2007 Cannes Film Market Outcomes Report Conducted by: For: Telefilm Canada August 2007

2007 Cannes Film Market

Outcomes ReportConducted by:

For:Telefilm Canada

August 2007

Methodology

3

Methodology

A total of 59 e-mailed invitations were sent to Canadian companies that attended the 2007 Cannes Film Market.

42 of the 59 companies clicked on the link in the e-mail invitations to go to the survey site.

Of these 42, 39 completed all of the survey - a 66% response rate.

The survey was open from June 18th until August 20th, 2007.

During the course of the survey, POLLARA made multiple attempts to follow up with non-responding companies through e-mail and telephone calls to encourage them to participate. In addition, POLLARA asked members of the IIAC to follow up with non-responding companies in their respective provinces.

4

Methodology

E-mail invitations sent to 59 companies

42 clicked on link in e-mail to visit the survey site

39 companies reached the end of the survey

The response rate raises concerns about possible non-response bias (for example, are the companies that answered the survey smaller or larger than those that did not? Are some provinces over/underrepresented?).

Consequently, Telefilm should exercise some caution and judgment when reviewing these results.

5

Sample and Respondents by Province

Broken down by province, the sample consisted of the following companies.

ProvinceNumber of

companies in sample

Number of companies

starting survey

Number of companies completing

survey

Quebec 19 9 8

Ontario 15 11 11

British Columbia 15 12 11

Newfoundland & Labrador 4 4 4

Nova Scotia 3 3 3

Manitoba 2 2 1

Saskatchewan 1 1 1

Total 59 42 39

Respondent Profile

7

Primary Business Focus of Company

Q1. What is the primary business focus of your company? Select all that apply.n=42

83%

14% 17%

7% 5%

17%

0%

20%

40%

60%

80%

100%

Producer Distributor Sales Agent Acquisitions ProductionServices

Other

8

Main Format(s) of Interest

Q2. What is the main format(s) of interest to your company? Select all that apply.n=42

98%

36%

7%5%

0%

20%

40%

60%

80%

100%

Feature Film Television New Media Other

9

Location of Head Office

Q3. In which province/territory is your head office located? n=42

Ontario26%

Quebec21%

British Columbia

29%

Manitoba5%

Newfoundland & Labrador

10%

Nova Scotia 7%

Saskatchewan2%

10

Company Revenues

26%

19%

7%

7%

19%

5%

17%

0% 10% 20% 30% 40% 50%

$100,000 or less

$100,001 to $300,000

$300,001 to $500,000

$500,000 to $1,000,000

$1,000,001 to $5,000,000

$5,000,001 to $10,000,000

Not Applicable / Refused

Q4. What were your company’s total gross revenues for its most recent fiscal year?n=42

11

Number of Employees

10 or under88%

201 to 5002%

501 or above2%

11 to 207%

Q5. How many full-time employees are there currently in your company? n=42

The Film Market

13

Genres and Formats Companies Interested in Selling and/or Pre-Selling at Cannes 2007

Q6. In deciding to attend the 2007 Cannes Film Market, which of the following programming genres was your company interested in selling and/or pre-selling?

Q7. For each of the programming genre(s) of interest to your company, what was the type of media? n=40

Feature Film Television New Media

Drama 80% 20% 0%

Comedy 45% 18% 3%

Documentary/Educational 28% 30% 3%

Horror/Thriller 30% 3% 0%

Action/Adventure 25% 8% 0%

Science Fiction 20% 8% 3%

Romantic 25% 3% 0%

Animation 15% 8% 5%

14

Genres and Formats Companies Interested in Selling and/or Pre-Selling at Cannes 2007 (cont’d)

Q6. In deciding to attend the 2007 Cannes Film Market, which of the following programming genres was your company interested in selling and/or pre-selling?

