Under the Maple Leaf: Western Canadian Producers Band Together

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One much talked-about problem facing Canadians is their isolation from each other. Canada is the world’s second-largest country, yet there are more Californians than there are Canadians. This relative emptiness gives some of us the feeling of being out in the hinterland, a tiny collective in a vast landscape shouting to the world ‘Yo! Up Here!’

Obviously, most Canadian business sectors have overcome this and Canada has always been a marvel of prosperity. But for film and television producers, prosperity has come through a tough, decades-long slog. Canadian producers now have a stellar reputation, but for them—particularly western Canadian producers—marketing has always been an expensive problem.

This has long been on the mind of Carole Vivier, CEO of Manitoba Film & Sound, the funding agency for that province’s film industry. Manitoba is increasingly busy as a production centre, and the agency funds 30 projects each year, with its $2 million budget and the provincial 35% tax credit it administers. On its own, as a marketing entity, Manitoba is small potatoes. On their own, so are the other western Canadian provinces. It occurred to Vivier that, if the four western provinces worked together, as a region, they could be an effective marketing force.

Vivier started discussing this with her counterparts at the funding agencies of BC, Alberta and Saskatchewan. Last year, it was agreed that a joint-marketing venture would be created. It came into being this year, in the form of CanadaWest.

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The goal of CanadaWest is to help producers compete successfully in the international marketplace, by presenting a united profile to the international marketplace. And, through various marketing initiatives, to provide western Canadian producers with a way to seek out co-venture opportunities, find support for projects in development, market completed projects and meet with international buyers to build relationships and gain market intelligence.

There are now many marketing initiatives under discussion. But the first was a huge success—it occurred when CanadaWest made its debut at this year’s NATPE which, with 20,000 attendees, is North America’s largest annual film/television market.

“I was thinking of strength in numbers,” explains Vivier. “Manitoba has a very strong independent film community, but we need to build visibility at the main markets. And it’s too expensive for us to have our own booth at any of these shows. Plus, while everyone knows about Canada, international buyers may not know the name ‘Manitoba’.”

“We faced the challenge of finding opportunities for early- to mid-career producers to access international markets,” says BC Film President & CEO Rob Egan. “The cost of attending these markets is going up, and the budgets of the provincial agencies are going down, or getting tighter—in 1997, BC Film’s annual budget was cut from $5 million to $3 million.

“Where BC Film has had booths at previous markets, because of the cost, our booths have been small and not well-located. Because of budget limitations, we were not able to have much of a presence or profile, and neither were our producers, many of whom are smaller or mid-sized companies which don’t have the financial resources of many eastern Canadian companies.”

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Before CanadaWest, for a western Canadian production company to go to NATPE, it had to consider how many people to send. That would be multiplied by the airfare, the registration fee and accommodation, plus the production cost of one-sheets, presentation packages and demo reels. Then there was the booth—a booth in Telefilm Canada’s space costs $9000.

“For a small production company, it can be a real challenge to participate in one of these shows, and we kept hearing from producers that they couldn’t afford it,” continues Egan. “And the international markets cost even more. Cannes, MIPTV, MIPCOM, Banff—those are the key international buying and selling markets and all of us in western Canada feel it’s really important that our production companies have the opportunity to get to those markets, be competitive and sell their products.”

For NATPE in January, the four provincial agencies—along with industry sponsors and the Ministry of Foreign Affairs and International Trade, pooled $90,000. This bought a professionally-designed 1,200 square-foot booth, and premium placement. To producers, the booth came with all electronic bells and whistlers, plus display areas for promotional materials, a compilation DVD screened on large overhead monitors, some trade advertising, a media campaign and a participant booklet.

