{"id":9317,"date":"2015-10-01T16:05:16","date_gmt":"2015-10-01T20:05:16","guid":{"rendered":"http:\/\/worldscreen.com\/tvkids\/canadian-spirit\/"},"modified":"2016-01-27T16:04:24","modified_gmt":"2016-01-27T21:04:24","slug":"canadian-spirit","status":"publish","type":"post","link":"https:\/\/worldscreen.com\/tvkids\/canadian-spirit\/","title":{"rendered":"Canadian Spirit"},"content":{"rendered":"

Andy Fry surveys the latest developments in Canada, from regulatory changes to consolidation in broadcasting, production and distribution.<\/em><\/p>\n

The Canadian kids\u2019 TV business has always punched above its weight. A combination of strong governmental support and sure-footedness on the international stage has fostered a production and distribution ecosystem in which creativity, innovation and entrepreneurship thrive.<\/p>\n

In getting an idea of the overall value of kids\u2019 and youth production in Canada, the best figures come from the Canadian Media Production Association, which puts the total at C$352 million ($265 million) in 2013\u201314. This is up from C$317 million ($239 million) in 2012\u201313.<\/p>\n

But this isn\u2019t to say that the Canadian kids\u2019 industry is without its challenges. Just like their counterparts in other countries, the key players have had to contend with disruption caused by changes in ownership, regulation, digital technology and audience behavior.<\/p>\n

The big story in the last couple of years has been consolidation in the kids\u2019 broadcasting business. Leaving aside CBC (the national public broadcaster), Quebec-based French-language players and the publicly-funded channel TVOntario (TVO), there are now only two kids\u2019 broadcasters of significance in the Canadian market: Corus Entertainment and DHX Media. Both companies have substantial TV production divisions, which inevitably raises questions about the commissioning opportunities for third-party producers.<\/p>\n

CANADIAN TREEHOUSE<\/strong>
\nCorus is the biggest beast in the Canadian jungle, with a portfolio that includes YTV, Treehouse, TELETOON, Nickelodeon, Cartoon Network, Disney Channel and Disney Junior. In any other country in the world, at least half of these channel brands would be competing with each other. But laws designed to protect Canadian culture from U.S. encroachment dictate that Nickelodeon, Cartoon Network and Disney can only operate in Canada by licensing their brands to a domestic player, in this case Corus.<\/p>\n

At first, this gives the portfolio the appearance of duplication. But, Colin Bohm, the executive VP and head of Corus Kids, says, \u201cIt\u2019s a lot of channels, but we have set them up to target each stage of a child\u2019s development and to provide numerous different family viewing options. For example, Treehouse and Disney Junior are both preschool but target different age bands, and we are repositioning TELETOON to hit a younger audience, 5-to-8s, who aren\u2019t quite ready for the more sophisticated offerings of the older channels. Then we get into a mix of brands that offer a range of shows to target different moods, stages of development and, where appropriate, gender.\u201d<\/p>\n

Corus\u2019s Disney, Nickelodeon and Cartoon Network resemble their cousins in the other markets, \u201cbut they have been adapted to suit Canadian rhythms,\u201d says Bohm. \u201cOf course you will see a lot of the same shows, but there are idiosyncrasies around viewing times, seasonal audience behavior and cultural nuances that we take into account.\u201d<\/p>\n

ROOM FOR INDIES?<\/strong>
\nWhen asked about the impact of Corus\u2019s clout on Canadian kids\u2019 indies, Bohm argues that there are good regulations in place to protect producers. \u201cThere are rules that govern how much home cooking we can eat,\u201d he says. \u201c75 percent of our spend on Canadian scripted content has to go to indies, which means players like Thunderbird Films, 9 Story Media Group and Breakthrough Entertainment are important partners for us. Besides, we don\u2019t have a monopoly on great ideas, so it wouldn\u2019t make sense to source everything in-house.\u201d<\/p>\n

YTV, for example, has indie shows such as Some Assembly Required<\/em> (Thunderbird) and Max & Shred<\/em> (Breakthrough), while TELETOON airs 9 Story\u2019s Camp Lakebottom<\/em>. \u201cPreschool is different because this is an area of excellence for Nelvana, so Treehouse tends to rely mostly on shows from the studio,\u201d Bohm says.<\/p>\n

From Bohm\u2019s perspective, consolidation isn\u2019t about squeezing suppliers; it\u2019s about protecting his business from its own competitive and regulatory challenges. \u201cWith all the changes we\u2019re experiencing, scale in kids is a no-brainer, because it helps us build a stronger relationship with cable platforms, advertisers and audiences.\u201d<\/p>\n

