table of contents 1. Introduction: A Continued Need for Investment in the Face of Difficult Economic Times... 1

Transcription

1

2

3 table of contents Executive Summary i 1. Introduction: A Continued Need for Investment in the Face of Difficult Economic Times Current State of the Industry: Creating Canadian Content and Staying Globally Competitive Social Impact: The Importance of Children s and Youth Programming Global Market Trends: Raising the Bar for Canadian Content Delivery in a Changing Global Media Landscape Television Audiences: A Strong Record of Attracting Canadian Children to Canadian Programs Employment: A Source of Careers for Canada s Creative/Technical Workforce International Markets: Attracting Foreign Financing and After-Market Sales Production Economics: A Better Return for the Production-Financing Dollar Public and Public/Private Funding: Too Important for Canadian Governments to Leave Behind Conclusions References Appendix A: Estimates of International Program Sales Appendix B: History and Development of Canada s Children s and Youth Screen-Based Production Industry

4 executive summary Canada has a long tradition of producing popular and award-winning screen-based programming for children s and youth audiences; a tradition that stretches back more than six decades to the National Film Board s first forays in educational documentary and animation production in the 1940s. Canadians are well known for bringing entertaining live-action and animation programming to viewers around the world programming that reflects Canadian values and diversity, enriches the lives of Canadian children and youth, and offers international audiences a view into Canadian culture. There are sound social, cultural and economic cases to be made for the increased support for the creation of children s and youth programming in Canada; and yet, the genre is no longer a priority for policy makers. The purpose of this study is to report on the social, cultural and economic strengths of children s and youth programming, and at the same time, bring attention to the many challenges that the genre faces today. T H E M A N Y S T R E N G T H S O F C A N A D I A N CHILDREN S AND YOUTH PROGRAMMING a strong record of attracting canadian children to canadian programs mighty jungle 2007 Mighty Jungle 2 Productions Inc. When it comes to attracting Canadian viewers to Canadian programming, the children s and youth genre does very well when compared to other genres of Canadian programming supported by the Canadian Television Fund (CTF) (i.e., the CTF-supported genres of children s and youth, drama, documentary, and variety and performing arts). During the 2007/08 television season there were six Canadian-produced children s and youth television programs among the top ten television programs in Canada s French-language market; in the English-language market, the genre held three of the top ten spots. More broadly, Canadian programs accounted for 82 percent of all viewing of television programs in the children s and youth genre in the French-language market during the 2007/08 television season; in the English-language market, Canadian programs accounted for 55 percent. In both language markets, the children s and youth genre was well ahead of any other CTF-supported genre. attracts foreign financing and after-market sales One of the hallmarks of children s and youth television programming, particularly animation, is that it has tremendous international sales potential. There is a long list of Canadian children s and youth programs currently airing on broadcast outlets outside of Canada. Maggie and the Ferocious Beast, Toupie et Binou, The Mighty Jungle, Blaise le blasé, Captain Flamingo, Leon, Kid vs. Kat, Zimmer Twins, and Naturally Sadie are all examples of Canadian cultural exports in the genre. In 2007/08, children s and youth television production earned $37 million in export value (pre-sale fi nancing), and an additional estimated $66 million in international after-market sales, for total export revenues of $103 million. i

5 a source of careers for canada s creative/technical workforce Children s and youth production generated 2,500 production industry jobs in Canada in 2007/08 and an additional 3,900 spin-off jobs. Indeed, animation production which comprises the vast majority of children s and youth production generates more jobs for every dollar of production spending than live action production. A typical 26 half-hour episode animation production (with a per-episode budget of $250,000) generates 79 full-time production-industry jobs on an annualized basis 1 ; a live-action series of similar scope generates 71 full-time jobs. Furthermore, the animation jobs are typically longer-tenure jobs than those on a live action project. Practical experience in animation production can also act as a springboard for a career in other genres of screen-based production and in other occupations in knowledgebased industries. Careers in computer animation and design are quintessential creativesector jobs. And it will be these creative-sector jobs which will help Canada establish its competitive position in the global economy in the years to come. offers a better return for the production-financing dollar Children s and youth television programming can offer very compelling commercial value for broadcasters. To begin with, children s and youth television programming can generally be made at lower budget levels than prime-time fiction programming. Children s and youth programming also offers a higher probability of return and can generate audiences for broadcasters during off-peak periods. leverages public funding In today s political environment, where governments are under pressure to demonstrate value for money in the investments they make in economic- or social-development initiatives, public investments in screen-based production must be effective in drawing private fi nancing into production. Children s and youth production does. Production fi nancing statistics indicate that in 2007/08, children s and youth television production attracted $1.25 in private fi nancing for every dollar of public investment in production, compared to $1.14 in the fi ction genre. T H E C H A L L E N G E S F A C I N G C A N A D I A N C H I L D R E N S A N D Y O U T H P R O D U C T I O N Despite the social, cultural and economic strengths that the genre displays, it does face a number of challenges that seriously threaten its long-term viability. falling production volume kid vs. kat Studio B (Kid 1) Productions Inc. All rights reserved. The volume of Canadian children s and youth screen-based production has been on the decline over the last several years. Children s and youth screen-based production peaked at $389 million in 1999/00, and declined in the following years to $283 million by 2005/06. While the industry did experience a temporary spike in production in 2006/07, in 2007/08, the genre hit an alarming ten-year low of $257 million in production volume. Despite the genre s strong export revenue performance in 2007/08, it has experienced a precipitous drop in annual levels of treaty co-production in recent years. Canada s volume of treaty co-production in the children s and youth genre is off its 2000 peak by 71 percent. This rate of decrease is double the overall rate of decrease for all Canadian treaty co-production. 1. We refer to the jobs as annualized because the calculations are based on an annual average salary. Therefore, a project running for six months, for example, would employ double the number of persons because the average salary would be one-half the annual average. ii

6 falling budgets Average budgets for children s and youth programming have also been in retreat. Between 1998/99 and 2007/08, the average half-hour budget of a Canadian television production in the children s and youth genre dropped by 14 percent in real dollar terms falling from $275,000 to $236,000. Average budgets are low by both historical and international standards: for animation projects to be internationally competitive, half-hour budgets need to be closer to the typical animation budget of $300,000 to $350,000 (see animation budget statistics reported in Christie 2007). falling levels of public funding Public funding for the children s and youth production also hit a ten-year low in 2007/08, as it dropped to only $87 million, with direct public funding returning to a ten-year low of $22 million. While public funding for children s and youth programming has not grown over the last few years, private sector sources have stepped in. Canada s broadcasting distribution undertakings (BDUs) have provided and continue to provide substantial financial support to children s and youth programming through both the CTF and independent production funds. In 2007/08, BDUs provided an estimated $41.6 million in direct funding to the children s and youth genre through the CTF and independent production funds. CONCLUSION The social and cultural value of children s and youth content is overwhelming. Screen-based programming entertains and informs children and youth and helps them develop a sense of identity. It is important that we provide Canadian children and youth with stories that reflect who they are. If Canadian children and youth have access to entertaining Canadian stories when they are young, they are more likely to view Canadian programming when they are older. Further underlining the importance of the genre is the fact that it is on the front line of the revolution in multi-platform distribution. zeke s pad 2008 My Pad Productions Inc. and Avrill Stark Entertainment Pty Ltd. All rights reserved. In today s financing environment, however, the alarming retreat in annual production levels and average budgets which are low by historical and international standards will mean that Canadian program creators will miss an opportunity to provide future generations with programs that reflect Canadian values. With this in mind, all stakeholders producers, content distributors, funding bodies, broadcasters, government and the regulator must assess their commitment to the genre, with a view to putting Canadian children s and youth programming on a strong footing for the future. Producers, content distributors, funding bodies, broadcasters, government and the regulator all have a vested interest in fostering an environment where Canadian children s and youth programming can reach domestic and international audiences. The quality of Canada s children s and youth programming is high. This enables it to generate high audiences both within and outside Canada. By making the necessary investment in the genre today and the years to come, industry stakeholders can attract Canadian children and youth to Canadian programming and generate stronger interest in Canadian stories and screen-based programming that Canadian children and youth will carry with them into their adult years. iii

7 introduction: a continued need for investment in the face of difficult economic times Canada has a unique and open approach to a pluralistic society, of which we are justifiably proud. We are one of a select few countries in the world that has made a commitment to developing a tolerant and just society that is open to all cultures. The Canadian experiment is ongoing and requires continual support. Exposing our children to Canadian values is an important part of this support. At the same time, Canadian children should be able to experience the world, through stories told through television, the Internet and other platforms. Canadian program creators and artists make highquality screen-based programming that reflects Canadian values and offers a view into global experiences. In this way, the children s and youth programming industry helps enrich the lives of Canadian children and youth. The high social value of children s programming, however, means it should not only be made and aired because it will attract the greatest amount of broadcaster or advertiser interest, but because it reflects public values. In February 2007, the Canadian Film and Television Production Association (CFTPA) in association with Shaw Rocket Fund, the Alliance for Children and Television, and the National Film Board of Canada prepared the inaugural edition of The Case for Kids Programming: Children s and Youth Audio-Visual Production in Canada. It examined the economic and social impact of the children s and youth production sector and established the case for strengthened public support for the genre. Two years later, the CFTPA in association with Shaw Rocket Fund and the Alliance for Children and Television are proud to publish the following 2009 update to The Case for Kids Programming. Canada s children s and youth production industry continues to have a significant economic and social impact. Among Canada s CTF-supported genres (children s and youth, drama, documentary, and variety and performing arts), it offers one of the best audience performance records. What s more, it provides unparalleled export potential. Despite this strong record, the genre continues to face many of the challenges that it did two years ago. atomic betty Courtesy of Breakthrough Entertainment. As with other genres, the children s and youth genre is vulnerable to the effects of consolidation and vertical integration in the television sector. As an export-oriented genre, children s and youth programming also faces tremendous international competition from integrated global production broadcasting conglomerates such as Disney and Nickelodeon. Many of Canada s children s and youth television producers recognize that they must make globally competitive content to survive and prosper in today s marketplace. To do so often requires international partnerships through offi cial treaty co-production. However, it is becoming more and more diffi cult for Canadian producers to forge international partnerships, in large part due to developments outside of Canada, but also because Canada s own treaty co-production framework is outdated in some respects. The statistics bear this out: Canada s volume of international treaty co-production in the children s and youth genre has fallen twice as fast as the overall volume treaty of co-production in recent years. 1

8 Foreign sale opportunities can be boosted as the likes of Disney enter as channels in foreign markets, thus compelling local broadcasters to acquire top-rated programming in order to compete. While the result is increased foreign demand for quality children s and youth programming, the economics only work for Canadian producers if there is a domestic broadcaster partner/buyer for these projects. Thus, restraints in the domestic market have an impact on the ability of Canadian producers to generate foreign sales or line up foreign partners in this genre. definition of children s and youth screen-based programming What exactly is children s and youth screen-based programming? Most children s and youth programming is made available in the television realm. With respect to television, children s and youth programming is unique in its defi nition because it is the only genre that is defi ned by its audience rather than its content. Whereas genres such as drama/ comedy, documentary, variety, sports and news, for example, are defi ned by the type of content they present, children s and youth programming is defi ned by its audiences and crosses many genres. Children s and youth programming may include drama or comedy; it may include factual genres such as documentary and educational programming as well. The Canadian Radio-television and Telecommunications Commission (CRTC) tracks television programming on the basis of 15 program categories; but none of these categories are specifi c to children s and youth programming. Most programming (except drama) targeted to children aged two to fi ve falls under category 5a, Formal Education and Pre-School. Most other children s and youth television programs, including animation programs, fall under category 7, Drama and Comedy. In its licensing of broadcasting undertakings, however, the CRTC has identifi ed the children s and youth age groups as specifi c target audiences for certain licensees. In its licence decisions, the CRTC has defi ned children s programming as that which is targeted at persons aged 2 to 11, and youth programming as being targeted at the 12 to 17 age group. The CTF also maintains a formal definition for children s and youth programming. The programming must be targeted at persons under the age of 18, and should include protagonists from this age group. What is more, the program should reflect reality from a child or youth s point of view. The CTF s definition excludes family programming. The Canadian Audio-Visual Certification Office (CAVCO) includes a category for children s programming in its application package; applicants self select whether their television project is a children s program or not. In this report, we analyze screen-based programming targeted at persons under the age of 18. Children s programming includes screen-based works targeted at persons ages 12 and under; youth programming targets the 12 to 17 age group. though globally successful canadian producers face new challenges Many Canadian producers of children s and youth programming have achieved tremendous global success. Today, there are some 110 Canadian production companies generating innovative and popular content for children s and youth audiences in Canada and around the world. Canadian program creators are known the world over for making numerous hit animation series. The animated series George of the Jungle, Gofrette, Captain Flamingo, Manon, Bromwell High, and Bo on the Go have all enjoyed international success. Life with Derek, Naturally Sadie and the Degrassi serial are just a few examples of Canadian producers international success in the live-action realm. george of the jungle 2007 Bullwinkle Studios. All rights reserved. GEORGE OF THE JUNGLE and associated character names, images and other indicia are trademarks and copyrighted by Ward Productions, Inc. ad Bullwinkle Studios. Used by permission. Despite the industry s past successes, our research shows that Canada s children s and youth production industry continues to experience some difficulty. Annual production levels have been in decline in recent years and are now at their lowest level in over a decade. Average budgets remain low by historical and international standards, and the levels of public funding for the genre have not grown in real terms over the past decade. These continuing and alarming recent developments are a source of concern for Canadian parents, communities, the industry and other stakeholders, and provide the impetus for this updated 2009 edition The Case for Kids Programming. 2

9 why focus is needed for the children s genre This report will uphold the argument that children s and youth screen-based production deserves the same policy attention that prime-time drama receives. The reasons for this attention are really twofold. First, children s and youth programming is a vital part of Canadian culture. The images and stories that today s Canadian children experience help shape the Canadian society of the future. What s more, if Canadian children are drawn to Canadian drama programming when they are young, then it is very likely that they will continue to be attracted to it in their adult years 2. The second argument for heightened support for the genre has to do with technology and the impact it is having on the media sector throughout the world. For decades, policy makers relied on the Canadian Broadcasting Corporation (CBC) and private broadcasters to fulfi l Canada s policy goals in the audio-visual realm. Government then looked to television broadcasters and independent producers to share the responsibility of fulfi lling the policy goals of the Broadcasting Act. The federal government and the CRTC gave broadcasters and producers the tools needed to do fulfi l these policy goals. Online and alternative platforms are quickly playing a larger role in the distribution of screen-based content. Television itself is gradually shifting towards a more on-demand model comprised of video on demand (VOD), personal video recorders (PVRs) and other time-shifting technologies. The Internet, itunes, mobile devices, and online or console video gaming are also driving a wedge between audiences and traditional television broadcasters. New web-based distribution technologies are poised to turn the Internet into a new path for on-demand access to screen-based content. bo on the go Courtesy of Halifax Film, a DHX Media company. These emerging distribution approaches are particularly suitable to children s and youth programming. Younger people are often early adopters of new technologies or coax adults to quickly adopt new technologies. Furthermore, much of children s and youth screen-based production lends itself to interactivity, which technology can facilitate. The ease with which young people use new technology certainly suggests that the Internet and mobile video may represent a tremendous opportunity for the genre. But in the world of alternative platforms where consumers become the programmers and pull-distribution models operate alongside traditional push models, only the very best content will fi nd audiences. Under such a scenario, the Canadian government s demand-side policies for promoting Canadian screen-based content which have been very effective for many decades may lose their effi cacy. The regulated broadcasting system may no longer stand between audiences and screen-based content. When this happens, policy makers will have to recognize that more support for the production side of the screen-industry value chain is going to become paramount, to ensure Canadian content is always available to Canadian children. In the next section, we examine the current state of Canada s children s and youth production industry. 2. CRTC, Proposed incentives for English-language Canadian television drama Call for comments, Broadcasting Public Notice CRTC , para

