Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
. . . . . . . . . . . . . . . . . . . . . . 4
. . . . . . . . . . . . . . . . . . . . . 21
. . . . . . . . . . . . . . . . . . . . 34
10. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
References
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
. . . . . . . . . . . . . . . 43
. . . . . . . . . . . . . . 44
executive
summary
mighty jungle
2007 Mighty Jungle 2 Productions Inc.
T H E C H A L L E N G E S FA C I N G C A N A D I A N
CHILDRENS AND YOUTH PRODUCTION
Despite the social, cultural and economic strengths that the genre displays, it does face
a number of challenges that seriously threaten its long-term viability.
Despite the genres strong export revenue performance in 2007/08, it has experienced
a precipitous drop in annual levels of treaty co-production in recent years. Canadas
volume of treaty co-production in the childrens and youth genre is off its 2000 peak by
71 percent. This rate of decrease is double the overall rate of decrease for all Canadian
treaty co-production.
1. We refer to the jobs as annualized because the calculations are based on an annual average salary.
Therefore, a project running for six months, for example, would employ double the number of persons
because the average salary would be one-half the annual average.
ii
falling budgets
Average budgets for childrens and youth programming have also been in retreat.
Between 1998/99 and 2007/08, the average half-hour budget of a Canadian television
production in the childrens and youth genre dropped by 14 percent in real dollar terms
falling from $275,000 to $236,000. Average budgets are low by both historical and
international standards: for animation projects to be internationally competitive,
half-hour budgets need to be closer to the typical animation budget of $300,000 to
$350,000 (see animation budget statistics reported in Christie 2007).
CONCLUSION
The social and cultural value of childrens and youth content is overwhelming.
Screen-based programming entertains and informs children and youth and helps them
develop a sense of identity. It is important that we provide Canadian children and
youth with stories that reflect who they are. If Canadian children and youth have access
to entertaining Canadian stories when they are young, they are more likely to view
Canadian programming when they are older. Further underlining the importance of the
genre is the fact that it is on the front line of the revolution in multi-platform distribution.
zekes pad
2008 My Pad Productions Inc. and
Avrill Stark Entertainment Pty Ltd. All rights reserved.
iii
introduction:
a continued need for
investment in the face
of difficult economic times
Canada has a unique and open approach to a pluralistic society, of which we are
justifiably proud. We are one of a select few countries in the world that has made a
commitment to developing a tolerant and just society that is open to all cultures. The
Canadian experiment is ongoing and requires continual support. Exposing our children
to Canadian values is an important part of this support. At the same time, Canadian
children should be able to experience the world, through stories told through television,
the Internet and other platforms. Canadian program creators and artists make highquality screen-based programming that reflects Canadian values and offers a view into
global experiences. In this way, the childrens and youth programming industry helps
enrich the lives of Canadian children and youth. The high social value of childrens
programming, however, means it should not only be made and aired because it will
attract the greatest amount of broadcaster or advertiser interest, but because it reflects
public values.
In February 2007, the Canadian Film and Television Production Association (CFTPA)
in association with Shaw Rocket Fund, the Alliance for Children and Television, and the
National Film Board of Canada prepared the inaugural edition of The Case for Kids
Programming: Childrens and Youth Audio-Visual Production in Canada. It examined
the economic and social impact of the childrens and youth production sector and
established the case for strengthened public support for the genre. Two years later, the
CFTPA in association with Shaw Rocket Fund and the Alliance for Children and Television are proud to publish the following 2009 update to The Case for Kids Programming.
Canadas childrens and youth production industry continues to have a significant
economic and social impact. Among Canadas CTF-supported genres (childrens and
youth, drama, documentary, and variety and performing arts), it offers one of the best
audience performance records. Whats more, it provides unparalleled export potential.
Despite this strong record, the genre continues to face many of the challenges that it
did two years ago.
atomic betty
Courtesy of Breakthrough Entertainment.
As with other genres, the childrens and youth genre is vulnerable to the effects of consolidation and vertical integration in the television sector. As an export-oriented genre,
childrens and youth programming also faces tremendous international competition from
integrated global production broadcasting conglomerates such as Disney and Nickelodeon. Many of Canadas childrens and youth television producers recognize that they must
make globally competitive content to survive and prosper in todays marketplace. To do so
often requires international partnerships through official treaty co-production. However, it
is becoming more and more difficult for Canadian producers to forge international partnerships, in large part due to developments outside of Canada, but also because Canadas
own treaty co-production framework is outdated in some respects. The statistics bear
this out: Canadas volume of international treaty co-production in the childrens and youth
genre has fallen twice as fast as the overall volume treaty of co-production in recent years.
1
Foreign sale opportunities can be boosted as the likes of Disney enter as channels in
foreign markets, thus compelling local broadcasters to acquire top-rated programming
in order to compete. While the result is increased foreign demand for quality childrens
and youth programming, the economics only work for Canadian producers if there is a
domestic broadcaster partner/buyer for these projects. Thus, restraints in the domestic
market have an impact on the ability of Canadian producers to generate foreign sales or
line up foreign partners in this genre.
Despite the industrys past successes, our research shows that Canadas childrens and
youth production industry continues to experience some difficulty. Annual production
levels have been in decline in recent years and are now at their lowest level in over a
decade. Average budgets remain low by historical and international standards, and the
levels of public funding for the genre have not grown in real terms over the past decade.
These continuing and alarming recent developments are a source of concern for
Canadian parents, communities, the industry and other stakeholders, and provide the
impetus for this updated 2009 edition The Case for Kids Programming.
bo on the go
Courtesy of Halifax Film, a DHX Media company.
These emerging distribution approaches are particularly suitable to childrens and youth
programming. Younger people are often early adopters of new technologies or coax
adults to quickly adopt new technologies. Furthermore, much of childrens and youth
screen-based production lends itself to interactivity, which technology can facilitate.
The ease with which young people use new technology certainly suggests that the
Internet and mobile video may represent a tremendous opportunity for the genre.
But in the world of alternative platforms where consumers become the programmers
and pull-distribution models operate alongside traditional push models, only the very
best content will find audiences. Under such a scenario, the Canadian governments
demand-side policies for promoting Canadian screen-based content which have been
very effective for many decades may lose their efficacy. The regulated broadcasting
system may no longer stand between audiences and screen-based content. When this
happens, policy makers will have to recognize that more support for the production side
of the screen-industry value chain is going to become paramount, to ensure Canadian
content is always available to Canadian children.
In the next section, we examine the current state of Canadas childrens and youth
production industry.
2. CRTC, Proposed incentives for English-language Canadian television drama Call for comments,
Broadcasting Public Notice CRTC 2004-32, para. 38.
In 2007/08, the total volume of Canadian television and feature film production in the
childrens and youth genre fell to a ten-year low of $257 million3. Of this amount,
production for television accounted for $250 million of the production volume; so the
childrens and youth production sector was almost entirely a television one.
Behind this $257 million in production, there were numerous Canadian companies, and
creative and technical professionals. A review of membership data available from the
CFTPA and Association des producteurs de films et de tlvision du Qubec (APFTQ)
indicates that there some 110 companies in Canadian engaged in the production of
childrens, youth or animation programming. Many more companies provide audiovisual services to childrens and youth production. Altogether, these production
companies generate an estimated 2,500 full-time equivalent jobs for Canadians
(for additional employment statistics, see Section 6, Employment).
3. The production statistics contained throughout this report only include co-productions of childrens and youth programs
with the NFB; the statistics do not include the NFBs in-house production of childrens and youth programming.
2006/07
Change
Percentage Change
278
387
109
39%
Number of projects
87
90
3%
2.7
3.6
0.9
33%
223
206
(17)
(8%)
55
181
126
129%
This increase in non-CTF production arose from an increase in the number of large
projects. In 2005/06, there were no non-CTF projects with a budget over $10 million; in
2006/07, there were three. The number of non-CTF projects in the $5 million to $10 million budget range also increased from a total of three in 2005/06 to seven in 2006/07.
2006/07
Change
Above $10M
$5M to $10M
$2.5M to $5M
$1.0 M to 2.5M
(1)
Under $1M
14
(5)
Total
28
33
After experiencing this temporary spike in production in 2006/07, however, the long-term
downward trend in the genres annual production volume resumed in 2007/08. The total
volume of childrens and youth television production dropped to $257 million the lowest
level in the last ten years. Over the past ten years, childrens and youth production has
not only fallen on an absolute dollar basis, but has also fallen relative to Canadas overall
output of television production. In 1999/00, childrens and youth television production
4. Non-CTF production includes Canadian content production (i.e., productions with six or more
Canadian-content points) that may not be eligible for CTF funding or did not receive CTF funding.
