B.C.’s movie and TV industry is struggling. Will a promised tax credit increase help?

As California eyes an increase to tax incentives for TV and film production, workers in Hollywood North are happy to hear B.C. Premier David Eby provide postelection confirmation that his government will deliver on his campaign promise of raising the Production Services Tax Credit to 36 per cent from 28 per cent.

It’s good news for an industry that had hoped to build back after the writers and actors strikes ended but instead is currently experiencing a significant slowdown.

“The message to film workers in British Columbia, who I know are feeling a lot of the pressures of big streamers dialing back their budgets and other pressures facing the industry, is that we’re in your corner,” said Eby at a news conference on Oct. 29 at the provincial legislature. “We’re going to work with you to make sure that our industry is competitive. And we know that, if we’re competitive, we can bring in the big productions.

“We’re not going to be able to outbid the lowest common-denominator bidders in the United States. But, if we’re competitive, combined with the amazing crews that we have here, in the teams that we have, we can deliver some of the biggest productions available, given what we offer here in the province.”

The premier’s statement came just a couple of days after California Gov. Gavin Newsom proposed increasing the state’s film tax credit program from US$330 million to US$750 million per year.

When asked for comment about the potential impact of tax incentives on Hollywood North, Creative B.C., the provincial non-profit group that promotes the creative sector, said in a statement: “It’s still too early to assess the potential impact in British Columbia.”

At this point, any stimulus is welcomed as the industry struggles not just here, but around the globe.

“The fact that there is only 35 per cent or so employment, yeah, that would be characterized as way off,” said Shawn Williamson, a producer and the founder of Brightlight Pictures, a top film and TV production company based in Vancouver.

The recessionary environment is the direct result of studios simply not making the same amount of content they did a few years ago. And other governments around the globe offering attractive tax incentive programs to lure productions.

“Many jurisdictions are now competing for film and television work. Tax credits have been increased in the U.K., Ireland and across the U.S.,” said Williamson. “British Columbia is at a financial disadvantage based on what people can get. I have personally lost two shows to Ireland that are set in North America. So, Ireland has a very aggressive credit.”

In 2022, B.C., which is the third-largest production centre for TV and film in North America, generated $4.4 billion in direct spending and laid out about $900 million in industry tax credits. Last fall, Creative B.C. estimated the provincial film industry employed close to 90,000 workers, with 40,000 of those being equivalent to full-time jobs.

Creative B.C. doesn’t have complete numbers for 2023, but those in the industry know those totals will be way down. Williamson said his company, which is a service producer, meaning they handle a lot of U.S. productions, usually would have four or five shows on the go right now. He notes they’re currently working on only two “smaller shows.”

“It hasn’t really picked up,” said Williamson about the hopes that business would regain steam after the strikes in 2023. “If you look at the film lists, it is much, much lower than it typically would be this time of year. I have never seen it this slow for this duration.”

In good times, close to 50 productions would be running through the fall and winter. This year, it’s about half that.

Leslie Wootton, executive director for Screen B.C. (formerly known as the Motion Picture Production Industry Association), said she’s hearing from the various unions and partners that her organization works with that employment levels are at 30 to 40 per cent of normal.

“I think the announcement by Gov. Newsom wasn’t a huge surprise,” said Wootton. “It almost seems like a long time coming. And it’s a political environment down there right now.”

A surprise or not, adding more tax credits in California will encourage American productions to maybe pick Hollywood over Hollywood North. So, getting reassurance that B.C. will also increase its tax credits is welcome news that will bolster the province’s already top-tier reputation as a production location.

“It’s not the most competitive tax credit, but B.C. competes very strongly with its deep talent pool. It’s amazing infrastructure,” said Wootton, who adds tax programs around the globe are changing in real-time. “We’ve built a force to be reckoned with here … But the last three years have been really challenging for the film and television industry, worldwide.”

The increased tax credit won’t hit the ground until the next provincial budget. But industry types in B.C. are ready to use it as a selling point.

“We don’t have the implementation plan yet, but it is a huge sign for us to be able to share that news with our client,” said Wootton. “It won’t make us the cheapest game in town, but it is an enhancement that will matter.”

Williamson agrees.

“The optics are great now because we are able to message to Hollywood we have a more competitive credit now,” he said.

While the continued relationship with American and international productions is at the forefront of the B.C. business, domestic productions are also part of the equation.

“We’ve been fortunate to have two drama series with Global (Family Law) and CBC (Allegiance),” said Tex Antonucci, vice-president Business Affairs at Lark Productions, noting that Ontario and Quebec dominate domestic production. “But overall, the domestic industry is also down. As much as there have been a few more shows being commissioned in the West, we are still seeing a contraction.

“Everyone is looking at their budgets,” said Antonucci, adding there has been a massive contraction on unscripted production as well. “It’s just becoming harder and harder to get commissions.”

With a tax credit increase on the horizon, what does the future for B.C. TV and film look like?

“I think the outlook is, well, let’s just call it guardedly optimistic,” said Wootton. “People aren’t going to stop needing new content. But the balance of what kind of content, and where they make it, yeah, I don’t have a crystal ball. But I think the industry feels relatively confident that 2025 is going to show an uptick because these studios are going to need content.”

[email protected]

x.com/dana_gee

Bookmark our website and support our journalism: Don’t miss the news you need to know — add VancouverSun.com and TheProvince.com to your bookmarks and sign up for our newsletters here.

You can also support our journalism by becoming a digital subscriber. With a subscription, you’ll get unlimited access to The Vancouver Sun online, as well as the ePaper and our app. Support us by subscribing today: The Vancouver Sun.