February 27, 2013
Why Regionally-based Production Incentives are Counterproductive in the Digital Economy
In film and television, there are some federal government public policy mechanisms which provide incentives for “regional” screen-based content productions. There is a legitimate public policy rationale for incentives to support Canadian producers to bring local stories to local and national audiences.
Executive Summary
Toronto and Ontario are home to the leading firms in Canada’s English-language creative industries. Supported by a range of public policies, Ontario producers have harnessed Ontario’s artistic talents and skills to build a dynamic screen-based content industry (films, television programs, games, and interactive media). Creative industries are founded on intellectual property and are central to the digital economy of the 21st Century.
Ontario-produced content is successful both financially and creatively, providing substantial and high-value employment and increasing worldwide exposure. When the industry brings Canadian stories to audiences, the cultural impact is profound.
Some federal government public policy mechanisms provide incentives for “regional” screen-based content productions. There is a legitimate public policy rationale for incentives to support Canadian producers to bring local stories to local and national audiences. Yet in reality, the public policy underpinning of regional incentives is about promoting a diversity of production locations, rather than a diversity of stories.
In the digital economy, regional production incentives do not support cultural policy; they are simply poor economic policy. By contrast, clustering is essential for competitiveness in a global marketplace and there is no public policy rationale for incentives based solely on the location where the content is produced. While the extent of these “regional” incentives today is modest, their existence is an anachronism. The remaining place-based funding and regulatory measures should be dismantled as part of Canada’s digital economy strategy.
Continue reading
Further, in respect of English-language screen-based content productions, regional bonuses are often provided to productions that occur anywhere other than Toronto/Ontario. Thus, they are discriminatory and counterproductive to the development of centres of excellence where the critical mass of talent, skills, knowledge, financing, and specialized technology can be mobilized efficiently.
This report will examine the current state of regional production incentives. It will consider how they affect efforts to maintain Toronto/Ontario as the centre of excellence in the production of English-language screen-based Canadian content. It will also consider the management of related intellectual property rights. The findings are based on the author’s independent research, nine structured interviews with independent producers and industry executives, meetings with officials of the Ontario Media Development Corporations, as well as informal discussions with other key players.