Q7. For each of the programming genre(s) of interest to your company, what was the type of media? n=40

Feature Film Television New Media

Children’s Programming 5% 3% 3%

Sports 5% 5% 0%

Performing Arts 3% 5% 0%

Erotica 8% 0% 0%

Reality 0% 8% 0%

Lifestyle 0% 3% 0%

Public Affairs 0% 3% 0%

Other 8% 3% 0%

15

Sales/Pre-Sales

Twenty-six companies indicated that they either completed sales while at the Cannes Film Market or began discussions that are likely to lead to sales while at Cannes.

Thirteen companies indicated that they either completed pre-sales while at the Cannes Film Market or began discussions that are likely to lead to pre-sales.

Of these, 6 companies provided information on 17 deals involving 11 titles.

Companies reported that 5 distribution agreements were signed.

Respondents reported that $69,857 of sales were completed while at Cannes and that $9,450,000 worth of sales are likely to occur as a result of discussions initiated at the market.

Companies did not report any completed presales at the 2007 Cannes Market, but they expect $550,000 of pre-sales to occur as a result of discussions initiated at Cannes.

16

Breakdown of Sales and Pre-Sales Deals

5 Companies

9 Titles

12 Deals

$69,857 Sales completed while at 2007 Cannes Film

Market

$9,450,000 Sales likely to occur as a

result of discussions completed while at 2007 Cannes Film

Market

2 Companies

2 Titles

2 Deals

Sales Pre-Sales

$0 Pre-Sales completed while at 2007 Cannes Film

Market

$550,000 Pre-Sales likely to occur as a result of

discussions completed while at 2007 Cannes

Film Market

17

Sales

Yes62%

No14%

Not Applicable

24%

Q8a. Did you complete any sales of your titles, or begin discussions that will likely lead to future sales while at the 2007 Cannes Film Market? n=42

18

Breakdown of Sales and Likely Sales by Genre

$7,000

$0

$2,300

$10

$100

$59

$50

$0

0 2,000 4,000 6,000 8,000

Documentary /Educational

Comedy

Drama

Science Fiction

Likely SalesSales

Companies Titles Deals

1 1 1

3 4 7

3 3 3

1 1 1

$’000s

19

Breakdown of Sales & Likely Sales by Country

$7,350$0

$2,000$0

$100

$0

$0$33

$0$26

$0

$10

$0$0

0 2000 4000 6000 8000

Brazil

South Korea

Russian

Australia

UK

India

USA


1 1 1

1 1 1

1 1 1

1 2 3

1 1 1

1 1 1

4 4 4

$’000s

Likely SalesSales

20

Breakdown of Sales and Likely Sales by Company Region

$7,000

$0

$2,150

$0

$300

$0

$0

$70

$0

$0

0 2,000 4,000 6,000 8,000

Newfoundland

Quebec

Saskatchewan

Ontario

British Columbia

Likely SalesSales


1 1 1

2 4 7

1 3 3

1 1 1

$’000s

21

Pre-Sales

Q8e. Did you complete any pre-sales or begin discussions that will likely lead to pre-sales while at the 2007 Cannes Film Market? n=39

Yes33%

No28%

Not Applicable

38%

22

Breakdown of Likely Pre-Sales

Respon-dent

Company Region Genre Value of Likely Pre-Sales

Country of Pre-Sale

1 British Columbia Drama $500,000 U.S.A.2 Newfoundland Drama $50,000 Canada

23

Co-Production and Co-Venture Deals

Eighteen companies (46% of those who answered the question) indicated that they either signed, or began negotiating co-production or co-venture deals while at the 2007 Cannes Film Market.

Fourteen of these companies answered all subsequent questions concerning the number of deals, the value of deals, and the countries with which these deals were made.

Sixteen companies provided information about the number of co-production or co-venture deals - and reported a total of 42 deals.

Fourteen companies provided information about the value of co-production or co-venture deals - and reported that the deals were worth $64,451,110.

Seventeen companies provided information about the countries with which deals were made.