Drawing participants was no problem—the word was put out and producers only had to sign up. In attendance were the four funding agencies, plus five Alberta producers, four from Manitoba, three from Saskatchewan and 13 from BC. Each paid a nominal user fee—$250 allowed for signage, display space and access to a common meeting area. Another $750 added to that a shared meeting/screening room; $1500 bought a private meeting/screening room. Producers were pitching developed or completed animation, documentary, drama and digital media projects—and no one was disappointed.

canwest6“We didn’t get involved with CanadaWest to save money,” says producer Ron Goetz, CEO of Regina’s Partners in Motion. “We’ve been going to shows for four years, and each year the cost was about $15,000. But we immediately saw that $15,000 would go a lot further with CanadaWest.

“When you first go to the one of these markets, you tend not to have a booth. You stay on the floor, see what’s happening, and have meetings in other people’s booths. When we got our own booth at NATPE, it was in with all the independent producers, and that can be a jungle because you have all the mom-and-pop companies there. It worked, but it wasn’t ideal. The Telefilm booth is fine, but if you’re in there you’re one of many players. This year, with the CanadaWest booth, we got a private meeting room. We had our own office with our own stuff in it and buyers could come in to see us. We were able to spend the balance of our show budget on advertising and presentation materials. And, for the first time, we made sales at a market—about $50,000 worth. So it was worth it.

“The revenue from markets isn’t that high, but you have to go—the growth of this company would not have happened without our trade show attendance. With each show, you build relationships, people get to know you, and you learn how things work. So I had 60 meetings booked before I got there, but when the buyers showed up at the booth, it was ‘Wow!’ It was definitely a step up. We had a great location, in a sophisticated and professional booth, and that brought credibility to everyone in it. At these shows, booth location and appearance are crucial. The CanadaWest booth felt important and everyone  looked good.”

“It’s basic economy of scale,” explains Egan. “We had more money, so we had a better booth and location, a higher profile, a greater presence, more people. We attracted more visitors and more business. CanadaWest is an interesting initiative and people are looking at it as a real innovation—Telefilm Canada has been in touch to discuss the possibility of working on a Canada pavilion.

“We’re definitely going to continue with it. Any marketer will tell you that you can’t go once; you have to keep going. You have to build that presence and work to maintain it. And given the time it takes for a project to move from development to production to market, it’s critically important that our producers have access to these international markets year after year.”

Vivier was thrilled with the result and says that other things could happen, such as group advertising campaigns and international missions. “The visibility benefit was enormous. The booth was constantly busy—we had about 1,000 people stop by and it was wall-to-wall meetings. The space-booker from MIPCOM couldn’t believe how busy we were.”

For Vivier, there are other important factors. “Each province has its uniqueness and there’s already friendly competition. But this is also a good way for the production companies, which are so far apart geographically, to get to know each other and explore the idea of co-ventures.

Also, while it’s fiscally responsible, as funding agencies, to spend our money wisely and get the most profile for our products, I also feel it’s very important to market ourselves under the Canadian banner, under Canada as a brand. Canada has an amazing reputation, we have co-production treaties with almost every country, we’re proud Canadians and people look for Canada at these shows. We supply the grounding, the producers take advantage of it and develop their own relationships. But the concept of CanadaWest lets us market ourselves as Canadians first.”

 

Blitz Magazine, May 2001

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The BC Film Commission: Location, Location, Location

Blitz Magazine, May 2000

In the ‘50s and ‘60s, it was rare for a Hollywood producer to consider British Columbia when choosing locations. If they wanted a mountain, a bear, a Mountie, a Mountie on a bear on a mountain, only then BC was the obvious choice. A few well-known films were made here—McCabe & Mrs. Miller, Carnal Knowledge. The skill was here; Canadian broadcasting and film talent has always had an excellent reputation. But, by 1975, although there was a lot of television production going on, BC had gone five years without seeing a complete Hollywood feature shot here and the province’s craftsmen were leaving to work elsewhere. Finally, in 1978, the Social Credit government stepped in and created the British Columbia Film Commission.

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With that came people who were actively marketing BC as a location. By the end of that year, BC went from having no business to enjoying production spending of $38 million. In 1979, it was $55 million. Producers, directors and production designers started to talk to their peers about BC, and there were people here following up. This meant cold-calling producers who, often, had to consult a map to find Vancouver. It was sometimes a tough sell, but the commission staff concentrated on building relationships and providing ever-better service.

