Foreign filming and visual effects | A record year… and another to come

The strong comeback of foreign filming in 2021 despite the pandemic has allowed Quebec to beat a record almost two decades old. Barring an unforeseen event, the spin-offs from these productions should continue their momentum to cross the half-billion dollar mark this year.

Julien Arsenault
The Press

All the indicators are green for the Office of Cinema and Television of Quebec (BCTQ), which will present its results for the past year this Thursday. The visual effects segment also had a record year, while the animation sector also picked up the slack.

“I think we can hope for it,” says Christine Maestracci, President and CEO of the BCTQ, when asked about the possibility of seeing the economic benefits of foreign filming be greater than 500 million. There is a basic trend of overall growth in all sectors. »

In office for less than six months after a career at Quebecor, the head of the organization responsible for foreign filming and the visual effects industry anticipates another “excellent year” even if the Omicron variant has slowed down the pace on the side of foreign shootings at the beginning of the year.

After the dip observed in 2020 due to confinements to fight against COVID-19, foreign film shoots have recovered to record spin-offs of 470 million last year, far ahead of the record of 399 million recorded in 2002 -2003.

This performance also exceeds the target of 450 million set for 2023.

Quebec thus hosted 21 foreign shoots in 2021 – 8 series and 13 feature films. We find there in particular Three PinesAmazon’s first series shot in the province, Ghosts and the big budget movie Transformers 7: Rise of the Beasts. There were more projects in 2019 (30), but the average production budget was higher last year.

This increase in benefits is part of a trend observed elsewhere in the world. It is also fueled by the multiplication of broadcasting services such as Netflix and Amazon Prime Video, as well as by an increase in the budgets of foreign productions. They are usually “35 million and more”, according to M^me Maestracci.

She also points out that television series contribute more significantly to spin-offs.

In 2021, the activities were not too disrupted by the Omicron variant. The impact was rather felt at the start of 2022.

“Foreign producers are a little more cautious and some have moved the arrival of filming a little,” explains the president of the BCTQ. Projects scheduled for January or February, for example, have been moved to the spring or later, to the fall. It’s a slight delay, but we have no concerns for 2022.”

In Quebec, foreign productions are eligible for a provincial tax credit of 20%, which represents a drain of approximately $95 million on the Quebec Treasury.

Fast-paced visual effects

Projects like feature films Fantastic Beasts: The Secrets of Dumbledore and moonfallas well as the series The Mysterious Benedict Society and Stranger Things allowed the visual effects sector to generate record spin-offs of 780 million. This mark exceeds the previous peak of 699 million recorded in 2019.

“We’re one of three global hubs in this regard,” says Ms.^me Maestracci, who continues to see growth.

Contracts in the visual effects industry typically come from film and television studios. The effervescence of filming therefore benefits it. In this sector, foreign producers receive a provincial tax credit of 36% for their expenditures made in Quebec. The impact of the measure is therefore 280 million for 2021.

Quebec companies also made 171 million animated film contracts. The increase is 7.5% over one year, but the sum is a drop from 193 million in 2019.

Able to grow

In a context where demand is increasing, but labor is scarce, the president of the BCTQ believes that Quebec can meet expectations. Grandé Studios and MELS, two studios that host Hollywood productions, have announced expansion plans in the past year, Ms.^me Maestracci.

“The scarcity of labor is felt in all spheres,” she adds. We need to be able to have even more appeal to the next generation. »

When the payroll for a foreign shoot is more than 2 million, the producers “must pay 1% of the payroll” intended for training activities, underlines Mr.^me Maestracci. According to her, most producers direct these sums towards the Center for Professional Training in Film, Television, Documentary and Interactive Media, which “benefits the entire local industry”.

Professor at the School of Media at UQAM, Suzanne Lortie has not seen the results of the BCTQ. The global trend was observed before the pandemic, underlines the expert.

“There is a tendency to leave Hollywood, explains M^me Lortie. But Quebec productions suffer because they have less budget. There is a labor shortage and a wage escalation. It’s screaming. The shortage affects low-budget productions. »

M^me Maestracci believes that it is nevertheless necessary to make the “bet of growth”. The president of the BCTQ believes that Quebec expertise is “wanted”. Some workers could choose to go to work in Los Angeles or Toronto if the Quebec industry stops expanding its influence.