Respondents reported that they participated in an average of 21 business meetings each while at the 2007 Cannes Film Market.

24

Co-Production and Co-Venture Deals

Respon-dent

Number of co-production or co-

venture deals

Estimated value of deals to company

Countries involved

1 3 $10,000,000 Germany, Italy, Spain, UK, USA

2 2 $10,000,000 UK3 2 $10,000,000 Australia, Germany, UK4 4 $9,500,000 UK5 2 $6,000,000 UK6 1 $5,000,000 Canada7 1 $5,000,000 USA8 2 $4,000,000 UK9 1 $4,000,000 Australia, Fiji

10 1 $500,000 Canada

25

Co-Production and Co-Venture Deals (cont’d)

Respon-dent

Number of co-production or co-

venture deals

Estimated value of deals to company

Countries involved

11 3 $300,000 UK, USA

12 3 $100,000 Belgium, France, Switzerland

13 1 $50,000 UK14 10 $1,110 Germany

15 5 $- South Africa, Germany, Spain, France

16 1 $- France17 - $- Japan18 - $- -

26

Co-Production and Co-Venture Deals by Company Region

Region Number of companies

Number of co-production or

co-venture deals

Estimated Value of deals to company

British Columbia 7 9 $25,500,000

Ontario 4 16 $14,551,110

Quebec 4 10 $10,100,000

Nova Scotia 1 2 $10,000,000

Saskatchewan 1 2 $4,000,000

Manitoba 1 3 $300,000

Q9b. How many co-production or co-venture deals were either signed or will likely be signed in the future as a result of discussions initiated at the 2007 Cannes Film Market?

Q9c. What is the estimated value to your company of these co-productions or co-venture deals (in Canadian Dollars)

27

Title Screening

Not at all satisfied

Q11. Were any of your titles screened at the 2007 Cannes Film Market? (n=39)

Q12. (IF YES TO Q11) Using a 10-point scale where 1 means you were Not at all satisfied, and 10 means you were Very satisfied, how would you rate your satisfaction with the visibility your titles received from the screenings? (n=7)

N/A26%

No56%

Yes18%

1 2 3 4 5 6 7 8 9 10Very

Satisfied

Mean satisfaction=5.9

7 respondents (18%) indicated that they had a title screened at the 2007 Cannes Film Market.

These respondents gave an average satisfaction score of 5.9 for the visibility their titles received from the screenings

28

Title Screening - “Perspective Canada” Screening Program

Of the 7 respondents who indicated that they had a title screened at the 2007 Cannes Film Market, 2 said it was part of the “Perspective Canada” screening program.

Of these 2 respondents, 1 indicated that the Perspective Canada program directly contributed to sales, and 1 said it partially contributed to sales.

29

Overall Satisfaction With, and Value of, 2007 Cannes Film Market

7.7

7.9

1 2 3 4 5 6 7 8 9 10

Rating of ValueReceived

OverallSatisfaction with

2007 CannesFilm Market

Not at Veryall satisfied satisfied

Q13a. How satisfied would you say you were overall with the 2007 Cannes Film Market in terms of facilities provided, meeting potential contacts, support, etc...? Using a scale from 1 to 10, where 1 means not at all satisfied, and 10 means very satisfied.

Q13b. And thinking about what it costs your company to attend, and the quality of the services and support provided at the 2007 Cannes Film Market, how would you rate the VALUE you received on the same 1-10 scale...?n=39

30

Satisfaction with 2007 Cannes Film Market

5.4

5.5

6.16.4

6.7

6.8

7.1

7.5

7.8

7.8

8.2

8.48.4

1 2 3 4 5 6 7 8 9 10 Not at Veryall satisfied satisfied

Q13c. How satisfied were you with the 2007 Cannes Film Market in terms of meeting the following objectives for attending, using a scale from 1 to 10, where 1 means not at all satisfied, and 10 means very satisfied? If a particular item does not apply, select, “not applicable”. n=39