Exhibit 4: Childrens and youth television production: by format and annual CTF contributions
Volume of childrens and youth production, by format
Source: CTF
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
Private Broadcaster
Licence Fees
41
40
45
41
44
53
48
82
51
Public Broadcaster
Licence Fees
11
13
15
24
17
19
26
21
24
37
35
31
25
27
31
29
41
25
41
33
40
36
37
44
49
66
40
Canadian Distributor
37
38
22
24
21
12
12
28
21
117
74
52
23
41
22
21
19
16
Production Company
59
88
78
40
34
27
19
37
10
Foreign
28
31
49
58
41
45
46
45
49
Independent
Production Funds
10
13
13
14
Other Public*
Other Private**
16
14
18
14
11
19
388
370
358
300
290
281
276
378
250
Total
Source:
Note:
*
**
By 2007/08, however, foreign pre-sale financing for Canadian childrens and youth television
programs had dropped dramatically. In 2007/08, foreign financing was down to $16 million;
Canadian distributor financing generally linked to the potential in foreign markets was
$21 million. Together, these two internationally-oriented financing sources accounted for
15 percent of total financing in 2007/08; about 40 percent of the level of eight years prior.
In effect, Canadas childrens and youth production community has seen its supply of production capital curtailed by over $600 million in the eight years since the industry reached
its production peak in 1999/00. Canadas overall indigenous television production community has experienced an across-the-board drop in activity since hitting a peak in 1999/00.
All of this drop can be traced back to the two fiction genres prime-time comedy and
drama, and childrens programming as opposed to the factual genres of documentary
and variety and performing arts. Drastic changes in the business climate in the global
television marketplace were the single biggest contributor to Canadas declining volume
of Canadian television production (CFTPA 2006, p. 14). The worldwide trend towards
more indigenous programming in television schedules, and the move in Europe to a more
continental market have led to a drop in the international trade in television programs
(CFTPA 2006, p. 14). Nowhere was the effect of these international market developments
more evident than in Canadas childrens and youth production segment. Since 1999/00,
foreign financing of Canadian childrens and youth television programs has dropped by a
staggering $100 million on an annual basis.
The financing statistics also reveal that production companies are no longer able to make
significant investments in their own projects: between 1990/00 and 2007/08, production
companies investments in childrens and youth production dropped from 15 percent to
4 percent. This is a symptom of the financial condition of Canadian production companies.
Statistics Canada data for the overall industry indicate that its net profit margin was only
4.3 percent in 2004 (the rate was as low as 1.6 percent in 2002) (Statistics Canada 2006);
across the whole industrial economy, the rate was 6.4 percent (CFTPA 2006a). The Canadian production industry is now comprised of numerous small companies with lower-thanaverage profitability; the industry is very fragile. Without healthy profit margins, Canadian
producers are increasingly unable to invest in their projects and retain more ownership in
the revenue streams of their work. Without financially strong production companies, there
is a risk that Canada will lose its position within the genres international markets.
After hitting an all-time low of 678 hours in 2003/04, the annual output of original
Canadian childrens and youth television production rose steadily and peaked at 1,022
hours in 2006/07. However, in 2007/08, annual output fell with production volume to a
ten-year low of 530 hours.
Canadian producers of childrens and youth television programming have adapted to the
severe loss of international capital, although their financial position is relatively precarious.
The international demand may have weakened, and producers thus have less financial
resources to work with, but they are still generating hundreds of original hours per year.
They are now forced to produce with lower average budgets to meet the demand of the
domestic market, increasingly dominated by specialty and pay television services.
taste buds
Photo by Cylla Von Tiedemann, marblemedia
Between 1998/99 and 2005/06, the average half-hour budget (measured in constant
2007 dollars) of a Canadian television production in the childrens and youth genre
(including both English and French production) dropped by 14 percent, from (inflation
adjusted) $275,000 in 1998/99 to $236,000 in 2007/08. On the surface it may seem that
the industry has improved its productivity by lowering the real cost of producing an
hour of television programming; and in many respects it has through the use of new
technology. Improvements in animation technology have lowered the cost of this type of
production. But still, for projects to be internationally competitive, the average budgets
need to be closer to the typical animation budget of $300,000 to $350,000
(see animation budget statistics reported in Christie 2007).
Average real budgets for both the English-language and French-language childrens
and youth production dropped 18% between 1998/99 and 2007/08. Average real
half-hour budgets for French-language productions experienced more fluctuation,
but dropped from $97,000 to $79,000. Average half-hour budgets for English-language
production dropped steadily to 2005/06, but have recovered somewhat in recent years,
but have still not returned to the levels of the late 1990s.
Exhibit 7: Average budgets of Canadian childrens and youth television production (real 2007 dollars)
totally spies
Marathon Media / Mystery Animation Inc.
10
The responsibility to air childrens and youth programming should not stop with provincial
educational broadcasters, CBC/SRC, and specialty and pay television services; private
conventional broadcasters also have an important role to play in ensuring that Canadian
children and youth have access to a diversity of television content. Among the private
conventional television broadcasters, CTV has committed to only 2.5 hours per week.
Canwest MediaWorks Inc. agreed, at its last licence renewal, to maintain a spot in its
schedule for childrens and youth programming, but made no commitments to a fixed
number of hours per week. In general, the CRTC does not see a need to impose any
licence conditions related to childrens and youth programming on private conventional
licensees. About 90 percent of Canadian households have access to basic-tier
programming on Canadian broadcasting distribution undertakings (BDUs), and therefore
access to YTV or VRAK.TV; however, conventional broadcasters still have the greatest
audience reach, and can be viewed by the greatest number of Canadian children and
youth. Even in the U.S., where there are numerous multichannel outlets for childrens
programming, the Federal Communications Commission requires over-the-air
broadcasters to televise a minimum amount of childrens programming each week.
Exhibit 8: Broadcaster licence conditions, requirements and commitments relevant to childrens and youth production
Broadcaster
CBC
Expected to broadcast a minimum of 15 hours per week for children and five hours per week for youth
SRC
Required to broadcast an average of at least four hours per week of original Canadian childrens programming
Expected to broadcast a minimum of 20 hours per week for children and youth
TVO/TFO
TVO expected to broadcast 70 hours per week of educational programming dedicated to children
TFO committed to broadcast at least 29 hours per week of Canadian programming for
children (ages 2 to 12) and at least 10 hours per week of programming for youth (ages 12 to 17)
Tl-Qubec
Required to broadcast an average of 21 hours per week of Canadian programming targeted to children ages 2 to 11
SCN
Knowledge Network
CTV
CHUM
TVA
TQS
Committed to produce the childrens program Le Petit Journal using an independent producer;
this program will consist of 52 original hour-long segments, with each segment consisting of two
30-minute programs broadcast each week, targeting adolescents aged between 12 and 17 years
Committed to produce an original 30-minute program each week targeting children aged between 2 and 11 years
Family Channel
(including
Disney Playhouse)
Required to devote 25 percent of broadcast schedule to the exhibition of Canadian programming that shall have
as its target audience only children, youth to age 17, and families in conjunction with such children and youth
Required to spend 30 percent of revenues on the acquisition of Canadian programming that shall have as
its target audience only children, youth to age 17, and families in conjunction with such children and youth
YTV
VRAK.TV
Teletoon/Tltoon
Treehouse
BBC Kids
Required to devote 65 percent of broadcast schedule to programming that targets children ages 2 to 11
(the majority of which will target children ages 6 to 11) and 35 percent to youth ages 12 to 17
Required to devote not less than 35 percent of broadcast schedule to the exhibition of Canadian content
Required
Required
Required
Required
to
to
to
to
broadcast programming that has as its target audience children and youth up to 17 years of age
distribute 104 hours of original, first-run, independently produced programming per year
spend 41 percent of annual revenues on acquiring and investing in Canadian programming
devote 50 percent of broadcast schedule to the exhibition of Canadian content
Source: CRTC
11
social impact:
the importance of childrens
and youth programming
Without a doubt, television is one of the most powerful mass-media technologies in the
world. Television and the programming that it provides have a tremendous impact on
people of all ages. Screen-based programming helps shape peoples political views and
their social values; it influences many of the economic decisions that they make.
Screen-based programming has an even greater impact on children and youth. Young
people are in their formative years: they are forming attitudes and learning behaviours
that they will keep for the rest of their lives. Canadian children spend about 30 hours
per week in school classrooms; they spend an upwards of 18 hours per week watching
television. While many parents, educators, and physicians lament the fact that our
children grow up in front of the television, the reality is that television has become an
important part of childrens lives in Canada. And it is for this very reason that it is vitally
important that Canadian children and youth have access to Canadian-produced
childrens and youth programming of the highest possible quality.
hood
Portfolio Entertainment Inc.
