Manitoba's growing digital media cluster and IP ownership drive economic impact

Snapshot 2013
The Manitoba Media Production Industry
Economic Impact Study
Final Report
October 2013
Developed by:
Nordicity

Snapshot 2013: Executive Summary Page 2 of 89
ACKNOWLEGEMENTS
Snapshot 2013 is led by On Screen Manitoba in close collaboration with its valued industry partners,
and prepared by Nordicity.
On Screen Manitoba and Nordicity would like to acknowledge all of the industry members,
associations, guilds, unions, agencies, funders, broadcasters and government stakeholders who
supported the research process, and to the Manitoba Bureau of Statistics for the economic impact
modelling of the Manitoba economy. We would also like to express our gratitude to the following
supporters of the project:
Report prepared by Nordicity Group Ltd.
Peter Lyman, Senior Partner
Dustin Chodorowicz, Partner
Kristian Roberts, Senior Manager
Stephen Hignell, Senior Analyst
Nordicity is a powerful analytical engine with expertise in strategy and business, evaluation
and economics, policy and regulation for the arts, cultural and creative industries. Because of
Nordicity’s international presence, it has become widely recognized for its ability to translate
developments and best practices between markets for the private, public and third sectors.
www.nordicity.com

Table of Contents

Executive Summary 1

1.
Introduction 11

2.
Media Production Volume (2008-09 to 2012-13) 13

2.1
Overview of the State of the Canadian Media Production Industry 13

2.2
Media Production Volume in Manitoba 16

2.2.1
Overall production volume 16

2.2.2
Segments of Manitoba’s media production industry 17

2.2.3
Key production trends 22

2.3
Production by Genre 25

2.4
Types of Production 27

2.5
Animation, Visual Effects and Digital Media 30

2.6
Production Financing and Incentives 30

2.7
Inward Investment (Export Value) 33

3.
Comparison with Peer Provinces 35

3.1
Case Study: Saskatchewan 37

4.
Industry Profile 40

4.1
Company Characteristics 40

4.2
Revenue and Income 44

4.3
Expenditures 46

4.4
Production Company Employment, Human Capital, and Workforce 48

4.4.1
Production company employment 48

4.4.2
Workforce characteristics 48

4.4.3
Other human capital indicators 50

4.5
Training Resources 52

4.6
Supporting Organizations 53

5.
Economic Impact Assessment and Fiscal Benefits 60

5.1
GDP Impact 60

5.2
Employment Impact 62

Snapshot 2013: Final Report
5.3
GDP and Employment Impact Changes from 2008 63

5.4
Intensity Ratios 65

5.5
Fiscal Benefits 66

6.
Industrial and Social Benefits of Media Production 71

6.1
Industrial Effects 71

6.1.1
Effects on other creative industries 71

6.1.2
Other spillover effects 73

6.2
Cultural and Social Benefits 73

7.
A Way Forward 76

7.1
Growth Prospects and Opportunities 76

7.1.1
Growth opportunity: IP ownership 76

7.1.2
Growth opportunity: digital media for film and TV 77

7.2
Getting There: Growth Factors and Barriers 78

7.3
Conclusions 80

Appendix A.
References and Data Sources 81

Appendix B.
Methodology 82

B.1
Data Sources and Secondary Research 82

B.2
Online Survey 82

B.3
Focus Groups and Stakeholder Interviews 83

B.4
Economic Impact Analysis 83

Appendix C.
Contributors 84

Snapshot 2013: Final Report 1 of 85
Executive Summary
About Snapshot 2013
On Screen Manitoba commissioned Snapshot 2013 to profile the Manitoba media production
industry, determine its economic and social impact, and identify trends and opportunities for the
industry’s continued growth.
Snapshot 2013 is the third economic impact analysis undertaken by On Screen Manitoba since 2003.
In consideration of the evolution of the industry and the impact of digital technology, Snapshot
continues to evolve and includes expanded definitions of the media production industry where
crossovers exist with cross-platform media production. For Snapshot 2013, Nordicity analyzed primary
and secondary data from a variety of sources including a literature review, an online survey, a series of
individual interviews, and an industry focus group.
The full report comprises seven sections, including (i) an overview of media production in Manitoba,
(ii) a comparison of media production with other peer provinces, (iii) an industry profile of Manitoba,
(iv) an economic impact assessment, (v) a benefit-cost analysis, (vi) a socioeconomic impact
assessment, and (vii) opportunities for the industry.
In this Executive Summary, Nordicity presents three key themes that emerged from the research:
1. The importance and growth of intellectual property (IP) ownership in Manitoba;
2. The rise of a digital media cluster in Manitoba; and,
3. The significant return on investment that the media production industry provides to
Manitoba.
Following a discussion of these key trends, Nordicity explores how it is likely to evolve into economic
and commercial opportunities — and the barriers that may stand in the way of these opportunities
being seized. Finally, the Executive Summary concludes with a table summarizing key data points
from Snapshot 2013.

Key Terms
§ Broadcaster in-house production: Productions produced by a Manitoba-based
broadcaster;
§ Canadian production: A term to encompass domestic productions, co-productions,
and broadcaster in-house productions;
§ Co-production: Productions where the IP rights are partly owned by a Manitoba-
based production company and partly owned by a production company based
outside of Manitoba;
§ Co-venture: Co-productions whereby a Canadian producer will jointly produce a
work with a producer from another country outside the purview of an official co-
production treaty. Whereas a treaty co-production is recognized as national content
in all party countries, a co-venture is not necessarily assured such recognition, or may
only obtain it for one of the partner countries;
§ Domestic production: Productions for which one or more Manitoba-based
production companies own the intellectual property (IP) rights;
§ Foreign location service (FLS) production: Productions where the IP rights are
exclusively owned by a company based outside of Manitoba, but are filmed in
Manitoba;
§ Full-Time Equivalent (FTE) jobs: A standardized employment measure of jobs,
based on a standard work-week (in this case, 37.5 hours per work-week);
§ Intellectual Property (IP): Creations of the mind for which exclusive legal rights are
recognized, including inventions, literary and artistic works, and symbols, names,
images, and designs used in commerce;
§ Other non-tax credit production: Productions that do not access the Manitoba Film
and Video Production Tax Credit, either due to ineligibility or by choice;
§ Theatrical production: Feature-length drama and documentary productions.

Intellectual Property Ownership in Manitoba
In the media production business there are
several types of production (as illustrated by
the “Key Terms” box above). While all types of
production accrue various benefits to the
industry — and thus to the province — those
where the Manitoba-based production
companies retain control over their
intellectual property (IP) rights (i.e., domestic
production and co-production) are
particularly important. The retention of IP (the
creations of the mind for which exclusive
rights are recognised for use in commerce) in
media production includes both domestic
and co-productions where production
companies retain a portion of the copyright
and may expect to receive revenues from
sales of the production, merchandizing and
proprietary software over the long term.
There are three principal reasons why
retaining IP control is beneficial:
1. All domestic production and some co-productions originate in Manitoba, and are thus
important in expressing the province’s unique perspective;
2. This type of production enables Manitoba-based production companies to have more
control over the decisions made with respect to production cost, marketing, and distribution;
3. When a Manitoba-based production company owns the IP rights to a project it can license
and/or re-sell that content, thereby generating additional revenue (and thus income tax for
the Province).
Manitoba media production companies
control more IP rights today than ever before,
a trend that presents new and significant
opportunities for economic sustainability and
industry growth. Indeed, Manitoba’s media
production industry accounted for $542.3
million of total production volume over the
last five years (counting all types of
production), or an average of $108.6 million
per year.
More than half of this production volume
(56% or $303.7 million) involved projects
where Manitoba companies had a level of
Five-year share of total volume of production, by segment,
2008-09 to 2012-13
FLS
15%
Co-
production
42%
Domestic
14%
Non-tax
credit
9%
Broadcaster
in-house
20%
Total = $542.3 million
Number of projects by type
Domestic
64%
Co-
production
18%
FLS
18%
Total = 336 projects

ownership of the IP. Furthermore, (as Figure 1 illustrates) co-productions formed the largest share of
production in Manitoba (42%), accounting for $227.8 million of production since 2008-09. Over the
same period, domestic production accounted for a further 14%, or $75.9 million of production
volume.
While domestic production levels have
remained relatively stable since the last
edition of Snapshot, co-productions have
increased remarkably, with co-production
production volume growing by 31% from
the production volume observed
between 2003-04 and 2007-08 (from
$157.5 million to $227.8 million).
Over the last five years, not only has the
volume of production shifted towards
projects for which Manitoba-based
production companies retain the IP rights,
but the same trend is also observed when
looking to the number of projects produced.
In fact, since 2008-09, the media production
industry has produced 336 projects over the
last five years, an average of 67 per year. Of
those projects, 64% (or 43 per year) were
domestic production and another 18% (or
12 per year) were co-productions. While the
number of domestic productions has
remained relatively steady in the five years
following the last edition of Snapshot, the
number of co-productions has doubled
(from an average of 6 per year between
2003-04 and 2007-08). Accordingly,
co-productions make up a larger share of
Manitoba’s overall production volume, and
there are more of them.
As such, media production companies
operating in Manitoba are increasingly in
control of their own IP rights. They are also
positioned to reap the cultural and
economic benefit of that ownership, and the
increased business acumen that comes with multi-jurisdiction co-production deals. Accordingly,
these production companies must continue to search for opportunities to sell IP rights to
broadcasters and distributors across the world, as well as explore new potential partners for their next
co-productions deals.
Manitoba Interactive Digital
Media Tax Credit (MIDMTC)
The MIDMTC is a refundable corporate income
tax credit for companies that develop and
produce interactive digital media projects in
Manitoba.
The tax credit is equal to 40% of the
remuneration paid to Manitobans on eligible
projects to a maximum of $500,000 per project.
In Budget 2013, adjustments were made to the
MIDMTC:
§ companies may claim up to $100,000 in
eligible marketing and distribution expenses
that are directly attributable to an eligible
project;
§ financial support from the Canada Media
Fund that is recoupable or repayable will not
be treated as “government assistance”;
§ an eligible product that is developed under
contract for an arm’s-length purchaser does
not need to demonstrate the product will be
resold or licensed by that arm’s-length
purchaser; and
§ a broader interpretation of the sale
requirement will provide the province with
added flexibility in determining which types
of commercialization projects will be
eligible.