Re-connect with existing business contacts

For your own professional development

Make new business contacts

Meet potential co-production partners

Seek out new project ideas and creative inspiration

Learn about international markets and trends

Seek financing or investment

Pre-sell your titles and projects

Identify potential new geographic markets

Sell/distribute your existing titles

Attract visibility or press coverage for your company

Participate as a speaker on panels

Acquire titles for distribution

Not Applicable

5%

8%

3%

15%

18%

10%

21%

23%

26%

36%

28%

67%

79%

31

International Markets & Festivals Attended

Q14. Which, if any of the following international markets and festivals held in other countries have you attended during the past two years? Select all that applyn=39

13%26%

3%

3%3%5%

5%

5%

5%

8%

10%10%

13%21%

26%

62%

0% 20% 40% 60% 80%

Haven't attended any others

Other

Kidscreen Summeit

World Cong. History Prod.

Venice Film Fest.

Realscreen Summit

Bangkok Film Fest & Mkt.

Sunny Side of the Docs

NATPE

Amsterdam Int. Doc. Film. Fest

Hong Kong Filmart

Sundance Film Festival

MIPTV

MIPCOM

European Film Market

American Film Market

32

Rating of International Festivals & Markets

Q15 Thinking of the Cannes Film Market together with the other major international events held outside of Canada, which one best meets your needs, is second best at meeting your needs, is third best at meeting your needs? n=34

6%9% 3%3%

6%

9%

3%6%3%6%3%9%

6%6%

3%6%15%

3% 29% 12%

15% 32% 26%

71% 12%

0% 20% 40% 60% 80% 100%

Best 2nd Best 3rd Best

Cannes Film Market

American Film Market

European Film Market

Sundance Film Festival

Amsterdam International Documentary Film Festival

MIPCOM

MIPTV

Sunny Side of the Docs

Hong Kong Filmart

Venice Film Festival

Kidscreen Summit

Other

33

Used Services of Canada Pavilion?

Yes100%

No0%

Q17 Did you use the services provided by the Canada Pavilion at the 2007 Cannes Film Festival? n=39

Q18 (IF “NO” TO Q17) Why didn’t you use the services provided at the Canada Pavilion? n=0

Why Not?

• Not applicable - all respondents indicated that they had used the Pavilion.

Used Canada Pavilion?

34

Satisfaction with Canada Pavilion

6.7

6.8

7.3

7.5

7.6

7.7

8.7

1 2 3 4 5 6 7 8 9 10 Not at Veryall satisfied satisfied

Location of the stand

Overall utility of the Canada Pavilion to your company

Design and appearance of the stand

Helpfulness of booth staff

Usefulness of pavilion in holding meetings

Availability of meeting spaces

Size of meeting spaces

Q19 (THOSE WHO DID USE THE CANADA PAVILION) Please rate your level of satisfaction with each of the following aspects of the Canada Pavilion at the 2007 Cannes Film Market using a scale from 1 to 10, where 1 means not at all satisfied, and 10 means very satisfied. If a particular item does not apply, select “not applicable.” n=39

35

Suggestions for Future Improvements to the Canada Pavilion*

Many respondents commented that they would like the Pavilion to be larger and feature more meeting space.– “A bigger stand with more room would be great but probably too

expensive. And I wouldn't want to see it move - it's in a great location close to the US and UK and Quebec pavilions.”

– “Private meeting space”– “Larger outside area to meet, less clutter inside so that there are more

spaces for one to one meetings (although with the size of the pavilion I don't know how that would be possible).”

– “Perhaps a little more meeting space, and some of the other pavilions had cafes for lunch meetings. That would be a nice touch.”

Q20 Please provide any suggestions you may have on how the Canada Pavilion could be improved in the future. n=39 *These slides contain a sample of responses. A complete list of verbatim comments can be found in a separate document.