10 current state of the industry: creating canadian content and staying globally competitive In 2007/08, the total volume of Canadian television and feature film production in the children s and youth genre fell to a ten-year low of $257 million 3. Of this amount, production for television accounted for $250 million of the production volume; so the children s and youth production sector was almost entirely a television one. Behind this $257 million in production, there were numerous Canadian companies, and creative and technical professionals. A review of membership data available from the CFTPA and Association des producteurs de films et de télévision du Québec (APFTQ) indicates that there some 110 companies in Canadian engaged in the production of children s, youth or animation programming. Many more companies provide audiovisual services to children s and youth production. Altogether, these production companies generate an estimated 2,500 full-time equivalent jobs for Canadians (for additional employment statistics, see Section 6, Employment). Exhibit 1: Total volume of Canadian television and feature film production in the children s and youth genre life with derek Photo courtesy of Shaftesbury Films. Source: Estimates based on data from CAVCO Note: CAVCO data do not include all NFB production; only NFB co-productions are included in CAVCO data 3. The production statistics contained throughout this report only include co-productions of children s and youth programs with the NFB; the statistics do not include the NFB s in-house production of children s and youth programming. 4

11 an overall downward trend in production interrupted by a temporary spike in non-ctf production in 2006/07 After growing to an upwards of $389 million in production in 1999/00, Canada s children s and youth production industry experienced a steady decline up until 2006/07, when there was a spike in production activity. Between 1999/00 and 2006/07, the total volume of children s and youth production dropped by 29 percent. In 2006/07, children s and youth production witnessed a temporary reversal of this longterm decline, as the volume of production jumped $109 million, or 39 percent, year-overyear. While the ultimate cause of this jump is not precisely clear, it is apparent that it can be traced back to a temporary increase in the number of large-budget non-ctf animation projects. While the total number of projects was virtually unchanged between 2005/06 and 2006/07 (increasing from 87 to 90), the average project size rose by 33%, from $2.7 million to $3.3 million. From 2005/06 to 2006/07, the volume of CTF-supported production actually dropped by $17 million; it was non-ctf production 4 that accounted for all of the year-overyear increase in children s and youth production, rising from $55 million to $181 million. Exhibit 2: Analysis of increase in children s and youth production in 2006/ / /07 Change Percentage Change Total volume of production ($ millions) % Number of projects % Average project budget ($ millions) % Total volume of CTF-supported production ($ millions) (17) (8%) Total volume of non-ctf production ($ millions) % Source: Estimates based on data obtained from CAVCO. This increase in non-ctf production arose from an increase in the number of large projects. In 2005/06, there were no non-ctf projects with a budget over $10 million; in 2006/07, there were three. The number of non-ctf projects in the $5 million to $10 million budget range also increased from a total of three in 2005/06 to seven in 2006/07. Exhibit 3: Number of non-ctf projects by size of project budget 2005/ /07 Change Above $10M $5M to $10M $2.5M to $5M $1.0 M to 2.5M 7 6 (1) Under $1M 14 9 (5) Total Source: Estimates based on data obtained from CAVCO. After experiencing this temporary spike in production in 2006/07, however, the long-term downward trend in the genre s annual production volume resumed in 2007/08. The total volume of children s and youth television production dropped to $257 million the lowest level in the last ten years. Over the past ten years, children s and youth production has not only fallen on an absolute dollar basis, but has also fallen relative to Canada s overall output of television production. In 1999/00, children s and youth television production 4. Non-CTF production includes Canadian content production (i.e., productions with six or more Canadian-content points) that may not be eligible for CTF funding or did not receive CTF funding. 5

12 accounted for 21 percent of Canada s $1.9 billion in total Canadian television production. As of 2007/08, children s and youth television production accounted for only 12 percent of Canadian television production a 40% reduction in terms of share. The drop in children s and youth production activity over the past few years has been felt in both the live-action and animation segments. Between 1999/00 and 2007/08, the total volume of live-action children s and youth production dropped from $156 million to $91 million. Animation production dropped from $257 million in 1998/99 to $166 million in 2007/08. In 2007/08, live-action accounted for about one-third of Canadian children s and youth television production. One cannot ignore the impact that the corporate environment has had on the long-term decline in Canada s children s and youth television production. During the late 1990s, in an effort to meet public-investor expectations, companies such as Nelvana and Cinar greenlit many projects before they were creatively finished or fully financed (Nordicity 2007, p. 5); and the result was a glut of programming, which the global market might still be trying to absorb (Nordicity 2007, p. 5). Exhibit 4: Children s and youth television production: by format and annual CTF contributions Volume of children s and youth production, by format CTF contributions to children s and youth programming and share of total CTF funding Source: Estimates based on data from CAVCO; excludes NFB in-house production Source: CTF side-swiped by the drop in international financing Financing statistics for Canadian children s television production further shed light on the reasons for the sharp drop in production activity in recent years. As alluded to above, it would appear that the Canadian children s production industry has lost much of the foreign pre-sale financing that it was able to attract during the late 1990s. In 1999/00, Canadian children s television production attracted $117 million in pre-sale financing from foreign broadcasters and distributors. It attracted another $37 million from Canadian distributors, many of whom acquired sales rights for foreign territories. Together, these two sources of international financing accounted for nearly half (40 percent) of the production financing for children s and youth production in 1999/00. 6

13 Exhibit 5: Financing of Canadian children s and youth television production ($ millions) 1999/ / / / / / / / /08 Private Broadcaster Licence Fees Public Broadcaster Licence Fees Federal Tax Credit Provincial Tax Credit Canadian Distributor Foreign Production Company Canadian Television Fund Independent Production Funds Other Public* Other Private** Total Source: Estimates based on data obtained from CAVCO. Based on CAVCO classifications. Note: Some totals may not add due to rounding. * Other public includes financing from provincial governments, and other government departments and agencies. ** Other private includes financing from broadcaster equity, and other private investors. By 2007/08, however, foreign pre-sale fi nancing for Canadian children s and youth television programs had dropped dramatically. In 2007/08, foreign fi nancing was down to $16 million; Canadian distributor fi nancing generally linked to the potential in foreign markets was $21 million. Together, these two internationally-oriented fi nancing sources accounted for 15 percent of total fi nancing in 2007/08; about 40 percent of the level of eight years prior. In effect, Canada s children s and youth production community has seen its supply of production capital curtailed by over $600 million in the eight years since the industry reached its production peak in 1999/00. Canada s overall indigenous television production community has experienced an across-the-board drop in activity since hitting a peak in 1999/00. All of this drop can be traced back to the two fi ction genres prime-time comedy and drama, and children s programming as opposed to the factual genres of documentary and variety and performing arts. Drastic changes in the business climate in the global television marketplace were the single biggest contributor to Canada s declining volume of Canadian television production (CFTPA 2006, p. 14). The worldwide trend towards more indigenous programming in television schedules, and the move in Europe to a more continental market have led to a drop in the international trade in television programs (CFTPA 2006, p. 14). Nowhere was the effect of these international market developments more evident than in Canada s children s and youth production segment. Since 1999/00, foreign fi nancing of Canadian children s and youth television programs has dropped by a staggering $100 million on an annual basis. The fi nancing statistics also reveal that production companies are no longer able to make signifi cant investments in their own projects: between 1990/00 and 2007/08, production companies investments in children s and youth production dropped from 15 percent to 4 percent. This is a symptom of the fi nancial condition of Canadian production companies. Statistics Canada data for the overall industry indicate that its net profi t margin was only 4.3 percent in 2004 (the rate was as low as 1.6 percent in 2002) (Statistics Canada 2006); across the whole industrial economy, the rate was 6.4 percent (CFTPA 2006a). The Canadian production industry is now comprised of numerous small companies with lower-thanaverage profi tability; the industry is very fragile. Without healthy profi t margins, Canadian producers are increasingly unable to invest in their projects and retain more ownership in the revenue streams of their work. Without fi nancially strong production companies, there is a risk that Canada will lose its position within the genre s international markets. 7

14 Exhibit 6: Total annual number of hours of original television production in the children s and youth genre Source: Estimates based on data from CAVCO Note: CAVCO data do not include all NFB production; only NFB co-productions are included in CAVCO data After hitting an all-time low of 678 hours in 2003/04, the annual output of original Canadian children s and youth television production rose steadily and peaked at 1,022 hours in 2006/07. However, in 2007/08, annual output fell with production volume to a ten-year low of 530 hours. taste buds Photo by Cylla Von Tiedemann, marblemedia Canadian producers of children s and youth television programming have adapted to the severe loss of international capital, although their fi nancial position is relatively precarious. The international demand may have weakened, and producers thus have less fi nancial resources to work with, but they are still generating hundreds of original hours per year. They are now forced to produce with lower average budgets to meet the demand of the domestic market, increasingly dominated by specialty and pay television services. Between 1998/99 and 2005/06, the average half-hour budget (measured in constant 2007 dollars) of a Canadian television production in the children s and youth genre (including both English and French production) dropped by 14 percent, from (infl ation adjusted) $275,000 in 1998/99 to $236,000 in 2007/08. On the surface it may seem that the industry has improved its productivity by lowering the real cost of producing an hour of television programming; and in many respects it has through the use of new technology. Improvements in animation technology have lowered the cost of this type of production. But still, for projects to be internationally competitive, the average budgets need to be closer to the typical animation budget of $300,000 to $350,000 (see animation budget statistics reported in Christie 2007). Average real budgets for both the English-language and French-language children s and youth production dropped 18% between 1998/99 and 2007/08. Average real half-hour budgets for French-language productions experienced more fluctuation, but dropped from $97,000 to $79,000. Average half-hour budgets for English-language production dropped steadily to 2005/06, but have recovered somewhat in recent years, but have still not returned to the levels of the late 1990s. 8 Again, Canadian English-language productions are operating at the bottom range for globally competitive product. French-language project budgets are way below the bottom of the range. Higher production budgets do not always translate into higher quality, but these figures reflect that Canadian producers may risk operating outside of this higher-budget game.

15 Exhibit 7: Average budgets of Canadian children s and youth television production (real 2007 dollars) Source: Estimates based on data from CAVCO and Statistics Canada the emergence of specialty television as the primary outlet for children s and youth programs Canada s broadcasting regulatory environment plays a signifi cant role in stimulating the creation of high-quality original television programming for Canadian children and youth. Over the last two decades the CRTC has made sure that children s and youth programming has had a place in Canadian households cable and satellite channel line-up. Since 1987, the CRTC has licensed six specialty-television services (YTV, VRAK. TV, Teletoon/Télétoon, TreeHouse, BBC Kids, Discovery Kids) and one pay television service (The Family Channel) with programming devoted to children and youth. These specialty and pay services have become the main outlets for Canadian children s and youth programming. With the exception of the Category 2 licensees, all of the specialty and pay television licensees have expenditure requirements that mandate them to spend between 20 percent and 47 percent of revenues on Canadian programming. Some of the licensees have additional stipulations that require a fi xed portion of this expenditure amount to be allocated to independent production. All of the specialty and pay television licensees have Canadian content exhibition requirements. On a combined basis, the specialty television licensees are required by condition of licence to acquire 194 hours of original, first-run Canadian programming each year; they have made commitments to commission an additional 73 hours, on average per year. All told, specialty-television licensees commission at least 267 hours of original, first-run Canadian programming each year, as per their broadcast licences. the potential for the national public broadcaster to lead in kids television The licence conditions and other terms of Canada s specialty and pay services compensate somewhat for the fact that very few conventional broadcasters have any licence conditions related to children s programming. Indeed, SRC is the only conventional broadcaster with a licence condition requiring it to broadcast an average of four hours per week of original, fi rst-run Canadian children s programming. This unique licence condition among conventional broadcasters refl ects the unique situation in which there are fewer children s programs available for French-speaking Canadians. The CRTC expects SRC and CBC to each air 20 hours per week of children s and youth programming. However, in fall 2006, in the face of limited programming resources on an organization-wide basis, the CBC drastically reduced the amount of children s programming in its daily schedule by removing its after-school programming. Today, CBC s weekly slate of children s and 9

16 youth programming is comprised largely of commercial-free pre-school programming on weekday mornings, and a block of children s and youth programming on the weekend. The CBC augments these morning blocks with engaging websites for both age groups. In fi ve provinces namely Quebec, Ontario, British Columbia, Saskatchewan, and Alberta provincial educational broadcasters play a key role in the provision of children s and youth television programming. Télé-Québec, TVOntario, TFO, Knowledge Network (British Columbia), SCN (Saskatchewan) and Access (Alberta). All of these provincial educational broadcasters devote considerable portions of their weekly schedules to children s and youth programming with clear educational value. Télé-Québec, for example, dedicates 47% of its schedule to children s and youth programming. By offering children s and youth programming more often than not integrated with provincial curricula provincial educational broadcasters play a vital role in ensuring that a large percentage of Canadian children and youth can access programming over Canada s conventional broadcasting airwaves. However, the provincial broadcaster in each province represents only a single outlet. And moreover, fi ve provinces lack an educational broadcaster, leaving many households in Canada that do not have cable or satellite service reliant on the national public broadcaster and private conventional broadcasters. With increased resources to fund the production of original Canadian programming, Canada s national broadcaster could take its cues from public broadcasters in other English-speaking countries, and embrace children s and youth programming as part of its public service mandate. In the U.K., the BBC operates two over-the-air digital broadcast channels CBBC and CBeebies dedicated to children s programming. All told, the BBC accounted for 80 percent of all children s programming available from public (terrestrial) broadcasters in the U.K. in 2006 (Ofcom 2007, p. 25) and 75 percent of the total number of hours of first-run original programming on the public (terrestrial) broadcasters (Ofcom 2007, p. 29). In Australia, the national public broadcaster, Australian Broadcasting Corporation (ABC), devotes a significant portion of its daily schedule to children s and youth programming as part of its ABC Kids program block (ABC 2007, p.2). In 2006/07, ABC aired over 2,000 hours of children s and youth programming on its main television service, and an additional 1,700 hours on its digital multichannel service, ABC2 (ABC 2007, p.2). In 2008, ABC received approval from the Australian government to launch a new digital television service, ABC3 (Sinclair 2009). This new service will televise 15 hours per day of child-appropriate television content, along with interactive and online content (Sinclair 2009). Moreover, ABC3 will be free to households, carry no advertising, and exhibit 50% Australian content (Sinclair 2009). potential expansion of the role for private conventional broadcasters totally spies Marathon Media / Mystery Animation Inc. The responsibility to air children s and youth programming should not stop with provincial educational broadcasters, CBC/SRC, and specialty and pay television services; private conventional broadcasters also have an important role to play in ensuring that Canadian children and youth have access to a diversity of television content. Among the private conventional television broadcasters, CTV has committed to only 2.5 hours per week. Canwest MediaWorks Inc. agreed, at its last licence renewal, to maintain a spot in its schedule for children s and youth programming, but made no commitments to a fi xed number of hours per week. In general, the CRTC does not see a need to impose any licence conditions related to children s and youth programming on private conventional licensees. About 90 percent of Canadian households have access to basic-tier programming on Canadian broadcasting distribution undertakings (BDUs), and therefore access to YTV or VRAK.TV; however, conventional broadcasters still have the greatest audience reach, and can be viewed by the greatest number of Canadian children and youth. Even in the U.S., where there are numerous multichannel outlets for children s programming, the Federal Communications Commission requires over-the-air broadcasters to televise a minimum amount of children s programming each week. 10