The Rise of a Digital Media Cluster
As the global film and TV production industry evolves, it is increasingly making use of digital
technologies including for post-production delivery, marketing, and product distribution — along
with interactive media, visual effects services and various types of animation. Over the last two years,
Manitoba’s production industry has developed major animation and visual effects capabilities.
Opus VFX, a division of Buffalo Gal Pictures has put together an experienced Manitoba team with
credits ranging from large Hollywood productions (e.g., Avatar, Superman Returns and X-Men) to
smaller independent productions (e.g., Storm of the Century, The Big Empty). Buffalo Gal Pictures has
also established a commercial animation studio and completed its first feature animation with a
second project set to begin — 45 positions were created over a six-month period.
In addition to this new animation and visual effects capacity, Manitoba is well-poised to take
advantage of the digital media extensions to TV programming, as mandated by the Canada Media
Fund’s (CMF) Convergent Stream. This “convergent digital media” (e.g., mobile apps, websites, etc.)
is being created by several Manitoba-based firms including DACAPO Productions, Tactica Interactive,
and Complex Games. In this way, the film and TV portion of the media production industry in
Manitoba is directly stimulating activity in Manitoba’s digital media industry. This opportunity is
further strengthened by recent changes to Manitoba’s Interactive Digital Media Tax Credit.
Be it through an expanded ability to offer visual effects and animation services or through the proven
ability to create convergent content, the growth of a digital media cluster of activity in Winnipeg —
with film and TV production at its centre — presents an important opportunity for Manitoba to
continue the growth of its media production industry. Furthermore, media production companies in
Manitoba have already started to seize this opportunity. Indeed, media production companies in
Manitoba generated 13% of gross revenue in 2012 from the development and/or sale of digital media
products, up from less than 1% in the last edition of Snapshot. For this trend to continue, however,
Manitoba-based companies must have access to clients and partners — and must have the business
wherewithal to create advantageous deals when they do so.
A Significant Return on Investment
As illustrated above, the media production industry
in Manitoba increasingly owns its Intellectual
Property and is helping to stimulate the emergence
of a robust digital media cluster in the province.
Through these activities — and others — the
industry provides a significant return on investment
to the province. It does so in two principal ways:
1. The industry contributes to the provincial
economy; and,
2. The industry furthers several provincial
policy goals.
Production Companies in
Manitoba
Media production companies form a critical
component of the industry in Manitoba. In
2012, production companies generated an
estimated $34.5 million of revenue for their
companies. In the same year, these firms
spent more than 58% of their expenses on
labour costs, representing approximately
462 full-time equivalents (FTEs). The
average salary of media production
company employees in 2012 was $56,000
(per year).

Economic Contributions
The media production industry in Manitoba had a total GDP impact of $357 million over the last
five years, with an annual contribution of $71.4 million. Over the same period, the industry
attracted some $291 million (or an average of $58.2 million annually) in production financing from
outside of the province. These productions resulted in an estimated 6,333 Full-Time Equivalent
(FTEs) jobs worth of employment between 2008-09 and 2012-13, with an average annual
employment of 1,267 jobs (FTEs) per year.1
This economic activity has resulted in an estimated $134.7 million in combined tax revenue (to
federal, provincial and local governments) over the last five years, or $26.9 million in combined tax
revenue per year.
As the following chart illustrates, the combination of the Manitoba Film and Video Production Tax
Credit and Manitoba Film and Music Equity Program has resulted in $86.0 million in provincial outlays
between 2008-09 and 2012-13, at an average of $17.2 million of provincial support per year. Over
the same period, the media production industry has been responsible for $71.8 million in tax revenue
for governments in Manitoba. Of that amount, $57.2 million was remitted to the Province (through a
combination of other direct2
and indirect taxes3
), with a further $14.6 million remitted to local
governments in Manitoba.
1
The economic impact, employment, and tax revenue figures presented in this section were developed by the
Manitoba Bureau of Statistics.
2
Other Direct Taxes includes Retail Sales Tax, Gasoline Tax, Tobacco Tax, Environmental Protection Tax, Lottery
Transfers and Crown Corporation Revenue.
3
Indirect Taxes includes Insurance Corporation Tax, Land Transfer Tax, Corporation Capital Tax, Motive Fuel Tax
and the Health and Education Levy.
-75.0
-14.2
-11.0 17.7
2.7
28.9
8.0
14.6
-100
-80
-60
-40
-20
0
20
40
MFVPTC MFM Equity Taxes from
Individuals
Taxes from
Corporations
Other Direct
Taxes
Indirect Taxes Local Taxes Net Spending
$M
Provincial outlays =
$86.0 M Tax revenue in Manitoba = $71.8 M
Net
provincial
spending
= $14.2 M
Provincial Outlays, Tax Revenue and Net Provincial Spending

In light of this activity the net provincial spending on the media production industry totalled $14.2
million, at an average of $2.8 million over the last five years. In other words, the Province recouped an
average of 84% of its outlays between 2008-09 and 2012-13 (or $0.84 for every dollar invested in
Manitoba’s media production industry).
Public Policy Contributions
In addition to the economic contributions of the media production industry, several public policy
aims are advanced.
For example, the industry helps to empower a wide variety of Manitoban voices. In 2012, survey
results indicated that 23% of production companies were at least partly owned by Aboriginal
and/or Métis persons, with another 14% of production company survey respondents identified as
members of another visible minority group. The result is that Manitoba — also home to APTN,
Canada’s national Aboriginal broadcaster — has strengthened its position as a national centre for
Aboriginal media production and
entrepreneurship.
Nearly half (48%) of production company
owners in 2012 are women, making media
production one of the most gender
representative industries in Manitoba — and
in Canada.
Manitoba is also a key centre for Francophone
production in Canada outside of Quebec.
Francophone producers working exclusively in
French account for an estimated 3% of
Manitoba production companies, but 16% of
overall production. They were responsible for
roughly 70.5 hours of original production
between January 2011 and August 2013 alone.
From 1995 to 2011, Les Productions Rivard
completed 75 productions representing more
than 600 hours of original programming.
Rivard invested an estimated $50 million
locally in job creation, artist fees,
accommodation services, and other industry
suppliers, thereby representing a highly
productive segment of the industry.
The media production industry has significant
impacts on other creative industries in
Manitoba and is a major catalyst for the wider
arts, music, festivals and new media
endeavours. Some examples include the CBC’s
Saskatchewan Case Study
The government of Saskatchewan eliminated
the province’s Film Employment Tax Credit
(FETC), resulting in a nearly universal
retraction of the province’s media production
industry, and an emigration of businesses and
crew to other provinces in Canada. In 2010
before the tax credit was in question, the
Saskatchewan Media Production Industry
Association (SMPIA) had over 440 members,
which plummeted to 68 by June 2013.
In addition, the Directors Guild of Canada
permanently closed its Saskatchewan office
and the IATSE local had withdrawn its
Saskatchewan representative.
Over the last 14 years, on an annual basis, the
Government of Saskatchewan invested $7.8
million in the FETC, which generated $44.5
million in annual economic activity, 851 jobs
and $6.5 million in tax revenue obtained by
government for a net annual cost of $1.3
million according to an impact assessment
prepared for SaskFilm and the Saskatchewan
Chamber of Commerce in 2012.

Winnipeg Comedy Festival, which is broadcast annually and produced by Manitoba production
company Frantic Films and the annual Festival du Voyageur variety show produced by Manitoba
production company Les Productions Rivard. The music industry in Manitoba is a regular supplier to
and collaborator with film and television businesses in Manitoba, and other arts and performance
organizations in Manitoba such as the Royal Winnipeg Ballet regularly work together with media
production companies. In addition, many IATSE members and production crew regularly cross sectors
by working in both screen and stage
productions.
By helping to reflect the viewpoints and
perspective of Aboriginal people, Métis,
visible minorities, women, and Francophones
outside of Quebec — all historically
marginalized groups — the media
production industry represents a key policy
tool and a major driving force behind
Manitoba’s creative industries, as well as an
important economic contributor.
A Way Forward
As shown above, the media production industry in Manitoba is increasingly in control of its
intellectual property rights, is at the centre of a developing digital media cluster, and provides
significant economic and policy returns to the Province. The future for the media production industry,
it seems, is a bright one.
Growth forecast (12-24 months)
Indeed, as the above figure shows, roughly 88% of the firms surveyed indicated that they
predicted a period of growth over the next 1-2 years. This growth is likely to originate from the
increased exploitation of IP rights, along with the opportunities arising from the growth of a digital
media (i.e., animation, visual effects) cluster in Winnipeg. In addition, the Manitoba Film and Video
Production Tax Credit (MFVPTC), Manitoba Interactive Digital Media Tax Credit (MIDMTC) and other
provincial production incentives will continue to stimulate significant levels of production in the
Province. For example, Manitoba Film & Music’s Production Equity Program will be increasingly
8% 4% 12% 36% 40%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
15-24% Contraction No change 0-9% Growth 10-24% Growth >25% Growth
Return on Investment
The Province’s financing contribution of $86
million in the MFVPTC and MFM Equity
Program attracted additional financing of
$300 million. In other words, each dollar of the
Province’s contribution to the financing of film
and television production attracted an
additional $3.48 in financing from other
sources.

