2007 European Film Market (EFM) Outcomes Report Conducted by: For: Telefilm Canada June 2007

2007 EuropeanFilm Market (EFM)Outcomes Report

Conducted by:

For:Telefilm Canada

June 2007

Methodology

3

Methodology

A total of 28 e-mailed invitations were sent to Canadian companies that attended the 2007 European Film Market.

13 of the 28 companies clicked on the link in the e-mail invitations to go to the survey site.

Of these 13, 12 completed all of the survey - a 43% response rate.

The survey was open from March 9 until June 9, 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 28 companies

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

12 companies reached the end of the survey

The low 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 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 9 2 2

Ontario 7 4 3

British Columbia 7 3 3

Newfoundland & Labrador 4 3 3

Manitoba 1 1 1

Total 28 13 12

Respondent Profile

7

Primary Business Focus of Company

Q1. What is the primary business focus of your company? Select all that apply.N=13

85%

15%

8% 8%

0%

20%

40%

60%

80%

100%

Producer Distributor Sales Agent Acquisitions

8

Main Format(s) of Interest

Q2. What is the main format(s) of interest to your company? Select all that apply.N=13

92%

31%

0%8%

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=13

Ontario31%

Quebec15% British

Columbia23%

Manitoba8%

Newfoundland & Labrador

23%

10

Company Revenues

38%

38%

8%

0%

0%

8%

8%

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

$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

$10,000,001 to $50,000,000

Q4. What were your company’s total gross revenues for its most recent fiscal year?N=13

11

Number of Employees

10 or under92%

21 to 508%

Q5. How many full-time employees are there currently in your company? N=13

The Film Market

13

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

Q6. In deciding to attend the 2007 European 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=13

Feature Film Television New Media

Drama 85% 31% 0%

Horror/Thriller 54% 8% 0%

Comedy 38% 8% 0%

Action/Adventure 31% 8% 0%

Science Fiction 23% 8% 0%

Documentary/Educational 15% 31% 0%

Animation 15% 8% 0%

Romantic 15% 8% 0%

Children’s Programming 0% 15% 0%

Erotica 15% 0% 0%

14

Sales/Pre-Sales

Ten companies indicated that they either completed sales while at the European Film Market or began discussions that are likely to lead to sales while at EFM.

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

Of these, 4 companies provided information on 16 deals involving 9 titles.

Companies reported that 2 distribution agreements were signed.

Respondents reported that $280,000 of sales were completed while at the 2007 EFM and that $2,164,500 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 European Film Market, but they expect $800,000 of pre-sales to occur as a result of discussions initiated at EFM.

15

Breakdown of Sales and Pre-Sales Deals

4 Companies

8 Titles

11 Deals

$280,000 Sales completed while at

2007 European Film Market

$2,164,500 Sales likely to occur as a

result of discussions completed while at


2 Companies

3 Titles

5 Deals

Sales Pre-Sales

$0 Pre-Sales completed while at


$800,000 Pre-Sales likely to occur as a result of

discussions completed while at 2007

European Film Market

16

Sales

Yes77%

No23%

Q8a. Did you complete any sales of your titles, or begin discussions that will likely lead to future sales while at the 2007 EFM? N=13

17

Breakdown of Sales and Likely Sales by Genre

$1,665

$280

$500

$0

$0

$0

0 500 1,000 1,500 2,000

Romantic

Comedy

Drama

Likely SalesSales

Companies Titles Deals

1 1 3

2 2 3

3 5 5

$’000s

18

Breakdown of Sales & Likely Sales by Country

$500

$225

$600

$55

$555

$0

$500

$0

$10

$0

0 200 400 600 800 1000

Scandinavia

UK

USA

Benelux

Canada


1 1 1

2 3 3

2 4 4

1 1 1

2 2 2

$’000s

Likely SalesSales

19

Breakdown of Sales and Likely Sales by Company Region

$2,165

$280

$0

$0

0 500 1,000 1,500 2,000 2,500

British Columbia

Ontario

Likely SalesSales


1 2 5

3 6 6

$’000s

20

Pre-Sales

Yes46%

No54%

Q8e. Did you complete any pre-sales or begin discussions that will likely lead to pre-sales while at the 2007 EFM? N=13