17 Exhibit 8: Broadcaster licence conditions, requirements and commitments relevant to children s and youth production Broadcaster CBC SRC TVO/TFO Licence conditions, requirements and commitments Expected to broadcast a minimum of 15 hours per week for children and five hours per week for youth Required to broadcast an average of at least four hours per week of original Canadian children s programming Expected to broadcast a minimum of 20 hours per week for children and youth TVO expected to broadcast 70 hours per week of educational programming dedicated to children TFO committed to broadcast at least 29 hours per week of Canadian programming for children (ages 2 to 12) and at least 10 hours per week of programming for youth (ages 12 to 17) Télé-Québec Required to broadcast an average of 21 hours per week of Canadian programming targeted to children ages 2 to 11 SCN Knowledge Network CTV CanWest MediaWorks Inc. CHUM TVA TQS Family Channel (including Disney Playhouse) YTV VRAK.TV Teletoon/Télétoon Treehouse Treehouse Discovery Kids Dedicates approximately 40 percent of broadcast schedule to children s programs Expected to broadcast 54 hours per week of children s and youth programs Expected to broadcast 2.5 hours per week of programming for children Expected to continue to provide children s programming and committed to maintaining children s programming within its broadcast schedule Not required to broadcast a minimum level of children s programming Not required to broadcast a minimum level of children s programming Committed to produce the children s program Le Petit Journal using an independent producer; this program will consist of 52 original hour-long segments, with each segment consisting of two 30-minute programs broadcast each week, targeting adolescents aged between 12 and 17 years Committed to produce an original 30-minute program each week targeting children aged between 2 and 11 years Required to devote 25 percent of broadcast schedule to the exhibition of Canadian programming that shall have as its target audience only children, youth to age 17, and families in conjunction with such children and youth Required to spend 30 percent of revenues on the acquisition of Canadian programming that shall have as its target audience only children, youth to age 17, and families in conjunction with such children and youth Required to devote 30 percent of broadcast schedule to programming directed at children up to five years of age, 48 percent directed at children and youth aged 6 to 17, and 22 percent directed to families Required to distribute 90 hours of original, first-run, independently produced Canadian programming each year Required to spend 40 percent of annual revenues on acquiring and investing in Canadian programming; allocate one-third of this amount to the development, production and licensing of original, first-run Canadian programming Required to devote 60 percent of broadcast schedule to the exhibition of Canadian content Required to broadcast programming that has as its target audience children and youth up to 17 years of age Required to distribute 104 hours of original, first-run, independently produced programming per year Required to spend 41 percent of annual revenues on acquiring and investing in Canadian programming Required to devote 50 percent of broadcast schedule to the exhibition of Canadian content Required to spend 47 percent of revenues on the acquisition of Canadian programming; required to allocate 50 percent of this amount to programming made by non-related producers Expected to ensure that 75 percent of all broadcast Canadian programming is from independent producers Required to devote 60 percent of broadcast schedule during peak period (4:00 p.m. to 10:00 p.m.) to the exhibition of Canadian content Committed to commissioning 700 half-hours of new Canadian production, each available in English and French, over the term of the licence Required to broadcast programming for pre-school children up to six years of age between the hours of 6:00 a.m. and 9:00 p.m. Required to spend 36 percent of revenues on the acquisition of and/or investment in Canadian programming Required to devote not less than 70 percent of broadcast schedule to the exhibition of Canadian content Expected to commission 325 half-hours of original Canadian production over the term of the licence Required to broadcast programming targeted at children of all ages Required to devote not less than 35 percent of broadcast schedule to the exhibition of Canadian content BBC Kids Required to devote 65 percent of broadcast schedule to programming that targets children ages 2 to 11 (the majority of which will target children ages 6 to 11) and 35 percent to youth ages 12 to 17 Required to devote not less than 35 percent of broadcast schedule to the exhibition of Canadian content Source: CRTC 11

18 social impact: the importance of children s and youth programming Without a doubt, television is one of the most powerful mass-media technologies in the world. Television and the programming that it provides have a tremendous impact on people of all ages. Screen-based programming helps shape people s political views and their social values; it influences many of the economic decisions that they make. Screen-based programming has an even greater impact on children and youth. Young people are in their formative years: they are forming attitudes and learning behaviours that they will keep for the rest of their lives. Canadian children spend about 30 hours per week in school classrooms; they spend an upwards of 18 hours per week watching television. While many parents, educators, and physicians lament the fact that our children grow up in front of the television, the reality is that television has become an important part of children s lives in Canada. And it is for this very reason that it is vitally important that Canadian children and youth have access to Canadian-produced children s and youth programming of the highest possible quality. rising tv viewing even among canadian children and youth While Canadian teenagers, adolescents and children, for that matter, are increasingly turning to the Internet, cellular phones and MP3 players (including ipods) for screenbased entertainment, as mobility and instant access are becoming the norms, they are not turning away from television; in fact, television viewing among Canadian children and youth appears to be trending upwards in recent years. Nielsen data show a steady increase in the average number of hours of television viewing among Canadian children and teenagers over the past decade. In 1998/99, Canadian teenagers (youth aged 12 to 17) watched an average of 16.0 hours of television per week; by 2007/08, Canadian teenagers television viewing was up by 10 per cent to 17.6 hours per week. Canadian children s television viewing increased by even more, 23 per cent, as it rose from 15.1 hours to 18.5 hours. hood Portfolio Entertainment Inc. 12

19 Exhibit 9: Average weekly hours of television viewing per capita by Canadian children and youth Source: CMRI (Nielsen) are we there yet? world adventure Sinking Ship Entertainment A 2005 survey by the Media Awareness Network found that 40 percent of grade 11 students downloaded movies and TV shows on computers connected to the Internet; the rate for grade four students was 17 percent (Media Awareness Network 2005, p. 20). The Media Awareness Network also found that two-thirds of Canadian students (grades four to 11) used a cellular phone, and nearly one-quarter of Canadian students actually owned their own cellular phone (Media Awareness Network 2005, p. 16). Forty-one percent of Canadian students (grades 4 to 11) have an MP3 player for their own personal use (Media Awareness Network 2005, p. 4). Not all of these technologies currently come with video capabilities, but they are quickly including this feature; and the statistics show that Canadian children are eager adopters of new media technologies. However, screen-based content does not seem to have lost its place in the media lives of Canadian children and youth; Canadian children and youth are just using a wider variety of paths to fi nd it. educational value and social relevance of children s programming It is important for parents, educators, and broadcasters to continue to discuss the merits of television and screen-based programming in children s lives; we do not want to ignore or minimize this debate. However, this analysis starts from the premise that much of children s television or screen-based content can be very positive; it can be educational, it can contribute to their positive social development, and it can be very entertaining. Recent research points to the benefi ts of television for children. An analysis by Matthew Gentkew and Jesse Shaprio of the University of Chicago found that an additional year of pre-school television exposure led to a slight rise in average test scores, for example (Gentkew and Shapiro 2006 p. 3). It is already a policy of the Canadian federal government to fi nancially support children s and youth television programming, as well as interactive new-media content. It does this largely through the CTF and Canada New Media Fund 5. Canada s industry regulator has, to date, licensed specialties television services, SRC, Télé-Québec, and certain specialty and pay television services that must exhibit programming targeted at children s and youth age groups. Educational broadcasters owned by provincial governments 5. In March 2009, the federal government announced that the Canadian Television Fund and Canada New Media Fund would be combined to form the Canada Media Fund, effective April

20 commission and exhibit children s television programming. So, children s television programming is more than just a commercial endeavour; an important piece of it takes place within the context of public policy and educational objectives. Clearly Canadian governments view it as public policy to invest, on behalf of citizens, in children s and youth screen-based content. Decades of social science research has demonstrated that television has a myriad of impacts on children s social development. Screen-based programming is a powerful educational tool. Television programming that is designed to be entertaining, intelligent, and educational can open a cognitive window and have a profound effect on formative minds (Hume 2005). Screen-based programming allows children to learn about the world that they live in; it gives them the opportunity to travel to museums, galleries, other cities, other countries, Mount Everest, or Mars. It gives children a window to the world around them and offers them visual insights that they may not otherwise be able to obtain (Gladstone et al., 1985 p. 13). It also introduces them to the injustices, differences and commonalities that continually shape our world (Gladstone et al. 1985, p. v). Screen-based programming, particularly in the interactive-digital media sphere, requires children to be interactive. This interactivity leads children to question and think (Gladstone et al. 1985, p. v). Screen-based programming can even make children s minds sharper by presenting them with cognitive challenges (Johnson 2005). When screen-based programming is made available through the television, it can be a tool for levelling experience among children. Outside of the classroom set of books, no other form of media has the same universal penetration in Canada as television. Many children do not have access to the Internet; many cannot access books outside of schools; and whether we like it or not, most children do not live around the corner from a local library. Printed media have never been as accessible as the television media came to be; virtually every household in Canada has a television that receives local programming. Factual programming has an obvious informational purpose; but fi ction programming has tremendous value too. Storytelling is also a powerful method for conveying ideas. Children s stories, whether they are in print or screen-based format, often have a socialization function: they set good examples for children. Through proper narratives, stories can expose children to values like tolerance, openness and responsibility. Children s and youth screen-based programming can reinforce notions that social good will prevail and be rewarded (Messenger Davies 2001, p. 68). Children, themselves, tell researchers that screen-based programming helps them identify with others, meet a variety of people, learn about different lifestyles, and, through models, improve their own social skills (Gladstone et al. 1985, p. 23). entertainment as well as educational value of children s programming toopy and binoo Spectra Animation inc. It is important to remember that the value of children s and youth screen-based programming should not only be measured in terms of its educational value; children s and youth programming should also strive to be entertaining. What makes Canadian children s and youth programming a vibrant and commercially successful field is that it offers Canadian children and their parents a wide array of options along the scales of education and entertainment. Parents can look to the provincial educational broadcasters and be assured that they will find programming of high educational value. At the same time, they have a choice of outlets, when they would like their children to access more entertaining fare. We all love to be entertained! providing a window on the world and canadian society In the introduction to this report, we underlined the importance of screen-based programming to Canada s role in the world. Our airwaves are bombarded by children s and youth programming from the United States (U.S.). The Canadian experiment as it is often referred to is ongoing and requires constant reinforcement. Community leaders look primarily to the school system to teach children about Canada s social values. But children are spending at least half as much time in front of television and the Internet, as they are in the classroom. The messages that children encounter on television or the 14

21 Internet must be consistent with those they receive in the school system. For the thousands of children and youth immigrating to Canada every year, screen-based programming complements their classroom setting: it allows them to learn about Canadian values and offers them the opportunity to forge their own Canadian identity. Canadian children s and youth screen-based programming must have a prominent place on television and the Internet, so that Canadian children and youth can access it. Canadians also like to lead by example; they will go to all corners of the globe to offer other communities the chance to understand that the Canadian option Canada s approach to building the social fabric of a nation is available to them. Screen-based programming, particularly for children, can also be another tool in Canada s international development toolkit. But in order for Canadian screen-based content to reach international audiences, it must be of the highest quality, and it must be globally competitive. encouraging engagement in society and learning toc toc toc Photo by Jean-François Berube. All this may sound like television and screen-based programming is some type of paternalistic tool used by adult decision makers to program children into robots that carry on what adults see as the acceptable social norms. But just like other media, screen-based programming also teaches children to challenge and question society; and in some respects, it gives children a voice in a society where they often cannot make their views known. Traditional fairy tales and modern stories told through the screen-based medium present children with situations where the poor, the young, and women are empowered (Messenger Davies 2001, p. 59 [Lurie]). They teach children to be sceptical of adults, i.e., sceptical of the decision makers. Children s stories are told from the child s point of view, and thereby give children a voice. On another level, screen-based programming gives children a voice because they often have the ability to choose what they want to watch. By choosing what they will and will not watch, young children communicate with the adults around them. Children do not vote; most do not engage politicians or business leaders; they can, however, express their views through the programs they choose to watch. That is why it is important to offer children a diverse range of high-quality screen-based programming. Without the highest quality, we fail to maximize the educational and social value of video content. Without diversity, we risk offering children only a limited array of choices and paths for expressing their views. Canadian educators and screen-based creators have long recognized the social importance of television programming. Through television, children learn more about the world they live in by fostering their curiosity. Television programming can prompt kids to go on the web and learn more about the world around them, just as the shows in the twentieth century encouraged children to go to the library helping kids become smarter and more positive. In the next section, we identify some of the major trends in the global media market, which are putting tremendous pressure on Canadian producers of children s and youth programming. We also scan the children s and youth production and broadcasting markets in other countries. In a later section we explore Canadian producers performance in international markets in recent years. 15

22 global market trends: raising the bar for canadian content delivery in a changing global media landscape In this section we examine the three major global market trends affecting children s and youth production. The fi rst is vertical integration, the second is increased global competition, and the third is the emergence of new distribution technologies. We also present some snapshots of the children s and youth programming in the U.S., U.K. and Australia. Canadian producers of children s and youth programming operate in the global market. While they enjoy a certain degree of protection in the domestic market, global market developments and the emergence of new distribution technologies could pose a challenge to even these protections. Outside of Canada, Canadian producers compete with other producers to reach audiences. Vertical integration can often tilt the playing fi eld against independent Canadian producers. However, the emergence of new distribution technologies may represent an opportunity to re-level the playing fi eld to some degree, or at least give Canadian producers other options for reaching audiences. A scan of the industry structure and recent developments in children s and youth programming in other countries reaffi rms the case for the national public broadcaster to maintain a strong presence in the genre, even with specialty cable channels holding leadership in terms of commercially oriented programming dedicated to children and youth. the pervasiveness of vertical integration Like other genres, the children s and youth programming industry is one characterized by signifi cant vertical integration. The Walt Disney Company represents the quintessential vertically integrated media company. It combines production assets (Walt Disney Pictures, Pixar, Miramax and Touchstone Pictures), and distribution (Buena Vista Entertainment, Buena Vista Television) with a series of media outlets that blanket television screens in the U.S. and other countries. max & ruby 2006 M & R Story Productions Ltd. Another major vertically-integrated player in children s and youth production is CBS/ Viacom. While the two companies did split into two separate corporate entities on December 31, 2005, they continue to maintain business relationships. Between them, these two companies control major broadcast outlets for children s programming, including CBS, Nickelodeon, Nicktoon, NickJr., Noggin/The N. These two companies also control major production and distribution arms (Paramount Pictures, Paramount Home Entertainment, and Dreamworks Entertainment). CBS also holds a joint interest in the CW. Time Warner Inc., itself, is another vertically integrated operation that owns the Cartoon Network, several production companies (Warner Bros., New Line Cinema, Castle Rock Entertainment), and has access to the fi lm libraries of MGM, Warner Bros and Hanna- Barbera. In addition, Time Warner Inc. owns Time Warner Cable with over 27 million cable subscribers in the U.S., not to mention AOL. 16 Canada also has its share of vertical integration. The Shaw family controls both Shaw Communications Inc. and Corus Entertainment. The former provides mutltichannel cable/ satellite services to 30 percent of Canadian multichannel households. The latter controls

23 three of Canada s major children s television broadcast outlets (YTV, TreehouseTV, Discovery Kids Canada) and holds 50 percent of Teletoon. Corus also owns Nelvana, one of Canada s largest producers and distributors of animation programming. These large vertically integrated media groups, which have emerged over the last decade, possess the economies of scale and scope that allow them to manage the economic risks associated with generating and marketing screen-based content for children s and youth audiences. Vertical integration does not entirely preclude independent production from entering the media channel; however, it does raise the bar for independent producers in Canada and elsewhere. Independent producers have to be that much better. On the domestic front, Canadian broadcasting policy and broadcasting licence conditions help to ensure a place for independent producers; but, in the international market, Canada s independent producers are faced with a far more formidable task today than ten years ago. increased global competition Following a decade characterized by broadcaster vertical integration, children s and youth broadcasters have recently expanded by penetrating new international markets. To maintain their market share, domestic networks have had to react quickly to the newly arrived competition. The resulting competition between broadcasters has bided well for audiences, who benefi t from greater diversity and higher quality programming. mighty jungle 2007 Mighty Jungle 2 Productions Inc. the adventures of dudley the dragon Courtesy of Breakthrough Entertainment. The expansion by broadcasters to international markets has primarily been led by two networks: Nickelodeon and Disney. Since 2001, Nickelodeon has launched or re-launched its children s and youth network in over 12 markets across the globe. In 2008 alone, Nickelodeon launched dedicated Arabic, Polish, and Swedish channels. In addition to its existing global portfolio, Disney has launched over seven new services since Starting with Disney Latin America in 2000, Disney launched networks in Scandinavia, Japan, India, Poland, Malaysia, and most recently Belgium and The Netherlands in These new service initiatives in multiple countries do have one positive effect on those markets, as noted earlier. They do put pressure on local broadcasters to compete, and thus create new markets for Canadian programming. The problem is that for any international expansion to occur there must be a domestic market expansion in Canada. Production companies operating in Canada cannot easily develop programming strictly for the international marketplace. They need the domestic broadcaster to pay for part of the production cost, as well as triggering CTF, tax credit fi nancing, and independent production funds. If the domestic market would rise to the occasion, it is likely that the international market would be there to take up its share of the fi nancing required. This foreign market potential points back to domestic broadcasters they should be encouraged to make more of a commitment to independent Canadian programming and thus increase the total market for Canadian children s and youth programming. accelerated proliferation of online and multi-platform content As with other genres, online and multi-platform distribution strategies have become fundamental to the success of children s and youth programming. No longer seen as strictly a competitive advantage for producers, multi-platform content is quickly becoming a requirement for winning distribution deals with broadcasters. The multiplatform revolution is particularly important among children s and youth programming, as each new generation of children grow up more tech-savvy than the previous one. Given the fast adoption and uptake of new technologies by children and youth, the genre is well poised to be a catalyst in the development of multi-platform content. This unique position may afford producers of children s programming inroads to developing viable new business models. Online and multi-platform programming is quickly becoming the status quo for producers. One Canadian producer interviewed by Nordicity noted that despite having uncharted business models and revenues, producers can t develop a new project without implementing interactive. Broadcasters are demanding more rights than ever before in their negotiations with producers, and in many cases, are obtaining international ancillary rights for which 17

