1. 1 Audiences and Economic Indicators SPOTLIGHT ON CANADIAN DOCUMENTARIES Prepared for the Documentary Policy Advisory Group April 25 2005

2. 2 Canadian Documentaries: Economic Indicators: Revenue earned Gross Sales Advertising Jobs Reaching Audiences: Theatres Non-Theatrical Television

3. 3 Economic Indicators

4. 4 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

5. 5 Revenue Earned In the Documentary Genre: Series have the highest revenues returning 11% of total commitments Fiscals 1995-1996 to 2001-2002 3.2% 4.6% 10.9% Mini-seriesOne-offSeries Recoupment as a Percentage of Commitments by Sub-Format

6. 6 Revenue Earned 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 Telefilm-Financed Documentaries Recoupment Revenues Generated 372 160 301 15 No Returned Revenues Less than $1,000 $1,000 to$100,000 or more

7. 7 Gross Sales Canadian Sales 30% Foreign Sales 70% Total Sales for 35 Projects 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 *Most profitable documentaries from 1998-1999 – 23 Telefilm and 12 NFB projects; 20 One-offs, 2 Mini-series and 8 Series

8. 8 Gross 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 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

9. 9 Gross Sales ONE-OFF MINI-SERIES SERIES Canadian Foreign 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 Canadian vs. Foreign Pre-sales & Sales by Documentary Sub-format 54.01% 66.25% 71.97% 45.99% 33.75% 28.03%

10. 10 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% TVInstitutionHome VideoTheatre Canadian Pre-sales & Sales by Market Segment 88.2%

11. 11 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% Institution 1.8% TV 98.2%

12. 12 Advertising 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 Compared to other programs $12.69 $40.32 $57.40 Documentaries – High end of range CSI The OC 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 *17 broadcasters surveyed including CBC. Benefits of Branding: CPM ranges from $4-$12 for documentaries with higher end charged by specialty services with brand in documentary.

13. 13 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

14. 14 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 96-9797-9898-9999-0000-0101-0202-0303-04 Direct Indirect Total

15. 15 Reaching Audiences

16. 16 Theatres Trends Documentary Box Office ($000s) 0 5,000 10,000 15,000 20,000 25,000 30,000 200220032004 An extreme jump in feature documentary box office occurred in 2004. Up 428% from previous year. Michael Moores 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. Number of Documentary Films Released 0 10 20 30 40 50 60 70 Documentary Box Office & Number of Releases

17. 17 Theatres Trends Average Feature Film Shelf Life (in weeks) 0 2 4 6 8 10 12 14 200220032004 DocumentariesFiction 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

18. 18 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) 0 500 1000 1500 2000 2500 200220032004

19. 19 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 all Feature Documentaries Canadian share of all Fiction Feature Films

20. 20 Theatres The Top Five Documentaries still on screens in Canada in 2004: 1.Fahrenheit 911 – Released 2004 – Total Box Office: $18,242,989 2.Bowling For Columbine – Released 2002 – Total Box Office: $5,244,872 3.Super Size Me – Released 2004 – Total Box Office: $2,064,476 4.The Corporation – Released 2004 – Total Box Office: $1,511,731 5.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 Quil Reste de Nous. It took seventh place overall with over $300,000 at the box office

21. 21 Non-Theatrical Educational & Specialty TV Social Services Agencies Community Associations Multimedia Health Home Video Business & Industry Colleges & Universities Schools Libraries Non-theatrical Market – Early 90s to Present - Specialised Non-Theatrical Markets – Up to Early 1990s - Generalized

22. 22 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

23. 23 Television Share of all TV Hours Tuned Foreign- Productions 52% Canadian- Productions 48% Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year 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 Overview

24. 24 Television Recent Audience Indicators 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 Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year Share of All TV Hours ( Week 1-26 20032004 Season ) All Others 94% Docs 6%

25. 25 Television Share of All TV Hours Tuned to Documentaries ( Week 1-26 20032004 Season ) English 68% French 32% 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 Recent Audience Indicators Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

26. 26 Television Share of Documentary Programming Hours tuned ( Week 1-26 20032004 Season ) Canadian 61% Foreign 39% Recent Audience Indicators 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 Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year

27. 27 Prime Time Television Trends 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 English-Language Documentary Programming Supply vs. Viewing (hours/week/person) SupplyViewing French-Language 1996/971998/992000/012002/03 1996/971998/992000/012002/03 Source: CBC Research/Nielsen Media 1996-2003 Prime Time

28. 28 Prime Time Television Trends 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% Source: CBC Research/Nielsen Media 1996-2003 Canadian SHARE of Hours/Week/Person Prime time English-Language Canadian Documentary Programming Supply vs. Viewing Canadian Share of Hours Tuned SupplyViewing French-Language 1996/971998/992000/012002/03 1996/971998/992000/012002/03

29. 29 Television Recent Audience Indicators 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 Source: BBM National Meter Service, Weeks 1-26, 2003-2004 Broadcast Year Sub-Format Share of all Viewing to Canadian Documentary Programming Miniseries 4% One off 14% Series 82%

30. 30 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