers. Primary interest in British Columbia Makes long term investments in In 2005, the provincial government estimated as a production location corporate infrastructure that 35,000 British Columbians are Highly mobile Hires British Columbia key creative employed in the motion picture industry. Expends money on a project by talent and crew project basis Contributes to stable employment The film and television industry in British Hires local talent and crew levels Columbia is made up of two distinct Key creative decision-making Provides opportunities for BC yet complementary types of remains with the foreign producer content creators to find a national production–domestic or “home-grown” and international audience and foreign or “service”. Film and Television Production in British Columbia 1994–2004 $1,600.00 $1,400.00 $1,200.00 $1,000.00 $ 800.00 $ Millions Canadian $ 600.00 $ 400.00 $ 200.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Foreign Spent in BC $297.50 $322.50 $361.80 $424.50 $444.80 $ 665.00 $ 760.90 $ 856.90 $830.00 $1,235.80 $587.30 Canadian Spent in BC $104.40 $110.30 $175.10 $206.00 $363.20 $ 405.00 $ 419.40 $ 251.60 $163.60 $ 168.80 $213.90 TOTAL $401.90 $432.80 $536.9 $630.50 $808.00 $1,070.00 $1,180.30 $1,108.50 $993.60 $1,404.60 $801.20 03 Industry Overview Total Film & Television Volume 2004 – Comparison by Region *numbers refl ect total production budgets in Manitoba and Nova Scotia only, not production spend 1,200 1,000 800 600 $ Millions Canadian 400 200 0 n Alberta Ontario Quebec Australia Australia Australia Manitoba* – – – Nova Scotia* –South Africa Saskatchewa British Columbia Washington–US Victoria Gautang Queensland Western Cape-South Africa New South Wales Economic Impact Film and television production is a desirable global commodity due to a multitude of economic impacts. There are many channels through which the fi lm and television industry contributes to a local economy. Economic benefi ts of the industry can be measured in three ways– direct impacts related to the actual stages of production, indirect impacts in support of production and cross-sectoral impacts that spill over into other parts of the provincial economy. Direct Development/Pre-production Content creation Rights acquisition Negotiation Casting Indirect Market Access/Travel Suppliers Production Equipment Locations/Studios Construction Cross Sectoral Impact Processing Transport On set equipment (camera /lighting) Advertising Labour Skills Development Post-Production Business Tourism Editing (picture, sound, music) Legal Retail/ Entertainment Special effects/CGI Accounting Trade Financial/Banking Cultural Distribution/Exhibition Cinema DVD/Video/Internet Festivals Competitive Advantage Tax incentives are now accepted as the common currency An essential part of keeping British Columbia competitive is its ability to offer a full service that draws fi lm and television production to various locations production experience that meets the needs of both foreign and domestic fi lm and around the world. The British Columbia tax credit programs television companies. With a world class infrastructure (studios, post–production – Film Incentive BC and the Production Services Tax facilities, equipment rental), experienced and highly skilled crews, depth of creative talent, Credit – continue to act as key drivers of fi lm and television labour stability, expertise in special effects, animation and new media, a fi lm friendly production in the province, serving to keep British Columbia environment, and a diversity of locations, British Columbia continues to offer numerous competitive nationally and internationally. Enhancements made competitive advantages. to the program this fi scal year have contributed signifi cantly to the province’s ability to attract and sustain production in A high level of dependence on an increasingly competitive global market, especially inward service production is always a investment from the United States. risk due to the mobile nature of the work and the infl uence of external forces beyond a British Columbia Film and Television Production 2004 jurisdiction’s control (currency, Foreign/Domestic Breakdown star power, location). A long term strategy to keep British Columbia’s industry competitive includes a strong and sustainable domestic sector. Key elements to sustainability include the Domestic 27% establishment of integrated companies operating across development, production ( $ 213,900,000 ) and distribution, the proper capitalization of existing companies, securing interest from private investors, embracing new technologies, exploiting international marketing opportunities and creating opportunities to keep British Columbia