12
A 2005 survey by the Media Awareness Network found that 40 percent of grade 11
students downloaded movies and TV shows on computers connected to the Internet;
the rate for grade four students was 17 percent (Media Awareness Network 2005, p. 20).
The Media Awareness Network also found that two-thirds of Canadian students (grades
four to 11) used a cellular phone, and nearly one-quarter of Canadian students actually
owned their own cellular phone (Media Awareness Network 2005, p. 16). Forty-one percent of Canadian students (grades 4 to 11) have an MP3 player for their own personal use
(Media Awareness Network 2005, p. 4). Not all of these technologies currently come with
video capabilities, but they are quickly including this feature; and the statistics show that
Canadian children are eager adopters of new media technologies. However, screen-based
content does not seem to have lost its place in the media lives of Canadian children and
youth; Canadian children and youth are just using a wider variety of paths to find it.
13
14
Internet must be consistent with those they receive in the school system. For the
thousands of children and youth immigrating to Canada every year, screen-based
programming complements their classroom setting: it allows them to learn about
Canadian values and offers them the opportunity to forge their own Canadian identity.
Canadian childrens and youth screen-based programming must have a prominent
place on television and the Internet, so that Canadian children and youth can access it.
Canadians also like to lead by example; they will go to all corners of the globe to offer
other communities the chance to understand that the Canadian option Canadas
approach to building the social fabric of a nation is available to them. Screen-based
programming, particularly for children, can also be another tool in Canadas
international development toolkit. But in order for Canadian screen-based content
to reach international audiences, it must be of the highest quality, and it must be
globally competitive.
All this may sound like television and screen-based programming is some type of
paternalistic tool used by adult decision makers to program children into robots that
carry on what adults see as the acceptable social norms. But just like other media,
screen-based programming also teaches children to challenge and question society;
and in some respects, it gives children a voice in a society where they often cannot
make their views known. Traditional fairy tales and modern stories told through the
screen-based medium present children with situations where the poor, the young, and
women are empowered (Messenger Davies 2001, p. 59 [Lurie]). They teach children
to be sceptical of adults, i.e., sceptical of the decision makers. Childrens stories are
told from the childs point of view, and thereby give children a voice.
On another level, screen-based programming gives children a voice because they often
have the ability to choose what they want to watch. By choosing what they will and will
not watch, young children communicate with the adults around them. Children do not
vote; most do not engage politicians or business leaders; they can, however, express
their views through the programs they choose to watch. That is why it is important to
offer children a diverse range of high-quality screen-based programming. Without the
highest quality, we fail to maximize the educational and social value of video content.
Without diversity, we risk offering children only a limited array of choices and paths for
expressing their views.
Canadian educators and screen-based creators have long recognized the social
importance of television programming. Through television, children learn more about
the world they live in by fostering their curiosity. Television programming can prompt
kids to go on the web and learn more about the world around them, just as the shows
in the twentieth century encouraged children to go to the library helping kids become
smarter and more positive. In the next section, we identify some of the major trends
in the global media market, which are putting tremendous pressure on Canadian
producers of childrens and youth programming. We also scan the childrens and youth
production and broadcasting markets in other countries. In a later section we explore
Canadian producers performance in international markets in recent years.
15
In this section we examine the three major global market trends affecting childrens and
youth production. The first is vertical integration, the second is increased global competition,
and the third is the emergence of new distribution technologies. We also present some
snapshots of the childrens and youth programming in the U.S., U.K. and Australia.
Canadian producers of childrens and youth programming operate in the global market.
While they enjoy a certain degree of protection in the domestic market, global market
developments and the emergence of new distribution technologies could pose a
challenge to even these protections. Outside of Canada, Canadian producers compete
with other producers to reach audiences. Vertical integration can often tilt the playing field
against independent Canadian producers. However, the emergence of new distribution
technologies may represent an opportunity to re-level the playing field to some degree,
or at least give Canadian producers other options for reaching audiences. A scan of the
industry structure and recent developments in childrens and youth programming in other
countries reaffirms the case for the national public broadcaster to maintain a strong
presence in the genre, even with specialty cable channels holding leadership in terms of
commercially oriented programming dedicated to children and youth.
16
mighty jungle
2007 Mighty Jungle 2 Productions Inc.
The expansion by broadcasters to international markets has primarily been led by two
networks: Nickelodeon and Disney. Since 2001, Nickelodeon has launched or re-launched
its childrens and youth network in over 12 markets across the globe. In 2008 alone,
Nickelodeon launched dedicated Arabic, Polish, and Swedish channels. In addition to its
existing global portfolio, Disney has launched over seven new services since 2000.
Starting with Disney Latin America in 2000, Disney launched networks in Scandinavia,
Japan, India, Poland, Malaysia, and most recently Belgium and The Netherlands in 2009.
These new service initiatives in multiple countries do have one positive effect on those
markets, as noted earlier. They do put pressure on local broadcasters to compete, and
thus create new markets for Canadian programming. The problem is that for any
international expansion to occur there must be a domestic market expansion in Canada.
Production companies operating in Canada cannot easily develop programming strictly
for the international marketplace. They need the domestic broadcaster to pay for part
of the production cost, as well as triggering CTF, tax credit financing, and independent
production funds. If the domestic market would rise to the occasion, it is likely that
the international market would be there to take up its share of the financing required.
This foreign market potential points back to domestic broadcasters they should be
encouraged to make more of a commitment to independent Canadian programming
and thus increase the total market for Canadian childrens and youth programming.
many appear to have no clear plans or ability to exploit. Broadcasters around the globe
have moved quickly into the online distribution environment, but have not exploited their
rights wholeheartedly. While they recognize the growing importance of online distribution,
broadcasters have yet to monetize it, resulting in their continued reliance upon traditional
distribution models.
Disney leads the online distribution of linear and interactive content for children worldwide.
Nickelodeon hosts numerous interactive websites for children and youth, including Nick.
com, Nickjr.com, Nickatnight.com, tvland.com, and teachers.nick.com. In Canada, Corus
Entertainment Inc.s TreehouseDirect.com distributes pre-school programming online,
complete with episode downloads and interactive games. Corus also has a stake in qubo,
a multiplatform network for childrens programming, complete with a branded website,
a 24/7 standalone digital broadcast channel, and video-on-demand services.
Teletoon has developed an online video player, Teletoon.com, available over Cogeco On
Demand, Rogers On Demand, and Telus Mobile TV. In spring 2009, Teletoon partnered
with iTunes to distribute five childrens and youth television series in Canada, and has
indicated plans to make branded iPhone games, sneak previews and back catalogue
episodes available online (Reusch 2009).
The worldwide proliferation of online content has been led largely by video sharing
website YouTube, which was acquired by Google Inc. in 2006. In the U.S., YouTube
reaches approximately 26 percent of the population (79.3 million) monthly, of which three
percent are aged 3-11, and 19 percent are aged 12-17 (Quantcast 2009). The YouTube
trend is even more profound in Canada, where the penetration rate is higher than in the
U.K., Germany, France, and U.S. Approximately 55 percent of Canadians (18 million)
viewed YouTube videos in one month (Tcholakian 2009). In November 2008, TVO
announced that it would launch its own channel on YouTube in 2009. TVOs YouTube
channel will feature the programming which it produces itself; so it is unclear exactly
how much childrens educational programming will be available to YouTube users. Nevertheless, TVOs YouTube channel complements the broadcasters tvokids.com web site.
In the U.S., Hulu.com, launched NBC Universal and Fox in 2008 is at the forefront of
advertiser-supported streaming of Flash Video over the Internet. Hulus main rival is
TV.com, which is CBS Interactives streaming catch-up service for television programs.
PBS has also launched an online channel of current and archive content, with plans for
original web productions in the future.
Childrens and youth programming is a catalyst in the development of web integration.
The high digital literacy among kids makes them natural early adopters of new
technologies. Childrens and youth programming has embraced multi-platform content
over the past five years, and these trends are certain to continue. This digital demographic
was born in an age of interactive childrens games such as Club Penguin and Webkinz,
and their demands far exceed the offerings of traditional television programming.
Cellular phones are also increasingly being used for the streaming of screen-based
content, particularly among teenagers and the iPhone may accelerate this practice.
Mobile television uptake is growing worldwide, most notably in Asia (Arthur D. Little 2009).
Penetration has also been high in the UK, where 21 percent of children aged 12 to 15
watched television, films or video clips via another means than from television, including
internet, mobile phone, portable player, or iPod (Ofcom 2008, p.31). Meanwhile, over
35 percent of children in the UK own a cell phone by the age of eight, and one-quarter of
the children surveyed have used their phones to vote in online television competitions
(Adams 2009). This trend will continue among all demographics with the introduction of
new and accessible mobile devices.