21

Breakdown of Pre-Sales and Likely Pre-Sales by Genre

$800

$0

$0

$0

0 200 400 600 800 1000

Romantic

Drama

Likely Pre-SalesPre-Sales


1 1 3

1 2 2

$’000s

22

Breakdown of Pre-Sales by Country

$800

$0

$0

$0

$0

$0

0 200 400 600 800 1000

Canada

USA

UK


1 1 1

1 1 1

2 3 3

$’000s


23

Breakdown of Pre-Sales and Likely Pre-Sales by Company Region

$800

$0

$0

$0

0 200 400 600 800 1,000

British Columbia

Ontario



1 1 3

1 2 2

$’000s

24

Co-Production and Co-Venture Deals

7 companies (54% of those who answered the question) indicated that they either signed, or began negotiating co-production or co-venture deals while at the 2007 EFM.

However, only 5 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.

6 companies provided information about the number of co-production or co-venture deals - and reported a total of 11 deals.

5 companies provided information about the value of co-production or co-venture deals - and reported that the deals were worth $32,120,000.

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

Respondents reported that they participated in an average of 17 business meetings each while at the 2007 EFM.

25

Co-Production and Co-Venture Deals

Respondent

Number of co-production or co-

venture deals

Estimated value of deals to company

Q9d - Countries involved

1 4 $18,000,000 France, Germany, UK2 3 $12,000,000 Germany, Italy, UK, USA3 1 $2,000,000 UK4 1 $100,000 Slovenia5 1 $20,000 Germany6 1 - -7 - - Canada

26

Co-Production and Co-Venture Deals by Company Region

Region Number of companies

Q9b - Number of co-production or co-venture

deals

Q9c - Estimated Value of deals to

company

British Columbia 2 4 $18,000,000

Quebec 1 3 $12,000,000

Ontario 3 3 $2,020,000

Newfoundland 1 1 $100,000

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 EFM?

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 EFM? (n=12)

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=5)

N/A33%

No25%

Yes42%

1 2 3 4 5 6 7 8 9 10Very

Satisfied

Mean satisfaction=5.8

5 respondents (42%) indicated that they had a title screened at the 2007 European Film Market.

These respondents gave an average satisfaction score of 5.8 for the visibility their titles received from the screenings

28

Title Screening - “Perspective Canada” Screening Program

Of the 5 respondents who indicated that they had a title screened at the 2007 European 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 European Film Market

6.4

6.8

1 2 3 4 5 6 7 8 9 10

Rating of ValueReceived

OverallSatisfaction with2007 European

Film Market

Not at Veryall satisfied satisfied

Q13a. How satisfied would you say you were overall with the 2007 EFM 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 EFM, how would you rate the VALUE you received on the same 1-10 scale...?N=12

30

Satisfaction with 2007 European Film Market

4.9

5.9

5.9

6.0

6.06.0

6.06.1

6.5

6.7

6.9

7.17.9

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

Q13c. How satisfied were you with the 2007 EFM 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=12

Reconnect with existing business contacts

For your own professional development

Learn about international markets and trends

Make new business contacts

Meet potential co-production partners

Seek out new project ideas and creative inspiration

Identify potential new geographic markets

Seek financing or investment

Acquire titles for distribution

Participate as a speaker on panels

Pre-sell your titles and projects

Sell/distribute your existing titles

Attract visibility or press coverage for your company

Not Applicable

0%

8%

8%

0%

8%

8%

25%

25%

83%

92%

0%

42%

8%

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=12

17%

25%

8%

8%

8%

17%

17%

33%

50%

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

Haven't participated in any

Other

Sunny Side of the Docs

MIPTV

MIPCOM

Sundance Film Festival

NATPE

American Film Market

Cannes

32

Rating of International Festivals & Markets

Q15 Thinking of the European 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=10

