Ontario’s film and television industry has much to be proud of. When the film and television tax credits were introduced in 1996, spending on film and television in Ontario totaled a mere $530.2 million – or just under $1 billion in today’s dollars. Compare that to 2024, when production spending in the province totaled $2.6 billion in direct spending all across the province.
This ongoing investment in the industry by the province has created a world-class filming jurisdiction, one that is unique in the country, in that it supports both the creation and retention of Canadian-owned intellectual property by Ontario companies, as well as hosting some of the best film and television productions from around the world. Our crews, on-screen talent, locations, and infrastructure are all world-class, and some of the best shows in the world are made right here.
But we know the world is changing. The global market for content is evolving and jurisdictions everywhere are enhancing and increasing their incentives.
In order to address these changes head-on, FilmOntario engaged Nordicity to review Ontario’s competitive position in comparison to a few key jurisdictions.
The study demonstrates that Ontario remains a mature, internationally recognized production centre with significant strengths. The industry’s recent performance underscores Ontario’s capacity and resilience. At the same time, the global market has become more cost-conscious, commissioning has tightened, and jurisdictions worldwide are actively enhancing their incentives. In that context, the margin of competitiveness has narrowed, and incentive design increasingly influences where work lands.
In service production, Nordicity’s comparative modelling shows that Ontario does not consistently lead when effective tax credit rates are compared across jurisdictions. The comparison also illustrates where the absence of certain bonus mechanisms, such as regional and repeat-business incentives, can affect competitiveness in a market that rewards incremental value.
On the domestic side, Ontario remains broadly competitive in terms of the effective tax credit rate but faces growing pressure as incentive architectures elsewhere provide additional pathways to enhance project economics and to build longer-term capacity. The study also highlights that development and production investment programs can be as important as tax credits in a risk-averse market, because they shape whether projects reach production in the first place and whether Ontario-owned IP can scale to global audiences.
Taken together, the findings suggest that Ontario’s current framework provides a solid base, and that targeted, practical refinements could help Ontario stay on the leading edge. Options highlighted in the report include adjustments to the service production incentive architecture, potential enhancements that encourage production retention and regional activity, and strengthened support for domestic development and IP to sustain a healthy pipeline.
The study goes on to provide recommendations for incentive improvements that will improve Ontario’s competitive position and drive increased business in the province. These improvements target both service and domestic production, the key ingredients that make Ontario such a unique and strong jurisdiction. FilmOntario is taking these recommendations, and advocating to the government for the improvements that have the highest potential for growing the business in the province.
You can read the Executive Summary here; if you have further questions about the study please don’t hesitate to contact Cynthia Lynch.