The Film Industry in Canada: A Report (1977)

154 importance. Similarly, some teleyiston networks and stations, having a demand that is predictable, stable and controllable, have set up afftliates or subsidtartes for program production. Where demand is erratic, however, as it ts for most production units, and the market is thinly spread and dominated by government agencies, the capital intensive field of support services is likely to remain unattractive to producing units, The reasons for this are high risk factor and relatively small resultant benefits, coupled with an unacceptable or restrictive loss of flexibility in the possibility of product diversification in response to fluctuating demand and cyclical changes in the economy at large. a3 Geographical Distribution of the Industry in Canada The main weight of the film-production industry in Canada, measured by volume of output, is concentrated in the Toronto, Montreal, and Ottawa metropolitan areas, from which the sample used in this study was drawn. About a quarter of the production firms listed by the Department of the Secretary of State are scattered throughout the rest of Canada, but account for, at most, no more than 10% of total production. As has been shown, the majority of film-production units are dependent on the availability of specialized services and facilities, This sector of the film industry Operates on the principle of high turnover and low profit margins, and therefore tends to be concentrated in areas where demand is high. All but the largest film producers naturally locate where these services and facilities are readily and speedily available. Similarly, there is a natural tendency for film producers to congregate in the areas where their principal markets are located. The largest potential customers are federal organisms such as the NFB, the CBC, together with provincial educational organisms, major distributors, and television networks and major