10% 20%

10%

10%

10%

10%

10% 10%

20%

10% 10%

10% 10% 10%

40%

30% 10%

40% 10% 10%

0% 10% 20% 30% 40% 50% 60%

Best 2nd Best 3rd Best

Cannes Film Market

European Film Market

American Film Market

Sundance Film Festival

Venice Film Festival

MIPCOM

MIPTV

Sunny Side of the Docs

RealScreen Summit

World Congress of History Producers

Hong Kong Filmart

Other

33

Used Services of Canada Pavilion?

Yes75%

No25%

Q17 Did you use the services provided by the Canada Pavilion at the 2007 EFM? N=12

Q18 (IF “NO” TO Q17) Why didn’t you use the services provided at the Canada Pavilion? N=3

Why Not?

• “Not sure what services were to be provided”

• “I found each part of the festival was very disconnected to the other parts and I could have used more information as it was my first time attending.”

Used Canada Pavilion?

34

Satisfaction with Canada Pavilion

5.6

5.6

6.0

6.8

7.2

7.3

7.4

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

Location of the stand

Helpfulness of booth staff

Design and appearance of the stand

Overall utility of the Canada Pavilion to your company

Usefulness of pavilion in holding meetings

Size of meeting spaces

Availability 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 EFM 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=9

35

Suggestions for Future Improvements to the Canada Pavilion

Respondents provided the following suggestions for future improvements to the Canada Pavilion:– “I believe the space was somewhat too small, especially for

private meetings, but given the size of the overall venue (M. Gropius Building) it was understandable. Otherwise it was fine.”

– “Get a bigger space with better location easier to be found.”– “More needs to be made of Canada's position as a producer of

independent product. There is so much that could be done to make a booth or pavilion that shows this profile, at all international events, so that Canada becomes known as the "indie" place, with stylish film clips playing etc.”

– “I think the Canada Pavilion could get more involved in helping to promote all Canadian films screened at the BFF. There also needs to be a social at the Pavilion as a meet and greet.”

– “By matching enquiries for sales or co-production with producers from Canada in attendance in a more proactive way.”

Q20 (THOSE WHO DID USE THE CANADA PAVILION) Please provide any suggestions you may have on how the Canada Pavilion could be improved in the future. N=12

36

Past Attendance at EFM

42%

17%

8%

0%

17%

42% 42%

0%

10%

20%

30%

40%

50%

60%

200620052004200320022001 orearlier

Neverattended

before

Q21. Which previous European Film Markets, if any, has your company attended? Select all that applyN=12

37

Likelihood of, and Reasons for, Recommending EFM to Others

50% 17% 25% 8%

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

Q22a. Would you recommend the European Film Market to other companies in the Canadian audio-visual industry? N=12

Q22b. Please explain your answer. N=12

Definitely Probably Not Sure

Not Likely

Definitely Not

• “Attending the Berlinale was a tremendous opportunity to grasp current trends in the marketplace.”

• “It is a very useful and user friendly market for Canadian content films.”

• “Very important to have this visibility on the international film stage.”

• “Good opportunity to meet producers & distributors from European territories, a lot of good buzz and a wonderful city as host.”

• “Has to do with overall initiatives regarding raising the profile of Canadian production and Canadian product abroad.”

• “We had a co-production with Germany, so we had good reason to be there to screen the work and build on our relationship with the co-producers.”

38

Cost of Attending EFM 2007

Companies incurred an average cost of $5,730 in attending the 2007 European Film Market.

83% of respondents (10 companies) indicated that they received funding support from Telefilm, other federal government organizations or the provincial funding agencies to attend the event.

Five companies reported receiving federal funding ranging in amount from $1,000 to $20,000. The median amount was $2,400.