24 many appear to have no clear plans or ability to exploit. Broadcasters around the globe have moved quickly into the online distribution environment, but have not exploited their rights wholeheartedly. While they recognize the growing importance of online distribution, broadcasters have yet to monetize it, resulting in their continued reliance upon traditional distribution models. Disney leads the online distribution of linear and interactive content for children worldwide. Nickelodeon hosts numerous interactive websites for children and youth, including Nick. com, Nickjr.com, Nickatnight.com, tvland.com, and teachers.nick.com. In Canada, Corus Entertainment Inc. s TreehouseDirect.com distributes pre-school programming online, complete with episode downloads and interactive games. Corus also has a stake in qubo, a multiplatform network for children s programming, complete with a branded website, a 24/7 standalone digital broadcast channel, and video-on-demand services. Teletoon has developed an online video player, Teletoon.com, available over Cogeco On Demand, Rogers On Demand, and Telus Mobile TV. In spring 2009, Teletoon partnered with itunes to distribute fi ve children s and youth television series in Canada, and has indicated plans to make branded iphone games, sneak previews and back catalogue episodes available online (Reusch 2009). The worldwide proliferation of online content has been led largely by video sharing website YouTube, which was acquired by Google Inc. in In the U.S., YouTube reaches approximately 26 percent of the population (79.3 million) monthly, of which three percent are aged 3-11, and 19 percent are aged (Quantcast 2009). The YouTube trend is even more profound in Canada, where the penetration rate is higher than in the U.K., Germany, France, and U.S. Approximately 55 percent of Canadians (18 million) viewed YouTube videos in one month (Tcholakian 2009). In November 2008, TVO announced that it would launch its own channel on YouTube in TVO s YouTube channel will feature the programming which it produces itself; so it is unclear exactly how much children s educational programming will be available to YouTube users. Nevertheless, TVO s YouTube channel complements the broadcaster s tvokids.com web site. In the U.S., Hulu.com, launched NBC Universal and Fox in 2008 is at the forefront of advertiser-supported streaming of Flash Video over the Internet. Hulu s main rival is TV.com, which is CBS Interactive s streaming catch-up service for television programs. PBS has also launched an online channel of current and archive content, with plans for original web productions in the future. Children s and youth programming is a catalyst in the development of web integration. The high digital literacy among kids makes them natural early adopters of new technologies. Children s and youth programming has embraced multi-platform content over the past fi ve years, and these trends are certain to continue. This digital demographic was born in an age of interactive children s games such as Club Penguin and Webkinz, and their demands far exceed the offerings of traditional television programming. peter pepper s pet spectacular Cookie Jar Entertainment Inc. Cellular phones are also increasingly being used for the streaming of screen-based content, particularly among teenagers and the iphone may accelerate this practice. Mobile television uptake is growing worldwide, most notably in Asia (Arthur D. Little 2009). Penetration has also been high in the UK, where 21 percent of children aged 12 to 15 watched television, fi lms or video clips via another means than from television, including internet, mobile phone, portable player, or ipod (Ofcom 2008, p.31). Meanwhile, over 35 percent of children in the UK own a cell phone by the age of eight, and one-quarter of the children surveyed have used their phones to vote in online television competitions (Adams 2009). This trend will continue among all demographics with the introduction of new and accessible mobile devices. Broadcasters have caught on to these trends, often forging partnerships and brand extensions with established children s brands. The Cartoon Network has ramped up its content development strategy, which includes bold moves into digital and multi-platform content. As part of this strategy, the Cartoon Network partnered with the National Basketball Association to produce multi-platform children s programming for network broadcasting, online and internet distribution. Starting with the lifestyle series 18

25 My Dad s A Pro, the Cartoon Network plans to launch more short-form and long-form productions along this vein (Cartoon Network 2009). In early 2009, YTV and Hasbro Canada partnered to introduce a CampNerf.ca multi-platform campaign for children. By incorporating programming with online games and contests, the campaign culminates in a real-life competition through YTV s annual Weird on Wheels tour (Kubaras 2009). Such advances in distribution mirror children s appetite for multi-platform content, and ultimately raise the bar for producers in their delivery. The current trend toward multi-platform distribution is found across the globe. In the UK, Channel 4 s youth drama series Skins has been a champion of multi-platform content. Offering elaborate interactive web content, character blogs, webisodes and podcasts, Skins has upped the ante in U.K. youth programming. To promote the programming and engage audiences, the broadcaster has hosted real-life launch parties for fans in cities across the U.K., and makes use of user-generated content through real-life competitions for viewers. It is quickly becoming apparent that interactivity and innovative marketing are increasingly essential features of the multi-platform or 360-degree content approach to programming, which broadcasters are seeking. Exhibit 10: Snapshots of children s and youth programming in selected countries United States United Kingdom Children s and youth programming in the U.S. is led by Disney, Nickelodeon, Cartoon Network and Discovery Kids, and their associated spin-off channels cable and satellite broadcast outlets. All three major commercial networks air Saturday morning children s programming blocks. NBC airs qubo, a three-hour children s programming block on Saturday mornings to replace its previous Discovery Kids block. CBS runs KEWLopolis, a three- hour live action and animation block for chjildren, since KOL withdrew from CBS in Disney owned ABC airs ABC Kids, a four-hour Saturday morning block exclusively of Disney Channel and Disney XD programming. Meanwhile, it is unknown if Fox will resume its children s programming, since its deal with 4KidsTV terminated in December The CW a 2006 joint venture between CBS Corporation, former UPN investors, and Warner Bros. airs a fi ve- hour children s programming block on Saturday mornings, and began streaming full-length episodes on the Internet in U.S. Broadcasters have been quickly adopting interactive and multimedia distribution models. PBS introduced a video-on-demand (VOD) service for pre-school-age programming, which was so popular that it spawned a linear-programming cable channel, PBS Sprout. Broadcasters such as PBS have been able to forge agreements with cable companies like Comcast to facilitate the roll-out of VOD offerings like PBS Sprout. PBS has also introduced online programming and games through outlets such as PBS Kids Play and PBSKidsGo.org aimed at varying age groups within the PBS Kids brand. Nickelodeon has Turbo Nick, which avoids the cable companies altogether and goes straight to the consumer over the Internet. Internet providers/portals, themselves, are also jumping into the fray of interactive children s content. In the U.S., America On-Line (AOL) has introduced AOL for Kids (KOL), which is fast becoming a portal for the distribution of screen-based content and interactive media. The U.K. s children s and youth television market remains fairly robust, with 25 dedicated children s channels and 113,000 hours of programs each year. However, certain sub-genres of children s and youth remain under-represented in terms of domestic content. Meanwhile, it is difficult for producers to find viable sales opportunities, as commercial broadcasters are reducing new commissioned kids programming. Not only are broadcasters paying less for programming, commercial public service broadcasters (ITV1, GMTV, Channel 4, and Five) have reduced their investment in first-run original programming to one-half of 1998 levels. The commercial multichannel services (Disney Channel, Nickelodeon, and Cartoon Network) commission only 10% of their total investments in new children s programs, and so, cannot offset the declines among public service broadcasters. In November 2006, Ofcom introduced restrictions on the television advertising of food and drink products to children. Ofcom estimated that these restrictions would reduce broadcasters advertising revenues by 39 million per year; Ofcom acknowledged that children s programming would be the hardest hit by such restrictions (Sweeney 2008). Since the enactment of the Communications Act 2003, which removed programming requirements specifi c to children s programming, the public service broadcasters are free to choose their content (Ofcom 2007). With declining revenues, broadcasters such as ITV have replaced their children s programming with drama repeats and movies. In 2006, ITV plc launched the CITV Channel on which it aired children s programming from 6am to 6pm daily. GMTV (owned by ITV plc 75%, The Walt Disney Company 25%) has reduced its children s programming to the Toonattik strand on weekends. Channel Five airs the three-hour morning block Milkshake, for pre-schoolers daily. In 2007, Five replaced its children s weekend morning block Shake, in favour of the Australian soap opera, Neighbours. The BBC remains the leader in UK children s programming, with two dedicated children s digital channels, CBBC and CBeebies, both available on BBC iplayer. CBBC provides an interactive service, CBBC extra, which offers horoscopes, games, jokes and competitions for viewers. CBeebies is aimed at children six and under, airs programming on BBC One and BBC Two. The international CBeebies has been broadcast in over eight foreign markets: India, Singapore, Hong Kong, Poland, Indonesia, Mexico, Africa, and Australia. Flagship channel BBC One airs over two-hours of children s content each day, and BBC2 has been airing the children s morning block since its move from BBC1 in On direct-to-home (DTH) satellite and cable, many of the familiar global brands, such as the Disney Channel, Nickelodeon, Cartoon Network and Boomerang compete with the BBC s dedicated children s services. Continues on page 20 19

26 Continued from page 19 Australia In 2007/08, the total volume of Australian children s television drama rose to A$115 million (C$100 million), from A$75 million (C$68 million) in 2003/04. There were a total of 15 children s drama television projects in 2007/08 comprising 172 hours of original programming. Out of the total volume of production, international co-productions accounted for seven projects and A$62 million (approx. C$55 million) in production. In 2007/08, the average per-half-hour budget of Australian children s television drama was A$333,000 (approx. C$293,000) (Screen Australia 2008). Children s television broadcasting in Australia is promoted by considerable demand and supply-side government intervention. On the demand side, existing Children s Television Standards require each of the over-the-air commercial broadcast networks Seven, Nine and Ten to televise at least 390 hours per year of children s and pre-school programming (Australian or non- Australian). Of these 390 hours, at least 130 hours must be for pre-schoolers ( P programs ), and 260 hours for children ( C programs ). Subsequently, all of the P programs and one-half of the C programs must be of Australian origin. The standards also require broadcasters to air 32 hours per year (on average) of first-release Australian children s drama, and a minimum of eight hours per year of repeat Australian children s drama. As of 2009, these standards are under review, and the 2008 draft standards propose more flexibility in how quotas for children s and pre-school television programs could be achieved. The national public broadcaster, ABC, dedicates a significant portion of its daily schedule to children s programs, for which only submissions from Australian producers are accepted (Australian Broadcasting Corporation 2009). ABC often exceeds the minimum requirements; in 2006/07 for example, it broadcast over 2,000 hours of programming for children and youth (Australian Broadcasting Corporation 2007). While not subject to commercial broadcast standards, ABC remains active in acquiring new and repeat children s programming. ABC has a strong preference for commissioning multi-platform programming, particularly in immersive worlds, massively multi-player online games, groundbreaking community tools, UGC solutions that can produce broadcast quality content and other innovative forms of TV/Web Cross-Pollination (Australian Broadcasting Corporation 2009). ABC has ventured into digital interactive programming through its RollerCoaster Interactive TV application by incorporating, games, SMS, user-generated content and competitions (Australian Broadcasting Corporation 2007), and thereby continues to demonstrate its leadership in multi-platform programming. ABC2 airs six hours of children s programming during weekdays and eight hours on Saturdays. Aired under the block ABC Kids, the programs are commissioned from both in-house and external sources. Children s broadcasters on Australian pay television include Disney Channel, Nickelodeon, Cartoon Network, and Discovery Kids. In 2008, Screen Australia was established as the national screen agency through the consolidation of the Australian Film Commission, Film Australia, and the Film Finance Corporation Australia (FFCA). In addition to the Producer Offset, Screen Australia supports children s mini-series, animated mini-series and telemovies through the Children s Television investment program, to a maximum total contribution of $4.5m for the largest projects. In 2009, the Australian government approved ABC s proposal to launch ABC3: a free digital channel that will air 15 hours per day of children s programming along with interactive and online content. This new service will be ad free and exhibit 50% Australian content (Sinclair 2009). Source: Nordicity research 20

27 television audiences: a strong record of attracting canadian children to canadian programs In recent years Canadian policy makers have underlined the policy objective of attracting larger Canadian audiences to Canadian programming. There has been an increased emphasis on building audiences and rewarding success in attracting viewers. Canadian children s and youth programming has always had relatively strong audience performance within its target demographic. canadian programming highly competitive in the children s genre Audience statistics demonstrate that children s and youth television programs are very strong within their target market viewers aged 2 to 17. What is more, Canadianproduced children s and youth programming has a much better record at reaching its intended audience than Canadian-produced prime-time fiction does; it also fares better against competition from foreign programming in Canada. During the 2007/08 television season, Canadian-produced children s and youth television programs comprised three of the top ten children s and youth programs in the Englishlanguage market. In the other fi ction genre, prime-time drama/comedy, there were no Canadian-produced television programs among the top ten in the English-language market. Exhibit 11: Number of Canadian-produced programs among the top ten programs (based on average minute audience), 2007/08 kaboum Productions Pixcom Inc. Source: CMRI (Nielsen) and Nordicity research See Note to Exhibit 12 21

28 In the French-language market, Canadian-produced programs dominated the list of the top ten prime-time drama/comedy programs holding all ten spots. Canadian-produced children s and youth programs held six of the top ten positions, including the top three positions. This total was fewer than in prime-time drama/comedy, but still higher than in the English-language market. Exhibit 12: Top ten children s and youth television programs, English-language market, 2007/08 Rank Title Broadcast Network Origin AMA (Ages 2+) 1 Degrassi: Next Generation CTV Canada 380,000 2 Hannah Montana Family U.S. 374,000 3 Suite Life Zack Cody Family U.S. 321,000 4 Zoey 101 Family U.S. 281,000 5 Instant Star CTV Canada 261,000 6 Life with Derek Family Canada 251,000 7 Cory in the House Family U.S. 247,000 8 That s So Raven Family U.S. 235,000 9 Wizards of Waverly Place Family U.S. 232, Phineas and Ferb Family U.S. 229,000 Source: CMRI (Nielsen) and Nordicity research Note: The Nielsen database does not explicitly identify television programs as children s and youth programming. To identify children s and youth television programs within the Nielsen database, Nordicity and CMRI examined the share of total audience comprised of persons in the 2 to 17 age group, Nordicity and CMRI also took into account the subject matter of the program and its intended audience. Exhibit 13: Top ten children s and youth television programs, French-language market, 2007/08 Rank Title Broadcast Network Origin AMA (Ages 2+) 1 Ramdam Télé-Québec Canada 287,000 2 Kaboum Télé-Québec Canada 194,000 3 Toc, toc, toc Télé-Québec Canada 178,000 4 Une Grenade avec ça? VRAK Canada 168,000 5 Hannah Montana VRAK U.S. 141,000 6 Samantha VRAK U.S. 129,000 7 Vie de palace de Zack & Cody VRAK U.S. 125,000 8 Il était une fois dans le trouble VRAK Canada 120,000 9 Phénomène Raven VRAK U.S. 117,000 10a Toupie et Binou Télé-Québec Canada 113,000 10b Bob l'éponge VRAK U.S. 113,000 Source: CMRI (Nielsen) and Nordicity research See Note to Exhibit 12 Among the fiction genres, Canadian-produced children s and youth television programs are much more prominent among the top-rated programs when compared to primetime drama/comedy. This demonstrates that Canadian-produced children s and youth programming does indeed attract Canadian audiences and can compete in the Canadian market with world-class programming from the U.S., U.K. and elsewhere, whether it is televised in English or French. 22