While the cost of shooting in Los Angeles continued to escalate, BC was enjoying watershed moments. There was Year of Rambo (1979). 21 Jump Street showed producers that you could happily shoot an episodic series here. Then came MacGyver, and Wise Guy. In 1987, after the provincial government made a substantial investment to up-grade the Bridge Studios, Stephen J. Cannell and Paul Bronfman teamed up to build Lions Gate Studios (now North Shore Studios). The list of hit features continued to grow. The Canadian dollar stayed low, the tax advantages piled up.

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So has the work. In 1998, 28 features, 26 TV series, 15 animation projects, 59 documentaries and 43 MOWs, mini-series and pilots were produced in BC, for a total value of $808 million (CAD). In 1999, there were 54 features, 30 TV series, 6 animated projects, 48 documentaries and 60 MOWs, mini-series and pilots, for a total value of $1.7 billion. That doesn’t include the $500 million non-theatrical ‘broadcaster bucks’ and television commercial expenditures. And conservative estimates place the spin-off economic impact at $3 billion.

The BC Film Commission (BCFC) is a branch of the Ministry of Small Business, Tourism & Culture and relies on the government for all of its funds. It employs just 10 people and has seen its budget regularly slashed in recent years, to the point where it currently operates on a stunningly low annual budget of $875,000. (This, while Montreal just received a $300,000. injection to its promotional budget alone.)

The BCFC mandate is to market, promote and facilitate film and television production in BC, and to market the services of BC production, post-product and ancillary service companies to the international film and television industry. It has four tasks: international marketing, location scouting, location services and community relations.

These days, the marketing function is restricted, to say the least. “Seven years ago, I had a $250,000 print advertising budget,” says marketing manager Alice To. “It’s now $50,000, including creative. We’ve gone from placing 45 ads a year to placing five. Those five are saved for when there’s a BC production that needs to be congratulated in the trade press. Now, we don’t have campaigns, we have reminders. We stand out by using illustrations—other film commissions run location shots. We used to advertise to the European and Asian markets, we used to publish a newsletter for schools and libraries, and we used to do a lot of media relations. But we don’t have the resources for that any more.”

The commission used to have an advertising agency (Campaign Communications, now Saatchi & Saatchi). It also used to host the extremely successful Friends of BC reception in Los Angeles—a party to thank people for filming in BC. The commission still goes to Cannes and is hosting a Business in BC conference in London this year, but the once all-important trade shows are now also a thing of the past.

“We used to do Location EXPO,” continues To. “You’d have all the film commissions under one roof and everyone competed to attract people to their jurisdictions—we’d pass out BC apples, water, salmon. And we used to exhibit at Sundance and the Toronto Film Festival. Now we don’t do that, not so much because of budget cuts, but because people aren’t interested in trade shows any more. They know about the commissions and they can get the information they need off the Internet.”

For the past two years, the BCFC has had a very effective web site (www.bcfilmcommission.com). It’s strictly for information dissemination and doesn’t carry advertising, but it is well-visited to the point of the occasional crash. On it, visitors find film lists, statistics, quick facts, news items, maps and information on customs, taxes, unions, equipment rental, studios and services.

To, who compares her job to doing the limbo under an ever-lower budget bar, maintains a large photo library and has managed to produce excellent location brochures showing various BC locations—not just deer in the woods, but alleyways, warehouses, docks, residential areas. There’s the occasional marketing project with BC Film (the non-profit society responsible for marketing completed made-in-BC projects) and, twice a year, the commission’s director, location and production services managers go down to Los Angeles to meet with film industry executives and engage in some good, old-fashioned product touting.

