H264 film distributor threatened with closure

Small earthquake in the Quebec film industry. The film distributor h264, which has more than 2,000 selections in festivals since its founding in 2015, is in financial difficulty. Its closure would be “imminent”, we learned The Press.

Its founder and president, Jean-Christophe J. Lamontagne, does not even know if he will be able to go to Los Angeles in the coming days to accompany the filmmaker Vincent René-Lortie, whose short film Invincible was nominated for the Oscars. “If there is not a quick commitment from the federal government to support our export efforts, which represent more than 50% of our activities, our closure is imminent,” he told The Press.

According to Jean-Christophe J. Lamontagne, export assistance is almost non-existent for film distributors. He is not alone in paying the price. Sphere Films International closed its doors last summer, h264 had also recovered part of its catalog.

“It’s a cry from the heart that we are making,” he continues. We are really worried about the international influence of our films. All this happens in a context where we are about to go to the Oscars [la cérémonie a lieu le 10 mars] and where we just sold the films Humanist vampire seeking consenting suicideby Ariane Louis-Seize, and The red rooms, by Pascal Plante in 35 countries. Films that brought in more than US$650,000 for producers and institutions. »

“Internally, it holds with pin”

According to the president and founder of h264, which has 11 employees and is one of the only companies to have expertise in selling works abroad, “people have the impression that things are going really well, that we have a lot of success, and it’s true that we have success, but the reality is that internally, it’s holding on with a stick,” he explains.

Basically, when a film (short or long) is launched on the festival circuit, h264 deploys a team to promote it and sell it abroad. If it is a short film, it will deal with broadcasters or platforms; if it is a feature film, he will negotiate with another distributor, but all these efforts will ensure that the film will remain in his catalog.

To illustrate the inconsistency of the situation, Jean-Christophe J. Lamontagne gives the example of Quebec or Canadian films screened at the Berlinale at the moment. “They are all represented by European sales agents. If we disappear, more than 80% of the 40 to 60 new productions financed by Telefilm Canada [qui a reçu 100 millions pour les deux prochaines années] will find themselves without a seller or represented by European sellers. »

However, h264’s hybrid business model has been praised by many Quebec producers and filmmakers over the years.

Philippe Falardeau, who publicly supported the film Invincible by Vincent René-Lortie and who is in discussions with h264 for the distribution of a short film that he plans to produce, can’t believe the young company on the verge of disappearing.

“Ironically, it is through foreign revenues that producers and institutions are reimbursed, even more than through local box office receipts. And yet, we have not developed expertise in international sales, he laments. Some did it, Sevilla did it. But in general, you have to go see a European sales agent to sell your works internationally. h264 is one of the few that managed to do this. »

Philippe Falardeau believes that there is “a failure and a short-sightedness” on the part of the institutions.

An important issue

On the side of Telefilm Canada, Francesca Accinelli, vice-president of program strategy and industry development, recognizes that the question of ownership of licenses is an issue. “We had an export assistance program which was suspended last August because we received too many requests, but it was aimed at foreign distributors who wanted to promote Canadian films at home. international. »

M^me Accinelli admits that there is no specific assistance program aimed at sales agents or distributors of Quebec or Canadian films. “We will see if there is a way to expand the program to include Canadian distributors,” she argues.

Producer Roger Frappier believes that Quebec and Canada must realize the importance of the export issue.

“The context has changed,” he begins by saying. We have moved from theatrical distribution to a much more complex distribution, which involves digital platforms, cable distributors and alliances with other distributors. Distributors like h264 must be present in international markets like Berlin, Cannes, Toronto, etc. Not the institutions… Governments must quickly put in place aid programs to cover representation costs, advertising, etc., otherwise the export of our films is doomed to failure. »

Mr. Frappier does not dare imagine the industry without h264. “It is thanks to them that the films August 32 on earth And Maelstromby Denis Villeneuve, and The great seductionby Jean-François Pouliot [tous des films qu’il a produits], are now available on the platforms. It is also our international partner for the new Annie St-Pierre film, The portraitist, which Florence Longpré scripted. Their disappearance would leave a huge void. »

Despite everything, Jean-Christophe J. Lamontagne is not ready to give up.

The founder of h264 made a phone call to the office of Quebec Minister of Culture and Communications, Mathieu Lacombe, who said he was sensitive to the issue. “We felt support from him, but we have been in difficulty since last summer. For us, it’s one to midnight. » Same story from Canadian Heritage, which became aware of the file three weeks ago and which is looking for a way to help the distributor.

Finally, on the side of SODEC, which finances the production of short and feature films, there is a program which offers assistance for the export of works listed in the catalog of Quebec distributors. The envelope granted once every two years, as part of this program called Sodexport, will be increased, Caroline Galipeau, delegate for international affairs, export and cinema marketing, confirmed to us. “We are aware of the situation faced by distributors who wish to export their films and we are going to put forward solutions that will help them,” she said.