36

Suggestions for Future Improvements to the Canada Pavilion* (cont’d)

Others commented on the need to change the programming at the event:– “Change the format/agenda of the pavilion - it has become stale.

Endless speeches that nobody can see or hear at the evening reception benefits nobody. Would like to see more integration of financial companies with content producers.”

– “Programming would be good, better "hospitality", brand it, actively promote it. Get RIM, Roots, etc. to sponsor. More marketing materials for current projects, not old projects.”

– “I think there should be more representation at the Pavilion of recently produced Canadian films. i.e. all the films made that year should be visible and accessible to anyone (buyer, producer etc) who walks in the room.”


37

Suggestions for Future Improvements to the Canada Pavilion* (cont’d)

A few respondents suggested improvements to the social functions:– “There are dozens of cocktails offered by other pavilions after 6 p.m.,

where networking can be done at 6 p.m. Telefilm however closes its pavilion each evening at 6 p.m.. It would be worthwhile having an open bar or happy hour until 9 p.m. every evening during Cannes.”

– “Canadian Beer (Molson, Labatt) present (on tap) at the bar. Permanent bar tender.”

– “Have something other than peanuts to eat at the International cocktails.”

A few also commented on the knowledge of the staff:– “Like any booth, the Telefilm ‘in the know’ personnel at the desk are

excellent. However, a couple of the locals/temp people on the front desk seemed disinterested in helping and frankly less than knowledgeable regarding Canadian participants.”

– “Staff need to be more knowledgeable. More information and networking events should be done with a facilitator hired to make introductions.”


38

Past Attendance at Cannes Film Market

21%

28%

18%

33%36%

54% 59%

0%

20%

40%

60%

80%

Neverattended

before

2001 orearlier

2002 2003 2004 2005 2006

Q21. Which previous Cannes Film Markets, if any, has your company attended? Select all that applyn=39

39

Likelihood of, and Reasons for, Recommending Cannes Film Market to Others*

87% 8% 5%

80% 100%

Q22a. Would you recommend the Cannes Film Market to other companies in the Canadian audio-visual industry? n=39

Q22b. Please explain your answer. n=37 *A complete list of verbatim comments can be found in a separate document.

Definitely Probably Not Sure

Not Likely

Definitely Not

• “Of the markets I've attended so far, Cannes was the most exciting in terms of meeting industry people from all over the world, people hungry for new projects and opportunities. It's crucial for Canadians to reach out to international markets, and Cannes is a great place for us to test the market viability of our stories.”

• “Everyone's in Cannes, it's the most efficient place to do business, and to reconnect with all sectors of the international industry.”

• “I have only gone to TV festivals before. The Cannes Film Festival is more producer friendly. The Telefilm booth and the overall cost of attending the festival is less. It's a real social environment so networking and meeting people is easier.”

40

Cost of Attending 2007 Cannes Film Market

Companies incurred an average cost of $8,544 (median amount $5,500) in attending the 2007 Cannes Film Market.

49% of respondents (19 companies) indicated that they received funding support from Telefilm, other federal government organizations or the provincial funding agencies to attend the event.

Six companies reported receiving federal funding ranging in amount from $1,000 to $15,394. The median amount was $4,000.

Fifteen companies indicated that they had received provincial funding ranging in amount from $1,000 to $3,500. The median amount was $2,500.

41

“Telefilm is doing a great job at Cannes. Very well organized and very supportive for individual producers. They have a lot of accumulated experience doing this and I wouldn't change anything at this point.

“Je crois que le support de Téléfilm par l'intermédiaire de son personnel et du stand donne beaucoup de crédibilité a l'industrie cinématographique canadienne.”

“Great market and Veronique did her usual tremendous job.”

Federal funding support would help producers get to Cannes more often. Too few Canadian producers can afford to go.”

Q26. Finally, please provide any other comments you have on the 2007 Cannes Film Market or suggestions for improving the support provided by Telefilm and its partners. n=39

*These slides contain a sample of responses. A complete list of verbatim comments can be found in a separate document.

