Culturescope.ca - The Independent Film and Television Alliance Production Conference, June 15th, 2007

Key-note speaker Kerry McCluggage, Chairman, Allumination Filmworks noted that studios have been replaced by production arms of vertically-integrated conglomerates that impede access to distribution. As a direct result, the conglomerates have not purchased one independent film over the past three years. Despite this grim news, he optimistically predicts strong sales for mainstream and niche entertainment markets in the future.

Pierre David, Chairman and CEO, Imagination Worldwide, moderated the panel: Marketing and Distributing Movies in the Age of New, User-Centered Technologies. The experts predicted that technology will cause the demise of the traditional sales agents and distributors. The DVD player facilitates financially-devastating piracy. For example, from 2005-2006, the 132 million, illegal downloads in Spain resulted in a 50% decrease in the home-video market. Illegal downloads also increased by 40 percent in Brazil and by 26 percent in Germany.

Global warming also results in decreased sales. Increased bright daylight dims cinema revenue in Europe. Piracy problems also plague new media. New media, however, facilitates easier distribution for niche films. Licensing challenges are being closely scrutinized regarding Video on Demand and You Tube.

On a more positive note, Kirk Shaw, President and CEO, of Vancouver-based Insight Film Studios, moderated a panel that compared Canadian and American tax-credit policies, and Canada came up ahead.

Shaw provided an overview Canadian system, from tax credits implementation, to the application of both federal and provincial credits. Positive program features such as: bankable credits, increased incentives in outlying areas, and Canadian content classification, by the Canadian Audio-Visual Certification Office (CAVCO) all create incentives for film makers. For example, The Tudors, an Irish-Canadian co-production will be highly saleable to Canadian networks because of the Canadian co-production and content classification.

Panelist Dama Chasle, Axium International, stated that Canada is doing a brilliant job of attracting production and stimulating the economy. Lifetime Movie Network is producing 80 films, with Spanish subtitles, and 70 percent of these are being produced in Canada and only 30 percent in Spain.

The top five states that offer subsidies: Louisiana, New Mexico, South Carolina, Connecticut, and Mississippi have inconsistent state-by-state policies. In comparison, Canada’s nation-wide policies create consistency, which financial lenders favour.

John Flock, President, Peace Arch Films, reported that Vancouver has great systems in place. When comparing tax incentives between Tennessee and Vancouver, Tennessee appears to be more advantageous location. A closer look, however, shows that the Tennessee rebate is subject to availability, making Vancouver the winner.

Shaw compared unions between these two countries; Canadian unions are incredibly flexible, cooperative when making deals, and this translates into more saleable films. By contrast, unions in California are not as cooperative.

Overall, Canada stood out as a consistent, flexible and extremely attractive location for production, in spite of all the competition from the various states.

- Roz Wolfe, Senior PERPA Officer (Communications and Film Entertainment), Consulate General Los Angeles

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The Independent Film and Television Alliance Production Conference, June 15th, 2007

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