The changes affecting Corus are due in part to the current shift to on-demand and multiscreen viewing. \u201cBut there are regulatory changes too,\u201d he says. \u201cThe CRTC [Canadian Radio-television and Telecommunications Commission] is relaxing rules on genre, which means there may be more competition between channels. And there is also a discussion around \u2018pick and pay,\u2019 which will give consumers more freedom in terms of the channels they choose to buy.\u201d<\/p>\n

KIDS ON DEMAND<\/strong>
\nCorus is responding to this change in a number of ways, says Bohm. \u201cWe launched a TV Everywhere app for Treehouse in June and will extend that across all our channels by the end of the year [so audiences can watch across all devices]. We are also investing more in channel-branding events, such as summer road shows, and we are placing greater store on shows that can encourage family viewing. For example, we have commissioned live-action TV movies Anne of Green Gables<\/em> (from Breakthrough) and Bruno & Boots: Go Jump in the Pool!<\/em> (Aircraft Pictures) for YTV.\u201d<\/p>\n

Of course, all of this only relates to Corus\u2019s activities in Canada\u2014its production and distribution arm, Nelvana, is a supplier of kids\u2019 content to the global marketplace.<\/p>\n

The Corus model is similar to that at DHX Media, which Steven DeNure, its president and COO, likes to think of as \u201can international company based in Canada,\u201d rather than a purely domestic outfit.<\/p>\n

DHX, through an aggressive acquisitions strategy, has seen it expand its Canadian production capabilities, transform itself into a broadcaster and become one of the world\u2019s largest kids\u2019 content distributors (it currently has around 11,000 half-hours in its library).<\/p>\n

On the broadcast front, DHX acquired Family Channel, an opportunity that opened up after a cable company mega-deal triggered a series of channel divestments to comply with regulatory ownership rules. Under the old setup Family Channel was heavily reliant on Disney content. But Corus acquired the rights to Disney\u2019s content as part of the market shake-up. This left the DHX-owned Family Channel with a gaping hole in its programming lineup.<\/p>\n

DeNure, however, is comfortable with the way things have panned out. \u201cThe Family Channel is a great, strong brand in Canada\u2026[it\u2019s] the highest-rated kids\u2019 channel. The Disney shows airing on the channel were very expensive and not necessarily the highest rated. So we didn\u2019t think it made economic sense for us to continue with them.\u201d<\/p>\n

While Corus boasts an eclectic array of channels, DHX has decided to build a multichannel portfolio around the Family brand, says DeNure. The English-language Family Jr. and the French-language T\u00e9l\u00e9magino target preschoolers. Family CHRGD will cater to the 6-to-12 set with animation and live-action content.<\/p>\n

OPEN SCHEDULES<\/strong>
\nDHX\u2019s in-house production arm and Canadian indies will be the beneficiaries of this increased capacity and the departure of the Disney shows, continues DeNure. \u201cThere will be a significant ramp-up of new content commissions. For DHX, that\u2019s good news, because we want to be in the business of creating and owning content. And for indies it means there are more schedule slots for which they can compete.\u201d<\/p>\n

DeNure says Family Channel is an enthusiastic commissioner of indie content, irrespective of the regulatory requirements placed on it. \u201cLook at a show like Temple Street Productions\u2019s dance drama The Next Step<\/em>, which has been a big hit for us. That has now been commissioned for a fourth season, and we have also commissioned a spin-off called Lost & Found Music Studios<\/em>.\u201d<\/p>\n

The performing arts is such a hot topic with tweens that the channel has even greenlit a third series in this subgenre, says DeNure. Backstage<\/em> from Fresh TV\u2014due for launch in spring 2016\u2014is a 30-episode, half-hour drama series set at a fictional school for the arts and features dance, instrumental and vocal performances from the cast. Other original commissions include season four of Slugterra <\/em>(produced by Nerd Corps, now part of the DHX family), season two of Gaming Show (In My Parents\u2019 Garage)<\/em>, season three of Justin Time<\/em> and a new series called Fangbone!<\/em><\/p>\n

BUYING TIME<\/strong>
\nThere is no way, of course, that Canada-based original commissions could replace the entire Disney pipeline, so Family Channel has signed a multiyear agreement with Mattel that will bring brands like Barbie, Monster High, Hot Wheels, Thomas & Friends and Bob the Builder to its channels. It has also acquired the CBBC commission Hank Zipzer<\/em> and Nowhere Boys<\/em> from Australia, and signed a development and production agreement with DreamWorks-owned AwesomenessTV, which will create content for the channel. The channel also licensed three current AwesomenessTV series: AwesomenessTV<\/em>, Make Me Over<\/em> and Cheerleaders<\/em>.<\/p>\n