important as one of the key tools used alongside the tax credits. Alongside Manitoba’s assets of
creative talent, crews and locations, this equity program will help close financing for both domestic
and co-productions.
However, this growth will not come without addressing some key challenges. As the following chart
illustrates, there are a number of factors that may limit the potential of the media production industry
in Manitoba.
Top 6 factors limiting growth (on a scale of 1-5)
Most of these issues circle around a common theme: Manitoba’s relative geographic isolation.
Companies note the limited access to buyers, the lack of access to key foreign markets, and a relative
shortage of capital. All of these issues limit the opportunities cited above. If a company owns its IP
and wishes to generate more through co-production, but cannot locate buyers, or access markets in
which those buyers are active, it cannot reap the benefit of that ownership or develop additional IP.
Similarly, both domestic production and co-production (the sources of that IP) rely on the supply of
appropriately skilled labour. Finally, rights exploitation is sales, marketing and relationship driven, and
typically requires a different skill set than production. Accordingly, initiatives such as On Screen
Manitoba’s ACCESS Project are integrally important in helping the media production industry benefit
from owning more IP rights and acquiring additional IP through co-productions.
Furthermore, as the media production industry looks to expand into emerging digital media
opportunities, it will confront many of the same issues. Given the global nature of digital media,
Manitoba digital media companies must access customers and business partners from around the
world (to offer visual effects and/or animation services) and across Canada (to partner on CMF
projects). At the same time, they must build a globally competitive industry that, by accessing
international markets, can attract high-quality talent to Manitoba.
Finally, by addressing the issues standing in the way of Manitoba’s media production industry seizing
the opportunities posed by IP ownership and digital media, the industry will have all the greater
economic and public policy impacts. If more IP is owned by Manitobans, the production companies
will accrue revenues and continue to attract larger projects to the province, which will result in
greater tax revenue. Meanwhile, digital media projects, whether linear or interactive, tend to be
driven by labour costs, and contribute to a positive fiscal. At the same time, by controlling more of
their projects, production companies (already owned by a diverse group) will increasingly be able to
tell Manitoba stories to the world.
2.84
2.84
2.88
2.96
3.04
3.08
1 2 3 4 5
International competition
Access to foreign markets
Aﬀordable capital
Management, marketing & sales expertise
Supply of skilled labour
Access to buyers

Key Data Points
The following table presents several key data points drawn from Snapshot 2013:
Data Point Five-Year Total
(2008-09 to 2012-13)
Annualized Average
Total Production Volume $542.3 million $108.6 million
Number of Projects 336 projects 67 projects
GDP Impact $357 million $71.4 million
Employment Impact 6,333 FTEs 1,267 FTEs
Investment Attracted to Manitoba $291 million $58.2 million
Combined Tax Revenue $134.7 million $26.9 million
Provincial Support Contribution $86.0 million $17.2 million

1. Introduction
Manitoba has a long and celebrated history steeped in film and media production, and was home to
the first Canadian filmmaker, James Freer, who in 1897 made a film entitled Ten Years in Manitoba. The
world has changed immeasurably since that first film and the media production industry — in
Manitoba and beyond — has changed along with it. From the iconic IMAX production of Heartland in
1987 to high-budget productions like Shall We Dance in 2004, The Assassination of Jesse James by the
Coward Robert Ford in 2007 and to internationally syndicated TV shows like Frantic Films’ Pitchin’ In to
smaller independent success stories like Indie Game: The Movie and My Winnipeg, Manitobans
continue to produce high-quality audio-visual content.
Snapshot 2013 provides a review of Manitoba’s media production industry, its structure and output,
and its various contributions to the province’s economy, cultural life, and social wellbeing. In so
doing, Snapshot 2013 brings together data from a number of sources into a single, concise reference
document telling the story of media production in Manitoba. This report also provides an assessment
of the benefits that the media production industry provides (both economic and otherwise)
measured against the costs incurred by the Province. Finally, Snapshot 2013 compares the
development of Manitoba’s media production industry to that of similarly sized Canadian provinces.

Key Terms
§ Broadcaster in-house production: Productions produced by a Manitoba-based
broadcaster;
§ Canadian production: A term to encompass domestic productions, co-productions,
and broadcaster in-house productions;
§ Co-production: Productions where the IP rights are partly owned by a Manitoba-
based production company and partly owned by a production company based
§ Co-venture: Co-productions whereby a Canadian producer will jointly produce a
work with a producer from another country outside the purview of an official co-
production treaty. Whereas a treaty co-production is recognized as national content
in all party countries, a co-venture is not necessarily assured such recognition, or may
only obtain it for one of the partner countries;
§ Domestic production: Productions for which one or more Manitoba-based
production companies own the intellectual property (IP) rights;
§ Foreign location service (FLS) production: Productions where the IP rights are
exclusively owned by a company based outside of Manitoba, but are filmed in
Manitoba;
§ Full-Time Equivalent (FTE) jobs: A standardized employment measure of jobs,
based on a standard work-week (in this case, 37.5 hours per work-week);
§ Intellectual Property (IP): Creations of the mind for which exclusive legal rights are
recognized, including inventions, literary and artistic works, and symbols, names,
images, and designs used in commerce;
§ Other non-tax credit production: Productions that do not access the Manitoba Film
and Video Production Tax Credit, either due to ineligibility or by choice;
§ Theatrical production: Feature-length drama and documentary productions.

2. Media Production Volume (2008-09 to 2012-13)
This section provides a review of media production in Manitoba over the last five years. In so doing,
the section outlines the overall state of the industry, provides insight on key trends, and describes
production levels along a number of key indicators (e.g., type of production, genre, etc.).
2.1 Overview of the State of the Canadian Media Production Industry
In the face of technological upheaval and increased global competition, Canada’s media production
industry has continued to grow in recent years — and Manitoba has been part of that growth story.
The total volume of film and television production in Canada reached an all-time high of $5.9 billion
during the 2011-12 fiscal year (April 1, 2011 to March 31, 2012). Today, Canada’s media production
industry generates direct employment for 52,100 full-
time equivalents (FTEs) and supports a total of
132,500 FTEs through its spin-off impacts.
Foreign location and service production (FLS) has
played an important role in the long-term growth of
Canada’s media production industry over the last 15
to 20 years. However, in recent years the media
production industry in Canada has experienced lower
levels of FLS production due to the steadily rising
value of the Canadian dollar, and competition from
American states and other countries. On a real-dollar
basis, FLS production in 2011-12 was 27% off from its 2002-03 peak.4
Manitoba has also experienced a
diminution of FLS production levels. In fact, the drop in the portion of FLS production has been even
greater for the province. As this report shows, the volume of FLS production in Manitoba between
2008-09 and 2012-13 is about one-quarter the level experienced in the previous five-year period.
Canada’s skilled and experienced crews have allowed it to remain competitive in the global FLS
market. However, as computer animation and visual effects (VFX) comprise ever-increasing shares of
Hollywood feature films and, to a lesser extent, television series, Canada’s and ultimately Manitoba’s
position in this market will depend on its ability to stay at the forefront of these technologies. In the
future, tax credits alone may not be enough to attract Hollywood’s FLS spend. Financial incentives will
have to be accompanied by a strong VFX and digital media cluster populated by skilled workers and
digital media entrepreneurs. Canada’s largest production centres have posted increasing levels of
computer animation and VFX production in recent years;5
Manitoba’s media production industry is
poised to join this growth story.
4
Canadian Media Production Association (CMPA), Department of Canadian Heritage, Association des
producteurs de films et de télévision du Québec, Profile 2012: An Economic Report on the Screen-based Production
Industry in Canada, February 2013, p. 76.
5
MPA-Canada, CMPA, The Economic Contribution of the Film and Television Sector in Canada, July 2013, pp. 60-66.
Media Production in Canada
The volume of film and TV
production in Canada hit an all-
time high of $5.9 billion in the
2011/12 fiscal year, directly
supporting 52,100 FTEs.

Types of Production
With the drop in the volume of FLS production in Canada, Canadian media production has moved to
the forefront as a source of growth. Canadian film and television production has always been the
largest segment of the industry, but in recent years it has experienced unprecedented growth and
success. After hovering around the $2.4 to $2.5 billion level for most of the last decade, the volume of
film and television jumped to $3.0 billion in 2011/12. This breakout growth was driven by the
production of an increasing number of television drama series and the continued expansion of
lifestyle series production. Manitoba’s production community contributed on both of these fronts;
examples include Buffalo Gal Pictures’ Cashing In, Les Productions Rivard’s Destination Nord’ouest and
Farpoint Films’ recently produced Illegal Eaters.
Canadian television series have been gaining in popularity among Canadian and international
audiences. For the first time, seven of the top 10 Canadian television series surpassed the 1 million
mark in terms of average audience per minute aired audience during the 2012 broadcast year.6
Many
of those highly rated Canadian television drama series as well as numerous lifestyle series have been
recording brisk international sales.7
Many Manitoba-produced series were among these international
sales; examples include Buffalo Gal Pictures’ Less than Kind and Frantic Film’s Pitchin’ In.
Canada’s much smaller theatrical production segment has also contributed to the overall growth in
domestic production over the past five years. In 2011-12, the volume of Canadian theatrical
production reached a 10-year high of $381 million. While the growth in this segment has been
somewhat uneven, what is clear is that the industry is experiencing an increase in average budgets
and attracting more foreign financing.
Co-productions — international treaty, interprovincial, and American co-ventures — represent a
proven route through which Canadian producers can access broader sources of financing, talent, and
sales. Canada’s official treaty international co-production activity is about half the level it was when it
peaked in 2000; however, Canadian producers have not stopped actively seeking international
partners for projects, particularly feature films. This growth has been mirrored in Manitoba, where co-
production and co-ventures have increased substantially in the past two years; examples include
Eaglevision’s Jack; Frantic Films’ Don Cherry biopics; Buffalo Gal Pictures’ Deserted Cities and Original
Pictures’ Midnight Sun.
Policy Developments
The media production industry in Canada does not operate in a policy vacuum. Financial incentives
and government regulations play an important role in mitigating the market failures8
that often
characterize the cultural sector and in promoting policy objectives (e.g., the telling of Canadian
stories).
6
CMPA et al., p. 36.
7
Ibid.
8
A market failure is defined by Investopedia as “an economic term that encompasses a situation where, in any
given market, the quantity of a product demanded by consumers does not equate to the quantity supplied by
suppliers. This is a direct result of a lack of certain economically ideal factors, which prevents equilibrium.”

