The Film Industry in Canada: A Report (1977)

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152 engaged in the production of at least one feature film; the proportion was rather higher in Quebec. Units that produce feature films all devote more than 25%, but few more than 40%, of their production to that type of product. The largest general concentration of activity is in production for the non-theatrical market. Only 8% of the units in the sample confined their operations to a single product, such as commercials or educational material. In every other case, production was spread over documentaries, series and specials for television, commercials, sponsored films, and educational films or other material. The extent of diversification in the industry is illustrated by the aggregate composition of product output, which goes as follows: Sponsored films 22% Products for the theatrical market 16% Television documentaries 21% series and specials 9% Educational material 16% Commercials 11% Other 5% About half the units in the sample produce at least three of the above product lines. Some 80% have at least two products in the non-theatrical sector, and about half of them have three. The reasons for this diversification are not known, but probably lie in the necessity to seek a variety of markets in order to achieve a sustaining level of production. Vertical Integration of Functions While some film-production firms engage also in the marketing and distribution of their products, thts study of verttcal