While DHX Television is now a key component of DHX Media\u2019s business, the company is best known as a production and distribution behemoth. Original and acquired brands Yo Gabba Gabba!<\/em>, Caillou<\/em>, Teletubbies<\/em>, In the Night Garden<\/em>, Inspector Gadget<\/em>, Johnny Test<\/em>, Slugterra<\/em> and Degrassi<\/em> have made DHX a leading provider of content internationally. The relaunch of Teletubbies<\/em> is a high priority, says DeNure.<\/p>\n

\u201cWe expect there to be a lot of interest. The new version produced by Darrall Macqueen in the U.K. looks fabulous. We\u2019re also very excited by Make It Pop<\/em>, which was a hit right out of the gate for YTV in Canada and Nick internationally.\u201d<\/p>\n

The fact that Make It Pop<\/em> is on YTV is interesting, says DeNure, because it shows that Corus and DHX are able to both collaborate and compete. \u201cWe also make Inspector Gadget<\/em> for TELETOON,\u201d a Corus channel, he adds.<\/p>\n

DHX has also prioritized SVOD and AVOD, securing content deals with platforms around the world. Its YouTube channels generate 330 million views per month with new and existing kids\u2019 content, says DeNure. The video platform also provided the inspiration for Banger Films\u2019 Gaming Show<\/em>, which makes YouTube gaming reviews the spine of a TV show.<\/p>\n

STAYING INDEPENDENT<\/strong>
\nCanadian indies, forged in the furnace of the international kids\u2019 market, are not unduly worried by broadcaster consolidation. While they acknowledge the importance of the funding and protection they receive domestically, most Canadian kids\u2019 indies believe their ability to navigate the global market explains the success of the industry.<\/p>\n

Vince Commisso, the president and CEO of 9 Story Media Group, is adamant that \u201cthe economics of this business mean content has to work for the international market. Through our distribution activities, we get information about what is working and what isn\u2019t internationally, and then we factor that into our production and development activities.\u201d<\/p>\n

This approach has reaped rewards in terms of domestic commissions and international sales. Camp Lakebottom<\/em>, an animated series on TELETOON, has sold to various international Disney channels as well as ABC TV (Australia) and Super RTL (Germany). Numb Chucks<\/em>, another animated series on YTV, has aired on Cartoon Network (U.S. and Latin America), Disney (Central and Eastern Europe, Asia, Israel and Benelux) and CANAL+ Family (France and Africa). There have been similar successes for other recent shows such as Cache Craze<\/em>, Daniel Tiger\u2019s Neighbourhood<\/em> and Nerds and Monsters<\/em>. Nerds and Monsters<\/em>, for example, was one of three 9 Story series licensed to U.S. streaming service Hulu this summer.<\/p>\n

While the company is probably still best-known for its activities in the 6-to-11 age group, 9 Story has had growing success in the preschool market. Peg + Cat<\/em>, a co-production with The Fred Rogers Company that airs on PBS in the U.S., has been sold to 180 territories, says Commisso, while Daniel Tiger\u2019s Neighbourhood<\/em> has been licensed into Asia and Latin America. \u201cAnd we\u2019ve just acquired the rights to Loren Long\u2019s best-selling children\u2019s book series Otis the Tractor<\/em>, which we are currently developing as a preschool TV series,\u201d he adds.<\/p>\n

BRAND PLANS<\/strong>
\nHaving increased its production and distribution capabilities\u2014including the acquisition of CCI Entertainment\u2019s kids\u2019 library\u2014a priority for 9 Story now is to beef up its licensing capabilities, says Commisso.<\/p>\n

\u201cWe like to do everything in-house because it takes the guesswork out of the process. We have script-to-screen covered, but now we\u2019re looking to expand our L&M activities.\u201d However, this doesn\u2019t mean he is planning any lavish corporate acquisitions. \u201cFor the most part we\u2019ve grown in a measured, organic way, and that\u2019s what we intend to do with licensing. We would consider strategic M&As, but we\u2019d have to be sure that what we acquire complements our existing business.\u201d<\/p>\n

This echoes the situation at Breakthrough, which has built a formidable slate without making any aggressive expansion moves.<\/p>\n

\u201cWe\u2019ve kept our feet firmly on the ground,\u201d says Ira Levy, executive producer and partner at the company. \u201cWe\u2019ve always seen ourselves as a creatively driven company that focuses on attracting the best talent. Rather than going public, we nurtured creative partnerships.\u201d<\/p>\n