Federal and provincial governments are under increasing fiscal pressures as an aging population
draws ever more heavily on the social and healthcare system. These fiscal pressures mean that all
cultural and economic development programs — including those that support film and television —
are under increased scrutiny.
Saskatchewan has withdrawn its film and television tax credit. New Brunswick and Prince Edward
Island have significantly curtailed the use of such incentives in recent years while Alberta has
historically offered only limited financial support for film and television projects. Other provinces are
continually reviewing the economic and fiscal merits of the film and television support programs. As
such, there is an imperative for clear understanding of the economic benefits of film and television
productions and the fiscal implications that arise from these economic benefits. The following study
addresses this imperative.
Addressing the Market Failure
While all industries face challenges in raising sufficient financing, the cultural sector faces an
even greater challenge because of demand uncertainty. Unlike most industries, the demand
for most cultural products is unknown until they have been produced. For example, the
popularity and revenue potential of a film is unknown until it is released into theatres. While
producers can audience-test a film before it is released — and thereby avoid or curtail
expenditures on marketing and distribution — they cannot recover the upfront investment in
the content creation.
This demand uncertainty heightens the investment risk in the cultural sector and thereby
makes it even more difficult to raise financing. Media companies have responded to this
heightened investment risk through vertical and horizontal integration. Horizontal
integration, in particular, allows media companies to achieve scale and reduce their financial
exposure to any single title. Media companies also try to mitigate demand uncertainty by
producing sequels or signing previously successful performers or directors. However, there is
no proven formula for success.
For a relatively small country such as Canada, it is difficult for production companies to
achieve a level of scale, and therefore, the challenges posed by demand uncertainty are
heightened even further. This becomes an even greater issue when the policy objectives are
taken into account. In this case, the market on its own fails to deliver the level of media
production commensurate with Canadian broadcasting policy designed to “encourage the
development of Canadian expression by providing a wide range of programming that reflects
Canadian attitudes, opinions, ideas, values, and artistic creativity…”
Policies, regulations, and financial incentives at both the federal and provincial levels, thereby,
not only help address the general market failure in the cultural sector, including the media
production industry, but also help close the gap between the strictly market-driven outcomes
in media production and the desired policy outcomes.
Source: 1
Broadcasting Act 1991, section 3(d)(ii)

2.2 Media Production Volume in Manitoba
Perhaps the simplest measurement of media production in a jurisdiction is production volume, or the
cumulative total budgets of productions filmed in a given period. In the following sub-sections,
production volume in Manitoba is depicted on an annual basis over the five-year period from 2008-09
to 2012-13. Because an individual production can have a significant impact on production volume in
a given year, five-year figures present a better sense of the overall performance of a media production
industry. Additional year-over-year trends using data form the past 16 years are also discussed.
2.2.1 Overall production volume
$542.3 million in total production volume over the last five years. Between 2008-09 and 2012-13,
the volume (sum of total budgets) of Manitoba’s media production totalled $542.3 million. Over the
last 16 years, the Manitoba production volume totalled $1.6 billion. Following the global economic
crisis in 2008-09 when Manitoba volume reached a 10-year low of $74.0 million, volume quickly
rebounded, nearly doubling to $125.0 million the next year and $129.9 million in 2012-13.9
Figure 1 – Total volume of production* in Manitoba, 2008-09 to 2012-13
Sources: Nordicity tabulations based on data from MFM, CRTC, CMPA, and APTN
*Includes estimates for broadcaster in-house production in Manitoba
9
The rebound of production volume in 2009-10 can be attributed in part to the Government of Manitoba’s one-
time Jump Start Equity Investment Fund. The investment enabled the Manitoba production industry to maintain
production levels and employment by securing timely and important projects for the Province’s businesses, and
to help position Manitoba’s competitiveness nationally for the rebound in global production activity.
74.0
125.0
117.7
95.7
129.9
0
20
40
60
80
100
120
140
2008/09 2009/10 2010/11 2011/12 2012/13
$millions
Total: $542.3M

2.2.2 Segments of Manitoba’s media production industry
Manitoba has a highly diversified media production industry, comprised of five principal production
segments:
§ Domestic production in which a Manitoba producer controls the copyright;
§ Co-production in which a Manitoba producer shares the copyright with a non-Manitoba
producer — be it foreign or Canadian (including co-ventures with the US);
§ Foreign location and service (FLS) production in which the copyright is held by a producer
§ Broadcaster in-house production in which a broadcaster controls the copyright (and which
are not eligible for the MFVPTC);
§ Other non-tax credit production, which includes television programs and films that are
produced without tax credit support, and therefore, not included in the statistics provided by
MFM.10
This segment also includes television commercial production, which is also not
eligible for the tax credit.
Five-Year Production Levels
To gauge the performance of these production segments, it is instructive to examine how they each
performed between 2008-09 and 2012-13. To that end, the distribution of Manitoba’s $542.3 million
of production over the last five years is depicted in Figure 2.
Figure 2 – Five-year share of total volume of production, by segment, 2008-09 to 2012-13 ($ millions)
Sources: Manitoba Film & Music and Nordicity estimates based on data from CRTC, CMPA, and APTN
10
On a national basis, film and television production made without tax credits is equivalent to approximately
15% of television production. The application of this national ratio to the Manitoba market implies that other
non-tax credit production was an estimated $7.6 million in 2012-13 and $36.3 million between 2008-09 and
2012-13.
FLS
15%
Co-production
42%Domestic
14%
Non-tax credit
9%
Broadcaster
in-house
20%
Total = $542.3 million

From Figure 2, the following observations can be made:
§ Domestic production is an integral part of Manitoba’s production. Over the last five years it
totalled $77.7 million. This is similar to the total production volume for the previous five
years. Domestic production accounted for 15% of Manitoba’s production volume over each
of the last two five-year periods.
§ Co-productions formed the
largest segment of the Manitoba
production industry over the last
five years, accounting for nearly
one-half of Manitoba’s
production volume ($226.9
million). Co-productions now
represent the single largest
production segment, in the
province. Levels of co-production
doubled over the last five-years
from $157.5 million.
§ Broadcaster in-house
production accounted for one-fifth of production volume ($108.7 million). With an increase
of 22% from the previous five-year period (in which it totalled $89.4 million), broadcaster in-
house production volume is now on par with FLS production.
§ FLS production was overtaken by co-production and broadcaster in-house production in
the five-year period between 2008-09 and 2012-13, accounting for 15% of Manitoba
production volume. In fact, due in part to competition from other Canadian provinces (see
Section 3), FLS production ($81.2 million) dropped to one-quarter of the rate in the previous
five-year period ($327.9 million).
§ Other non-tax credit production was an estimated $10.7 million in 2012-13 and totalled
$47.7 million during the five-year period. As a share of the total volume of production in
Manitoba between 2008-09 and 2012-13, non-tax credit production accounted for 9%.
Year-Over-Year Trends
While the five-year view provides a good overview of media production in Manitoba by segment, it masks
some year-over-year trends. Accordingly, it is also instructive to examine the portion of Manitoba’s
annual production volume broken down by segment. To that end,
Figure 3 illustrates the total production volume in each of the last five years and the portion
contributed by each production segment. Figure 4 goes on to illustrate the percentage of the
production volume contributed by the various production segments in each of the past five years
Co-production Volume
The Province’s co-production activity
between 2008-09 and 2012-13 is up by
some 50% over the previous five-
year period. Co-productions now
represent the single largest segment of
film and television production in the
Province, contributing $226.9 million
to the five-year production volume.

Figure 3 – Total production volume by segment
Sources: Manitoba Film & Music and Nordicity estimates based on data from CRTC and APTN.
Figure 4 –- Share of total production volume by segment
5.5
25.4
18.0
7.0
25.2
22.4
56.0
53.1
42.2
53.3
19.7
14.8
14.1
13.7
15.5
18.6
18.2
22.3
24.4
25.2
7.8
10.5
10.2
8.5
10.7
74.0
124.9
117.7
95.8
129.9
0
25
50
75
100
125
150
2008/09 2009/10 2010/11 2011/12 2012/13
$millions
FLS Co-production Domestic Broadcaster in-house Non-tax credit

Sources: Manitoba Film & Music and Nordicity estimates based on data from CRTC and APTN
From
Figure 3 and Figure 4, the following observations can be made:
§ Domestic production volume has remained steady despite the economic downturn,
reaching $19.7 million in 2008-09 before stabilizing with an overall five-year average of $15.6
million.
§ Co-production more than doubled in the first year from 2008-09 to 2009-10 and remained
consistently above $40 million per year following the economic downturn in 2008-09.
§ Broadcaster in-house production volume maintained a steady level of $18.6 million during
the economic downturn. Down 3% from $19.1 million in 2007-08, broadcaster in-house
production climbed 35% to $25.2 million in 2012-13. The average broadcaster in-house
volume over the last five-year period increased 21% from $17.9 million (2003-04 to 2007-08)
to $21.7 million (2008-09 to 2012-13).
§ FLS production rebounded from a low of $5.5 million during the economic downturn (2008-
09), reaching a five-year high of $25.4 million in the following year (2009-10). With the
exception of 2011-12, FLS production has since remained above the $18 million mark.
§ Other non-tax credit production has been relatively stable between 2008-09 and 2012-13,
fluctuating between $7.8 million and $10.5 million.
Production Budgets
7%
20% 15%
7%
19%
30%
45%
45%
44%
41%
27%
12%
12%
14%
12%
25%
15% 19%
25%
19%
11% 8% 9% 9% 8%
0%
20%
40%
60%
80%
100%
2008/09 2009/10 2010/11 2011/12 2012/13
Shareoftotalvolume
FLS Co-production Domestic Broadcaster in-house Non-tax credit

As production volume is a function of the budgets of a broad variety of production, it is informative to
examine the average production budget size (for those segments where data is available). To that
end, Figure 5 illustrates the average production budget size for domestic, FLS, and co-productions in
2012/13.
Figure 5 – Average production budget by production segment (2012-13)
Source: Nordicity survey data
According to Nordicity survey data (illustrated above), the average production budget for domestic
productions ($1.2 million) is significantly lower than FLS production ($3.7 million) or co-productions
($2.1 million). While FLS productions tend to have largest average budgets, co-productions have
average budgets that are significantly (42%) higher than domestic production. As such, by moving
towards co-productions, Manitoba-based producers have the opportunity to work on larger budget
projects for which they control at least a portion of the intellectual property rights.
Number of Projects
While production volume is a very useful indicator of the economic activity incurred by the various
production segments, it does not show how many projects were needed to achieve that volume. In
the period between 2008-09 and 2012-13, the media production industry in Manitoba produced an
estimated 336 projects, or an average of 67.2 projects per year. 64% of these projects were domestic
productions.
Figure 6 – Number of projects by segment*
3.7
2.1
1.2
$-
$1
$2
$3
$4
FLS productions Co-productions (incl. co-
ventures)
Domestic Manitoba
productions
Millions