29 attracting a larger market share than other genres Overall, in the English-language market, Canadian-produced children s and youth programming captures a much larger share of its target demographic (2 to 17) than other CTF-supported genres drama/comedy, documentary, variety and performing arts do in the 18-to-49 age demographic, particularly in the English-language market. During the 2007/08 television season, Canadian-produced programs in the CTF-supported genres accounted for 19% of all television viewing (all day) by English-language Canadians aged 18 to 49. In stark contrast, Canadian-programming captured 36% of total viewing by Canadian children aged 2 to 11 nearly double the viewing share among the 18-to-49 and 50+ age groups. In the 12-to-17 age group, the audience share of 21% for Canadian programming was more in line with the share in the adult age groups. In the Frenchlanguage market, Canadian programming also captured a larger share (43%) of audiences in the target demographic for children s programming, 2 to 11, however, the advantage was only narrowly higher than the share in the 18-to-49 (40%)and 50+ (39%) age groups. Exhibit 14: Viewing to Canadian programming as a share of total viewing in key age demographics, 2007/08 Exhibit 15: Viewing to Canadian programming as a share of total viewing in the CTF-supported genres, (6 a.m. to 2 a.m.), 2007/08 Source: CMRI (Nielsen) Note: Percentages are based on total hours of viewing to Canadian programming in the CTF-supported genres (children s and youth, drama, documentary, and variety and performing arts) as a share of total hours of viewing to television. Source: CMRI (Nielsen) VAPA: Variety and Performing Arts Audience statistics for overall viewing over the whole television day (6 a.m. to 2 a.m.) indicate that Canadian-produced children s and youth television programs deliver the highest share of viewers to Canadian programming in the English-language market when compared to other CTF-supported genres. In the 2007/08 television season, Canadian-produced children s and youth programs accounted for 55 percent of all viewing to children s and youth television programming in Canada. Viewing to foreignproduced children s and youth programs accounted for 45 percent of all-day viewing. In the French-language market, Canadian children s and youth programming attracted an even larger share of the total audience within the genre. During the 2007/08 television season, 82 percent of the total viewing of children s and youth programs was to Canadian-produced programs. This was higher than any other CTF-supported genre in the French-language market, and well above the overall 68 percent share garnered by Canadian programming in the French-language market. 23

30 employment: a source of careers for canada s creative / technical workforce All forms of screen-based production are very labour-intensive activities. Television and fi lm productions employ a wide array of creative and technical personnel from writers to accountants to carpenters to electricians to musicians. Children s and youth television production, and animation production in particular, make an even greater contribution to employment; this greater contribution arises in several different ways. Exhibit 16 Average number of annualized full-time equivalent jobs for a 26 half-hour episode series (average episode budget of $500,000) Source: Estimates based on data from CAVCO and Statistics Canada despite technology, animation production remains labour intensive With the help of computer technology, the animation production process has come a long way in terms of the time and labour required to complete a finished product. Despite the contribution of computer technology, however, animation productions still devote a larger share of their production budgets to labour than the live-action format. According to data from CAVCO, 55 percent of the total budget for a live-action production was devoted to Canadian labour costs; for animation productions, the Canadian-labour share was 61 percent 6. With a higher share of project budgets devoted to labour expenditures, animation production and children s and youth production, in general, generate more direct production jobs for every dollar of production activity. While a typical 26 half-hour episode liveaction series with, for example, a per-episode budget of $250,000 would generate, on average, 71 annualized full-time equivalent production-industry jobs throughout the production cycle, an animation production of similar scope would generate 79 annualized 7 full-time equivalent production-industry jobs. Animation production today often employs sophisticated computer hardware and software technology; but it does not require the studio, lighting, set material and location-shooting paraphernalia that are often required for live-action productions. Because of this, more of the animation-production process originates from human input, rather than equipment and materiel. Not only does animation production generate more jobs for each dollar of production, it also generates jobs with longer tenures. Animation-production jobs tend to have longer tenures than jobs in live-action production, because the animation projects themselves take longer to complete. The typical Canadian live-action drama series will include 13 episodes, and will require three months of shooting. The majority of Canadian animation productions have 26 episodes or more. Data from CAVCO indicate that in 2007/08, 17 out of a total of 28 children s animation projects had 26 episodes or more; an additional fi ve television-series projects had 13 or 14 episodes. The completion of a 26-episode animation project can require as long as two years to complete (Australian Film Commission 2006, p. 118). This suggests that the production of an animation 6. Canadian labour share statistics are based on CAVCO-certified productions between 2005/06 and 2007/ We refer to the jobs as annualized because the calculations are based on an annual average salary. Therefore, a project running for six months, for example, would employ double the number of persons because the average salary would be one-half of the annual average. 24

31 television series requires about double the time that a live-action television series requires. A production job is a production job; but one that is expected to last two years as opposed to three months does give the production professional a certain degree of security that they may not find working on the set of a live-action project. In 2007/08, children s and youth television and film production generated an estimated 2,500 full-time equivalent production-industry jobs (often referred to as direct jobs). Of these 2,500 direct jobs, approximately 2,000 were in animation production; approximately 500 were in the production of live-action programs. The direct employment in the industry as well as the use of services and equipment in the production process generated an additional estimated 3,900 full-time equivalent jobs in other areas of the Canadian economy. Exhibit 17: Total full-time equivalent jobs generated by children s and youth television and film production une grenade avec ça? Zone3 inc. Source: Estimates based on data from CAVCO, CRTC and Statistics Canada The contribution of children s and youth production to employment in Canada in 2007/08, of course, is below what it has been in past years. Despite the spike in production volume and employment in 2006/07, the industry has witnessed a steady decline in employment since 1999/00. The drop in the volume of production since 1999/00 has forced the industry to shed the equivalent of 2,100 full-time jobs. Job losses in television and film production can be stealth-like; they occur in small increments, as projects wind up without enough new projects to replace the old ones. Job losses in television and film production do not make the newspaper headlines the way that the closing of a factory employing 2,100 persons would. canada a leader in training and skills development Over the last several decades, Canada has established itself as a world leader in animation training. The NFB has been involved in animation production since the 1940s, and has garnered numerous accolades for its innovation in the field. Today, the NFB s Hothouse and Cinéaste recherché programs give emerging animation filmmakers an opportunity to develop their skills and showcase their talent. Sheridan College, in Oakville, Ontario, is considered among the top schools in North America for animation training. In 2009, Centennial College in Toronto launched a post-graduate program in children s and youth entertainment, the Children s Entertainment: Writing, Production and Management course. 25

32 Training and a career in children s animation production provides an excellent springboard for creative roles in other genres of production and in other occupations in the knowledgebased economy. More and more, live-action formats from feature fi lms to television commercials are employing visual effects in production. Computer-animation professionals also have the skills required to excel in the fast-growing video-game design and production industry. And the career opportunities for computer-animation professionals do not stop with the screen-based industries. Interactive visual imagery is playing a larger and larger role throughout the knowledge-based economy. From e-learning to architecture to engineering to biotechnology, computer-based applications that employ screen-based content are already the new standard for training and design tools. Careers in computer animation and design are quintessential creative-sector jobs. And it will be these creative-sector jobs which will help Canada establish its competitive position in the global economy in the years to come. To fully realize the investments that we have made in training our production professionals and animation specialists, we need to provide opportunities for them to pursue careers in Canada. With a strong children s and youth screen-based production sector, we can retain the professionals who can make contributions to Canada s creative economy and its global competitiveness. Exhibit 18: Share of the total volume of children s and youth television production by region, 2005/06 to 2007/08 Source: Estimates based on data from CAVCO children s programming s contribution to regional employment While much Canadian television and film production is often concentrated in Montreal and Toronto, like other genres, children s and youth production creates jobs in virtually every province. Several of Canada s producers of children s and youth programming are located outside of Montreal and Toronto. Studio B Production s offices are located in Vancouver, British Columbia; Halifax, Nova Scotia is home to Halifax Films and Copernicus Studios; Amberwood Entertainment, Balestra Productions, and Mercury Filmworks are located in Ottawa, Ontario; Trapeze Animation is in Charlottetown, Prince Edward Island; Vérité Films is based in Regina, Saskatchewan. Original Pictures, the production company behind Falcon Beach; is based in Winnipeg, Manitoba. Calgary-based Alberta Filmworks co-produced Shoebox Zoo. 10e ave Productions is based in St-Augustin-de- Desmaures, Quebec. Indeed, during the last three years, there has been children s and youth television production activity in every single region of Canada. an excellent training ground for work in other genres Not only does children s and youth production offer longer-tenure jobs outside of the major production centres, as well as skills transferable to other knowledge-based sectors, it also can give Canadian producers and creators an excellent training ground for developing into leading makers of prime-time fiction programming and feature films. Many of Canada s leading producers, directors and writers have cut their teeth on children s programming. As a young actor, Canada s Sarah Polley was well-known for her acting role in the Road to Avonlea and her Gemini Award winning performance in the children s and youth program, Straight Up. Today, Ms. Polley is one of Canada s leading actors and directors. Her feature-length directorial debut, Away Form Her, drew global critical acclaim and an Oscar nomination in 2008 for Best Writing, Screenplay Based on Material Previously Produced or Published. The children s and youth genre also attracts many of Canada s leading filmmakers, allowing them to hone their skills between larger feature film projects. One of Canada s leading feature film directors, Bruce McDonald, has directed episodes of Degrassi: The Next Generation and Instant Star alongside his numerous theatrical release feature films. Acclaimed Jamaican-born Canadian filmmaker Clement Virgo wrote and directed the youth film The Planet of Junior Brown in the mid-1990s; in recent years, he has directed episodes of The Wire. 26

33 international markets: attracting foreign financing and after-market sales One of the hallmarks of children s and youth television programming, particularly animation, is that it has tremendous international sales potential: children s and youth programming is often said to travel well. Indeed, there is a long list of Canadian children s and youth programs airing on broadcast outlets in the U.S. and elsewhere. Jimmy Two Shoes, Zimmer Twins, and Franny s Feet, are just a few examples of Canadian-produced programs currently airing on broadcasters outside of Canada. Exhibit 19: Selected list of Canadian-produced children s and youth television programs currently airing outside of Canada Title Broadcaster (Country) Title Broadcaster (Country) 6Teen Arthur Bali Cartoon Network (U.S.) PBS (U.S.) France 5, Disney (France), RTBF (Belgium), Raisat (Italy), EBS (Korea) Gofrette Grand Star / La Compagnie des glaces HOP Channel Ltd (Israel), Al Jazeera Children's Channel (Middle East), YLE/TV2 (Finland), Vitra Poland France 2, RTBF (Belgium), Raisat (Italie) Being Ian Cartoon Network Latin America, KIKA (Germany), ABC (Australia), Canal+ (France), Teletoon (France) Jimmy Two Shoes Disney XD (U.S.); Jetix (U.K.) Berenstain Bears PBS (U.S.) Kid vs Kat itunes, Jetix Europe Blaise le blasé (Fred's Head) Bo on the Go Caillou Captain Flamingo Dans une galaxie près de chez vous Degrassi Doodlez Franklin Canal+ (Switzerland, France), TV3 - Catalunya (Spain), TSR (Switzerland), Noga (Israel), RTBF (Belgium, Luxembourg), Telecomplex (Greece), YLEISRadio (Finland) Broadcast on 17 networks around the world PBS (U.S.) Jetix (U.K.), ABC (Australia), Disney XD (U.S.) Plug-TV (Belgium) The N (U.S.) Nick Jr. (U.S.) Cartoon Network international Noggin (U.S.) Leon L'hiver de Léon Life with Derek Little Bear Maggie and the Ferocious Beast Manon Max and Ruby Méchant changement Astro (Malaysia) Walt Disney Television International (Japan) Tvigle (Russia) Muz (Russia), CN (Korea) France 3, TPS (France) Disney Channel (U.S.) Noggin (U.S.) Noggin (U.S.), Cartoon Network (U.S.), Kids WB Jr. (U.S.) TIJI (France), TV2 (Norway), Duna Televizio (Hongrie), Al Jazeera (Middle East), V-Me (U.S.), Disney (Latin America), Canal Panda (Portugal) Noggin (U.S.), Nick Jr. (U.K.), ABC (Australia) Gulli (France) Franny's Feet George of the Jungle Channel 4 (U.K.), ABC (Australia), PBS (U.S.) Cartoon Network (USA, Russia, Germany, pan-european), NickToons (UK), Nickelodeon (Sweden), Disney Channel (Australia, Spain, Asia, Latin America, Brazil), Toon Disney (Japan) Miss Spider's Sunny Patch Friends Monster Buster Club Noggin (U.S.), Nick Jr. (U.S.) TF1 (France), Jetix (Europe) Continues on page 28 27

34 Continued from page 27 Title Broadcaster (Country) Title Broadcaster (Country) My Goldfish Is Evil! Mystery Hunters Naturally Sadie ABC (Australia), RRS (Germany/Serbia/Bosnia/Macedonia), M-RTL (Hungary), Noga (Israel), Raisat (Italie) Discovery Kids (U.S.), TRT (Turkey), Pyramid Entertainment (Kuwait), DMAX (U.K.), Sky Digital (U.K.), Mediacorp (Singapore), RCTV (Venezula), Middle East Media (Middle East), Television Broadcasting (Hong Kong), Discovery Channel (India) Disney Channel (U.S.), Nickelodeon (U.K., Australia, Spain, Germany), RTE 2 (Ireland), Channel 1 (Israel), E-Junior (United Arab Emirates) The Backyardigans The Doodlebops The Hoobs The Latest Buzz The Mighty Jungle This is Daniel Cook Nick Jr.(U.S./U.K.), ABC Kids (Australia), Disney Channel (U.S.), Playhouse Disney (U.K.) Nickelodeon (U.K.) Disney Channel (U.S., France, Italy), ABC (Australia), Boomerang (U.K.), SuperRTL (Germany) PBS Kids Sprout (U.S.) Disney Channel (U.S.), Disney Japan, ABC2 (Australia) Noonbory & the Super 7 TG4 (Ireland) This is Emily Yeung Disney Channel (U.S.), Disney Japan Overruled Disney Channel (U.S.) Toot & Puddle Noggin (U.S.) Postcards from Buster Prank Patrol Radio Free Roscoe PBS (U.S.) Cartoon Network (Asia), Pyramid Entertainment (Kuwait), CBBC (U.K.), TV2 Zebra (Norway), 7 Arts / Rainbow (Middle East / North Africa) The N (U.S.) Totally Spies Toupie et Binou (Toopy and Binoo) Walter TF1 (France), Jetix (Europe) Al Jazeera (United Arab Emirates) Canal J (France) Cartoon Network (Latin America), TV5 Monde, Walt Disney Channel (New Zealand, Australia, Samoa, Tuvalu, Vanuatu, Nauru, Tonga, Salomon Islands, Kiribati, Fiji, Marshall Islands, Micronesia) Once TV (Mexico), YLE (Finland), NRK (Norway) Razzbery Jazzberry Jam Save 'Ums Discovery Kids Latin America ABC Kids (Australia Will & Dewitt Yvon of the Yukon CW (U.S.), Tiny Pop (U.K.) CBBC (U.K.) Surprise! Its Edible! Incredible! Team Galaxy Mediacorp (Singapore), I Intellect (Malaysia), PT Citra (Indonesia) France 3, Jetix (Europe), Rai (Italy), Nickelodeon (Asia), Cartoon Network (Australia, New Zealand, Taiwan). Zimmer Twins Méchant changement ABC (Australia) Gulli (France) Source: Nordicity Group research. Note: This is not an exhaustive list of all Canadian children s and youth programs airing in broadcasters outside of Canada. Statistics on foreign fi nancing of Canadian production and estimates of international after-market sales further underline the international sales potential of Canadianproduced children s and youth programming. In 2007/08, Canadian children s and youth television programming attracted an estimated $37 million in foreign fi nancing, including pre-sales to foreign broadcasters and advances from foreign distributors. Children s and youth production accounted for 18 percent of the total amount of foreign fi nancing of Canadian television production in 2007/08, 50 percent higher than the genre s 12 percent share of total Canadian television production volume. franny s feet 2004 DECODE/Franny Productions 2 Inc. The export performance of Canadian children s television programming is even stronger when one considers the international after-market sales that it generates. Based on data collected through a survey of children s and youth television production companies in Canada, Nordicity estimates that Canadian children s and youth programs yielded an additional $66 million in international licensing revenues in 2007/08. In total, therefore, Canadian children s and youth television programming generated an estimated $103 million in international export revenues in 2007/08. 28