Other Comments*

42

“It would be great to hold the Canada panel in the Canadian pavilion - I realize the problem of space. It should also be advertised a lot more so that delegates other than Canadians attend. It seems too that like other countries there should be a memorable Canadian party or event for Canadian delegates to invite guests to.”

“Perhaps even more enticements for producers from other countries to work with Canadian producers and content creators. While there were several cocktail receptions, a big party would've been a nice networking event.”

“Make personal introductions to known industry people - adds credibility for the person that they’re introducing.”



Other Comments (cont’d)*

43

“Overall I was pleased with how my meetings, events, contacts, screenings unfolded at Cannes. Telefilm played very little role in any of my business. In fact the situation has become so bad in the international marketplace when you identify your project as "Canadian" that I have ceased to do so. You have a major identify problem that needs fixing. Maybe you could start with the way you interact with the Producing community, put more money into development and provide more support so that Producers can use Telefilm rather than the other way around.”

“The only question I have is why does the stand only support Telefilm funded films (in terms of poster, running trailers, announcements and ads)? I of course understand that not everybody Canadian can be represented there, but a lot of other Canadian films are relegated to having a brochure up and a space for the sales agent or producer....”



Other Comments (cont’d)*

Conclusions

45

As a result of the 66% response rate to the survey, and possible concerns about non-response bias, the sales data within this report should be treated with some caution.

Almost two-thirds of respondents (62%) indicated that they either completed sales, or began discussions that are likely to lead to sales while at the event.

One-third (33%) said that they either completed pre-sales, or began discussions that are likely to lead to pre-sales.

Nearly half of respondents (46%) either signed or began negotiating co-production or co-venture deals.

$69,857 of actual sales, $9,450,000 of likely sales and $550,000 of likely pre-sales, together with $64,451,110 of co-production or co-venture deals were reported by survey participants.

Since not all companies who said they had completed sales or pre-sales provided details of the transactions, it is likely that these numbers underestimate the true value of sales and pre-sales at Cannes.

Conclusions

46

Overall, participants were very satisfied with the Cannes Film Market, giving an overall satisfaction score of 7.9 out of 10. This is consistent with last year’s score of 7.8

Respondents were marginally less satisfied with Cannes in terms of the value they received, giving an average rating of 7.7 (up 0.2 points since last year).

Respondents indicated that the Cannes Film Market is the best international event held outside of Canada at meeting their needs, with the American Film Market coming in second place and EFM ranking third.

Participants were most satisfied with the 2007 Cannes Film Market in terms of reconnecting with existing business contacts (8.4 out of 10), for their own professional development (8.4) and making new business contacts (8.2).

They were least satisfied with it in terms of participating as a speaker on panels (5.5) and acquiring titles for distribution (5.4).

Conclusions

47

All of the survey respondents used the services provided by the Canada Pavilion at the 2007 Cannes Film Market.

They were generally satisfied with the overall utility of the Canada Pavilion (rating their satisfaction as 7.7 out of 10).

More specifically, they were most satisfied with the Pavilion in terms of:

The location of the stand (8.7)

The design and appearance of the stand (7.6)

The helpfulness of booth staff (7.5)

They were less satisfied with the stand in terms of being able to conduct meetings there. Specifically:

The usefulness of Pavilion in holding meetings (7.3)

Availability of meeting spaces (6.8)

Size of meeting spaces (6.7)

Conclusions

48

Although attendees of the Cannes Film Market are generally very satisfied with the market itself and with the services provided by the Canada Pavilion, there remains scope for further improvement.

Telefilm should look at ways of modifying the Canada Pavilion in order to better cater to clients’ needs in terms of meeting international partners - both by creating more space for meetings and by playing a more active role in introducing clients to foreign companies through events such as social functions.

Conclusions

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Documents

2007 Cannes Film Market Outcomes Report Conducted by: For: Telefilm Canada August 2007