Sources: Manitoba Film & Music and Nordicity estimates
* Excludes broadcaster in-house production and non-tax credit production
As the above chart illustrates, the number of projects created each year has remained relatively
constant over the past five years. While domestic productions have accounted for roughly 60% of the
projects produced each year, co-productions have risen from 16% of projects in 2008-09 to 25% of
project in 2012-13.
2.2.3 Key production trends
From the preceding sub-section, two key trends can be observed:
1. The portion of production volume for which a Manitoba-based producer owns at least a part
of the intellectual property (including both domestic production and co-production) has
grown;
2. The level of FLS production has decreased over the last five years.
The remainder of this sub-section will expand upon these two trends.
The Growth of IP Ownership
As the preceding sub-sections have illustrated, domestic production (in terms of both production
volume and number of projects) has remained stable over the last five years. Over the same period,
however, Manitoba’s production community has been particularly active in leveraging
co-productions. The province’s co-production activity between 2008-09 and 2012-13 is up by some
50% over the previous five-year period, and now represents the single largest segment of film and
television production in the province. Over the past five years, Manitoba producers have been
involved in numerous co-productions with producers from other provinces and co-ventures with the
U.S.; they were also involved in four international treaty co-productions.
As a backdrop to the increase in co-production activity in Canada as a whole, there has also been a
wave of corporate development. Across Canada, the film and television production industry is shifting
15 18
10 7 9
11 10
13
12
16
43
45
43
44
40
0
10
20
30
40
50
60
70
80
2008/09 2009/10 2010/11 2011/12 2012/13
Numberofprojects
FLS Co-production Domestic
69
73

66
63
65

from one comprised of small independent production companies – often with three or fewer owners
– to one with an increasing number of integrated production companies (also known as super-indies).
These integrated production companies — including eOne and DHX Media — not only fund
production, but acquire smaller production companies, build rights libraries, develop distribution
arms, and invest in the development of digital capabilities.
Manitoba is playing a part in this wave of corporate development. Companies such as Frantic Films,
Buffalo Gal, DACAPO, Merit Motion Pictures, and Original Pictures have been pursuing strategies of
horizontal integration (i.e., mergers, acquisitions and alliances) and vertical integration
(i.e., extensions into distribution and multi-platform strategies). The degree to which Manitoba-based
producers have been able to create projects for which they own the underlying intellectual property
(IP) has increased over the last five years, as indicated by the growth of domestic production levels. By
owning more of their own IP, production companies are able to better control the production
process, and are able to obtain a greater share of any profits generated by their properties. Without IP
ownership, production companies largely rely on producer fees to generate revenue. Section 4.2
provides more detail on how production companies in Manitoba generated revenue in 2012.
By controlling its own IP, the media production industry in Manitoba becomes less exposed to
economic fluctuations outside of their control. For example, FLS production levels have been
historically influenced by the relative value of the Canadian dollar (against the U.S. dollar).
Furthermore, the industry is less affected by changes in the production landscapes in other
jurisdictions (e.g., Toronto and Los Angeles). As a result of the more stable production levels,
increased IP ownership can also lead to a more stable workforce and a more stable, sustainable
industry overall.
That said, owning IP does not benefit a company’s bottom line if it cannot exploit that IP (e.g., by
distributing a film or television program or the software related to an animation or visual effects
project). As such, the positive effects of IP ownership are, in large part, tied to the ability of firms to
find buyers for that IP. Programs and services that support such activities (e.g., the Market Access
Funds administered by On Screen Manitoba) contribute directly to the ability of production
companies to reap the benefits of this important trend.

Finally, if IP is effectively exploited, it can have significant, positive fiscal effects by attracting funds to
Manitoba (which are then taxed and spent in province).
The Decline of FLS Production
While in Snapshot 2009, FLS production accounted for 48% of the five-year production volume
(between 2003-04 and 2007-08), it accounted for only 15% of production in the most recent five-year
period. Total FLS production volume over the last five years was represented by projects of varying
budgets, with a five-year high of 15 projects in 2008-09 accounting for a low of $5.5 million in
volume.11
At the end of the five-year period, production volume had jumped to $25.2 million for a
11
FLS production over the last five years generally represents very low-budget productions such as direct-to-
DVD, movie of the week (MOW), or portions of full productions that were shot in Manitoba.
Impact of Manitoba’s Shift Towards Retention of IP Ownership
The last two years have seen a dramatic shift in the nature of DACAPO Productions’ business.
From 2008 to 2012 all of our production business was service work and we were able to bring
audio production work on several animated series to Manitoba.
Over the last two years, the availability of production service work on animation at feasible
cost points has diminished to the point where our company would not be sustainable if we
relied exclusively on service work. As a result, we have undertaken steps to invest in
ownership of IP with international partners, and finance a portion of production ourselves in
return for a share of the IP’s future earnings. In 2012-2013 I expect that self-financed IP
projects will account for about two-thirds of our production business with service work falling
from 100% to about one-third of all our production activity.
We are currently completing two productions in which we are partnering as an international
producer. Santa’s Apprentice: The Magic Snowflake will be, to my knowledge, the first
animated feature produced in Manitoba with a theatrical release, and Lanfeust Quest (a 26-
episode animated adventure series) will begin broadcasting in France this fall.
Ownership in IP has therefore provided us with new opportunities and sustained our business
activity, but it has also increased the financial risk we bear. Financing our share of production
has been challenging and the uncertain timing and level of the long-term revenue stream the
properties will generate provide another stress to our operations. The Manitoba tax credit has
therefore played a critical role in allowing us to fund these investments in IP, and while we
receive no immediate production revenue on these projects, I am hopeful that the long-term
IP related revenue stream we bring to Manitoba will exceed the revenue that pure service
work might have brought us.
Clinton Skibitzky, DACAPO Productions

total of only nine productions. These higher budget projects are more typical of the FLS segment. The
primary advantage of FLS production is the higher budgets, which lead to higher employment
opportunities for Manitoba crew. Expertise acquired through employment on larger budget
productions then leads to the availability of a highly skilled workforce for domestic and co-
productions.
Unlike domestic production and some co-productions, FLS production volume expands and contracts
largely based on factors outside of the media production industry’s control. Historically, the value of
the Canadian dollar has been a determining factor — along with competition from other FLS
jurisdictions with similar incentives for FLS production (e.g., British Columbia, Quebec, Nova Scotia,
etc.). However, as Figure 7 shows, there does not appear to have been a strong correlation between
the value of the Canadian dollar and FLS levels in recent years.
Figure 7 – FLS production vs. Canadian dollar
Sources: Manitoba Film & Music and Bank of Canada
As the Canadian dollar has not been a significant factor in the decline of FLS production volume in
Manitoba over the last five years, one might conclude that productions may have been attracted by
the incentive regimes present in other Canadian provinces (as illustrated in Section 3). In fact, an all-
spend tax credit was introduced in Manitoba in 2010 to ensure the province remained competitive
other jurisdictions. However, it should be noted that location decisions are typically made with more
than economics in mind. For example, if a production requires an oceanic setting, the producers will
favour a location with a suitable coastline, whereas others (e.g., many science fiction projects) may
not need any location shooting. As such, it is likely that some part of the decreased level of FLS
production in Manitoba is simply a function of the locations required by specific productions.
2.3 Production by Genre
Producers in Manitoba made 98 fiction programs and films worth $265 million and 174
documentaries worth $89 million over the past five years. Both fiction and documentary genres are
important pillars of Manitoba’s media production industry, together accounting for 89% of total
5.5
25.4
18.0
7.0
25.2
93.8
87.6
97.1
101.1 100.0
50
60
70
80
90
100
110
0
5
10
15
20
25
30
2008/09 2009/10 2010/11 2011/12 2012/13
UScentsperC$
$millions
Volume of FLS production (left scale) US$ per C$ (right scale)

production volume between 2008-09 and 2012-13. The breakdown by genre of productions are
presented in Figure 8 (production volume) and Figure 9 (number of projects).
Figure 8 – Volume of independent media production*, by genre
Sources: Manitoba Film & Music
* Excludes broadcaster in-house segment and non-tax credit production
** Includes children’s, variety and performing arts, magazine and education/informational programming
Figure 9 – Number of independent media productions*, by genre
* Excludes broadcaster in-house segment and non- tax credit production
** Includes children’s, variety and performing arts, magazine and education/informational programming
24.1
73.9
52.6
45.1
69.315.9
18.7
23.5
10.0
10.6
7.6
3.8
9.1
7.7
14.1
0
20
40
60
80
100
120
2008/09 2009/10 2010/11 2011/12 2012/13
$millions
Fiction Documentary Other genres**
47.6

96.4

85.2

62.8

94.0

23 24
17 16
18
30
38
35
38
33
16
11
14
9
14
0
10
20
30
40
50
2008/09 2009/10 2010/11 2011/12 2012/13
Numberofprojects
Fiction Documentary Other genres**

From the above two charts, the following observations can be made:
§ Fiction production is the main driver of the production industry in Manitoba, accounting for
69% of volume in the latest five-year period, down from 85% in Snapshot 2009. The 2008-09
economic downturn was felt most severely by the fiction genre, which experienced a five-
year low of $24.1 million, less than half the five-year average of $53 million, before
rebounding to $73.9 million the following year.
§ Documentary production is the second-largest genre on a dollar-volume basis, and the
largest in terms of the total number of projects. Documentary production proved resilient
during the economic downturn, down only 14% from $18.5 million in 2007-08 to $15.9
million in 2008-09. The 174 documentaries produced between 2008-09 and 2012-13
commanded a production volume average of $15.7 million per year, up 15% from $13.7
million in Snapshot 2009.
2.4 Types of Production
The media production industry in Manitoba produces in all formats. This sub-section expands on the
portion of the industry’s production volume that is derived from feature films, TV series, other TV
projects (e.g., mini-series, MOWs, etc.), and web series. The sub-section goes on to describe the
languages in which those projects are produced.
Figure 10, illustrates how these types of production have contributed to the total production volume over
the last five years.
Figure 11 goes on to depict the number of each type of project created in each of the last five years
Figure 10 – Volume of independent media production*, by type
** Includes mini-series, television movies, and single-episode programming
9.3
39.8
31.1
19.6
43.025.6
38.0
45.9
24.6
29.8
12.7
18.4
7.9
18.1
21.1
0.1
0.4
0
20
40
60
80
100
120
2008/09 2009/10 2010/11 2011/12 2012/13
$millions
Feature film TV Series Other TV** Web Series
47.6

