Canada's distribution business saw a strong surge in2004/2005 with revenue from theatrical releasing increasing by 16.6 per cent to$401m (C$446.3m).

According to data released by Statistics Canada, revenuefrom home video wholesaling remained firm at appoximately $1.62bn, representingroughly 51% of the industry as a whole, while exports of Canadian contentproduction rose marginally to $298m, a 3.4 per cent increase.

Overall industry revenues were$3.18 bn, up three per cent from the previous year. The increase was down fromthe previous year's gain but the profit margin improved nearly a fullpercentage point.

The data, compiled from a surveyof 207 film, video and audio-visual distributors and wholesalers in thecountry, showed that Canadian-content products were increasing revenues intheatres and in the pay-TV market.

However, market share remained thesame, with Canadian content accounting for approximately 11 per cent of thelocal market, of which revenue from sales of Canadian content to cinemas represented4.3 per cent of the total. However, the majority of that figure represents thebox office success of home-grown French-language fare on screens in theprovince of Quebec.

StatsCan also reported thatCanadian households were spending more money at the cinema in 2004-2005, anaverage of $100, up from $95 in the previous year.