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British Columbia Film BRITISH COLUMBIA FILM ANNUAL ACTIVITY REPORT 2006/2007 CONTENTS SECTION A SECTION B SECTION C SECTION D SECTION E A SUCCESSFUL YEAR INDUSTRY OVERVIEW FILM AND TELEVISION A CATALYST FOR INDUSTRY GROWTH PROGRAM ACTIVITY 2006/2007 page 02 page 04 INDUSTRY VALUE CHAIN page 16 page 20 page 12 LOVE AND OTHER DILEMMAS Perfect Day Pictures Inc./Photo by Satu Bell has made British Columbia internationally competitive in The film and television industry attracting visual effects production and has been instrumental in British Columbia experienced in repatriating digital animation work that was being produced a successful year in 2006/2007. off-shore. During the past year, BC Film worked with Telefilm Canada Overall production activity and other provincial agencies to insure a Canadian presence remained stable at just over at international film and television markets. Financial assistance was provided to allow BC companies to attend these events $1.2 billion while the domestic in order to develop international co-productions and sell component of the industry BC product in other markets. continued to show growth. In keeping with our service plan commitment to identify opportunities for the film and television sector to develop This level of production was generated despite an appreciating markets and realize co-production agreements in Asia, Canadian dollar and significant competition from both BC Film attended the Hong Kong Film Market. Concurrent with American states and foreign countries who are increasingly this initiative, BC Film continued to work with federal officials to adopting the Canadian model of using the tax system to improve market intelligence about this region and to develop a encourage production activity. longer term film and television strategy for Asia. The continued growth in the domestic sector reflects the Over the coming months BC Film will strengthen its commitment increasing ability of BC companies to develop and produce quality to facilitating the development of business relationships content that is competitive in both Canadian and international between Asian producers and Canadian producers and service markets. Growth in this sector is essential if BC is to continue providers by: its transformation from a film location to an internationally recognized production centre. · developing institutional links with Asian film and television agencies; British Columbia Film sees its role as a catalyst for industry · providing opportunities for Asian and Canadian producers to growth and is committed to providing a stable, focused operating establish meaningful business contacts; and environment in which the entrepreneurial skills of the industry · encouraging federal agencies to invest in a strategic approach can flourish. to market development in Asia. In order to better define this role, British Columbia Film created, The development of British Columbia’s film and television sector over the past year, a strategic service plan that addresses its is the result of effective public policy supporting the creative core responsibilities: and business skills of the industry. It is a powerful partnership. · support the development and marketing of high quality, For the past twenty years the essential support provided by the commercially viable British Columbia film, television and government of British Columbia has allowed BC Film to assist digital media projects; both government and industry achieve their goals. We look · sustain and grow a competitive BC owned and controlled film forward to continuing this role and contributing to a stronger, and television industry; more sustainable industry. · enable British Columbia production companies to foster existing, and establish new, relationships with national and international co-financing partners; · improve the ability of British Columbia production companies to secure development and production financing and retain MICHAEL FRANCIS intellectual and financial control of content produced; Chair, Board Of Directors, British Columbia Film · effectively administer provincial tax credit programs, ensuring that BC remains competitive as a production centre and continues to attract private sector investment; and BOARD OF DIRECTORS 2006/07 · assist in the development of the creative talent necessary MICHAEL FRANCIS, Chair NINI BAIRD to sustain industry growth. LUNA: SPIRIT OF THE WHALE SHELLEY TRATCH , Vice-Chair, COLIN BROWNE A Screen Siren Pictures Inc. The provincial tax credit programs, administered by BC Film, Secretary/Treasurer GORDON ESAU SECTION A Photo by Bob Akester continue to be effective drivers of production activity and company BRIGITTE PROCHASKA SUCCESSFUL growth. Again last year the impact of the Digital Animation or GERRY RUTHERFORD YEAR Visual Effects