96.2
85

62.7

93.9

Figure 11 – Number of independent media productions*, by type
** Includes mini-series, television movies and single-episode programming
From the preceding two charts, the following observations can be made:
§ Feature film production volume has grown by more than four times between 2008-09 and
2012-13, averaging $28.6 million per year. Production budgets for feature films in this period
grew significantly; while the number of feature film productions decreased from 16 in 2008-
09 to 9 in 2012-12, production volume increased from $9.3 million to $43 million.
§ TV series production volume has fluctuated from a high of $45.9 million in 2010-11 to a low
of $24.6 million in 2011-12, averaging $32.8 million per year. The number of TV series
productions including both unscripted series such as Pour un soir seulement and scripted
drama such as Todd and the Book of Pure Evil, however, has remained more stable with an
average of 22 per year, fluctuating between a high of 24 in 2012-13 and a low of 17 in
2011-12.
§ Other TV production volume (which includes Mini-Series, MOWs, One-offs and Pilots) has
nearly doubled from $12.7 million in 2008-09 to a high of $21.1 million in 2012-13, averaging
$15.6 million per year. The Other TV type has produced the highest number of productions of
all types over the last five-year period, averaging 29 productions per year.
§ Web Series are a new type of production tracked by MFM since the publication of Snapshot
2009, with a production volume of $500,000 for three projects over the last five-year period.
The level of web series production in Manitoba, such as Frantic Films’ Verdict, is expected to
grow steadily over the next few years, according to industry consultations and sector trends.
16 16
8
12
9
23 22 23
17
24
28
30 29
32
28
0 0 1 2
0
0
5
10
15
20
25
30
35
2008/09 2009/10 2010/11 2011/12 2012/13
Numberofprojects
Feature film TV Series Other TV** Web Series

Turning to the language of production, as the following chart indicates, the majority of productions
undertaken in Manitoba were made in English.
Figure 12 – Languages of productions (2012)
English only
52%
French only
16%
Both English and
French
10%
Three or more
languages
10%
Both English and
Aboriginal languages
8%
Both English and any
other language (not
French or Aboriginal)
4%
Film activity in the City of Winnipeg
The City of Winnipeg is a major supporter of the film and television production industry in
Manitoba. The City of Winnipeg’s Film Office responds to over a thousand queries per year, of
which each request is reviewed by the Film and Special Events committee. In 2012,
representing a typical year, the City of Winnipeg provided the following services for FLS and
domestic film productions:
§ 12 feature length or MOW – 108 use of street permits granted, 6 City of Winnipeg
building locations, 14 City of Winnipeg park bookings, 37 requests for Winnipeg
Police Service Intermittent Traffic Control, 27 road closures, various use of sidewalk,
snow removal and street cleaning requests.
§ 2 Television series – 17 use of street permits granted, 2 City of Winnipeg building
locations, 5 City of Winnipeg park bookings, 9 requests for Winnipeg Police Service
Intermittent Traffic Control, 4 road closures, various use of sidewalk, snow removal,
and street cleaning requests.
§ 6 Commercials – 6 use of street permits granted, 1 snow removal request, 3 requests
for Winnipeg Police Service Intermittent Traffic Control.
§ 41 Independent media productions – 19 use of street permits granted, 6 park
bookings, 7 road closures and various use of sidewalk, snow removal and street
cleaning requests.
Source: City of Winnipeg

2.5 Animation, Visual Effects and Digital Media
Since 2008, the animation, visual effects, and production services component of Manitoba’s media
production environment has also undergone several key changes:
§ Opus VFX, a division of Buffalo Gal Pictures has put together an experienced Manitoba team
with credits ranging from large Hollywood productions (e.g., Avatar, Superman Returns, X-
Men, etc.) to smaller independent productions (e.g., Storm of the Century, The Big Empty);
§ Buffalo Gal Pictures has also established a commercial animation studio and completed its
first feature animation with a second project set to begin — 45 positions were created over a
six-month period in 2012.
At the same time, changes to the funding environment (such as the Canada Media Fund’s
requirement for rich interactive content as part of their Convergent Stream)12
has stimulated demand
in Manitoba for interactive media content connected to traditional linear content (or “convergent
content”). Tactica, for example, has been quite active in working with producers to create companion
interactive products.
Interactive media producers such as Tactica and Complex Games operating in tandem with the film
and television sector have bolstered their long-term business models and revenue streams.
Companies such as DACAPO Productions and Les Productions Rivard that have produced linear
content are also exploring opportunities to produce or provide services for interactive or convergent
content. Regardless of whether they are producing in-house or contracting the services of another
company, all Manitoba producers of linear content work within a digital, multi-screen, multi-format
media landscape.
2.6 Production Financing and Incentives
Manitoba’s incentives for film and television production offer excellent leverage of private
investment. In fact, private investment was the largest single source of financing for Manitoba
production.
At the core of the Province’s support for film and television production is the Manitoba Film and
Video Production Tax Credit (MFVPTC). Through the tax credit, the Province provided $75 million in
financing to film and television production between 2008-09 and 2012-13. MFM also made equity
investments totalling $11 million over the five-year period. In 2010, the MFVPTC was expanded to
include an “all-spend” provision that provides the option to claim a 30% tax credit on all eligible local
expenditures (or to use the existing labour-based tax credit).13
It is too soon to gauge the effects of
this change to the MFVPTC.
12
For more on this funding stream, see more here: http://www.cmf-fmc.ca/funding-programs/convergent-
stream/?setLocale=1
13
The MFVPTC’s 30% “all-spend” provision is suitable for large productions with budgets over $10 million. The
average production budget in Manitoba has dropped below $10 million over the last five-year period, while
interviewees suggested an increase in production budgets in 2013.

Along with the MVFPTC, Manitoba also offers an interactive digital media tax credit (see above) that
helps to stimulate activity in Manitoba’s burgeoning convergent and interactive media production
sectors.
All told, the Province’s financing contribution of $86 million to the MVFPTC and Equity
program attracted additional financing of $300 million. In other words, each dollar of the
Province’s contribution to the financing of film and television production attracted an
additional $3.48 in financing from other sources.
Out of the total production financing of $385.9
million between 2008-09 and 2012-13, private
investment — including distributor advances and
foreign studio investments, but excluding
broadcaster pre-sales — was the single largest
amount, accounting for 30%, or $116 million. Private
investment was followed by the Canada Media Fund
(CMF) financing, which accounted for 15%, or $59.3
million. The CMF is a public-private partnership. In
2012-13, 62% of the CMF’s revenue came from
private-sector sources (i.e., cable and satellite
companies); the other 38% came from the federal
government.
Broadcasters are another key source of financing.
While some broadcasters may produce their content
in-house, Canadian broadcasters tend to
commission higher budget productions from
independent producers. Indeed, Canadian private
broadcasters contributed 13% of total financing for
Manitoba’s film and television production, or $49.2
million; while CBC and other Canadian public
broadcasters accounted for 5% or $18.1 million.
Recent changes to the CRTC independent
production expenditure requirements now allow
broadcasters with multiple licences (i.e., more than
one TV channel) to pool their spending requirement
— thereby enabling them to spend more on fewer
productions. Moreover, as a recent Nordicity study
showed, broadcasters may not be spending as much
in Manitoba as might seem proportional. There is
also a sense that broadcasters in the future may
produce interactive media content in-house because
of efficiencies and opportunities arising from
ownership of the integrated content property.
Tax credits from other Canadian governments were
another important source of financing. Federal tax
Manitoba Interactive Digital
Media Tax Credit (MIDMTC)
The MIDMTC is a refundable corporate
income tax credit for companies that
develop and produce interactive digital
media projects in Manitoba.
The tax credit is equal to 40% of the
remuneration paid to Manitobans on
eligible projects to a maximum of $500,000
per project.
In Budget 2013, adjustments were made to
the MIDMTC:
§ companies may claim up to $100,000 in
eligible marketing and distribution
expenses that are directly attributable to
an eligible project;
§ financial support from the Canada
Media Fund that is recoupable or
repayable will not be treated as
“government assistance;”
§ an eligible product that is developed
under contract for an arm’s-length
purchaser does not need to
demonstrate the product will be resold
or licensed by that arm’s-length
purchaser; and
§ a broader interpretation of the sale
requirement will provide the province
with added flexibility in determining
which types of commercialization
projects will be eligible.

credits accounted for 7% of total financing or $25.9 million; other provincial tax credits (i.e., for
interprovincial co-productions) accounted for 5% or $17.9 million. Financing from Telefilm Canada
and other governments and agencies outside of Manitoba combined for $11 million ($8.7 million +
$2.3 million) or approximately 2% of total financing.
Foreign broadcasters financing of Canadian production (i.e., domestic, co-productions, and Canadian
FLS productions) totalled $2.4 million between 2008-09 and 2012-13, or 1% of total financing.
Figure 13 – Sources of financing for Manitoba film and television production, 2008-09 to 2012-13
($ millions) *
In terms of development support, the following two figures show that while the projects in
development are as likely to be self-financed as they are to be externally financed, externally financed
projects are significantly more likely to be greenlit. This points to the importance of sustaining and
increasing development support for Manitoba productions.
Figure 14 –Number of projects in development
(2008-12)
Figure 15 – Number of projects “greenlit” (2008-12)
1%
1%
2%
3%
5%
5%
7%
13%
15%
19%
30%
Other public (provincial and local)
Foreign broadcasters
Telefilm Canada and other federal
MFM equity
Other prov tax credits
CBC and other public broadcasters
Federal tax credit
Canadian private broadcasters
Canada Media Fund
Manitoba Film and Video Production Tax Credit
Private investment
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35
Total financing*:
$385.9M
51%49%
Self-financed Externally financed
42%
58%
Self-financed Externally financed

2.7 Inward Investment (Export Value)
The majority of financing for — or investment in — films and television programs produced in
Manitoba, comes from outside the province. When producers use this financing to purchase
Manitoba labour and services, it generates the equivalent of export earnings or inward investment for
the province. Between 2008-09 and 2012-13, $294 million of financing for Manitoba film and
television production originated from outside the province. Of this amount, Nordicity estimates that
$195.2 million originated from other provinces in Canada (i.e., “Interprovincial financing”),14
while
$98.9 million originated from outside Canada
(i.e., “international financing”).
The 26% of financing originating from
international sources is by and large private
financing. Out of the 50% of financing that
comes from elsewhere in Canada, it is
interesting to note that approximately one-
third comes from the CMF, one-third from
private sector sources and approximately
one-third from public sector sources
(including CBC/Radio-Canada).
Figure 16 – Inward financing of Manitoba film and television production, 2008-09 to 2012-13 ($ millions) *
** Includes a pro-rata allocation of certain national and federal financing (i.e. Canadian broadcaster financing,
federal tax credits, CMF, Telefilm Canada and other federal public financing. This pro rata allocation was based on
Manitoba’s share of national GDP.
14
In calculating inter-provincial export value, Nordicity adjusted the amounts of financing from Canada’s
national broadcasters and the federal tax credits for film and television production, in order to remove an
amount attributable to the Manitoba economy’s contribution to the national broadcasting market and the
federal government’s revenue. These adjustments were based on Manitoba’s share of national GDP to adjust the
financing amounts from Canadian broadcasters and the federal tax credit.
International
financing
26%
Interprovincial
financing
50%
Manitoba
financing**
24%
Total financing*:
$385.9M
Investment Attraction
From 2008-09 to 2012-13, the media
production industry attracted $294
million of financing to Manitoba,
with $98.9 million of that amount
originating from outside of Canada.

