Operating context - 2022-2023

The current key trends in the audiovisual industry have been documented over the past several years. Canadians are increasingly turning to digital distribution channels and connected devices to access the video content that interests them. The proliferation of content-distribution platforms, rapid development of new technologies and availability of a near-infinite array of content are some of the realities that have impacted the NFB’s ability to fulfil its mandate. The NFB must continually adapt and innovate in terms of how it produces, promotes and makes content accessible and discoverable to different audiences. 

According to the latest edition of the annual CMF Trends Report (published in February 2021), the pandemic has changed the way audiences consume media content, significantly affecting the activities of Canadian producers, distributors and content creators.¹    

The trends identified by the CMF include:

• The integration of new virtual production technologies while seeking to reduce the audiovisual industry’s significant environmental footprint and integrating environmental best practices;  
• The growth of virtual festivals, and better access for emerging creators and international festivalgoers;
• Calls to increase the participation and inclusion of creators from underrepresented communities and to enable a more inclusive industry.

The NFB has seen a steady reduction in its distribution revenues over the years due to the erosion of traditional revenue sources such as DVD sales and broadcast licences (“trading analog dollars for digital pennies”). It is still unclear how the pandemic will impact the NFB’s revenues in 2022–2023. The uncertainty surrounding the pandemic makes it difficult to predict the potential decrease in audiences in movie theatres and public and community spaces, as well as the organization’s capacity to engage with its audiences in public spaces.  

The need to update the organization’s technology infrastructure also became more urgent as a result of the pandemic. The NFB implemented some of the initiatives in its Investment Plan ahead of time, in order to minimize the pandemic’s impact on its production and distribution activities and allow filmmakers and NFB technical staff to resume their work. The institution must continue to pursue these initiatives in 2022‒2023.

Beyond these challenges, the NFB is operating within an already constrained budgetary context and is faced with additional fiscal pressures that could make it difficult to maintain financial sustainability.