Audiences and Economic Indicators SPOTLIGHT ON CANADIAN DOCUMENTARIES April 25 2005 Prepared for the Documentary Policy Advisory Group

Canadian Documentaries: Economic Indicators: Revenue earned Gross Sales Advertising Jobs Reaching Audiences: Theatres Non-Theatrical Television

Economic Indicators

Recoupment as a Percentage of Commitments by Sub-format Revenue Earned Sample size is limited: Telefilm share of revenues after distribution advance, commissions & expenses To do: expand sample and develop trends Recoupment as a Percentage of Commitments by Sub-format Fiscals 2000-2001 to 2003-2004 9.4% 11.0% 17.6% Documentary Drama Variety & Per. Arts Children & Youth

Recoupment as a Percentage of Commitments by Sub-Format Revenue Earned Fiscals 1995-1996 to 2001-2002 3.2% 4.6% 10.9% Mini-series One-off Series Recoupment as a Percentage of Commitments by Sub-Format In the Documentary Genre: Series have the highest revenues returning 11% of total commitments

Telefilm-Financed Documentaries Recoupment Revenues Generated Revenue Earned Telefilm-Financed Documentaries Recoupment Revenues Generated 44% of documentaries supported did not return any revenue 2% of documentaries supported account for 45% of total revenues Fiscals 1995-1996 to 2001-2002 372 301 160 15 Revenues Returned No $1,000 Less than $100,000 $1,000 to or more $100,000

Total Sales for 35 Projects Gross Sales Sample size is limited to: 35 top performing documentaries in ’98-99 from Telefilm & NFB Typically a 5 year revenue cycle Total sales after financing = $5 million 70% of after-sales were in international markets To do: expand sample and develop trends Total Sales for 35 Projects Canadian Sales 30% Foreign Sales 70% *Most profitable documentaries from 1998-1999 – 23 Telefilm and 12 NFB projects; 20 One-offs, 2 Mini-series and 8 Series

Canadian Pre-Sales vs. Sales Gross Sales Canadian Pre-Sales vs. Sales By Sub-format 25.1% 49.9% 65.5% 74.9% 50.1% 34.5% ONE-OFF MINI-SERIES SERIES Pre-Sales Sales For these 35 projects in ‘98-99: Series were best able to put pre-sales into the financing One-offs had the hardest time making pre-sales

Documentary Sub-format Gross Sales Canadian vs. Foreign Pre-sales & Sales by Documentary Sub-format For these 35 projects in ‘98-99: The majority of all sales occurred in Canada, particularly for series. One-offs had the greatest share of their total sales from foreign territories SERIES 71.97% 28.03% MINI-SERIES 66.25% 33.75% 54.01% 45.99% ONE-OFF Canadian Foreign

Canadian Pre-sales & Sales by Gross Sales For these 35 projects in ‘98-99: The most important market segment was television representing 88.2% of all pre-sales and sales. No other market segment came close. 10.0% 1.7% 0.1% TV Institution Home Video Theatre Canadian Pre-sales & Sales by Market Segment 88.2%

Telefilm Canada The National Film Board Gross Sales For 35 projects in ‘98-99 Canadian Pre-Sales & Sales by Market Segment Telefilm Canada The National Film Board Theatres 0.4% Institution 51.4% TV 37.9% Home Video 10.2% 1.8% 98.2%

Advertising Rates: Based on survey* of available inventory with a cost and an audience estimate by program for the period of April 9 through to June 30, 2005 Range of Rates (30 sec spot) for Canadian Documentaries Compared to other programs $360.00 $21,620.00 $38,970.00 $76,990.00 Documentaries - High end of range Corner Gas Law & Order SVU American Idol Finale Range of Costs per Thousand Viewers (CPM) for Canadian Documentaries $12.69 $40.32 $57.40 Documentaries – High end of range CSI The OC Benefits of Branding: CPM ranges from $4-$12 for documentaries with higher end charged by specialty services with brand in documentary. *17 broadcasters surveyed including CBC.

Advertising Revenues 21.49% 3% Specialty Services Conventional Networks Estimated Portion of Advertising Revenue generated by documentary programming *Subset of commercial broadcasters only, not including CBC

Jobs The production of Canadian documentaries generated approximately 12,900 full-time equivalent jobs in 2003-2004 The figures for 2003-2004 show a decrease from the previous year Full Time Equivalent Jobs 2,700 3,500 4,500 6,700 7,400 8,800 5,400 5,000 4,300 5,600 7,200 4,200 4,600 5,500 8,600 7,900 7,000 9,100 11,700 10,900 12,000 14,300 14,000 12,900 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 Direct Indirect Total

Reaching Audiences

Documentary Box Office & Theatres Trends Documentary Box Office & Number of Releases An extreme jump in feature documentary box office occurred in 2004. Up 428% from previous year. Michael Moore’s Fahrenheit 9/11, accounted for 40% of B.O. in 2004 Market share for feature documentary has gone from < 1% of overall B.O. to 1.2% of B.O. in 2004. Documentary Box Office ($000s) Number of Documentary Films Released 30,000 70 25,000 60 20,000 50 40 15,000 30 10,000 20 5,000 10 2002 2003 2004