35 Exhibit 20: Estimated export value and international after-market sales of Canadian children s and youth television programming 2007/08 ($ millions) Export value (value of international pre-sale financing) 37 Value of international after-market sales 66 Total 103 Source: Nordicity Group calculations based on data from CAVCO and 2009 survey of Canadian children s and youth producers. decline in international treaty co-production International treaty co-production has been one of the avenues for Canadian producers of children s and youth programs to access foreign financing, foreign creative talent, and foreign markets. The Government of Canada maintains treaties with 53 countries around the world. Canadian producers have taken advantage of these treaties to make numerous successful children s television series, including Yvon of the Yukon (China), Clang Invasion (China, Singapore), Chop Socky Chooks (U.K.), Captain Flamingo (France), and Martin Mystery (France), to name just a handful. Exhibit 21: Canada s international treaty co-production in the children s and youth genre jimmy two shoes Courtesy of Breakthrough Entertainment. Source: Telefi lm Canada Note: Statistics subject to change In 2007/08, Canadian producers were involved in $92 million worth (based on global budgets) of international treaty co-production in the children s and youth genre. Of this amount, the Canadian portion of the budget (i.e., expenditures on Canadian elements within the project) totalled $43 million. Just as the overall production volumes in Canadian television production in the children s and youth genre have fallen since the turn of the millennium, so have treaty co-production volumes in Canadian children s and youth projects. Canada s volume of children s and youth treaty co-production peaked in 2000 at $314 million. Between 2000 and 2007, it dropped by a staggering 71 percent from that peak. This drop in Canada s children s and youth treaty co-production mirrored the overall trend in Canada s treaty co-production across all formats and genres, but was, in fact, twice as steep. Between 2000 and 2007, Canada s total volume of treaty co-production dropped 29

36 from $893 million to $568 million a decrease of 36 percent. The causes of this precipitous drop are both external and internal to Canada. External developments such as Europe s move to a more intra-continental production market, following the adoption of the European Union s Television without Frontiers Directive; changes to the U.K. s policies related to domestic expenditures on international treaty co-production, and its sale-and-leaseback tax-relief provision; and the collapse of Germany s distribution market, following the bankruptcy of Kirsch Media have had an obvious impact. But at the same, Canada s attractiveness as a treaty co-production partner has waned. Indeed, Canada s co-production treaties are in need of some modernisation so that they can accommodate a higher degree of international creative cooperation. Exhibit 22: Estimated shares of Canada s international treaty co-production volume in the children s genre, by format 1999/ / / / / / / / /08 Animation 93% 74% 73% 70% 79% 100% 100% 94% 100% Live Action 7% 26% 27% 30% 21% 0% 0% 6% 0% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% Source: Nordicity estimates based on data from CAVCO 30 The lion s share of Canada s international treaty co-production in the children s and youth genre is in the animation format. In past years, there has been more live-action treaty co-production, but it has only been a fraction of the volume of animation production. The U.K. and France have, historically, been Canada s two leading partner countries for animation co-production; indeed Canada has an animation mini-treaty with France. During the mid-1990s, France lauded Canada as an ideal partner for animation production because of its tax incentives and the ability of Canadian companies to secure pre-sales to U.S. broadcasters (Nordicity 2004, p. 62). During these halcyon days of animation co-production, Canada-France producer pairings, including Nelvana and Ellipse, Cinar and France Animation, and CinéGroupe/Astral and Dupuis Audiovisual maintained profi table relationships (Nordicity 2004, p. 62). In recent years, however, France s content rules have worked against Canada-France co-productions. As well, the U.K. government has modified the guidelines for the tax incentives, available to international co-productions (CFTPA 2009, p. 31). The result has been an across-the-board drop in Canada s treaty co-production with U.K.-based producers in all genres, including the children s and youth genre. Canada s children s and youth producers have not been sitting back, however, in the face of the growing challenges associated with treaty co-production with European partners. Instead they have increasingly sought treaty co-production partners in other parts of the world. For example, CCI Entertainment Ltd. has produced with partners in New Zealand, China, and Australia in recent years; Breakthrough Films and Television has produced with partners in the Philippines. With more fl exible co-production treaties, Canadian producers could, invariably, access even more global talent and fi nancing to create children s and youth programming with international appeal. The Canadian market is a fi nite one; and it is one that is under continuous threat from American screen-based programming. Canadian children s and youth television programs have demonstrated resilience in fi nding broadcast sales and audiences outside of Canada; the list at the top of this section is evidence of this. Canadian children s and youth producers have achieved international sales in a very tight international pre-sale market. The pre-sale market is only going to become even tighter as emerging distribution models make broadcasters more inclined to only pre-pay for programming when they can obtain wider rights to alternate-channel revenues. In the next section, we examine the economics of children s and youth programming and show why it has grown into being a good business for broadcasters in Canada and elsewhere.

37 production economics: a better return for the production-financing dollar Children s and youth television programming has tremendous social and cultural value, but it also offers very compelling commercial value for broadcasters. In some cases, this commercial value is because of the advertiser interest that it attracts; in other cases, the commercial value arises from the interest of parents who choose to subscribe to children s and youth broadcasting services on behalf of their children. In either case, audiences drive much of the commercial value for broadcasters. Still, the commercial value of children s and youth television programming does not stop with viewing audiences. Children s and youth programming can generate tremendous merchandising potential. The producers of children s and youth television programs are not only in a position to license their creation to broadcasters, they can also license it to toymakers and other consumer product/services suppliers (e.g. restaurants). In this section, however, we focus on the commercial value that children s and youth programming offers to broadcasters. In this section, we present additional audience statistics, to those presented in Section 5, to show that children s and youth programming has the potential to generate commercial value for broadcasters and those that invest in its development and production. generating off-peak value to broadcasters degrassi Photo by Stephen Scott, 2008 Epitome Pictures Inc. All rights reserved. Children s and youth programming can also generate value for broadcasters by helping to attract audiences during times of the day and times of the year, when overall audience levels may be relatively lower compared to peak viewing periods. This type of benefi t is of particular value to conventional broadcasters that schedule different genres of programming throughout the day. Not surprisingly, television viewing by persons in the 18-to-49 age demographic begins to climb at around 2:30 p.m. and peaks at 35 percent at around 9:30 p.m. Television viewing by children in the two-to-fi ve age demographic is actually at its strongest in the early morning. The share of the pre-school demographic watching television climbs to about 20 percent by 9 a.m., before displaying a slow tail-off to about 3 p.m. in the afternoon. Some conventional broadcasters, such as the CBC and provincial educational broadcasters, take advantage of viewing differential; they schedule children s programs in the morning. But not all conventional broadcasters do take advantage of morning viewing by pre-schoolers. Children s and youth programming can also help conventional broadcasters maintain viewing levels during the summer months. Television viewing is generally lower in the summer, on an overall basis. However, the children s and youth demographics display much lower drop-offs in viewing when compared to the 18-to-49 age demographic. The viewing level among adults aged 18 to 49 averages around 14 percent during the period running from September to May. In June, July and August, the television viewing level for this age group drops by about 2.3 percentage points. Television viewing among children aged two to five drops by about 1.4 percentage points, when the summer is compared to the rest of the year. Television viewing among children aged 6 31

38 to 11, and youth aged 12 to 17 actually stays virtually unchanged between the summer and the rest of the year; the percentage drops are zero percent and 0.4 percent, respectively. Exhibit 23: Drop-off in television viewing shares during summer months, 2004/05 Source: Nordicity calculations based on data from CBC Research and Nielson Media Note: The average share of the total audience during June July and August was compared to the average across the other nine months the year. a higher probability of return Behind every successful television program, there are numerous failed ones; television production is a high-risk business. In many respects, television production is a hits business: one big success can make up for several less-successful projects. Within the Canadian television sector, any means of improving the probability of success can go a long way to improving the economics of the domestic production sector. Statistics from Telefi lm Canada point to children s programming as offering the best probability of return, when compared to other CTF-supported genres. Between 1996/97 and 2000/01, Telefi lm made equity investments through the CTF in 95 children s television projects. Of these 95 projects, 75 projects, or 79 percent of investments, generated some type of return or recovery of the equity investment. By comparison, the probability of return across all of Telefi lm Canada s investments was 63 percent. And probabilities in each of the other genres were also lower: drama (70 percent), documentary (63 percent), variety and performing arts (55 percent), feature fi lm (30 percent). Exhibit 24: Telefilm Canada equity recoupment as a percentage of equity investments (based on projects between 1996/97 to 2000/01) Genre Total number of projects with Telefilm Canada equity investment Total number of projects with recoupment (as of August 2005) of equity investment Percentage of equity investment with some investment recovery Children s % Drama % Documentary % Variety and performing arts % Feature film % Total % Source: Nordicity Group tabulations based on data from Telefilm Canada, see Analysis of Canadian Television Fund Equity Financing Recoupment Note: Figures include only recoupment from equity investments; figures exclude Telefilm recoupment from projects contracted prior to 1996/97. Figures only include revenues for projects contracted between 1996/97 and 2000/01. 32

39 a case for higher canadian broadcaster licence fees and investment in children s programs The audience efficiency, off-peak value, and probability of return all point to Canadian children s and youth television programming offering very good economics for broadcasters and other investors to some extent. Despite the good economic proposition offered by the genre, it is unclear whether or not producers are finding themselves in a position to capture much of this economic value. Instead, the licensing broadcasters may be capturing most of the value. According to financial statistics published by the CRTC, Canada s leading children s and youth specialty and pay television services had higher rates of profitability than most of the major fiction-programming-oriented specialty and pay services. On a combined basis, The Family Channel, YTV, Teletoon, Treehouse, and VRAK-TV posted a PBIT (Profit Before Interest and Taxes) margin of 40.6 percent in The leading fiction-programming services recorded a significantly lower PBIT margin of 27.9 percent. Exhibit 25: Profitability of selected pay and specialty television services, 2007 Genre Revenue ($) PBIT ($) PBIT margin Children s and youth specialty and pay services The Family Channel YTV Teletoon (English/French) Treehouse VRAK Total Fiction specialty and pay services Showcase Bravo! W Network The Comedy Network Space Movie Central TMN Series+ Super Écran Total 50,376,135 89,532,268 86,449,918 11,911,174 22,581, ,850,721 17,166,500 29,915,942 44,777,975 4,908,702 9,019, ,788, % 33.4% 51.8% 41.2% 40.0% 40.6% 63,838,203 43,658,213 73,549,854 49,785,135 46,700,737 86,354, ,994,799 23,044,949 55,012, ,939,488 9,058,613 14,057,103 29,123,813 12,212,333 19,147,045 18,531,719 23,155,203 12,018,871 18,589, ,894, % 34.6% 39.6% 24.5% 41.0% 21.5% 20.0% 52.2% 33.6% 27.9% Source: Nordicity Group calculations based on data from CRTC. The relatively higher profitability of the children s and youth genre among Canadian specialty and pay television services is partly a reflection of the economic strength of the genre and the position of Canadian broadcasters vis-à-vis producers. With such a wide divergence in levels of profitability among the two groups of broadcasters, surely there is room for children s and youth specialty and pay television services and conventional broadcasters for that matter to invest more in children s and youth programming via a combination of higher licence fees and perhaps more hours of original content. Of course, in the Canadian television programming market, broadcasters are just one of the major sources for investment in programming. In the next section of the report, we assess the public and public-private sources of financing available to Canadian children s and youth production. 33

40 public and public/private funding: too important for canadian governments to leave behind Thus far in this report we have seen that Canada s children s and youth production segment has a tradition of global leadership, delivers strong audiences, generates good careers for skilled Canadians, and offers good economic returns in domestic markets and international sales. Despite the social and cultural importance of the genre and the strong economic contribution that it makes, the federal government has allowed its investment in the genre to fall behind its support in other areas of screen-based production. In this section, we investigate the role that public funding and public-private funding has played in recent years and why stakeholders should look at bolstering their support for the genre. relatively lower public investment in children s and youth programming Tabulations prepared by Nordicity indicate that Canadian governments (federal and provincial) total funding of children s and youth television production was equal to between $88 million and $103 million on an annual basis between 1999/00 and 2005/06. In 2006/07, public funding for the genre jumped to $135 million, largely due to the rise in tax credits. In 2007/08, however, public funding for the genre fell to a ten-year low of $87 million. Exhibit 26: Public funding of Canadian children s and youth television production ($ millions) 1999/ / / / / / / / /08 Federal Tax Credit Provincial Tax Credit CTF (Public Portion) Other Public Money Total Share of Total Financing 26% 24% 29% 33% 30% 37% 38% 36% 35% Source: Nordicity Group calculations based on data from CRTC. While the provincial and federal tax credits have become critical public funding elements in Canadian television production, the CTF still represents the largest single source of direct public-private investment in Canadian television programming, with contributions from Telefi lm Canada, the Canadian government, and BDUs 8. In 2007/08, the CTF provided a total of $239 million in fi nancing to Canadian television productions with budgets totalling $860 million across four genres drama/comedy, children s and youth, documentary, and variety and performing arts. In 2006/07, Canadian children s and youth programming accounted for the largest share of total all-day tuning to CTF-funded programming in the 8. BDUs include cable-tv providers, direct-to-home satellite services, and other distributors of multichannel television services. 34

41 English-language market an estimated 56 percent. In the French-language market, the share was an estimated 38 percent. Despite the genre s strong audience performance, it only received 19 percent of total CTF funding between 2005/06 and 2007/08. Clearly, the CTF s allocation of funding to the children s and youth genre is disproportionately lower than the genre s ability to generate audiences. investment by bdus and private funds steps into the funding breach While direct federal government support for children s and youth programming hit a tenyear low, private sector sources, particularly the BDUs, have stepped in to ensure that a pool of financing was available for the production of high-quality Canadian children s and youth programming. Within the CTF, BDUs have seen their annual contributions grow from $44.3 million in 1996/97 to $165.3 million in 2007/08. BDU contributions to the CTF now account for 55 percent of total contributions to the CTF. Out the total BDU contribution of $165.3 million in 2007/08, Nordicity estimates that $26.6 million flowed to children s and youth television productions. The CTF represents only one channel through which BDUs provide fi nancial support to children s and youth production. Canada s independent production funds represent another important source of private-sector fi nancing of Canadian children s and youth programming. Statistics supplied by Canada s independent production funds indicate that, in 2007/08, they provided an estimated $15 million to the development and production of television and new media programming for children s, youth and family audiences. The bulk of these monies came from BDUs. The Shaw Rocket Fund accounted for $11 million. The Bell Broadcast and New Media Fund, The Independent Production Fund, the Cogeco Fund, Vidéotron Fund and Astral Media The Harold Greenberg Fund also made signifi cant contributions to children s and youth programming. Exhibit 27: Financing leverage of public investments in Canadian television production Source: Nordicity calculations based on data from CFTPA, Profi le 2009 children s programming: best return on public investment In today s political environment, governments are under pressure to demonstrate value for money in the investments they make in economic- or social-development initiatives. Value for money often entails attracting the maximum amount of private-sector contribution to an initiative, and perhaps recovering some of the initial public investment investments under certain circumstances. Public investments in screen-based production should be effective in drawing private financing into production. When compared to overall television production and other fiction production, children s and youth production offers strong leverage of public investment. Financing statistics reported by the CFTPA show that in 2007/08, children s and youth television production attracted $1.25 in private financing for every dollar of public investment in production. The private financing included various forms of financing from private broadcasters, distributors, foreign pre-sales, CTF (private monies), independent production funds, and production companies. The public financing largely came from public broadcasters, federal and provincial tax credits, CTF (public monies) and provincial-agency investments. By comparison, across all types of Canadian television production, one dollar of public investment attracted $1.10 in private financing in 2005/06; Canadian fiction television production found $1.14 in private financing for each dollar in public financing. When compared to public investments in other genres of Canadian programming, investments in children s and youth television productions also offer the best rate of investment recovery. As discussed in Section 8, statistics available for Telefilm Canada s equity investments in CTF projects with vintages of 1996/97 to 2000/01 show that children s and youth productions posted the highest rate of equity-investment recoupment among the CTF genres. Between 1996/97 and 2000/01, Telefilm Canada made equity investments in children s and youth programming totalling $54.4 million. On these investments, the federal agency has, to date, recovered $8.3 million, or 15.3 percent of the original equity investment. This recoupment recovery rate is more than double the overall rate of 7.4 percent earned by Telefilm Canada from its equity investments. 35

