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 February 2021 edition of the annual Canada Media Fund (CMF) Trends Report, the pandemic has changed the way audiences consume media content, significantly affecting the activities of Canadian producers, distributors and content creators.^{Footnote 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 festival goers;
• 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. The 2022–2023 fiscal year is no exception. Though recorded revenues were lower than those for the preceding year, the risk specifically associated with a decline in distribution revenues did not materialize, as they exceeded forecasts. As for audiences, taken as a whole, the number of views of NFB productions in Canada across all media rose by 7% compared to 2021–2022, due in part to a strong increase in numbers at public screenings (151%). These data show that the effects of the pandemic are gradually receding.

The NFB’s 2021–2025 Technology Plan is now in its second year of implementation. The organization continues to consolidate the work tools that were originally deployed quickly and on a small scale during the pandemic to provide all of the NFB’s production studios uniform access to its infrastructure and services. The NFB has also been working on developing an information-management strategy that will enable the organization to base its decisions on reliable data and allow it to achieve its objectives.

Over the last few years, pressures tied to the institution’s mandate, the transformation of the broadcasting ecosystem and, more recently, the pandemic and inflation, have essentially created a structural deficit. In 2022–2023, the NFB obtained temporary funding for two years to stabilize its financial situation. This funding was essential in allowing the organization to refocus its priorities on its production and distribution mandate and plan its activities accordingly.