Average Feature Film Shelf Life Theatres Trends Average Feature Film Shelf Life (in weeks) 2 4 6 8 10 12 14 2002 2003 2004 Documentaries Fiction Feature documentaries are remaining in theatres a lot longer By contrast fiction films have a shorter shelf life. Feature Documentaries average 5 screens per film Fiction Films average 60 screens per film Average b.o. per screen is similar

Theatres Canadian Documentaries Similar to overall documentary growth, Canadian-made feature documentaries exhibited a startling growth in box office for 2004 ($145,000 to > $2Million) The Corporation represented about $1.5 million or 75% of the Canadian documentary box office Canadian Documentary Box Office ($000s) 500 1000 1500 2000 2500 2002 2003 2004

Theatres Canadian Documentaries Canadian feature documentaries reached 8% market share of all feature documentaries. Canadian fiction features reached 4% market share of all fiction feature films. Canadian feature documentaries contributed 5% to the overall BO earned by Canadian feature film Canadian Feature Film Share By Genre -2004 8% ($2,113,585) 4% ($39,286,854) Canadian share of Canadian share of all Feature all Fiction Feature Documentaries Films

Theatres The Top Five Documentaries still on screens in Canada in 2004: Fahrenheit 911 – Released 2004 – Total Box Office: $18,242,989 Bowling For Columbine – Released 2002 – Total Box Office: $5,244,872 Super Size Me – Released 2004 – Total Box Office: $2,064,476 The Corporation – Released 2004 – Total Box Office: $1,511,731 NASCAR: The Imax Experience – Released 2004 – Total Box Office: $1,225,625 Fahrenheit 911 was the highest grossing feature documentary of all time The Corporation is a Canadian-produced documentary. It was the number one Canadian documentary as well as the second highest grossing Canadian-made film overall for 2004 The highest grossing French-language Canadian documentary was Ce Qu’il Reste de Nous. It took seventh place overall with over $300,000 at the box office

Non-Theatrical Non-Theatrical Markets – Up to Early 1990’s - Generalized Multimedia Home Video Colleges & Universities Schools Libraries Social Business & Services Industry Agencies Community Associations Health Educational & Specialty TV Non-theatrical Market – Early 90’s to Present - Specialised

Non-Theatrical Diverse audiences are being reached at home, at the workplace and in the educational milieu. Example: The National Film Board Libraries - over the last five years - 1 million loans and rentals with 90% being documentaries Educational milieu- almost 400,000 documentaries sold More is research required to measure this consumption in the future

Television Overview All genres including sports, news, entertainment, etc. Canadians consumed over 14 billion hours of television during the first half of the 2003-2004 broadcast season Of all that viewing, a slim majority (52%) was to foreign programming Data challenges Share of all TV Hours Tuned Foreign- Productions 52% Canadian- 48% Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

Television Recent Audience Indicators Share of All TV Hours (Week 1-26 2003—2004 Season) Canadians consumed about 784 million hours of documentary programming during the first half of the 2003-2004 broadcast season This accounts for about six percent of all tuning Docs 6% All Others 94% Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

Share of All TV Hours Tuned to Television Recent Audience Indicators Share of All TV Hours Tuned to Documentaries (Week 1-26 2003—2004 Season) Of the 784 Million documentary hours consumed 533 were in English and 251 in French representing roughly: 5% of overall English viewing 6% of overall French viewing English and French Canadians consume documentary programming at similar levels French 32% English 68% Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

Programming Hours tuned Television Recent Audience Indicators Share of Documentary Programming Hours tuned (Week 1-26 2003—2004 Season) Although overall foreign television production is consumed more than Canadian production, in the case of documentary programming television viewers prefer home-grown products Canadian documentaries account for more than 60% of all documentary tuning on television Foreign 39% Canadian 61% Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

Prime Time Television Trends English-Language Documentary Programming Supply vs. Viewing (hours/week/person) Supply Viewing French-Language 1996/97 1998/99 2000/01 2002/03 More than double the documentary programming is available to prime time viewers : English 700-1600hrs/wk French 300-700 hrs/wk Consumption is not increasing: English 9 hrs/wk French 11 hrs/wk Source: CBC Research/Nielsen Media 1996-2003 Prime Time

Prime Time Television Trends Canadian Documentary Programming Supply vs. Viewing Canadian Share of Hours Tuned In the English market, Canadian share of supply has increased marginally to 50% while share of viewing remains around 30%. In the French market, the Canadian share of supply and viewing dropped sharply in 1998 and has levelled off since at about 60% English-Language 1996/97 1998/99 2000/01 2002/03 Supply Viewing French-Language 1996/97 1998/99 2000/01 2002/03 Source: CBC Research/Nielsen Media 1996-2003 Canadian SHARE of Hours/Week/Person Prime time

Television Recent Audience Indicators Sub-Format Share of all Viewing to The on-going series sub-format accounts for the majority of hours tuned to documentary programming However, the distribution of TUNING almost exactly matches the distribution of AVAILABILITY which suggests that the sub-formats are equally appealing to Canadians Canadian Documentary Programming Miniseries One off 4% 14% Series 82% Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

Television Recent Audience Indicators CUMULATIVELY, on-going series account for the most viewing, but one-offs and mini-series tend to have higher SINGLE-VIEW AUDIENCES.The top five single-airing audiences for documentaries were all one-offs or mini-series. Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year