In addition to Max & Shred<\/em> and Anne of Green Gables<\/em>, other key Breakthrough shows include The Adventures of Napkin Man<\/em> (CBC), Rocket Monkeys<\/em> (TELETOON), Science Max: Experiments at Large<\/em> (TVO) and My Big Big Friend<\/em>, a co-production with 2D Lab in Brazil that is a top-rated show on Treehouse.<\/p>\n

\u201cWe are working with writer Margaret Atwood on a 26×11-minute preschool animation series for the CBC, loosely based on a series of books she created called Wandering Wenda & Friends<\/em>,\u201d adds Joan Lambur, executive producer for animation and kids\u2019 live-action and family programming, on what\u2019s coming up from Breakthrough. \u201cWe have also teamed up with much-loved Canadian poet Dennis Lee on Melvis and Elvis<\/em>, another book-based property about a giant monster girl and an elf.\u201d<\/p>\n

Breakthrough has kids\u2019 properties targeting various demos, both live action and animation, notes Lambur. \u201cWe want to cover all bases, but we don\u2019t want too much volume, because we are looking to raise the bar on quality all the time.\u201d Levy believes this emphasis on creativity and quality is the best protection against changes in the market.<\/p>\n

\u201cConsolidation is just a fact of life,\u201d Levy says. \u201cAnd I try not to get too sidetracked by what is happening in terms of new digital platforms. The platforms may change, but kids still want to watch great stories. Our slate shows that we have done a good job of reinventing ourselves and that we continue to attract new creative talent. We actually feel like we\u2019re at a pretty awesome moment in which our hard work is paying off.\u201d<\/p>\n

In response to the changes in the marketplace, Shaftesbury has been diversifying its slate. Ryan St. Peters, its VP of kids and family, notes, \u201cWe\u2019ve always been strong in tween and teen live action, but now we are developing a portfolio that also includes preschool and animation.\u201d<\/p>\n

Shaftesbury\u2019s big preschool news is the launch of The Moblees<\/em> on pubcaster CBC. The company is also continually committed to live-action teen and tween content, he adds, in the shape of Super Duper Deelia<\/em>, about a girl who inherits a series of superpowers when she is 11.<\/p>\n

FUNDING MECHANISMS<\/strong>
\nWhile consolidation has caused some ripples in the industry, Canadian producers have the opportunity to receive support from a variety of government mechanisms.<\/p>\n

These include tax incentives, co-production treaties, Canadian content quotas and various regional and national funds. The most important of the latter is the Canada Media Fund (CMF), which feeds millions of dollars into the Canadian content market every year. For example, \u201cThe CMF is committing C$375.2 million ($283 million) to support Canada\u2019s TV and digital media industry in 2015\u00ad\u20132016,\u201d says CMF\u2019s president and CEO, Valerie Creighton. \u201cTypically the CMF will provide around 20 to 25 percent of the budget for a CMF-supported kids\u2019 show, which we see as one of our most important genres. We like the fact that this genre can be evergreen and travels well.\u201d<\/p>\n

The CMF\u2019s goal is to \u201cguide Canadian content toward a competitive global environment by fostering industry innovation, rewarding success, enabling a diversity of voices and promoting access to content through industry and private-sector partnerships.\u201d Its budget is provided by the central Canadian government and the five biggest cable companies (which are subject to a formula based on their overall revenues), says Creighton. \u201cThe money is triggered by a broadcast licence. As soon as a Canadian show is commissioned, it becomes eligible to receive an award from the Fund.\u201d<\/p>\n

Creighton continues, \u201cThe process is always led by the producer. As long as they meet the Canadian content requirements and lay out their plans for some digital brand extensions, then they will be eligible for their payment.\u201d<\/p>\n

In terms of international success, the CMF tracked its shows in 2013\u20132014 and found that, of 31 CMF-funded projects sold internationally across six continents, 35.4 percent were in the children\u2019s and youth genre, 45.1 percent were drama projects, 12.9 percent were documentary and 6.4 percent were variety and performing arts. The U.S. was the top buyer, followed by Sweden, Switzerland, Turkey and the U.K.<\/p>\n

The CMF\u2019s status is protected by the government, so there is no chance of it being abolished in the near future. But there is one concern, says Creighton. \u201cAs on-demand viewing grows and more consumers start to cut the cord, we are projecting that cable revenues will decline, [which will have] a negative impact on the CMF. The new platforms don\u2019t have to contribute, so it is an issue for the industry.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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