Despite Donald Trump’s concerning but unclear tariff threats, US studios told Banff this week they are intent on setting up production hubs in Canada – but they might have to move fast before American shows are incentivised to stay or punished for leaving.
Banff panel (L-R) Anaïs Baker, head of international formats at Amazon MGM Studios, Michela Di Mondo, Sharon Scott, Allison Wallach and moderator Tara Long of Blink49 Studios
American studios have always looked to Canada for ways to get shows made for less money, and that has become more important than ever in the strained economic times in which television finds itself.
However, the impetus for US studios to look north has taken on a new complexion since president Donald Trump put runaway production in his crosshairs in early May, writing on Truth Social that he wanted to tariff movies shot in “foreign lands” and repatriate American production.
While it does not appear Trump has a clear, or even semi-clear path, to tariffing US projects that shoot abroad, his overtures have put the Canadian production sector on edge.
The service sector in Canada accounts for more than half of the production that takes place in the country. According to the most recent report from the Canadian Media Producers Association, service production accounted for C$4.73bn (across scripted, unscripted and feature films) in 2023/24. It continues to be big business.
The fact that sector could be targeted by Trump is concerning, but the potential instability it has caused could be problematic too.
Fox Entertainment shot reality series Extracted in Canada
For the most part, American studios have declined to comment publicly about the potential tariff threat, and for the most part, analysts did not ask any probing questions of execs during the last earnings season.
In a session at the Banff World Media Festival this week, a group of unscripted execs said they are doubling down on shifting production to Canada as they look for new ways to tackle the challenged economic environment.
A+E Factual Studios president Sharon Scott said the company continues to bring projects to Canada, including its Dan Aykroyd-led unexplained phenomena series UnBelievable. “Anything that can be done anywhere should be done here,” Scott told delegates.
Fox Entertainment, largely credited as being a chief architect in the move of US unscripted production abroad, is also actively “looking for more opportunities” to explore the hub model, said head of unscripted programming Allison Wallach.
The company has established production hubs in Ireland for shows including Next Level Chef, enabling it to tap incentives that aren’t available in the US. Now, after shooting projects like competition reality series Extracted and the reboot of Fear Factor in Canada, it is interested in doubling down.
Michela Di Mondo, Fremantle Canada’s executive VP of distribution, international, said the company is eager to “activate” Canada, either through hubs or by shooting some international projects in the country, allowing it to benefit from tax incentives.
The province of Alberta, which last year made gameshows eligible for tax credits – a move not yet taken by any other Canadian province – was highlighted by Di Mondo as a major opportunity, both for international service productions and for original Canadian gameshows. “That’s going to open the door for so much opportunity,” she said.
There is also evidence that international investors are eyeing the Canadian unscripted market, including Jeff Zucker’s RedBird IMI.
Shawn Efran
While the company’s recent M&A activity has involved much larger companies, including All3Media and UK publication The Telegraph, one of the more intriguing deals of the past year saw RedBird IMI acquire Toronto-based Bright North Studios (fka Efran Films), led by CEO Shawn Efran.
From the Canadian perspective, the deal was significant because it illustrated that a major private equity firm like RedBird IMI is interested in making smaller acquisitions in markets like Canada.
Bright North Studios is behind shows including CBS’s Never Seen Again, The CW’s 100 Days to Indy and Investigation Discovery’s Who the (Bleep) Did I Marry? It is somewhat of an outlier in the production space in that, for the most part, it holds on to the IP for its projects – a feat that has been challenging for all producers working with US buyers. Being based in Canada “makes it easier” to retain some of those rights, Efran told delegates during a panel session.
On the topic of whether US studios producing unscripted shows are concerned that Trump’s tariff talk could curtail their Canadian plans, execs said the lack of detail made it impossible to assess the potential impact.
Wallach said simply that she was unsure what to make of Trump’s comments, while Scott said that American companies needed to strike while the opportunity is still available.
“We should be speedy and do everything we can do now, because as you know, he says things, it doesn’t happen for a minute, maybe it will happen – who knows,” she said.
In the meantime, the goal for the US studios is to find new ways to produce in Canada. “I truly believe we can find growth here, even before something may happen,” said Scott.