tax credit was particularly notable. This program 03 LEVEL OF PRODUCTION British Columbia film and television production activity remained steady in 2006, after a significant increase in 2005. Total production spend in BC was $1.23 billion last year. 86 service productions, including 25 television series with a BC production spend of $433 million – a 69% increase over 2005 – were shot in British Columbia. Domestic production saw a significant increase from $225 high Canadian dollar and intense competition from other film million to $278 million. This increase continues the trend that has jurisdictions. This reflects the increasing recognition of British seen domestic production grow 59% over the past five years. Columbia as a full service production centre. The introduction of 144 domestic productions were shot in BC last year, including the Digital Animation and Visual Effects tax credit has also made 18 feature films, 14 television series, 100 television projects British Columbia cost competitive in this area and is partially and 12 animated series and projects. responsible for the continued growth in animation and digital special effects production. This impressive level of activity continued despite a consistently The film and television industry in British Columbia is made up of two distinct yet complementary types of production – domestic or “home-grown” and foreign or “service”. FOREIGN PRODUCTION DOMESTIC PRODUCTION · initiated, owned and controlled by · created, developed, owned and producers from jurisdictions outside controlled by British Columbia of Canada production companies · primary interest in British Columbia · makes long term investments in as a production location corporate infrastructure · highly mobile · hires British Columbia key creative · expends money on a project by talent and crew project basis · contributes to stable employment STORMHAWKS · hires local talent and crew levels SECTION B INDUSTRY Nerd Corps Entertainment Inc. · key creative decision-making remains · provides opportunities for BC content PAGE 5: INTELLIGENCE with the foreign producer creators to find a national and OVERVIEW Haddock Entertainment Inc. international audience Photo by Michael Courtney 05 COMPETITIVE ADVANTAGE FILM AND TELEVISION PRODUCTION IN BRITISH COLUMBIA 1996 – 2006 1,600.0 1,400.0 Foreign Spent in BC Canadian Spent in BC 1,200.0 TOTAL 1,000.0 800.0 600.0 DOMESTIC = 22.6% 400.0 MILLIONS OF DOLLARS CANADIAN FOREIGN = 77.4% 200.0 0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 361.8 424.5 444.8 665.0 760.9 856.9 830.0 1,235.8 587.3 1,008.9 950.1 175.1 206.0 363.2 405.0 419.4 251.6 163.6 168.8 213.9 224.8 277.8 536.9 630.5 808.0 1,070.0 1,180.3 1,108.5 993.6 1,404.6 801.2 1,233.7 1,227.9 ECONOMIC IMPACT FILM AND TELEVISION INDUSTRY – ECONOMIC IMPACTS Tax incentives are the common currency that draws DIRECT Film and television production film and television production to various locations DEVELOPMENT/ POST-PRODUCTION throughout the world. While international competition is a desirable global commodity PRE-PRODUCTION · Editing due to a multitude of economic · Content creation (picture, sound, music) is intense, the British Columbia tax credit programs · Rights acquisition · Special effects/CGI – Film Incentive BC and the Production Services Tax impacts. There are many · Negotiation channels through which the · Casting DISTRIBUTION/EXHIBITION Credit – continue to act as the key determinant of · Market Access/Travel · Cinema film and television production in the province, serving film and television industry PRODUCTION · DVD/Television/Internet · Festivals to keep British Columbia competitive nationally and contributes to a local economy. · Locations/Studios Economic benefits of the industry · Processing internationally and contributing to inward investment, · On set equipment especially from the United States. can be measured in three ways (camera /lighting) An essential part of keeping British Columbia competitive is to keep British Columbia’s industry competitive includes a strong - direct impacts related to the INDIRECT its ability to offer a full service production experience that meets and sustainable domestic sector. Key elements to sustainability the needs of both foreign and domestic film and television include the establishment of integrated companies operating actual stages of production, SUPPLIERS BUSINESS companies. With a world class infrastructure (studios, post- across development, production and distribution, the adequate · Equipment · Legal indirect impacts in support of production facilities, equipment rental), experienced and highly capitalization of existing companies, securing interest from · Construction · Accounting skilled crews, depth of creative talent, labour stability, expertise private investors,
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