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The product is a region which has evolved from being a location to being a production centre. BC’s craftspeople are as good as, if not better, than those anywhere else in the world. We have 67 state-of-the-art sound stages, the best post-production facilities in the business, and we’re capable of having 35 A-list crews working simultaneously. All facilities and amenities are here; producers don’t have to bring anything with them. BC has architectural diversity, ethnic diversity and geographic diversity (it has nine of the globe’s 12 climates, lacking only arctic, tropic and sub-tropic).

“We used to just market locations, now we market Vancouver as a production centre,” says acting BCFC director Mark DesRochers. “We have the complete package now—the pitch to the popcorn. People have put a lot of money back into the business here, so everything’s up to date and the quality of the facilities here has been well attested to by the most grizzled of Hollywood veterans.”

But if there’s no marketing budget, no events budget and no media relations budget, how has the BC Film Commission succeeded?

Strategy, service and more service.

“The second part of our mandate—location scouting—can be challenging,” continues DesRochers. “If someone needs the Texas panhandle, we’ve got a problem. But maybe we can get that script rewritten for Montana. Double Jeopardy was originally supposed to take place in Boston. Then Bruce Beresford thought ‘Why am I trying to cheat this for Boston, when I can rewrite it to take place in the Pacific Northwest?’

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“We have to get in at the contract-signing stage. After that, there’s not much we can do to change their minds. So we look at the trades, track production, call people up. The key is to get producers to think of BC first. A producer will send a script to a dozen locations and his concerns are budget and what a location offers. They come up here and I show them around and say, ‘We can do it for this much here and it’s going to look good. But then I may take them to the Okanagan and show them the perfect location for the script and say ‘If we do it here, for this much, it will look fabulous’. Then they’ll go back and fight for that location. It may cost them a little more to go up to the Okanagan, but they’re still saving money by filming in BC, and they don’t have to compromise on the creative side.

“Also, since 1995, we’ve had the Regional Film Commission of BC, a network of regional film offices that helps us give people exactly the location they want. Production budgets are shrinking and it’s expensive to send location scouts everywhere, especially in a region the size of BC.

“We know how thin the margins are on these shows and we have to service that margin. If a producer needs a mountain and he can get great shots on Grouse Mountain, we’re not going to have him drag his crew over to Mount Robson. If he wants the Queen Charlotte Islands and we know he can’t afford it, we’ll find the alternative.

“We learned a long time ago to never bullshit the customer. If someone needs tundra and musk ox, I’m going to tell we don’t have it. We don’t want to screw up or disappoint our customers, because some of our customers are people who would go out of their way to tell their friends what a bunch of wankers we are. If you market yourselves as being something, that’s what you have to deliver.”

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Once a project has been landed, the third part of the BCFC’s job— location services—kicks in. The BCFC takes a hands-on approach, walking producers through the hoops and ladders of immigration, customs, tax credits, Canadian content issues and union agreements.

The latter, as has been well publicized, used to be a major bugaboo. “People want to come here and make movies, not learn labour law,” explains DesRochers. “There was a time when people considered the possibility of union problems if they came to BC. That may or may not have cost us business—and it did get to the point where the whole thing could have gone down the toilet. But out of that came the opportunity to figure out how to make it work. And we did. Now, unlike any other jurisdiction in North America, all of the unions and guilds have long-term agreements with the employers, and the union agreements are much more straightforward than they used to be. We now have labour peace.”

More recently, there was the issue of unrest among members of the Los Angeles film industry, many of whom were furious at the amount of business coming up here.

“This is a cyclical business, and the growth in production in LA has been more rampant than any other place on the planet,” says DesRochers. “But if there are impracticalities which cost money, and producers want to make a profit, they’ll go where they can get the biggest bang for their buck. Anyway, we haven’t heard much from them lately—the guy leading the charge had to resign to go work on a feature in Toronto.”

Delivering that bigger bang also means competing with 260 other North American film commissions—and with Toronto, Vancouver’s main competitor, whose film commission also gets way more support from its provincial government. Toronto also has location advantages that BC doesn’t have.

