Global studios and streamers have been the driving force behind the expansion of the Canadian audiovisual production sector, with global production fuelling employment at a rate three times higher than that of domestic production over the 2012-2022 period, according to a new report from KPMG commissioned by the Motion Picture Association – Canada (MPA-Canada).
Using data from a May 2023 report from the Canadian Media Producers Association, the KPMG report notes foreign location and service (FLS) productions in 2022 accounted for more than half (57 per cent) of total film, television and streaming production volume in Canada, or $6.71 billion of the $11.69 billion in total production volume in the country. This share in production has remained steady since 2018, averaging 55 per cent over the period, according to the report.
Furthermore, in 2021-2022, global studios and streamers invested $874 million in Canadian-owned television and film productions, which corresponds to 11 per cent of that year’s $7.58 billion in total foreign investment in production (FIIP), the report says. Of that amount, approximately $519 million financed CRTC-certified Canadian content productions through pre-sales, advances and licensing agreements, an amount that is larger than the combined $367-million investment of Telefilm Canada and the Canada Media Fund in Canadian content, according to KPMG’s report.
Global studios and streamers also generate almost 60 per cent of total income paid to Canadian creative workers, according to the report. In addition, 97 per cent of cast, crew and production personnel that are employed in FLS productions by MPA members in Canada maintain their residence in Canada, the report says. The MPA has six members: Walt Disney Studios, Netflix, Paramount, Sony Pictures, NBCUniversal Media and Warner Bros. Discovery.
Additionally, global producers support a wide range of Canadian businesses across the country, the report says, noting MPA member studios alone in 2022 spent more than $4.8 billion with 38,965 local businesses.
“In addition to important financial investments, KPMG’s report found that global studios and streamers have played a critical role in up-leveling the local production ecosystem, ensuring that suppliers used by both foreign and domestic producers are now on par with the highest international standards, with massive production infrastructure investments driven by the rapid increase of streaming productions,” says a MPA-Canada press release highlighting the findings of the KPMG report.
“Global studios and streamers are also offering multiple pathways to above-the-line and below-the-line work in the audiovisual industry and offering training programs for emerging Canadian creators to help them acquire the skills that will position them for success,” the release adds.
“This new comprehensive report demonstrates the many ways global studios and streamers benefit the entire Canadian audiovisual sector,” Wendy Noss, president of MPA-Canada, said in a statement. “The growth in production fueled by global partners has led to the development of a well-rounded Canadian industry with world-class creative workers, crews, artists, and technicians. Through a range of financial and non-financial investments global studios and streamers strengthen the Canadian industry while providing those who work within it a global platform to showcase their talent.”
Chart borrowed from KPMG’s report