Broadcasters have caught on to these trends, often forging partnerships and brand
extensions with established childrens brands. The Cartoon Network has ramped up its
content development strategy, which includes bold moves into digital and multi-platform
content. As part of this strategy, the Cartoon Network partnered with the National
Basketball Association to produce multi-platform childrens programming for network
broadcasting, online and internet distribution. Starting with the lifestyle series
18
My Dads A Pro, the Cartoon Network plans to launch more short-form and long-form
productions along this vein (Cartoon Network 2009). In early 2009, YTV and Hasbro
Canada partnered to introduce a CampNerf.ca multi-platform campaign for children. By
incorporating programming with online games and contests, the campaign culminates
in a real-life competition through YTVs annual Weird on Wheels tour (Kubaras 2009).
Such advances in distribution mirror childrens appetite for multi-platform content, and
ultimately raise the bar for producers in their delivery.
The current trend toward multi-platform distribution is found across the globe. In the UK,
Channel 4s youth drama series Skins has been a champion of multi-platform content.
Offering elaborate interactive web content, character blogs, webisodes and podcasts,
Skins has upped the ante in U.K. youth programming. To promote the programming and
engage audiences, the broadcaster has hosted real-life launch parties for fans in cities
across the U.K., and makes use of user-generated content through real-life competitions
for viewers. It is quickly becoming apparent that interactivity and innovative marketing
are increasingly essential features of the multi-platform or 360-degree content approach
to programming, which broadcasters are seeking.
Childrens and youth programming in the U.S. is led by Disney, Nickelodeon, Cartoon Network and Discovery Kids, and their
associated spin-off channels cable and satellite broadcast outlets. All three major commercial networks air Saturday morning
childrens programming blocks. NBC airs qubo, a three-hour childrens programming block on Saturday mornings to replace its
previous Discovery Kids block. CBS runs KEWLopolis, a three- hour live action and animation block for chjildren, since KOL
withdrew from CBS in 2007. Disney owned ABC airs ABC Kids, a four-hour Saturday morning block exclusively of Disney Channel
and Disney XD programming. Meanwhile, it is unknown if Fox will resume its childrens programming, since its deal with 4KidsTV
terminated in December 2008. The CW a 2006 joint venture between CBS Corporation, former UPN investors, and Warner Bros.
airs a five- hour childrens programming block on Saturday mornings, and began streaming full-length episodes on the Internet
in 2007.
U.S. Broadcasters have been quickly adopting interactive and multimedia distribution models. PBS introduced a video-on-demand (VOD) service for pre-school-age programming, which was so popular that it spawned a linear-programming cable channel,
PBS Sprout. Broadcasters such as PBS have been able to forge agreements with cable companies like Comcast to facilitate the
roll-out of VOD offerings like PBS Sprout. PBS has also introduced online programming and games through outlets such as PBS
Kids Play and PBSKidsGo.org aimed at varying age groups within the PBS Kids brand. Nickelodeon has Turbo Nick, which avoids
the cable companies altogether and goes straight to the consumer over the Internet.
Internet providers/portals, themselves, are also jumping into the fray of interactive childrens content. In the U.S., America On-Line
(AOL) has introduced AOL for Kids (KOL), which is fast becoming a portal for the distribution of screen-based content and
interactive media.
United Kingdom
The U.K.s childrens and youth television market remains fairly robust, with 25 dedicated childrens channels and 113,000 hours
of programs each year. However, certain sub-genres of childrens and youth remain under-represented in terms of domestic
content. Meanwhile, it is difficult for producers to find viable sales opportunities, as commercial broadcasters are reducing new
commissioned kids programming. Not only are broadcasters paying less for programming, commercial public service
broadcasters (ITV1, GMTV, Channel 4, and Five) have reduced their investment in first-run original programming to one-half of
1998 levels. The commercial multichannel services (Disney Channel, Nickelodeon, and Cartoon Network) commission only
10% of their total investments in new childrens programs, and so, cannot offset the declines among public service broadcasters.
In November 2006, Ofcom introduced restrictions on the television advertising of food and drink products to children. Ofcom
estimated that these restrictions would reduce broadcasters advertising revenues by 39 million per year; Ofcom acknowledged
that childrens programming would be the hardest hit by such restrictions (Sweeney 2008).
Since the enactment of the Communications Act 2003, which removed programming requirements specific to childrens
programming, the public service broadcasters are free to choose their content (Ofcom 2007). With declining revenues,
broadcasters such as ITV have replaced their childrens programming with drama repeats and movies. In 2006, ITV plc
launched the CITV Channel on which it aired childrens programming from 6am to 6pm daily.
GMTV (owned by ITV plc 75%, The Walt Disney Company 25%) has reduced its childrens programming to the Toonattik strand
on weekends. Channel Five airs the three-hour morning block Milkshake, for pre-schoolers daily. In 2007, Five replaced its
childrens weekend morning block Shake, in favour of the Australian soap opera, Neighbours.
The BBC remains the leader in UK childrens programming, with two dedicated childrens digital channels, CBBC and CBeebies,
both available on BBC iPlayer. CBBC provides an interactive service, CBBC extra, which offers horoscopes, games, jokes
and competitions for viewers. CBeebies is aimed at children six and under, airs programming on BBC One and BBC Two. The
international CBeebies has been broadcast in over eight foreign markets: India, Singapore, Hong Kong, Poland, Indonesia, Mexico,
Africa, and Australia. Flagship channel BBC One airs over two-hours of childrens content each day, and BBC2 has been airing
the childrens morning block since its move from BBC1 in 2006. On direct-to-home (DTH) satellite and cable, many of the familiar
global brands, such as the Disney Channel, Nickelodeon, Cartoon Network and Boomerang compete with the BBCs dedicated
childrens services.
Continues on page 20
19
In 2007/08, the total volume of Australian childrens television drama rose to A$115 million (C$100 million), from A$75 million
(C$68 million) in 2003/04. There were a total of 15 childrens drama television projects in 2007/08 comprising 172 hours of
original programming. Out of the total volume of production, international co-productions accounted for seven projects and
A$62 million (approx. C$55 million) in production. In 2007/08, the average per-half-hour budget of Australian childrens television
drama was A$333,000 (approx. C$293,000) (Screen Australia 2008).
Childrens television broadcasting in Australia is promoted by considerable demand and supply-side government intervention.
On the demand side, existing Childrens Television Standards require each of the over-the-air commercial broadcast networks
Seven, Nine and Ten to televise at least 390 hours per year of childrens and pre-school programming (Australian or nonAustralian). Of these 390 hours, at least 130 hours must be for pre-schoolers (P programs), and 260 hours for children
(C programs). Subsequently, all of the P programs and one-half of the C programs must be of Australian origin. The standards
also require broadcasters to air 32 hours per year (on average) of first-release Australian childrens drama, and a minimum of eight
hours per year of repeat Australian childrens drama. As of 2009, these standards are under review, and the 2008 draft standards
propose more flexibility in how quotas for childrens and pre-school television programs could be achieved.
The national public broadcaster, ABC, dedicates a significant portion of its daily schedule to childrens programs, for which only
submissions from Australian producers are accepted (Australian Broadcasting Corporation 2009). ABC often exceeds the
minimum requirements; in 2006/07 for example, it broadcast over 2,000 hours of programming for children and youth (Australian
Broadcasting Corporation 2007). While not subject to commercial broadcast standards, ABC remains active in acquiring new
and repeat childrens programming.
ABC has a strong preference for commissioning multi-platform programming, particularly in immersive worlds, massively
multi-player online games, groundbreaking community tools, UGC solutions that can produce broadcast quality content and
other innovative forms of TV/Web Cross-Pollination (Australian Broadcasting Corporation 2009). ABC has ventured into digital
interactive programming through its RollerCoaster Interactive TV application by incorporating, games, SMS, user-generated
content and competitions (Australian Broadcasting Corporation 2007), and thereby continues to demonstrate its leadership in
multi-platform programming.
ABC2 airs six hours of childrens programming during weekdays and eight hours on Saturdays. Aired under the block ABC Kids,
the programs are commissioned from both in-house and external sources. Childrens broadcasters on Australian pay television
include Disney Channel, Nickelodeon, Cartoon Network, and Discovery Kids.
In 2008, Screen Australia was established as the national screen agency through the consolidation of the Australian Film
Commission, Film Australia, and the Film Finance Corporation Australia (FFCA). In addition to the Producer Offset, Screen Australia
supports childrens mini-series, animated mini-series and telemovies through the Childrens Television investment program, to a
maximum total contribution of $4.5m for the largest projects.
