Québec in North America : Hollywood Northeast ? North American Film Production in Québec

Abstract

A low Canadian dollar and competitive tax credits have created a prosperous but volatile film industry in Québec. Film and television production in Québec generated 32,990 direct and indirect full-time equivalent jobs in 2003/2004. This note describes the workflows of the North American film industry in Québec. It examines Technicolor Creative Services, a multinational film processing and distribution company with operations in Québec, and Muse Entertainment Enterprises, a production services company based in Québec. Muse, Technicolor and their customers have located in Québec because of the low Canadian dollar, as well as provincial and federal tax incentives. The industry in which they participate has become technically competitive, producing films of the same quality as those produced in Hollywood. The rise of the Canadian dollar, the introduction of tax incentives in American states rivalling those available in Québec, the decline in made-for-television movie audiences and an increase in protectionism of the American film industry have led to a decline in foreign location production in Québec.