“The competition has to do with location-driven pictures,” explains DesRochers. “Toronto is always on the producers’ shopping lists. If you want that eastern city look—if you want New York, Toronto is more logical. But there’s the weather to consider. And we are chameleons.”

The BCFC’s final mandate component is community relations. This area is absolutely essential, given that, not too long ago, the goodwill and hospitality of British Columbians—Vancouverites in particular—was starting to run a little low.

“Vancouverites are easy to get along with, considering the amount of production going on in a relatively small inner city,” remarks DesRochers. “But we had to start spending more time making sure the neighbours were not going to lynch the next show. Now, the municipal and city fathers are educated on what all of this filming means to the economy. People get advance letters, friendly production people knock on their doors and answer questions. It may just be a courtesy or—if you want to land a helicopter on someone’s street at 2:00 a.m.—it may be crucial.

“Like any business, once you’ve done your marketing and landed the business, your future success lies in how efficient you are at servicing that business. We have a multi-tiered client base and we don’t want anyone to feel used and abused.”

In 1995, the BCFC needed someone to deal only with community relations. It didn’t have the money to pay that salary, so it went to those with a vested interest—lawyers, accountants, post-production facilities, unions etc., and had them each chip in $4000. to pay 75% of the salary for a community relations person, something which most film centres don’t have.

The BCFC’s community affairs manager, Gordon Hardwick, is responsible for working with production companies and helping them deal with municipal administrators, Crown corporations and the private sector—helping them cut the red tape.

“I’m currently trying to organize municipal administrators to discuss ways of standardizing things,” he says. “The Greater Vancouver Regional District has 21 municipalities, all with different application and permit processes. Each year, filmmakers make 1,250 applications to the City of Vancouver, which has 400 files open at any one time. So things can become quite complex.”

Hardwick is also working on a marketing plan aimed at raising public awareness of the industry’s fiscal benefits.

“The film community supports a lot of charitable and service organizations, and there are many good-news stories to be told. We have a very low complaint level, but sometimes people get this idea that they’re being exploited by Big American Film Companies. Once they realize that a lot of the productions are Canadian, and that the guy next door makes his living this way, they understand. So the goal of the marketing plan will be to get the good news stories and the economic information out on as localized a level as possible.

“My job is to find ways to accommodate everyone and communicate with businesses and residents so that they can plan their lives around what’s going to be happening. Without that communication, communities would get fed up with the road blocks and noise and racing vehicles and say ‘forget it’. That’s what happened in some communities in the Los Angeles basin, which simply no longer allowing filming. Collectively, our locations are a resource that needs to be managed, with an eye to preservation for the future, just as the fishery or forestry resource does. This is a resource that needs to be both promoted and protected.

“The film industry here grew as a location-based industry—it was never about studios and back lots. We’ve always needed public support and understanding and the willingness to accept inconvenience once in a while. This industry employs 25,000 people—you don’t want it to go away just because it occasionally blocks your driveway.”

Perhaps the human element complicates things more than in this industry than in other sectors. But the other key to the BC Film Commission’s success is that it has been very good at forging solid, long-lasting relationships.

“We’ve developed a great rapport with the decision-makers in this industry,” says DesRochers. “When I go down to LA, I meet with people and find out what we’re doing right and what we’re doing wrong. We stay abreast of their desires and wishes and respond quickly. People there know we’re open to suggestions and that we’re committed to delivering the goods. That confidence is better than any advertising you could run.

“This is show business—a mix of creativity and fiscal responsibility. You can’t separate money from the other benefits. You can’t put a dollar value on knowing that you’re going to get the product you want, on time and on budget. And those relationships may save money in the long run, even if the up-front cost is a little higher. So you’ll get producers who come here again and again, no matter what company they’re working for.

“Sure, there’s the exchange rate and the tax advantages, but it’s also the people. Producers know they can depend on our people. We’ve earned the respect of our community on both sides of the border—from studio guys, to unions, to composers, to the guys renting cell phones. We’ve done a good job in forging relationships and keeping those warm and fuzzy feelings about us.”