In 2009, the Australian government approved ABCs proposal to launch ABC3: a free digital channel that will air 15 hours per day
of childrens programming along with interactive and online content. This new service will be ad free and exhibit 50% Australian
content (Sinclair 2009).
20
television audiences:
a strong record of
attracting canadian children
to canadian programs
In recent years Canadian policy makers have underlined the policy objective of
attracting larger Canadian audiences to Canadian programming. There has been an
increased emphasis on building audiences and rewarding success in attracting viewers.
Canadian childrens and youth programming has always had relatively strong audience
performance within its target demographic.
kaboum
Productions Pixcom Inc.
Exhibit 12: Top ten childrens and youth television programs, English-language market, 2007/08
Rank
Title
Broadcast Network
Origin
CTV
Canada
380,000
Hannah Montana
Family
U.S.
374,000
Family
U.S.
321,000
Zoey 101
Family
U.S.
281,000
Instant Star
CTV
Canada
261,000
Family
Canada
251,000
Family
U.S.
247,000
Thats So Raven
Family
U.S.
235,000
Family
U.S.
232,000
10
Family
U.S.
229,000
Exhibit 13: Top ten childrens and youth television programs, French-language market, 2007/08
Rank
Title
Broadcast Network
Origin
Ramdam
Tl-Qubec
Canada
287,000
Kaboum
Tl-Qubec
Canada
194,000
Tl-Qubec
Canada
178,000
VRAK
Canada
168,000
Hannah Montana
VRAK
U.S.
141,000
Samantha
VRAK
U.S.
129,000
VRAK
U.S.
125,000
VRAK
Canada
120,000
Phnomne Raven
VRAK
U.S.
117,000
10a
Toupie et Binou
Tl-Qubec
Canada
113,000
10b
Bob l'ponge
VRAK
U.S.
113,000
Among the fiction genres, Canadian-produced childrens and youth television programs
are much more prominent among the top-rated programs when compared to primetime drama/comedy. This demonstrates that Canadian-produced childrens and youth
programming does indeed attract Canadian audiences and can compete in the
Canadian market with world-class programming from the U.S., U.K. and elsewhere,
whether it is televised in English or French.
22
Audience statistics for overall viewing over the whole television day (6 a.m. to 2 a.m.)
indicate that Canadian-produced childrens and youth television programs deliver the
highest share of viewers to Canadian programming in the English-language market
when compared to other CTF-supported genres. In the 2007/08 television season,
Canadian-produced childrens and youth programs accounted for 55 percent of all
viewing to childrens and youth television programming in Canada. Viewing to foreignproduced childrens and youth programs accounted for 45 percent of all-day viewing.
In the French-language market, Canadian childrens and youth programming attracted
an even larger share of the total audience within the genre. During the 2007/08
television season, 82 percent of the total viewing of childrens and youth programs was
to Canadian-produced programs. This was higher than any other CTF-supported genre
in the French-language market, and well above the overall 68 percent share garnered
by Canadian programming in the French-language market.
23
employment:
a source of careers
for canadas creative /
technical workforce
All forms of screen-based production are very labour-intensive activities. Television and
film productions employ a wide array of creative and technical personnel from writers
to accountants to carpenters to electricians to musicians. Childrens and youth television
production, and animation production in particular, make an even greater contribution to
employment; this greater contribution arises in several different ways.
24
television series requires about double the time that a live-action television series
requires. A production job is a production job; but one that is expected to last two years
as opposed to three months does give the production professional a certain degree
of security that they may not find working on the set of a live-action project.
In 2007/08, childrens and youth television and film production generated an
estimated 2,500 full-time equivalent production-industry jobs (often referred to as
direct jobs). Of these 2,500 direct jobs, approximately 2,000 were in animation
production; approximately 500 were in the production of live-action programs. The
direct employment in the industry as well as the use of services and equipment in the
production process generated an additional estimated 3,900 full-time equivalent jobs
in other areas of the Canadian economy.
Source: Estimates based on data from CAVCO, CRTC and Statistics Canada
Not only does childrens and youth production offer longer-tenure jobs outside of the
major production centres, as well as skills transferable to other knowledge-based
sectors, it also can give Canadian producers and creators an excellent training ground
for developing into leading makers of prime-time fiction programming and feature films.
Many of Canadas leading producers, directors and writers have cut their teeth on
childrens programming.
As a young actor, Canadas Sarah Polley was well-known for her acting role in the Road
to Avonlea and her Gemini Award winning performance in the childrens and youth
program, Straight Up. Today, Ms. Polley is one of Canadas leading actors and directors.
Her feature-length directorial debut, Away Form Her, drew global critical acclaim and
an Oscar nomination in 2008 for Best Writing, Screenplay Based on Material Previously
Produced or Published.
The childrens and youth genre also attracts many of Canadas leading filmmakers,
allowing them to hone their skills between larger feature film projects. One of Canadas
leading feature film directors, Bruce McDonald, has directed episodes of Degrassi: The
Next Generation and Instant Star alongside his numerous theatrical release feature films.
Acclaimed Jamaican-born Canadian filmmaker Clement Virgo wrote and directed the
youth film The Planet of Junior Brown in the mid-1990s; in recent years, he has directed
episodes of The Wire.
26
international markets:
attracting foreign financing
and after-market sales
Exhibit 19: Selected list of Canadian-produced childrens and youth television programs currently airing outside of Canada
Title
Broadcaster (Country)
Title
Broadcaster (Country)
6Teen
Gofrette
Arthur
PBS (U.S.)
Bali
Grand Star /
La Compagnie
des glaces
Being Ian
Jimmy
Two Shoes
Berenstain Bears
PBS (U.S.)
Kid vs Kat
Blaise le blas
(Fred's Head)
Leon
Bo on the Go
L'hiver de Lon
Caillou
PBS (U.S.)
Captain
Flamingo
Little Bear
Noggin (U.S.)
Dans une
galaxie prs
de chez vous
Plug-TV (Belgium)
Manon
Degrassi
The N (U.S.)
Doodlez
Franklin
Noggin (U.S.)
Mchant
changement
Gulli (France)
Franny's Feet
George of the
Jungle
Miss Spider's
Sunny
Patch Friends
Monster
Buster Club
Continues on page 28
27
Broadcaster (Country)
Title
Broadcaster (Country)
My Goldfish
Is Evil!
ABC (Australia),
RRS (Germany/Serbia/Bosnia/Macedonia),
M-RTL (Hungary), Noga (Israel), Raisat (Italie)
The
Backyardigans
The Doodlebops
Mystery Hunters
The Hoobs
Nickelodeon (U.K.)
The Mighty
Jungle
This is
Daniel Cook
Naturally Sadie
Noonbory
& the Super 7
TG4 (Ireland)
This is
Emily Yeung
Overruled
Noggin (U.S.)
Postcards from
Buster
PBS (U.S.)
Totally Spies
Prank Patrol
Toupie et Binou
(Toopy
and Binoo)
Radio Free
Roscoe
The N (U.S.)
Walter
Razzbery
Jazzberry Jam
Yvon of
the Yukon
CBBC (U.K.)
Save 'Ums
Surprise! Its
Edible!
Incredible!
Zimmer Twins
ABC (Australia)
Mchant
changement
Gulli (France)
Team Galaxy
frannys feet
2004 DECODE/Franny Productions 2 Inc.
28
37
66
Total
103
Exhibit 21: Canadas international treaty co-production in the childrens and youth genre
In 2007/08, Canadian producers were involved in $92 million worth (based on global budgets) of international treaty co-production in the childrens and youth genre. Of this amount,
the Canadian portion of the budget (i.e., expenditures on Canadian elements within the
project) totalled $43 million. Just as the overall production volumes in Canadian television
production in the childrens and youth genre have fallen since the turn of the millennium,
so have treaty co-production volumes in Canadian childrens and youth projects. Canadas
volume of childrens and youth treaty co-production peaked in 2000 at $314 million.
Between 2000 and 2007, it dropped by a staggering 71 percent from that peak.
This drop in Canadas childrens and youth treaty co-production mirrored the overall trend
in Canadas treaty co-production across all formats and genres, but was, in fact, twice as
steep. Between 2000 and 2007, Canadas total volume of treaty co-production dropped
29
from $893 million to $568 million a decrease of 36 percent. The causes of this
precipitous drop are both external and internal to Canada. External developments such
as Europes move to a more intra-continental production market, following the adoption
of the European Unions Television without Frontiers Directive; changes to the U.K.s
policies related to domestic expenditures on international treaty co-production, and
its sale-and-leaseback tax-relief provision; and the collapse of Germanys distribution
market, following the bankruptcy of Kirsch Media have had an obvious impact. But at
the same, Canadas attractiveness as a treaty co-production partner has waned.