42 Exhibit 28: Telefilm Canada equity recoupment as a percentage of equity investments (based on projects between 1996/97 to 2000/01) Genre Recoupment ($ 000s) Equity investments ($ 000s) Recoupment as a percentage of equity investment Children s 8,314 54, % Drama 20, , % Documentary 6,057 72, % Variety 329 6, % Feature film 2,402 73, % Total 37, , % Source: Nordicity Group tabulations based on data from Telefilm Canada, see Analysis of Canadian Television Fund Equity Financing Recoupment Note: Figures include only recoupment from equity investments; figures exclude Telefilm recoupment from projects contracted prior to 1996/97. Figures only include revenues for projects contracted between 1996/97 and 2000/01. Not only does Canadian children s and youth television programming help Canadian broadcasters build strong audiences, it can also help governments improve the economics leverage and return of their own support programs for the audio-visual industry. Despite these metrics, the federal government (through Telefilm Canada and the CTF) appears to have allowed its commitment to the genre to slide in recent years. 36

43 conclusions Over the course of the last sixty-plus years, Canada has built a children s and youth production industry that has achieved much global success. Through the course of the industry s development, Canada s policy makers have been highly supportive. They have enabled Canadian producers to create compelling children s and youth screen-based content for domestic and international audiences. The global media industry, however, has changed dramatically over the last decade, and these forces of change have only accelerated in recent years. Vertical and international integration of children s and youth television production and broadcasting are now a reality. Broadband and mobile distribution of television content are quickly becoming commonplace in many homes in Canada and elsewhere. Indeed, the children s and youth genre is, arguably, at the frontline of the revolution in multi-platform distribution. Canada s public policy framework for the support of Canadian screen-based independent production, and children s and youth independent production in particular, needs to keep pace with the global transformation we are witnessing. A policy and regulatory framework that, in the past, may have given Canada s independent producers the basis for fulfi lling public policy goals at home may actually now be stifl ing their ability to contribute to these goals and compete in the international market. The social value of children s and youth content is overwhelming. Canadian society has a responsibility to inform and entertain Canadian children and youth with Canadian stories. The economic value is also very compelling. Independently produced Canadian children s and youth programming captures a higher share of Canadian audiences within its own genre than any other CTF-supported genre. The genre s audience performance is borne out by the relatively higher rates of profi tability among Canada s children s and youth specialty and pay television services. noonbory & the super 7 Cookie Jar Entertainment Inc. For investors, the genre has demonstrated excellent international sales potential. In 2007/08, it generated export value from pre-sale financing that was 50 percent higher than its share of Canada s total production volume. After taking into account the genre s international after-market licensing sales, the genre generated over $103 million in export revenues in 2007/08. Canadian independent producers can point to a long list of their programs that are currently airing on broadcast networks outside of Canada. No other genre of independently produced Canadian programming has achieved a similar level of international success. For government, independently produced children s and youth television production offers the highest rate of fi nancial leverage among the CTF-supported genres. In 2007/08, it attracted $1.25 in private fi nancing for every dollar of public investment. This rate was well ahead of that for fi ction ($1.14) and all genres ($1.10). 37

44 In today s economic and fi nancing environment, however, the alarming retreat in annual production levels and average budgets which are low by historical and international standards means that Canadian program creators will miss an opportunity to provide future generations with programs that refl ect Canadian values. With this in mind, all stakeholders producers, content distributors, funding bodies, broadcasters, government and the regulator must assess their commitment to the genre, with a view to putting independently produced Canadian children s and youth programming on a strong footing for the future. Producers, content distributors, funding bodies, broadcasters, government and the regulator all have a vested interest in fostering an environment where independently produced Canadian children s and youth programming can reach domestic and international audiences. The quality of Canada s independently produced children s and youth programming is high; this enables it to generate high audiences both within and outside Canada. What s more, the social and cultural benefits of the genre are compelling. By making the necessary investment in the genre today and the years to come, industry stakeholders can attract children and youth to Canadian programming and generate stronger interest in Canadian stories and screen-based programming, which Canadian children and youth will carry with them into their adult years. toot & puddle Toot & Puddle Productions (Cycle 1) Inc. 38

45 references ABC News (2009) New Children s channel for ABC. ABC News. April 22, Downloaded at < on April 23, Adams, Stephen. (2009) Children get first mobile phone at average age of eight. Telegraph. February 18, Downloaded at < technology/technologynews/ /children-get-first-mobile-phoneat-average-age-of-eight.html> on April 3, Allen, Blaine. (1996). Directory of CBC Television Series, 1952 to Downloaded at < on June 3, Armstrong, Mary Ellen. (1997). Special Report on Animation Opportunities and Growth: TV toons: nailing the network deal. Playback. June 16, Arthur D. Little. (2009) Mobile TV: Tuning in or Switching off?, March Downloaded at < 366&file=ADL_Report_Mobile_TV.pdf&anchor=set366> on April 2, Australian Broadcasting Corporation (2007). Submission to Australian Communications and Media Authority: Children s Television Standards Review. August Downloaded at < main/lib310132/65_aust_broadcasting_corp.pdf> on April 3, Australian Broadcasting Corporation (2009). Independent Productions: Childrens. Downloaded at < on April 4, Australian Children s Television Foundation (2006). Submission to Department of Communications, Information Technology and the Arts in respect of the Meeting the Digital Challenge Reforming Australia s Media in the Digital Age Discussion Paper. April 18, Downloaded at < on June 16,

46 Australian Film Commission. (2006). Get the Picture: What Australians are making: production industry. A printed version of the Get the Picture online statistics as of February 17, 2006 at < Broadcaster Magazine. (2006). Corus, NBC Universal in Kids Multi-Platform Play. Broadcaster Magazine. August 5, Downloaded at < article.asp?id=55732&story_id=&issue= &pc=bm> on August 25, Canadian Film and Television Production Association (CFTPA). (2009). Profile 2009: An Economic Report on the Canadian Film and Television Production Industry. Canadian Film and Television Production Association (CFTPA). (2006). Profile 2006: An Economic Report on the Canadian Film and Television Production Industry. Canadian Film and Television Production Association (CFTPA). (2006a). Analysis of Canadian Broadcaster Financial Performance and Programming Expenditures. Canadian Radio-television and Telecommunications Commission (CRTC). (2004). Proposed incentives for English-language Canadian television drama Call for comments. Broadcasting Public Notice CRTC Canadian Radio-television and Telecommunications Commission (CRTC). (2001). Decision CRTC February 2, Downloaded at < > on November 1, Cartoon Network. ADDING MULTIMEDIA Cartoon Network Continues Its Evolution With Largest, Most Diverse Development Slate In Network History. Press Release. Cartoon Network. March 25, Downloaded at < on April 4, Christie, Jocelyn (2007). Up Next What s Developing in Kids Production. KidScreen Magazine. September 1, Citizenship and Immigration Canada. (2005). A Look at Canada. Citizenship and Immigration Canada. April 1, Downloaded at < on August 24, Davies, Maire Messenger. (2001). Dear BBC : Children, Television Storytelling and the Public Sphere. New York: Cambridge University Press. will & dewitt Cookie Jar Entertainment Inc. Geist, Michael. (2008). Embracing the torrent of online video. BBC News. 25 March, Downloaded at < on April 6, Gentkew, Matthew and Jesse M. Shapiro. (2006). Does Television Rot Your Brain? New Evidence from the Coleman Study. University of Chicago. January 27, Downloaded at < on August 25, Gladstone, Joseph R., Bill Gladstone, and Ginny Ouellet. (1985). Television and Your Children. Toronto: The Ontario Educational Communications Authority. 40

47 Hemley Matthew. (2006). 87% of kids want mobile TV. Broadcast Now. July 13, Downloaded at < broadcastnowarticle.aspx?intstoryid=160810> on August 25, Hume, Mark. (2005). Don t touch that dial. Globe and Mail. February 10, Johnson, Steve. (2005). Everything Bad Is Good for You: How Today s Popular Culture Is Actually Making Us Smarter. Toronto: Penguin Group Canada. KPMG. (2006). Consumers and Convergence. Switzerland: KPMG International. Downloaded at < ICE/Comms/Insight/LinkConsumers.htm> on August 25, Kuburas, Melita. YTV sends kids to Nerf camp. Media in Canada. February 27, Downloaded at < on April 3, Long, Danielle. (2009) Hulu competitor TV.com in talks for UK partnerships. New Media Age. April 15, Downloaded at < Hulu+competitor+TVcom+in+talks+for+UK+partnerships.html> on April 15, Luke, Carmen. (1988). Television and Your Child: A Guide for Concerned Parents. Toronto: Kagan and Woo. Mahoney, Jill. (2006). Teens watching TV without going near a set. Globe and Mail. January 7, Media Awareness Network (2005). Young Canadians in a Wired World, Phase II Student Survey. Report prepared by Erin Research Inc., November Ottawa: Media Awareness Network. Nicks, Joan. (undated). Degrassi, Canadian drama series. The Museum of Broadcast Communications. Downloaded at < on June 3, Nordicity Group Ltd. (2004). Canada s Competitiveness in Treaty Co-Production. Prepared for Telefilm Canada. May Nordicity Group Ltd. (2007). The Case for Kids Programming: children s and Youth Audio-Visual Production in Canada. Prepared for the Canadian Film and Television Production Association in association with Shaw Rocket Fund, Alliance for Children and Television, and the National Film Board of Canada. February Ofcom. (2007) The future of children s television programming. October 3, Downloaded at < on April 2, Ofcom. (2008) Communications Market 2008, August 14, Downloaded at < on April 2,

48 Pollack, Sara and Shiva Rajaraman. (2009) Watch Shows and Movies on YouTube. Youtube. April 16, Downloaded at < on April 17, Quantcast. (2009) YouTube.com estimates. March Downloaded at < on April 22, Rainsberry, Fred B. (1988). A History of Children s Television in English Canada, Metuchen, New Jersey: The Scarecrow Press, Inc. Revoir, Paul. (2006). ITV moves to cut children s hours. Broadcast Now. July 13, Downloaded at < aspx?intstoryid=160883> on August 25, Russel, Terrence. (2009) Best Buy breaking into movie downloads? Venturebeat. April 17, Downloaded at < best-buy-breaking-into-movie-downloads> on April 22, Screen Australia. (2008). National Survey of Feature Film and TV Drama Production 2007/08. Downloaded at < pdf> on April 2, Sinclair, Lara. (2009). Labor backs ABC3 children s channel. The Australian. April 22, Downloaded at < story/0,25197, ,00.html> on May 14, Statistics Canada. (2006). Film, video and audio-visual production: data tables. Catalogue No XIE. Ottawa: Minister of Industry. Steyer, James P. (2002). The Other Parent: The Inside Story of the Media s effect on Our Children. New York: Atria Books. Sweeney, Mark. (2008) Junk food ads still reach kids despite regulations, say health campaigners, The Guardian. December 17, Downloaded at < /dec/17/junk-food-campaigners-reaction> on April 23, Tcholakian, Gariné. (2009) Canada ranks highest in online video viewing, ComScore reports, Media In Canada. April 22, Downloaded at < articles/mic/ /comscore.html? s=yes> on April 23,

49 appendix a: estimates of international program sales In March 2009, Nordicity conducted a survey of children s and youth television producers in Canada, to collect data on the value of the international after-market sales of their television programs. That is, the value of program sales and licensing other than international pre-sale fi nancing. According to CFTPA membership data, there are some 82 production companies in Canada that are engaged in the development and production of children s and youth television programming and theatrical fi lms. There are an additional 28 production companies in Quebec that are engaged in the production of children s and youth television programming and theatrical fi lms. Out of these 110 companies, a total 33 responded to the survey: a 30% response rate. The respondent group included many of the largest producers of children s and youth programming in Canada. In total, the 33 respondents accounted for a total of $182 million in children s and youth television production in 2008, or 73% of the $250 million in total children s and youth television production volume in 2007/08. As part of the survey, Nordicity asked respondents to report the total value of gross distributor revenues earned from the sales of their children s and youth television programming outside of Canada in Some producers reported dollar amounts; others selected a dollar range within which the 2008 sales revenues fell. To convert the dollar-range answers to a dollar amount, Nordicity used the median for each dollar range. The following table summarizes how Nordicity used the survey data to develop an estimate of the total value of international after-market sales of Canadian children s and youth television programming in Exhibit 29: Estimate of the international after-market sales of Canadian children s and youth television programming, 2008 Line Item Amount A Total production volume of respondents $182 million B Total volume of children s and youth television production volume, 2008 $250 million C Respondent share 73% D Implied multiplier (=1 / Line C) 1.37 E Total value of respondents gross sales, 2008 $47.8 million F Estimated total value of international after-market sales of Canadian children s and youth television programming (= Line D x Line E) $65.6 million Source: Nordicity Group calculations based on data from CAVCO and 2009 survey of Canadian children s and youth producers. 43

50 appendix b: history and development of canada s children s and youth screen-based production industry Canada has a long tradition of producing popular and award-winning screen-based programming for children and youth; this tradition stretches back more than fi ve decades, and coincides with the advent of Canadian television broadcasting services. However, even before the CBC/SRC s television services went on the air in 1952, Canadians were sowing the seeds for the future of the industry. In 1939, the federal government established the National Film Board (NFB). And while its original focus was producing wartime propaganda fi lms, it would later develop into one of the global leaders in experimental animation an all-too important element in children s and youth programming. It was, perhaps, Norman McLaren s decision in 1941 to join the NFB and establish an animation division within it, which set the stage for several decades of groundbreaking animation production in Canada. From this hotbed for animation within the NFB sprung much of Canada s future animation talent in the children s and youth genre. early developments: the key roles of cbc and src Children s television programming in Canada is as old as Canadian television itself. On September 6, 1952, the CBC/SRC s bilingual television service went on air in Montreal; the next day, Canada s fi rst children s program debuted (Rainsberry 1986, p. 4). Pépinot et Capucine was a French-language puppet show created by Jean-Paul Ladouceur and Edmondo Chiodini (Rainsberry 1986, p. 4). The creators adopted the puppets from a comic strip in a French-language newspaper in Montreal (Rainsberry 1986, p. 5). Pépinot et Capucine was fi lmed in Montreal and dubbed into English and French (Rainsberry 1986, p. 5). A regular slate of children s programming on CBC/SRC emerged slowly in those early years. The first fiction program produced on the English side of the network was Uncle Chichimus. It too was a fantasy puppet show. And, even though the program had an adult appeal to it, it garnered a strong following among children s audiences because of its puppets and fantasy storylines (Rainsberry 1986, p. 5). Early Canadian television programs in the children s genre were designed to have significant educational value. In 1956, Hidden Pages began airing on the CBC. This successful program was developed as a tool to stimulate children s interest in reading and encourage them to seek out library books (Rainsberry 1986, p. 16). The program dramatized excerpts from books for both younger and older children, and then offered guidance on how to find the books. Hidden Pages had an undeniable impact on children s reading in Canada; it was not uncommon for the show to cause a run on library books (Rainsberry 1986, p. 17). One of the hallmarks of many Canadian children s television programs is that they have been shared across generations of children. Many Canadian children s programs have been able to capture the interest of successive generations of Canadian children, and thereby remain on the air for several decades. The first such program was the 44

