OTTAWA – Without the regulatory framework that has existed for the last number decades, the Canadian feature film industry would not be what it is today, according to Emily Harris, President of Canadian Association of Film Distributors and Exporters (CAFDE).
Harris was speaking before the Standing Committee on Canadian Heritage in Ottawa on Thursday, and noted that it is CAFDE’s members that tirelessly work to bring the work of actors to the forefront of audiences. The committee is studying remuneration models for artists and creative industries.
While Canadian creatives are celebrated the world over, Harris noted that of the almost $1 billion in box office revenue generated in Canada in 2017, 87% of the total went to non-Canadian distributors.
And In order to maintain the jobs of the 1,300 Canadians working in the film exporting and distributing industry across the country, not to mention retaining Canadian talent, Harris insists there is a need to revisit the regulatory framework dealing with the modernization of the film industry in light of digital changes and the declining commissions of Canadian content in the broadcast ecosystem.
“Without strong Canadian film distribution companies, we posit there would be no Canadian feature films, which would impact all facets of the industry, including artists and creatives,” she said.
Harris put forward three pillars that CAFDE believes would help ensure virtually all aspects of the Canadian film industry remains on solid ground for the future, including the modernization of the existing film distribution industry and policy; the creation of a fair playing field for all parties and specific film mechanisms included in Canada’s broadcast regulations.
She noted that the existing Canadian film distribution policy has established and allowed the film sector in Canada to thrive, and until recently, the policy has protected the 13% of the Canadian marketplace not controlled by Hollywood. But as the industry has underwent technological shifts, the policy has become increasingly ineffective.
“Ensuring the Canadian distribution sector exists ensures funds remain within our cultural ecosystem,” she offered. “It keeps revenues inside Canada with companies that contribute to funding and programming and supports the systems that allow Canadian content creators to thrive. With this revenue, creators are able to invest and fund Canadian feature films, and ensure that homegrown jobs for creatives continue to exist. It is CAFDE’s opinion that we must modernize and formalize existing policy framework.”
Harris says that in the absence of legislation, it’s been difficult to enforce the policy, which has made it easier for it to be circumvented. She said it’s up to the Canadian government to prioritize and promote the policies currently in place.
“These Canadian-owned, tax paying companies reinvest in Canadian production and content, ensure the public’s access to Canadian films and employ Canadians.”
With respect to levelling the playing field, Harris suggested OTT technology providers be required to contribute to the Canadian content ecosystem, thus helping ensure Canadian content is discoverable. “CADFE recommends OTTs, which increasingly make up the service Canadians are using to consume culture, commit to buying and streaming Canadian content, in particular Canadian feature films.”
“Sadly, most of the Canadian strategies to deal with this have been to strengthen the vertical side of the business and not the horizontal side.” – Brad Danks, OUTtv
In light of the strong emphasis placed on promoting Canadian content both within our borders and around the world, Harris suggested specific mechanisms be put in place to specifically support film.
As theatrical release windows continue to narrow in the digital era, broadcaster support of Canadian films has been eroding over time. She says that over the last five years, there appears to have been a strategic change in direction with respect to support of Canadian content by Canadian broadcasters.
To reverse this decreasing trend, CAFDE advocates for the creation of a home for Canadian feature films on television via the reinforcement of existing mechanisms that would encourage the primetime exhibition of Canadian-made feature films.
“To date, broadcasters have had the latitude to broadcast within this category as a whole, and without any specific requirements for feature films, we’ve seen films get less airtime than television series,” Harris said.
Also before the committee on Thursday was Brad Danks, CEO of OUTtv, the first LGBTQ-oriented television network in the world. He said that while he doesn’t disagree with the notion of protecting Canadian content, he insisted there were a number of different items that should be taken into consideration.
“What we’ve noticed over the last few years is that content markets are moving from vertical to horizontal, or from national to international markets,” Danks said. “Sadly, most of the Canadian strategies to deal with this have been to strengthen the vertical side of the business and not the horizontal side.
“The other thing we are seeing is the rise of global platforms like Netflix, Amazon, Hulu, Apple and others. A lot of U.S. studios will not be selling content through Canadian broadcasters after 2020. The world is going to change very quickly over the next few years.”
Danks said, contrary to the notion that American-made content rules the world at large, OUTtv struck licensing deals with television providers in Australia, New Zealand and South Africa, where its content has been received rather enthusiastically, especially in South Africa.
“In all three situations, a strong backbone of Canadian content is being distributed in those territories. In those three territories, as well as 20 other countries we’re talking to right now, we are seeing the retreat of American content.
“I believe the faster we change our model and move it around, the better. This is an enormous opportunity for Canada. We have one of the best ecosystems and one of the best industrial complexes of producers and filmmakers. When you’re sitting in Johannesburg, Sydney, Auckland or Stockholm, you find out they envy Canada’s opportunity. If we create a strong base for Canadian artists at home, we can export from there.”