Indeed, Canadas co-production treaties are in need of some modernisation so that
they can accommodate a higher degree of international creative cooperation.
Exhibit 22: Estimated shares of Canadas international treaty co-production volume in the childrens genre, by format
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
Animation
93%
74%
73%
70%
79%
100%
100%
94%
100%
Live Action
7%
26%
27%
30%
21%
0%
0%
6%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Total
The lions share of Canadas international treaty co-production in the childrens and
youth genre is in the animation format. In past years, there has been more live-action
treaty co-production, but it has only been a fraction of the volume of animation
production. The U.K. and France have, historically, been Canadas two leading partner
countries for animation co-production; indeed Canada has an animation mini-treaty with
France. During the mid-1990s, France lauded Canada as an ideal partner for animation
production because of its tax incentives and the ability of Canadian companies to secure
pre-sales to U.S. broadcasters (Nordicity 2004, p. 62). During these halcyon days of
animation co-production, Canada-France producer pairings, including Nelvana and
Ellipse, Cinar and France Animation, and CinGroupe/Astral and Dupuis Audiovisual
maintained profitable relationships (Nordicity 2004, p. 62).
In recent years, however, Frances content rules have worked against Canada-France
co-productions. As well, the U.K. government has modified the guidelines for the tax
incentives, available to international co-productions (CFTPA 2009, p. 31). The result
has been an across-the-board drop in Canadas treaty co-production with U.K.-based
producers in all genres, including the childrens and youth genre.
Canadas childrens and youth producers have not been sitting back, however, in the face
of the growing challenges associated with treaty co-production with European partners.
Instead they have increasingly sought treaty co-production partners in other parts of the
world. For example, CCI Entertainment Ltd. has produced with partners in New Zealand,
China, and Australia in recent years; Breakthrough Films and Television has produced
with partners in the Philippines. With more flexible co-production treaties, Canadian
producers could, invariably, access even more global talent and financing to create
childrens and youth programming with international appeal.
The Canadian market is a finite one; and it is one that is under continuous threat from
American screen-based programming. Canadian childrens and youth television programs
have demonstrated resilience in finding broadcast sales and audiences outside of Canada;
the list at the top of this section is evidence of this. Canadian childrens and youth
producers have achieved international sales in a very tight international pre-sale market.
The pre-sale market is only going to become even tighter as emerging distribution models
make broadcasters more inclined to only pre-pay for programming when they can obtain
wider rights to alternate-channel revenues.
In the next section, we examine the economics of childrens and youth programming
and show why it has grown into being a good business for broadcasters in Canada
and elsewhere.
30
production economics:
a better return for the
production-financing dollar
Childrens and youth television programming has tremendous social and cultural value,
but it also offers very compelling commercial value for broadcasters. In some cases,
this commercial value is because of the advertiser interest that it attracts; in other cases,
the commercial value arises from the interest of parents who choose to subscribe to
childrens and youth broadcasting services on behalf of their children. In either case,
audiences drive much of the commercial value for broadcasters. Still, the commercial
value of childrens and youth television programming does not stop with viewing audiences.
Childrens and youth programming can generate tremendous merchandising potential.
The producers of childrens and youth television programs are not only in a position to
license their creation to broadcasters, they can also license it to toymakers and other
consumer product/services suppliers (e.g. restaurants). In this section, however, we focus
on the commercial value that childrens and youth programming offers to broadcasters.
In this section, we present additional audience statistics, to those presented in Section 5,
to show that childrens and youth programming has the potential to generate commercial
value for broadcasters and those that invest in its development and production.
degrassi
Photo by Stephen Scott,
2008 Epitome Pictures Inc. All rights reserved.
Childrens and youth programming can also generate value for broadcasters by helping
to attract audiences during times of the day and times of the year, when overall audience
levels may be relatively lower compared to peak viewing periods. This type of benefit
is of particular value to conventional broadcasters that schedule different genres of
programming throughout the day. Not surprisingly, television viewing by persons in the
18-to-49 age demographic begins to climb at around 2:30 p.m. and peaks at 35 percent
at around 9:30 p.m. Television viewing by children in the two-to-five age demographic is
actually at its strongest in the early morning. The share of the pre-school demographic
watching television climbs to about 20 percent by 9 a.m., before displaying a slow
tail-off to about 3 p.m. in the afternoon. Some conventional broadcasters, such as the
CBC and provincial educational broadcasters, take advantage of viewing differential;
they schedule childrens programs in the morning. But not all conventional broadcasters
do take advantage of morning viewing by pre-schoolers.
Childrens and youth programming can also help conventional broadcasters maintain
viewing levels during the summer months. Television viewing is generally lower in the
summer, on an overall basis. However, the childrens and youth demographics display
much lower drop-offs in viewing when compared to the 18-to-49 age demographic.
The viewing level among adults aged 18 to 49 averages around 14 percent during the
period running from September to May. In June, July and August, the television viewing
level for this age group drops by about 2.3 percentage points. Television viewing
among children aged two to five drops by about 1.4 percentage points, when the
summer is compared to the rest of the year. Television viewing among children aged 6
31
to 11, and youth aged 12 to 17 actually stays virtually unchanged between the
summer and the rest of the year; the percentage drops are zero percent and 0.4
percent, respectively.
Exhibit 23: Drop-off in television viewing shares during summer months, 2004/05
Source: Nordicity calculations based on data from CBC Research and Nielson Media
Note: The average share of the total audience during June July and August
was compared to the average across the other nine months the year.
Exhibit 24: Telefilm Canada equity recoupment as a percentage of equity investments (based on projects between 1996/97 to 2000/01)
Genre
Percentage of equity
investment with some
investment recovery
Childrens
95
75
79%
Drama
220
154
70%
Documentary
554
349
63%
40
22
55%
Feature film
70
21
30%
Total
979
621
63%
Source: Nordicity Group tabulations based on data from Telefilm Canada, see Analysis of Canadian Television Fund Equity Financing Recoupment
Note: Figures include only recoupment from equity investments; figures exclude Telefilm recoupment from projects contracted prior to 1996/97.
Figures only include revenues for projects contracted between 1996/97 and 2000/01.
32
Exhibit 25: Profitability of selected pay and specialty television services, 2007
Genre
Revenue ($)
PBIT ($)
PBIT margin
50,376,135
89,532,268
86,449,918
11,911,174
22,581,226
260,850,721
17,166,500
29,915,942
44,777,975
4,908,702
9,019,704
105,788,823
34.1%
33.4%
51.8%
41.2%
40.0%
40.6%
63,838,203
43,658,213
73,549,854
49,785,135
46,700,737
86,354,669
115,994,799
23,044,949
55,012,929
557,939,488
9,058,613
14,057,103
29,123,813
12,212,333
19,147,045
18,531,719
23,155,203
12,018,871
18,589,756
155,894,456
14.2%
34.6%
39.6%
24.5%
41.0%
21.5%
20.0%
52.2%
33.6%
27.9%
The relatively higher profitability of the childrens and youth genre among Canadian
specialty and pay television services is partly a reflection of the economic strength of
the genre and the position of Canadian broadcasters vis--vis producers. With such a
wide divergence in levels of profitability among the two groups of broadcasters, surely
there is room for childrens and youth specialty and pay television services and
conventional broadcasters for that matter to invest more in childrens and youth
programming via a combination of higher licence fees and perhaps more hours of
original content.
Of course, in the Canadian television programming market, broadcasters are just one
of the major sources for investment in programming. In the next section of the report,
we assess the public and public-private sources of financing available to Canadian
childrens and youth production.
33
Thus far in this report we have seen that Canadas childrens and youth production
segment has a tradition of global leadership, delivers strong audiences, generates good
careers for skilled Canadians, and offers good economic returns in domestic markets and
international sales. Despite the social and cultural importance of the genre and the strong
economic contribution that it makes, the federal government has allowed its investment
in the genre to fall behind its support in other areas of screen-based production. In this
section, we investigate the role that public funding and public-private funding has played
in recent years and why stakeholders should look at bolstering their support for the genre.
Exhibit 26: Public funding of Canadian childrens and youth television production ($ millions)
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
37
35
31
25
27
31
29
41
25
41
33
40
36
37
44
49
66
40
20
19
29
33
22
24
24
21
22
102
90
103
101
88
103
104
135
87
26%
24%
29%
33%
30%
37%
38%
36%
35%
Total
Share of Total Financing
While the provincial and federal tax credits have become critical public funding elements in
Canadian television production, the CTF still represents the largest single source of direct
public-private investment in Canadian television programming, with contributions from
Telefilm Canada, the Canadian government, and BDUs8. In 2007/08, the CTF provided a
total of $239 million in financing to Canadian television productions with budgets totalling
$860 million across four genres drama/comedy, childrens and youth, documentary,
and variety and performing arts. In 2006/07, Canadian childrens and youth programming
accounted for the largest share of total all-day tuning to CTF-funded programming in the
8. BDUs include cable-TV providers, direct-to-home satellite services, and other distributors of multichannel television services.