Seven companies indicated that they had received provincial funding ranging in amount from $1,800 to $3,600. The median amount was $2,000.

39

“Thank you once again to Telefilm & its representatives for all of the help and support provided. Attending the EFM was an invaluable experience & I have BCFilm and Telefilm to thank for helping me make the best of such a great opportunity.”

“It was my first time, after receiving Telefilm eligibility as a producer, in attending the EFM and I found it, overall, to be very useful. I'm sure that business will result.”

“Canadian presence at international festivals and markets is a must. A more concerted, stylish, up-to-date, "produced" approach to raising the profile of Canadian production and products is a must.”

Q26. Finally, please provide any other comments you have on the 2007 European Film Market or suggestions for improving the support provided by Telefilm and its partners. N=12

Other Comments

40

“The Canadian screenings were very helpful to get our film seen by a large majority of buyers at EFM. Having our film as an official selection in the Berlinale was a big part of our success at the EFM. The ongoing outreach and follow up with the Telefilm Canada Festivals Bureau staff is INDISPENSIBLE in attending the foreign markets. This team, especially Brigitte Hubmann's relationships with all the international festival programmers, goes a long way to getting our films selected into these festivals and sold at the accompanying markets.”

“The EFM itself is not very helpful for screenings. You cannot put up your poster until one hour before a screening. Very rigid rules and there seems to be no interest on behalf of the organizers in getting film buyers to the screenings.”

Other Comments


41

“Maybe this year was not the best one for the Berlin Film Festival/European Film Market, as it was a seasonal thing. Hopefully, next year, it will be a better one (along with a better weather!)”

“Je crois que le European Film Market (et le Festival de Berlin) cherche encore la manière idéale de s'organiser et de se centraliser; c'est un peu éparpillé et désorganisé; cela va venir...”

Other Comments


Conclusions

43

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

Nevertheless, it appears that participants at EFM did enjoy a successful market:

More than three-quarters (77%) either completed sales, or began discussions that are likely to lead to sales while at the event.

Forty-six percent either completed pre-sales, or began discussions that are likely to lead to pre-sales.

Over half of respondents (54%) either signed or began negotiating co-production or co-venture deals.

$280,000 of actual sales, $2,964,500 of likely sales and pre-sales, and $32,120,000 of co-production or co-venture deals were reported by survey participants.

Conclusions

44

Despite this sales success, respondents were only moderately satisfied with the market, giving an overall satisfaction rating of 6.8 out of 10, and rating value for money as 6.4 out of 10.

These scores are lower than they were in 2007, when they both scored 7.7 out of 10.

Participants were most satisfied with the 2007 EFM in terms of reconnecting with existing business contacts (7.9 out of 10), and least satisfied with it in terms of attracting visibility or press coverage for their companies (4.9 out of 10).

Respondents indicated that the Cannes Film Market was the best international event held outside of Canada at meeting their needs.

Conclusions

45

Three-quarters (75%) of respondents used the services provided by the Canada Pavilion at the 2007 EFM.

They were moderately satisfied with the overall utility of the Canada Pavilion (rating their satisfaction as 6.8 out of 10).

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

The location of the stand (7.4)

The helpfulness of booth staff (7.3)

The design and appearance of the stand (7.2)

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

The usefulness of Pavilion in holding meetings (6.0)

Size and availability of meeting spaces (5.6)

Conclusions

46

Currently, the Canada Pavilion seems to be more informational than interactive.

Companies are able to use the Pavilion to display and promote their products, but they find that the Pavilion is lacking in facilities for conducting meetings.

The Canada Pavilion could me made more useful to clients if it were more of a facilitation point, i.e. a better location for holding meetings and for introducing buyers to sellers, possibly by devoting more space to meeting rooms.

Conclusions

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Documents

2007 European Film Market (EFM) Outcomes Report Conducted by: For: Telefilm Canada June 2007