B.C. film sector readies for new post-strike business reality

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Steeper competition from jurisdictions with better tax credit systems looms

Vancouver’s film and TV sector is readying to bounce back with a surge in new productions once Hollywood actors join writers and return to work after separate multi-month strikes.

• having electrical plug-ins for sets so producers can be more sustainable and not need to use diesel generators; andThe buzzword on many industry insiders’ lips is “reset.” They say Hollywood labour disruptions followed streaming giants realizing they could not continue to spend lavishly to create massive volumes of content as part of a relentless drive to increase subscriber counts.

“We just got out of COVID,” he said. “Then the war started, everything goes crazy, and the price of groceries goes through the roof. The next thing we know there are union strikes.” Thomas is one of countless people in ancillary sectors who depend on the film sector. The financial pain he feels is also besetting hairdressers, lighting technicians, grips, costume designers and others.

“I think we have 10 or 12 productions active in B.C., where we would generally have 50 for this time of year,” she said in early October. “That goes to show how far down we are. It was worse back in August.”Vancouver Film Studios president Pete Mitchell estimated that his facility has seen business decline by about 90 per cent this summer. Normally it has about 15 productions a year at its 13 sound stages.

Even after that six-month mark, the value of film production volume in B.C. is likely to remain below that $4.9-billion record, which the VEC calculated for 2022. Mitchell estimated that for the average production that films in Toronto, the producer would get tax credits equating to about 20 per cent of the entire budget. In B.C., the tax credits on the entire budget would probably work out to be around 14 per cent, he said.

It responded in an email, saying that it provides the B.C. government with “analysis and insights” that act as “advocacy to support both industry and government in their relationship.”Mitchell expects studio executives will offer him lower rates to use VFS sets, and that even after negotiation attempts, future rates will be lower than they were a couple years ago.

In each regional market there is competition, however, Mitchell stressed, and production houses are likely to go to less expensive jurisdictions even if they save slightly on a studio rental.

 

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