34
investment by bdus and private funds steps into the funding breach
While direct federal government support for childrens and youth programming hit a tenyear low, private sector sources, particularly the BDUs, have stepped in to ensure that
a pool of financing was available for the production of high-quality Canadian childrens
and youth programming. Within the CTF, BDUs have seen their annual contributions
grow from $44.3 million in 1996/97 to $165.3 million in 2007/08. BDU contributions to
the CTF now account for 55 percent of total contributions to the CTF. Out the total BDU
contribution of $165.3 million in 2007/08, Nordicity estimates that $26.6 million flowed
to childrens and youth television productions.
The CTF represents only one channel through which BDUs provide financial support to
childrens and youth production. Canadas independent production funds represent
another important source of private-sector financing of Canadian childrens and youth
programming. Statistics supplied by Canadas independent production funds indicate
that, in 2007/08, they provided an estimated $15 million to the development and production of television and new media programming for childrens, youth and family audiences.
The bulk of these monies came from BDUs. The Shaw Rocket Fund accounted for
$11 million. The Bell Broadcast and New Media Fund, The Independent Production
Fund, the Cogeco Fund, Vidotron Fund and Astral Media The Harold Greenberg Fund
also made significant contributions to childrens and youth programming.
Exhibit 28: Telefilm Canada equity recoupment as a percentage of equity investments (based on projects between 1996/97 to 2000/01)
Genre
Childrens
Drama
Documentary
Variety
Feature film
Total
Recoupment
($ 000s)
Equity investments
($ 000s)
Recoupment as a
percentage of
equity investment
8,314
54,398
15.3%
20,371
297,076
6.9%
6,057
72,354
8.4%
329
6,965
4.7%
2,402
73,247
3.3%
37,475
504,040
7.4%
Source: Nordicity Group tabulations based on data from Telefilm Canada, see Analysis of Canadian Television Fund Equity Financing Recoupment
Note: Figures include only recoupment from equity investments; figures exclude Telefilm recoupment from projects contracted prior to 1996/97.
Figures only include revenues for projects contracted between 1996/97 and 2000/01.
Not only does Canadian childrens and youth television programming help Canadian
broadcasters build strong audiences, it can also help governments improve the
economics leverage and return of their own support programs for the audio-visual
industry. Despite these metrics, the federal government (through Telefilm Canada and
the CTF) appears to have allowed its commitment to the genre to slide in recent years.
36
conclusions
Over the course of the last sixty-plus years, Canada has built a childrens and youth
production industry that has achieved much global success. Through the course of the
industrys development, Canadas policy makers have been highly supportive. They have
enabled Canadian producers to create compelling childrens and youth screen-based
content for domestic and international audiences.
The global media industry, however, has changed dramatically over the last decade, and
these forces of change have only accelerated in recent years. Vertical and international
integration of childrens and youth television production and broadcasting are now a reality.
Broadband and mobile distribution of television content are quickly becoming commonplace in many homes in Canada and elsewhere. Indeed, the childrens and youth genre
is, arguably, at the frontline of the revolution in multi-platform distribution. Canadas public
policy framework for the support of Canadian screen-based independent production, and
childrens and youth independent production in particular, needs to keep pace with the
global transformation we are witnessing. A policy and regulatory framework that, in the
past, may have given Canadas independent producers the basis for fulfilling public policy
goals at home may actually now be stifling their ability to contribute to these goals and
compete in the international market.
The social value of childrens and youth content is overwhelming. Canadian society has a
responsibility to inform and entertain Canadian children and youth with Canadian stories.
The economic value is also very compelling. Independently produced Canadian childrens
and youth programming captures a higher share of Canadian audiences within its own
genre than any other CTF-supported genre. The genres audience performance is borne
out by the relatively higher rates of profitability among Canadas childrens and youth
specialty and pay television services.
For investors, the genre has demonstrated excellent international sales potential. In
2007/08, it generated export value from pre-sale financing that was 50 percent higher
than its share of Canadas total production volume. After taking into account the
genres international after-market licensing sales, the genre generated over $103 million
in export revenues in 2007/08. Canadian independent producers can point to a long list
of their programs that are currently airing on broadcast networks outside of Canada. No
other genre of independently produced Canadian programming has achieved a similar
level of international success.
For government, independently produced childrens and youth television production
offers the highest rate of financial leverage among the CTF-supported genres. In 2007/08,
it attracted $1.25 in private financing for every dollar of public investment. This rate was
well ahead of that for fiction ($1.14) and all genres ($1.10).
37
In todays economic and financing environment, however, the alarming retreat in annual
production levels and average budgets which are low by historical and international
standards means that Canadian program creators will miss an opportunity to provide
future generations with programs that reflect Canadian values. With this in mind,
all stakeholders producers, content distributors, funding bodies, broadcasters,
government and the regulator must assess their commitment to the genre, with a view
to putting independently produced Canadian childrens and youth programming on a
strong footing for the future.
Producers, content distributors, funding bodies, broadcasters, government and the
regulator all have a vested interest in fostering an environment where independently
produced Canadian childrens and youth programming can reach domestic and
international audiences. The quality of Canadas independently produced childrens
and youth programming is high; this enables it to generate high audiences both within
and outside Canada. Whats more, the social and cultural benefits of the genre are
compelling. By making the necessary investment in the genre today and the years to
come, industry stakeholders can attract children and youth to Canadian programming
and generate stronger interest in Canadian stories and screen-based programming,
which Canadian children and youth will carry with them into their adult years.
38
references
40
41
Pollack, Sara and Shiva Rajaraman. (2009) Watch Shows and Movies on YouTube.
Youtube. April 16, 2009.
Downloaded at <http://www.youtube.com/blog?entry=XyjuFGWCPpQ>
on April 17, 2009.
Quantcast. (2009) YouTube.com estimates. March 2009.
Downloaded at <http://www.quantcast.com/youtube.com#summary>
on April 22, 2009.
Rainsberry, Fred B. (1988).
A History of Childrens Television in English Canada, 1952-1986.
Metuchen, New Jersey: The Scarecrow Press, Inc.
Revoir, Paul. (2006). ITV moves to cut childrens hours.
Broadcast Now. July 13, 2006.
Downloaded at <http://www.broadcastnow.co.uk/broadcastnowarticle.
aspx?intStoryID=160883>
on August 25, 2006.
Russel, Terrence. (2009) Best Buy breaking into movie downloads?
Venturebeat. April 17, 2009.
Downloaded at <http://venturebeat.com/2009/04/17/
best-buy-breaking-into-movie-downloads>
on April 22, 2009.
Screen Australia. (2008).
National Survey of Feature Film and TV Drama Production 2007/08.
Downloaded at <http://www.screenaustralia.gov.au/documents/SA_publications/nps.
pdf> on April 2, 2009.
Sinclair, Lara. (2009). Labor backs ABC3 childrens channel.
The Australian. April 22, 2009.
Downloaded at < http://www.theaustralian.news.com.au/
story/0,25197,25371230-7582,00.html>
on May 14, 2009.
Statistics Canada. (2006).
Film, video and audio-visual production: data tables.
Catalogue No. 87-010-XIE. Ottawa: Minister of Industry.
Steyer, James P. (2002).
The Other Parent: The Inside Story of the Medias effect on Our Children.
New York: Atria Books.
Sweeney, Mark. (2008)
Junk food ads still reach kids despite regulations, say health campaigners,
The Guardian. December 17, 2008.
Downloaded at < http://www.guardian.co.uk/media/
2008/dec/17/junk-food-campaigners-reaction>
on April 23, 2009.
Tcholakian, Garin. (2009)
Canada ranks highest in online video viewing, ComScore reports,
Media In Canada. April 22, 2009.
Downloaded at <http://www.mediaincanada.com/
articles/mic/20090422/comscore.html?__s=yes>
on April 23, 2009.
42
appendix a:
estimates of international
program sales
Exhibit 29: Estimate of the international after-market sales of Canadian childrens and youth television programming, 2008
Line
Item
Amount
$182 million
$250 million
Respondent share
73%
1.37
$47.8 million
$65.6 million
Source: Nordicity Group calculations based on data from CAVCO and 2009 survey of Canadian childrens and youth producers.
43
appendix b:
history and development of
canadas childrens and youth
screen-based production industry
ramdam
Vivaclic I inc.