Manitoba Productions Raise the Province’s Profile
Over the last four years, a number of Manitoba-produced projects have received wide-
ranging critical success and have screened in a variety of venues and formats
throughout the world. For example, Guy Maddin’s release of My Winnipeg in 2008 has
received international acclaim, and has since resulted in touring exhibitions and
screenings around the world. Maddin has gone on to serve on the jury of the
prestigious Berlin Film Festival, Berlinale, in 2011.
Following this success, a major exhibition of over 250 works by 70 artists entitled “My
Winnipeg” opened at La Maison Rouge gallery in Paris. The exhibit attracted roughly
300 people per day and garnered praise from French media outlets including Le
Monde, which proclaimed “in the cold and boredom, the Canadian city of Winnipeg
generates very good artists.”
The French artist Herve Di Rosa who was instrumental in bringing the exhibition to
Paris, recalled that upon learning of “a collective of Winnipeg-based artists at the
Royal Art Lodge” and that Winnipeg was home to Guy Maddin, “I was immediately
interested,” and the “quality and uniqueness of the artists… convinced them” to
feature My Winnipeg in Paris.
Likewise, BlinkWorks Media’s film Indie Game: The Movie has generated significant
international interest since its premiere at the Sundance Film Festival in 2012 where it
won the World Cinema Documentary Editing Award. The two filmmakers, James
Swirsky and Lisanne Pajot, led two successful crowdfunding campaigns resulting in
one of the first feature-length documentaries to be financed on the crowdfunding
platform Kickstarter.
Additionally, Passionflower, by Shelagh Carter, is a micro-budget film enjoying
audience success at many festivals including the Audience Choice award at the
Anchorage International Film Festival (2012).

3. Comparison with Peer Provinces
This section compares the media production industry in Manitoba with media production industries
in similarly-sized Canadian provinces — particularly with respect to public support regimes and
production levels.
As a place for producers to do business, Manitoba remains competitive in comparison to its peer
provinces — Nova Scotia, Saskatchewan,15
and Alberta. However, there are a couple of areas where
the province needs to catch up in order to improve its competitiveness.
Manitoba’s tax credit is on par with that of Nova Scotia. The Manitoba Film and Video Production Tax
Credit’s (MFVPTC) base rate (45%) is five percentage points lower than the rate in Nova Scotia (50%);
however, including all bonus incentives, the MFVPTV’s maximum rate is 65%. This matches the
maximum rate available in Nova Scotia, though Nova Scotia does not offer the option of a 30% tax
credit for all eligible expenditures.
The MFVPTC is unique and quite innovative in relation to its peers’ offerings. Manitoba producers and
out-of-province producers who enter into a co-production with a Manitoba producer receive a 5%
bonus (Manitoba Producer Bonus). There are also bonuses for filming outside of Winnipeg (5%) and
for frequent-filming (i.e., three films in a two-year period) (10%). Producers can combine all of these
incentives for a total tax credit rate as high as 65%.
Manitoba also leads its peer provinces in terms of other non-tax-credit incentives. It offers equity
investment, development support, travel assistance and marketing support. No other peer province
offers all of these additional incentives. Manitoba is also the headquarters for a national specialty TV
service, something only Alberta can match.
Manitoba could potentially improve its competitiveness with more soundstage space. It currently has
15,000 sq. ft. of soundstage space. This is more than Nova Scotia, with 12,000 sq. ft., but less than
either Saskatchewan or Alberta.

Figure 17 – Comparison of tax credits, other financial support programs, and infrastructure in peer provinces
Manitoba Nova Scotia Saskatchewan Alberta
Base rate for tax credit or
production-rebate
45% of eligible labour
—or—
30% of eligible Manitoba
expenditures
50% of eligible labour
—or—
25% of eligible production costs
None 25% to 30% of eligible
production spend*
(equivalent to labour-based
tax credit of 45% to 55%)
Additional tax credit incentives 5% rural bonus
10% frequent filming bonus
5% bonus for MB producer
10% rural bonus (eligible labour)
—or—
5% rural bonus
(eligible production costs)
5% frequent filming bonus
(eligible labour)
None None
Maximum tax credit rate 65% of eligible labour
—or—
30% of eligible Manitoba
expenditures
65% of eligible labour None ~25% to 42%
of labour*
Deeming of out-of-province labour ü
Equity investment program ü ü ü
Development-loan program ü ü ü ü
Travel assistance ü ü ü ü
Marketing support ü ü
Training / professional develop
support
ü ü ü
Film school / Training institute ü ü
Specialty or pay television service
headquarters
ü ü
Provincial educational broadcaster ü
Soundstage
capacity
15,000 sq. ft. 12,000 sq. ft. 35,000 sq. ft. 26,000 sq. ft.
Source: Nordicity research based on information from Playback and film commission web sites.

Manitoba’s competitive incentives and infrastructure combined with its well-established production
community help make it one of the leaders among Canada’s secondary production centres. Ontario,
Quebec and British Columbia are Canada’s three leading production centres and among the largest
centres for film and television production. Excluding these three provinces, Manitoba consistently
ranks just behind Nova Scotia in terms of production output. On a population-adjusted basis (i.e.,
production per 1,000 inhabitants) was second to Nova Scotia and ahead of Canada’s five remaining
provinces in terms of domestic, FLS and total production.
Figure 18 – Ranking of provinces by population-adjusted production volume activity by province, 2008-
09 to 2011-12 ($ per 1,000 inhabitants)*
Province Domestic
production**
Province FLS
production
Province Total
production
1 Nova Scotia 277 Nova Scotia 186 Nova Scotia 463
2 Manitoba 252 Manitoba 44 Manitoba 296
3 Newfoundland and
Labrador
216 New Brunswick 13 Newfoundland
and Labrador
216
4 Saskatchewan 198 Saskatchewan 9 Saskatchewan 207
5 Alberta 141 Alberta 8 Alberta 149
6 New Brunswick 71 Newfoundland
and Labrador
0 New Brunswick 84
7 Prince Edward Island 23 Prince Edward
Island
0 Prince Edward
Island
23
Source: Nordicity analysis based on data from MFM, CRTC, APTN and CMPA.
* Excludes Ontario, Quebec and British Columbia; data exclude 2012/13, since data were not available for
provinces other than Manitoba, at the time of writing.
** Includes indigenous production and co-production
3.1 Case Study: Saskatchewan
Major restructuring of Saskatchewan’s creative industries have had a dramatic effect on the province’s
sub-sectors, not least of all the film and television production industry resulting in the near
elimination of the entire industry. In 2013, the government of Saskatchewan restructured its creative
industries support by forming the provincial body, Creative Saskatchewan.16
This new organization
amalgamated SaskFilm functions with sector support for digital media, visual arts, crafts, writing and
publishing, music theatre and dance. The most drastic part of this restructuring was the Government
of Saskatchewan’s elimination of the Saskatchewan Film Employment Tax Credit. This decision
16
The development of Creative Saskatchewan was based on the model adopted by other provinces, including
the Ontario Media Development Corporation, Creative BC, and Creative Nova Scotia.

immediately resulted in a nearly universal retraction of the province’s film and television industry, and
an emigration of businesses and crew to other provinces in Canada.
The development of these industries took over two decades of private and public investment and
capacity building, but the elimination of the sector’s key support mechanism (i.e., the refundable tax
credit) single-handedly reversed the long-standing tradition of film and television production in
Saskatchewan. According to research undertaken by Annelise Larson in December 2012, at least 78
industry professionals had left the Saskatchewan media production industry directly as a result of the
loss of the FETC.17
Presenting what was seen as an ultimatum, industry members were faced with the
choice of either relocating from Saskatchewan to continue working in their profession or leaving the
media production industry altogether to continue living and supporting themselves financially in
Saskatchewan.
In a survey conducted by Annelise Larson in June 2012 following the announcement of the
elimination of the tax credit, 45% of the 198 industry respondents had “plan(ned) to leave the
province entirely.”18
The impact was felt immediately by the industry. Of those who planned to leave
the province, 35% were planning to leave within three months, with 29% looking at B.C. as an
alternative location, 24% for Ontario, 14% for Manitoba, 12% for Alberta, and 9% for the United
States.19
Of those who planned to stay in the province, 85% “anticipated a career change or significant
change to their business model.”20
Before the June 30th, 2012 cut-off for applications for the tax credit, Vanessa Bonk, Executive Director
of SMPIA noted an exceptional uptake in applications exceeding $300 million demonstrating a
continued high demand. In 2010 before the tax credit was in question, SMPIA had over 440 members,
which plummeted to 68 by the June 2013 AGM.21
Five months prior to the tax credit cancellation
announcement in October 2011, SMPIA membership had already dropped to 209 as a result of
17
Saskatchewan Media Industry Survey – What Comes Next for You? Veria Search Media Marketing, June 2012
18
Ibid.
19
Ibid.
20
Ibid.
21
Interview with Vanessa Bonk, Executive Director, SMPIA. 25 June 2013.
I was a 'late bloomer' in the industry, and became involved in film/TV during 'Corner Gas'. I was
so happy that I didn't have to leave Saskatchewan to pursue work in the industry, I jumped in
with both feet. I've acted, been a background performer, a security guard, production asst., set
dresser, and grip. I fell in love with the industry, and the variety of jobs it offered to me, and as
such have learned, and grown in my own life a great deal. I don't want to stop working in
film/TV, and my intent is to seek out those jobs I love, wherever they may be. I'm disappointed,
to say the least, in what has happened here in my home province, and no longer feel I have
anything left here for me without being able to work in the field of my choice.
Saskatchewan Industry Member