51 French-language marionette program Bobino. It went on the air on Radio-Canada in 1957 and ran until Bobino grew to become one of the most popular children s programs in Quebec. Around the same time as Bobino, The Friendly Giant appeared on the English-language network. This program was originally developed in Madison, Wisconsin in 1954, but was brought to Canada by the CBC in The Friendly Giant aired until 1985; its demise was coincident with massive budget cuts at the CBC (Allan 1996). Mr. Dress-Up was another successful children s television series that spanned several decades. It began as a segment within another children s program, Butternut Square, in In 1967, a stand-alone version of the program went on air; Mr. Dress-Up would air for over 30 years, ending in the national film board s role in children s and youth television programming Programming for children and youth at the NFB has a strong connection to the animation form, pioneered in Canada by Norman McLaren, whom John Grierson invited to join the NFB in Many of the filmmakers who apprenticed under McLaren or who owe their start in animation filmmaking to his influence went on to make important NFB films for children. From adaptations of classic children s stories in the 1950s and 1960s to groundbreaking series like Growing Up/Grandir and Droits au coeur/rights from the Heart in the 1980s and 1990s, NFB films have sought to reach out to children and families to inform and entertain. Following the establishment of the Canadian Broadcast Program Development Fund in 1983, Canada s independent production community really started to fl ourish. Nelvana, for example, developed and produced several outstanding animated children s programs, including Inspector Gadget and Care Bears; both of which became worldwide successes. Nelvana also adapted the famous children s cartoon book, Babar, for television. However, in Quebec, producers of French-language children s programming found themselves operating in very difficult environment brought on by regulation. In 1980, the Government of Quebec passed legislation banning advertising during television programs directed at children. This lack of ad revenue greatly changed the economics of children s programming in Quebec, keeping additional downward pressure on licence fees paid by broadcasters. More than 25 years later, broadcasters and producers of children s programming in Quebec still operate under the advertising ban. the emergence of public companies and a boom in international production in the 1990s ramdam Vivaclic I inc. In the 1990s, Canada s independent producers built on the success they earned in the 1980s. Many production companies started to tap into public fi nancial markets. In 1993, Cinar made its fi rst public share offering in Canada; this was followed by a share offering in the U.S. in In 1994, Nelvana raised equity fi nancing in the public markets. But the race to the public markets did not end with these two companies. By the end of the 1990s several companies involved in children s and youth production raised equity fi nancing on public markets; among them were Atlantis Films, Alliance Communications, Paragon Entertainment, Coscient Group, Lions Gate Entertainment, Telescene Film Group, Fireworks Entertainment, and Mainframe Entertainment. These fi nancial developments combined with the CRTC s licensing of Teletoon and TreeHouse in 1996, and thirsty international markets set the stage for a boom in children s and youth production in the mid-1990s. The big three Nelvana, Cinar and CinéGroupe all ramped up production, while many smaller Canadian service producers began to move into the development of their own productions (Armstrong 1997). In the mid 1990s, Vancouver-based Mainframe Entertainment produced the first 3-D computer animated series, ReBoot. ReBoot achieved audience success on YTV in Canada, and on ABC and the Cartoon Network in the U.S. Also during the 1990s, Nelvana co-produced Rolie Polie Olie the first 3-D animation series for pre-school children; Cinar gave us the award-winning animation series, Caillou; DECODE Entertainment produced the hit series. 45

52 crashing to reality after 2000 In the early years of this millennium, Canada s children s and youth production industry experienced financial pressures, consolidation, and re-generation. Those companies that were able to raise millions of dollars from public investors in the 1990s found themselves searching for private buyers following Corus Entertainment acquired Nelvana in Also in 2000, a series of regulatory violations and corporategovernance difficulties at Cinar led securities regulators in Canada and the U.S. to ban the public trading of its shares. A group of investors led by Michael Hirsh acquired Cinar in 2004 and renamed it Cookie Jar Entertainment. CinéGroupe also found itself in financial straits and filed for protection from its creditors in The purchase of Nelvana, Canada s largest children s and youth production company, and the financial distresses faced by the two other major production houses Cinar and CinéGroupe however, did not stop the industry from moving forward. A new generation of Canadian live-action programs, and several animation series found international audiences. Behind these successful programs were innovative companies, including Breakthrough Films and TV, Rainmaker Animation Inc. (formerly Mainframe Entertainment), Studio B Productions, 9Story Entertainment, Apartment 11 Productions, Mercury Filmworks, Sinking Ship Entertainment, marblemedia, DECODE Entertainment, Shaftesbury Films, and Cookie Jar Entertainment Inc. The second half of the decade saw consolidation of the Canadian industry through high-level expansion and acquisitions. In 2006, The Halifax Film Company merged with DECODE Entertainment and went to the public markets to form DHX Media Ltd. The following year, DHX Media Ltd. acquired Studio B Productions; and in 2008, it acquired Bulldog Interactive Fitness. Canada s children s and youth television production industry was on the verge of further corporate re-organization in late 2008, as E1 Entertainment sought to acquire DHX Media Ltd.; however, the weak credits markets forestalled the transactions. Meanwhile, another one of Canada s leading children s and youth television production companies, Cookie Jar Entertainment Inc. has also been active. In 2008 it acquired DIC Entertainment, Copyright Promotions Licensing Group, and a 33 percent stake in children s television channel, KidsCo. Canada s broadcasting industry also experienced considerable consolidation in Canwest Media Inc. acquired Alliance-Atlantis Communications Inc. s specialty television services. CTVglobemedia acquired CHUM Limited s specialty television services and many of its conventional television assets; while Rogers Communications Inc. acquired bought CHUM Limited s family of City-TV stations. 46

53 Exhibit 30: Major developments in the history of Canada s children s and youth production industry 2000s 1990s 1990s 1970s 1960s 1950s 1940s 1930s 2009: Federal government announces new multi-platform policy for revamped Canada Media Fund 2009: Teletoon partners with the itunes Store in Canada to distribute five series online 2009: NFB launches the online Screening Room providing free streaming of content internationally 2008: Cookie Jar Entertainment acquires DIC Entertainment, inheriting a Copyright Promotions Licensing Group and a one-third interest in international children s network KidsCo 2007: DHX Media Inc. acquires Studio B Productions 2007: CanWest acquires specialty channel operator Alliance Atlantis in a deal with Goldman Sachs 2007: CTVgm finalizes its acquisition of CHUM 2007: DHX Media acquires Studio B Productions 2006: Teletoon begins airing commercial sponsor announcements before each program 2006: Nevlana launches qubo with partners ion Media Networks, NBC Universal, Scholastic Books, Classic Media and Big Idea Productions. 2006: DHX Media Inc. fl oats IPO on Toronto Stock Exchange and AIM (London Stock Exchange as DECODE Entertainment and Halifax Film Company. merge 2004: CTF introduces broadcaster envelopes for English- and French-language children s and youth television production 2004: Investor group led by Michael Hirsh purchases Cinar Corp., takes it private and renames it Cookie Jar Entertainment 2003: The United Kingdom announces that it will raise the minimum domestic-spend requirements for treaty co-productions from 20% to 40% 2003: CinéGroupe applies for court protection from creditors 2003: British Columbia introduces digital animation tax credit 2002: The United Kingdom announces that television productions will no longer receive favourable tax treatment under the sale-and-leaseback provisions 2001: Canal Famille re-launched as VRAK.TV with extended program schedule 2001: Prince Edward Island introduces labour rebate program for film and television production 2000: Corus Entertainment Inc. acquires Nelvana 2000: CRTC grants a Category 2 digital licences to BBC Kids and Discovery Kids 2000: Ontario introduces Interactive Digital Media Tax Credit 1999: CRTC Television Policy removes expenditure requirements for conventional TV broadcasters and establishes priority programming requirements 1999: Alberta introduces production rebate program (Alberta Film Development Program) for film and television 1999: Newfoundland introduces film and television tax credit 1999: The Yukon introduces labour rebate program for film and television production 1998: British Columbia and Saskatchewan introduce film and television tax credits 1998: Shaw Television Broadcast Fund is founded (later renamed Shaw Rocket Fund) 1997: Ontario introduces Computer Animation and Special Effects Tax Credit 1997: Manitoba introduces film and television tax credit 1997: Bell ExpressVu launches the Bell Broadcast and New Media Fund 1996: Canadian Television Fund established 1996: Quebec introduces the Multimedia Production Tax Credit 1996: Ontario and New Brunswick introduce film and television tax credits 1996: CRTC licenses Teletoon and TreeHouse 1996: The federal government introduces the Canadian Film or Video Production Tax Credit (CPTC) 1995: Nova Scotia introduces film and television tax credit 1994: Shaw Communications Inc. launches the Shaw Children s Programming Initiative 1993: Cinar s first public share offering 1992: CRTC licenses Knowledge Network (British Columbia) 1991: Quebec introduces the first film and television tax credit in Canada 1991: CRTC licenses Saskatchewan Communications Network 1987: CRTC licenses YTV, Canal Famille (VRAK.TV) and Family Channel 1985: Canada signs mini-treaty with France for the international co-production of projects in the field of animation 1984: CRTC grants first licence to the Alberta Educational Communications Corporation (later becomes Learning and Skills Television of Alberta Limited [ACCESS]) 1983: Federal government establishes the Canadian Broadcast Program Development Fund to support independent television production, including children s production 1980: Government of Quebec passes legislation banning advertising directed to children 1978: Canada signs co-production treaty with Germany 1976: Cinar Films Inc. is founded in Montreal 1975: Canada signs co-production treaty with United Kingdom 1974: CinéGroupe is founded in Montreal 1974: CRTC licenses Radio-Québec (later renamed Télé-Québec) 1971: CRTC licenses the CBC to operate an educational broadcaster in Toronto; later becomes TVOntario 1971: Nelvana Animation Ltd. is founded in Toronto 1967: Federal government establishes Canadian Film Development Corporation (later renamed Telefilm Canada) 1963: Canada signs first international co-production treaty; it is with France 1952: Canada s first children s television program Pépinot et Capucine is launched 1941: Norman McLaren joins the NFB and organizes and an animation division 1939: The federal government establishes the National Film Board (NFB) 47

54 Exhibit 31: Notable productions and events in the history of Canada s children s and youth audio-visual production 2000s 1990s 1980s 1970s English-Language Market 2008: Fresh TV s Stoked is commissioned by Teletoon 2008: Chop Socky Chooks begins airing 2008: Taste Buds begins airing 2007: George of the Jungle remake begins airing 2007: Total Drama Island begins airing 2006: This is Emily Yeung begins airing 2005: Life with Derek begins airing 2005: Naturally Sadie begins airing 2004: 6Teen begins airing 2004: This is Daniel Cook begins airing 2004: Atomic Betty begins airing 2003: Radio Free Roscoe begins airing 2002: Olliver s Adventures begins airing 2001: What s with Andy begins airing 2001: Degrassi: The Next Generation begins airing 2000: Yvon of the Yukon begins airing 1999: Angela Anaconda begins airing 1999: The Zack Files begins airing 1998: Rolie Olie Polie begins airing 1997: Caillou television series begins airing 1994: ReBoot begins airing 1993: Groundling Marsh begins airing 1993: Road to Avonlea wins Emmy Award for Outstanding Children s Program 1989: Road to Avonlea television series begins to air 1989: Nelvana adapts the Babar story book into a television series (in association with Ellipse and France 3) 1989: Degrassi High television series begins 1988: Ramona television series airs 1987: Degrassi Junior High television series begins 1987: A Child s Christmas in Wales (short film) airs 1986: Anne of Green Gables wins Emmy Award for Outstanding Children s Program 1985: Anne of Green Gables airs 1985: Nelvana begins co-producing Care Bears television series and movies 1985: The Campbells begins airing 1984: Danger Bay begins airing 1983: Nelvana begins co-producing Inspector Gadget television series 1982: CBC begins airing The Kids of Degrassi Street 1980: Every Child wins Oscar for Best Animated Short 1978: The Sand Castle wins the Oscar for Best Animated Short 1971: Polka Dot Door begins airing (until 1993) 1970: CKCO-TV Kitchener begins producing Canadian version of hit U.S. show, Romper Room French-Language Market 2008: Blaise le Blasé begins airing 2007: Poussière d étoiles begins airing 2005: Toupie et Binou is released 2004: The feature-film version of Dans une galaxie près de chez vous is released 2002: Une grenade avec ça? begins airing 2002: The feature film La Mystérieuse Mademoiselle C. is released 2001: Ramdam begins airing 2000: Le Monde de Charlotte begins airing 1998: Marcaroni tout garni begins airing 1998: Dans une galaxie près de chez vous begins airing 1998: Cornemuse begins airing 1997: Caillou television series begins airing 1996: Pin-Pon begins airing 1991: Watatatow begins airing (until 2005) 1990: Les Débrouillards begins airing 1989: Nelvana adapts the Babar story book into a television series (in association with Ellipse and France 3) 1989: Robin and Stella begins airing 1988: Le Club des 100 Watts begins airing 1987: Iniminimagimo begins airing 1987: L Homme qui plantait des arbres wins the Oscar for Best Animation Short 1983: Le Traboulidon begins airing 1980: Tape-Tambour begins airing 1978: Le Château de sable wins the Oscar for Best Animated Short 1977: Passe-Partout begins airing 1972: Nic et Pic begins airing 1960s 1967: Mr Dress-up begins airing (until 1996) 1963: The Forest Rangers begins airing 1961: Razzle Dazzle goes on air 1950s 1958: The Friendly Giant begins airing on CBC (until 1985) 1954: CBC begins producing its own Canadian version of the American hit, The Howdy Doody Show 1952: Canada s first children s television program Pépinot et Capucine is launched 1969: Sol et Gobelet begins airing 1968: Fanfreluche begins airing 1966: La Souris Verte begins airing 1957: Bobino begins airing (until 1985) 1956: La Boîte à surprises begins airing (until 1972) 1956: Le Village enchanté, becomes Canada s first animated feature film 1952: Canada s first children s television program Pépinot et Capucine is launched 48

55 Nordicity Group Ltd. ( is a global consulting firm providing business strategy and policy analysis to the media/entertainment, culture/content, and telecommunications sectors. With offices in Toronto, Ottawa, and London (United Kingdom), Nordicity consultants provide clients with strategic planning, business-case analysis, market assessment and forecasting, economic analysis, financial modelling, evaluation frameworks, and other tools for strategic and operational decision-making. The Canadian Film and Television Production Association is a non-profit trade organization that works on behalf of almost 400 companies engaged in the production and distribution of English-language television programs, feature films, and interactive media products in all regions of Canada. More specifically, it promotes the general interests of its members provincially, federally, and internationally; negotiates and manages labour agreements with guilds and unions; administers copyright collectives; trains new industry entrants through 7 national internship programs; and undertakes a number of other specific initiatives that help increase awareness and enhance communication within the Canadian and international production communities. The Shaw Rocket Fund is a permanent, independently governed, not-for-profit corporation that is dedicated to investing in the Canadian children s and youth production industry and being a champion for Canadian children s programming to the world. The Fund supports this important sector of the production industry through its investments and various initiatives including the much celebrated Shaw Rocket Prize. The Shaw Rocket Fund is supported by Shaw Communications Inc., Shaw Pay Per View Ltd. a division of Shaw Cablesystems G.P., Shaw Direct, EastLink Cablesystems and Delta Cable Communications. The Alliance for Children and Television (ACT) positively affects Canadian children s lives by using advocacy, recognition, research and training to enrich the screen-based media they experience. More specifically, the ACT Awards of Excellence support creators and encourage the celebration of the best kids programming in English and French Canada. ACT provides opportunities for creative and professional development through workshops, seminars and special events, such as Média-Jeunes and the Children, Youth & Media Conference. ACT also conducts studies on Canadian youth programming to better understand the media s impact on our young people. Lastly, ACT is at the forefront in lobbying governments and drawing attention to the cause of children s screen-based entertainment. Design: Untitled_Art Inc., untitledart.com 49