In the 1990s, Canadas independent producers built on the success they earned in the
1980s. Many production companies started to tap into public financial markets. In 1993,
Cinar made its first public share offering in Canada; this was followed by a share offering
in the U.S. in 1995. In 1994, Nelvana raised equity financing in the public markets.
But the race to the public markets did not end with these two companies. By the end of
the 1990s several companies involved in childrens and youth production raised equity
financing on public markets; among them were Atlantis Films, Alliance Communications,
Paragon Entertainment, Coscient Group, Lions Gate Entertainment, Telescene Film
Group, Fireworks Entertainment, and Mainframe Entertainment. These financial
developments combined with the CRTCs licensing of Teletoon and TreeHouse in 1996,
and thirsty international markets set the stage for a boom in childrens and youth
production in the mid-1990s. The big three Nelvana, Cinar and CinGroupe all
ramped up production, while many smaller Canadian service producers began to move
into the development of their own productions (Armstrong 1997).
In the mid 1990s, Vancouver-based Mainframe Entertainment produced the first 3-D
computer animated series, ReBoot. ReBoot achieved audience success on YTV in
Canada, and on ABC and the Cartoon Network in the U.S. Also during the 1990s,
Nelvana co-produced Rolie Polie Olie the first 3-D animation series for pre-school
children; Cinar gave us the award-winning animation series, Caillou; DECODE
Entertainment produced the hit series .
45
46
Exhibit 30: Major developments in the history of Canadas childrens and youth production industry
2000s
2009:
2009:
2009:
2008:
2007:
2007:
2007:
2007:
2006:
2006:
2006:
2004:
2004:
2003:
2003:
2003:
2002:
2001:
2001:
2000:
2000:
2000:
Federal government announces new multi-platform policy for revamped Canada Media Fund
Teletoon partners with the iTunes Store in Canada to distribute five series online
NFB launches the online Screening Room providing free streaming of content internationally
Cookie Jar Entertainment acquires DIC Entertainment, inheriting a Copyright Promotions
Licensing Group and a one-third interest in international childrens network KidsCo
DHX Media Inc. acquires Studio B Productions
CanWest acquires specialty channel operator Alliance Atlantis in a deal with Goldman Sachs
CTVgm finalizes its acquisition of CHUM
DHX Media acquires Studio B Productions
Teletoon begins airing commercial sponsor announcements before each program
Nevlana launches qubo with partners ion Media Networks, NBC Universal, Scholastic Books, Classic Media and Big Idea Productions.
DHX Media Inc. floats IPO on Toronto Stock Exchange and AIM (London Stock Exchange as DECODE Entertainment and Halifax Film Company. merge
CTF introduces broadcaster envelopes for English- and French-language childrens and youth television production
Investor group led by Michael Hirsh purchases Cinar Corp., takes it private and renames it Cookie Jar Entertainment
The United Kingdom announces that it will raise the minimum domestic-spend requirements for treaty co-productions from 20% to 40%
CinGroupe applies for court protection from creditors
British Columbia introduces digital animation tax credit
The United Kingdom announces that television productions will no longer receive favourable tax treatment under the sale-and-leaseback provisions
Canal Famille re-launched as VRAK.TV with extended program schedule
Prince Edward Island introduces labour rebate program for film and television production
Corus Entertainment Inc. acquires Nelvana
CRTC grants a Category 2 digital licences to BBC Kids and Discovery Kids
Ontario introduces Interactive Digital Media Tax Credit
1990s
1999:
1999:
1999:
1999:
1998:
1998:
1997:
1997:
1997:
1996:
1996:
1996:
1996:
1996:
1995:
1994:
1993:
1992:
1991:
1991:
CRTC Television Policy removes expenditure requirements for conventional TV broadcasters and establishes priority programming requirements
Alberta introduces production rebate program (Alberta Film Development Program) for film and television
Newfoundland introduces film and television tax credit
The Yukon introduces labour rebate program for film and television production
British Columbia and Saskatchewan introduce film and television tax credits
Shaw Television Broadcast Fund is founded (later renamed Shaw Rocket Fund)
Ontario introduces Computer Animation and Special Effects Tax Credit
Manitoba introduces film and television tax credit
Bell ExpressVu launches the Bell Broadcast and New Media Fund
Canadian Television Fund established
Quebec introduces the Multimedia Production Tax Credit
Ontario and New Brunswick introduce film and television tax credits
CRTC licenses Teletoon and TreeHouse
The federal government introduces the Canadian Film or Video Production Tax Credit (CPTC)
Nova Scotia introduces film and television tax credit
Shaw Communications Inc. launches the Shaw Childrens Programming Initiative
Cinars first public share offering
CRTC licenses Knowledge Network (British Columbia)
Quebec introduces the first film and television tax credit in Canada
CRTC licenses Saskatchewan Communications Network
1990s
1987: CRTC licenses YTV, Canal Famille (VRAK.TV) and Family Channel
1985: Canada signs mini-treaty with France for the international co-production of projects in the field of animation
1984: CRTC grants first licence to the Alberta Educational Communications Corporation
(later becomes Learning and Skills Television of Alberta Limited [ACCESS])
1983: Federal government establishes the Canadian Broadcast Program Development Fund
to support independent television production, including childrens production
1980: Government of Quebec passes legislation banning advertising directed to children
1970s
1978:
1976:
1975:
1974:
1974:
1971:
1971:
1960s
1967: Federal government establishes Canadian Film Development Corporation (later renamed Telefilm Canada)
1963: Canada signs first international co-production treaty; it is with France
1950s
1940s
1941: Norman McLaren joins the NFB and organizes and an animation division
1930s
1939: The federal government establishes the National Film Board (NFB)
47
Exhibit 31: Notable productions and events in the history of Canadas childrens and youth audio-visual production
English-Language Market
French-Language Market
2008:
2008:
2008:
2007:
2007:
2006:
2005:
2005:
2004:
2004:
2004:
2003:
2002:
2001:
2001:
2000:
2008:
2007:
2005:
2004:
2002:
2002:
2001:
2000:
1990s
1999:
1999:
1998:
1997:
1994:
1993:
1993:
1998:
1998:
1998:
1997:
1996:
1991:
1990:
1980s
1970s
1978: The Sand Castle wins the Oscar for Best Animated Short
1971: Polka Dot Door begins airing (until 1993)
1970: CKCO-TV Kitchener begins producing Canadian
version of hit U.S. show, Romper Room
1978: Le Chteau de sable wins the Oscar for Best Animated Short
1977: Passe-Partout begins airing
1972: Nic et Pic begins airing
1960s
1950s
1957:
1956:
1956:
1952:
2000s
48
Nordicity Group Ltd. (www.nordicity.com) is a global consulting firm providing business strategy and
policy analysis to the media/entertainment, culture/content, and telecommunications sectors.
With offices in Toronto, Ottawa, and London (United Kingdom), Nordicity consultants provide clients
with strategic planning, business-case analysis, market assessment and forecasting, economic
analysis, financial modelling, evaluation frameworks, and other tools for strategic and operational
decision-making.
The Canadian Film and Television Production Association is a non-profit trade organization that works
on behalf of almost 400 companies engaged in the production and distribution of English-language
television programs, feature films, and interactive media products in all regions of Canada. More
specifically, it promotes the general interests of its members provincially, federally, and internationally;
negotiates and manages labour agreements with guilds and unions; administers copyright collectives;
trains new industry entrants through 7 national internship programs; and undertakes a number of other
specific initiatives that help increase awareness and enhance communication within the Canadian and
international production communities.
The Shaw Rocket Fund is a permanent, independently governed, not-for-profit corporation that is
dedicated to investing in the Canadian childrens and youth production industry and being a champion
for Canadian childrens programming to the world. The Fund supports this important sector of the
production industry through its investments and various initiatives including the much celebrated Shaw
Rocket Prize. The Shaw Rocket Fund is supported by Shaw Communications Inc., Shaw Pay Per
View Ltd. a division of Shaw Cablesystems G.P., Shaw Direct, EastLink Cablesystems and Delta
Cable Communications.
The Alliance for Children and Television (ACT) positively affects Canadian childrens lives by using
advocacy, recognition, research and training to enrich the screen-based media they experience.
More specifically, the ACT Awards of Excellence support creators and encourage the celebration of the
best kids programming in English and French Canada. ACT provides opportunities for creative and
professional development through workshops, seminars and special events, such as Mdia-Jeunes and
the Children, Youth & Media Conference. ACT also conducts studies on Canadian youth programming
to better understand the medias impact on our young people. Lastly, ACT is at the forefront in lobbying
governments and drawing attention to the cause of childrens screen-based entertainment.