industry uncertainty around the future of the tax credit.22
Of SMPIA’s 14 board members, one-half had
left Saskatchewan by June 2013, including all five-producer board members.23
In addition, the
Directors Guild of Canada had closed its Saskatchewan office while the IATSE local had withdrawn its
Saskatchewan representative.24
The deadline for final claim submissions for the tax credit is December 31, 2014. The devastating
effect of the loss of the tax credit was felt during government consultations even before the tax credit
was cut, as any industry relies on a stable business environment and supportive government. While
the dramatic decrease in production was realized immediately, a low level of production activity
continued to wind down as the completion of contracts were fulfilled.
Over the last 14 years, the Government of Saskatchewan invested $108.8 million in the Film
Employment Tax Credit (FETC), generating $632.4 million in economic activity according to an impact
assessment prepared for SaskFilm and the Saskatchewan Chamber of Commerce in 2012.25
On an
annual basis, the government invested $7.8 million in the FETC, which generated annually $44.5
million in economic activity, 851 jobs and $6.5 million in tax revenue obtained by government for a
net annual cost of $1.3 million. 2627
22
Ibid.
23
Ibid.
24
Ibid.
25
Derek Murray Consulting & Associates, Impact of the Film Employment Tax Credit (FETC) on the Film and Video
Industry of Saskatchewan. July 2012.
26
Ibid.
27
The impact assessment does not intend to capture tax revenue associated with broadcaster in-house
production, corporate taxes paid by parent companies related to FETC productions, productions undertaken by
educational institutions and productions undertaken through the granting systems through organizations such
as the Saskatchewan Arts Board or Saskatchewan Filmpool.

4. Industry Profile
The following section presents a statistical profile of the Manitoba media production industry, which
is based on data from an industry survey as well as other secondary sources. The section begins with a
profile of company characteristics, followed by an examination of the industry’s revenue and income,
expenditures, and workforce. The section concludes with a discussion of the training resources and
support organizations available to Manitoba’s media production industry.
4.1 Company Characteristics
The context in which Manitoba producers are working has not changed significantly over the past five
years. For the most part, Manitoba continues to be primarily an industry led by Canadian production
leveraging investment in the form of tax credits. As a result of the Government of Manitoba’s
consistent support for the industry, and through production incentives, training and business
development support, the industry has remained stable, enabling companies to grow and develop.
Manitoba production companies have recently created new alliances and joint ventures. Some
examples of this type of corporate activity include:
§ Original Pictures in Manitoba combined with Saskatchewan-based Partners in Motion (and
others) to form a national company, Shift Media Group, with offices in Winnipeg, Toronto
and Langley, B.C. (largely as a consequence of the restructuring of the Saskatchewan Film, TV
and Digital Tax Credit);
§ Frantic Branded content was sold to the post-production side of MidCanada Production
Services (MidCan) and resulted in a new company, FRANK Digital;
§ Buffalo Gal Pictures joined forces with Toronto-based Entremedia Films to form an alliance as
the Buffalo Media Group.
These trends occurred in the context of a shift in the orientation of key production companies:
§ DACAPO grew from service provision to investing in production and IP ownership;
§ Les Productions Rivard is considering expanding its current Francophone-only production
slate to include English productions;
§ Tactica, an interactive media company, has been servicing film and TV production, while
maintaining a strong grounding in new media.
Manitoba producers provide financing and development support along with production support.
§ Original Pictures financed the CBC Kids production What’s Your News? and co-financed
Midnight Sun (which shot in Northern Manitoba, Nunavut, and Sault Ste. Marie) and the SyFy
and Global TV production Tasmanian Devils (which shot in B.C.).
Productions shot in Manitoba generate industry exposure and stimulate further production
activity for Manitoba businesses.
§ Original Pictures produced Wrong Turn 4 for Fox, which topped the VOD charts, and
subsequently Fox returned to Original Pictures in Manitoba to produce Joyride 3 with the
same writer-director, Declan O’Brien.

Manitoba Intellectual Assets in High Demand
Manitoba’s expertise is a real export, as Manitoba producers and production workers are in
demand across Canada. Importantly, any crew members (that are residents of Manitoba) sent
outside of Manitoba for one of these productions still pay Manitoba taxes. Typically it is
documentary production that requires Manitoba crew to travel outside the province.
§ Producer Kim Todd, from Original Pictures was hired as a producer for Fargo, a 10-
episode series shot in Alberta. Produced by MGM for F/X, the series is an adaptation
created for television by Noah Hawley (Bones, The Unusuals) with Joel and Ethan
Cohen, who wrote and directed the 1996 movie, Fargo, as executive producers.
§ Director Norma Bailey has over 40 director credits and has worked on numerous
projects outside of Manitoba for Canadian and US broadcast that have also sold in
Europe. Her credits on TV series include The Adventures of Shirley Holmes, Cashing In,
and Cracked.
§ Production company Buffalo Gal Pictures is recognized for its work with emerging
creators. It produced All the Wrong Reasons starring Cory Monteith in Halifax, Nova
Scotia with emerging director Gia Milani.
§ Writer-Director Pascal Boutroy is the writer/researcher for season seven of crime
series Dark Waters/Eaux troubles, produced by Vancouver-based Red Letter Films in
English for OWN and in French for Canal D.
§ Frantic Films is a leading Canadian production company headquartered in Manitoba,
and regularly produces major productions across the country such as Todd And The
Book Of Pure Evil and The Don Cherry Story shot in Manitoba, and Til Debt Do Us Part
and Pitchin’ In shot in Ontario.

The Manitoba media production industry is professional and business-savvy, with a majority of
Manitoba production companies having incorporated. The majority of production company survey
respondents represented private corporations (70%), while just under a quarter were private sole
proprietorships (24%) and only 6% were private partnerships.
Figure 19 – Organizational structure
Source: Nordicity analysis
Manitoba’s production industry comprises a diversity of businesses ranging from stable long-
standing firms to new start-ups. While almost half of the companies surveyed have over 12 years of
experience (46%), Manitoba has seen a sizeable number of new production businesses emerging with
less than three years of operation (12%). Nearly one-third of production companies (31%) have been
in operation for six or fewer years. Meanwhile, 42% of production companies surveyed have been
operating between 3-11 years.
Figure 20 – Age of companies
Private -
Corporation
70%
Private - Partnership
6%
Private - Sole
Proprietorship
24%
Startup phase (less
than 1 year)
3%
1 - 2 years
9%
3 - 6 years
18%
7 - 11 years
24%
12 - 20 years
28%
More than 20 years
18%

Production companies operating in Manitoba are Manitoba-owned. The majority of production
company survey respondents (91%) reported that they are Manitoba-controlled (i.e., controlled by
Manitoba residents). Only 9% of responding companies reported that they were controlled by
residents outside of Manitoba. And of this 9%, all were controlled by residents of other Canadian
provinces and thereby were “Canadian-controlled.” Of all the production companies surveyed, eight
had further operations outside of Manitoba, including four in Toronto, Ontario, two in Regina,
Saskatchewan, one in Vancouver, British Columbia, and one international operation in London,
United Kingdom.
Figure 21 – Company control
Manitoba production companies are predominantly led by one or two entrepreneurial owners.
Approximately one-half of the production companies surveyed have just one owner (52%).
Approximately one-quarter of companies have two owners (26%), followed by just over one-fifth of
companies with three or more owners (22%).
Figure 22 – Number of company owners
Canadian-controlled
9%
Manitoba-
controlled
91%
1 Owner -
52%2 Owners -
26%
3 Owners -
6%
4+ Owners -
16%

4.2 Revenue and Income
Manitoba’s production companies earned $34.5
million in revenue in 2012, largely from content
licensing, production fees, and the development
and sale of interactive media. Manitoba’s 60
production companies earned an estimated $34.5
million in revenue in 2012, a significant increase
from the $10 million reported in 2007. This
significant increase in revenue was in large part
due to the industry’s growing revenue from the
licensing of content.
Manitoba production company revenue is diversified, flowing from nine main sources. Manitoba
Intellectual Property has generated the most substantial portion of company revenue, with 32% of
revenue coming from the licensing of content (i.e., the resale of content for which a Manitoba-based
producer owns the intellectual property rights). Production fees accounted for just under one-fifth of
company revenue (19%). The development and sale of interactive media generated 13% of company
revenue followed by commercial production and ‘other sources,’ accounting for 9% each.
Post-production work accounted for only 5% of company revenue, which may be attributed to Prime
Focus’s decision to withdraw its Frantic Films VFX operation from the province. However, production
and animation industry consultations reveal an expectation for increased post-production revenue
with the establishment and growth of Opus VFX since 2010. Service production fees and fees from
other services each accounted for 4% of revenue, as did tax credit and public funding that is not part
of the financing of a film or television project. Revenue from Video-On-Demand, advertising and
streaming services were virtually non-existent.
Figure 23 – Revenue sources, companies (2012)
0%
1%
1%
4%
4%
4%
5%
9%
9%
13%
19%
32%
0% 5% 10% 15% 20% 25% 30% 35%
Online and/or mobile streaming services
Advertising and/or sponsorship
TV Video-On-Demand / pay-per-view services
Tax credit/public funding not for project financing
Fees from other services
Service production fees
Post-production work
Other sources
Commercial production
Development/sale of interactive media
Production fees
Licensing of content
Production Company Revenue
Manitoba’s production companies
earned $34.5 million in revenue in
2012, largely from content licensing,
production fees, and the development
and sale of interactive media.

Manitoba's growing digital media cluster and IP ownership drive economic impact

Manitoba's growing digital media cluster and IP ownership drive economic impact

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