Industry Report: Financing
18/07/2012 - Options and strategies from a financial perspective for the audiovisual professionals.
China: Filmmakers told to follow the crowd in financing bid
Independent artists and filmmakers in the region will get some new ideas about financing at a forum that opens today - and crowdfunding is in the spotlight.
British Film Commission responds to publication of UK film production statistics
The British Film Commission (BFC) welcomed the publication of the UK production statistics for 2012 which show continued healthy levels of production complementing the investment being made in the production sector.
Lund-based Crowdme Offers Filmmakers A Dedicated Crowdfunding Platform
It seems like crowdfunding is half of what I'm writing about these days, but it is an industry in its infancy that's really starting to pop in the Nordics.
Experimental film lives on in the crisis
Navarran film producer shoots Blue Lips, a film that overcomes its limited budget, through ambition, imagination and collective effort.
After Bellflower, Coatwolf Productions start their second film
The new genius of american indie cinema is using crowd-funding to finance their second film Chuck Hank and The San Diego Twins.
The option agreement
Optioning or purchasing? What to do when acquiring screenplay or adaptation rights. An introduction to the option agreement with a sample
Film finance roundtable: 'The advantage is having great material'
The money’s around, but only for perfectly packaged product. That was the message from film finance experts during a special roundtable discussion during AFM.
10 Secrets of Successful Crowdfunding - From Scott Steinberg
Serial tech entrepreneur, speaker and consultant Scott Steinberg, author of The Crowdfunding Bible, explains how to make crowdfunding work for your startup.
The Belgian tax shelter
It allows Belgian registered companies investing in the production of European audiovisual works to benefit from a deduction of their taxable income worth 150% of the amount invested, up to 50% of their tax liabilities or 750k euro per year
The French Credit d’Impôt and the Soficas
Unlike other European countries, France has two different producer’s tax relief schemes (Credit d’Impôt and Credit d’Impôt International), which means that the money for national and foreign productions comes from different pots, securing a constant financing source for the domestic cinema production
Canal Plus chief Bertrand Meheut sounds alarm for French cinema
Bertrand Meheut has warned French cinema funding model to be under threat
Platforms key to tapping new revenue streams
Mitch Singer plans on getting consumers to shell out money for films already produced
Investors trickling back to film biz
2008 financial collapse scared many investors, but many of them are reinvesting in film financing
Scripted Series Worldwide: trends and hits in Fiction
Fiction struck back and US scripted formats took Europe by storm, becoming international hits within a few months. Today, local fiction strikes back, and co-productions increasingly appear to be the best way to offer high-quality series destined to be broadcast in as many countries as possible.
More than 2 billion euros as aid to the european cinema
The European Audiovisual Observatory publishes a new report on the European cinema's helps and funds.
Indie filmmakers look for money on Facebook
In the era of credit crunch, social networking sites like Facebook and other online communities are fast emerging as tools for independent filmmakers to crowdsource their film projects.
Facebook fans bankroll 'risque' Bollywood film
As Indian director Onir applied the final touches to his new movie 'I Am', he paused to pay tribute to the 400 people who responded to his Facebook campaign to help finance the project.
How to make a killing in movies
Investing in film is not as risky as it is perceived. Maria Merricks takes a look at the exciting opportunities this market provides.
Federal funding puts Australian films into action
A review of the screen production sector released by the federal Arts Minister, Simon Crean, shows Australian film and television is being funded at record levels.
Film funds issue urgent call for innovation
A new report from a European association of regional film funds says too many films are being made without enough platforms to release them.
Study Finds Film Tax Credits Generating Economic Benefits
One new study shows that for every dollar spent on tax breaks to filmmakers, nearly six-dollars of economic activity is generated in Michigan.
What New York Can Buy With $2.1B
The New York State Senate recently passed legislature agreeing to extend New York’s production tax credit until 2015 and it is expected that the state governor will sign the new legislature into law
The New Film Financing Model for Film Productions in Austria
Following notification of the financing guidelines by the Commission of the European Union, Austria’s Federal Minister of Economics, Reinhold Mitterlehner, gave the green light to the new incentive model 'Film Location Austria' (FISA – Filmstandort Austria).
Tax Shelter - Malta
The dossier presents in detail the film incentives and opportunities offered in Malta. It explains who can apply, which kinds of productions or producers are eligible for support and which are the qualifying expenditures. Potential beneficiaries and maximum aid allowed are described as well.
Czech Republic ups rebates to compete in Europe
Back in the mid-1990s, the Czech Republic sealed a reputation as a film-friendly venue , but its luster faded when other European countries introduced rebate schemes, while the Czechs didn't.With a new rebate program in effect since June, local crews and service providers are hoping foreign filmmakers will be back.
UK-Hollywood Film Plan
This paper sets out the rationale for creating a UK Government film fund using the proceeds from the film tax credit ceasing to be free and instead becoming recoupable and entitled to a profit share
Focus on North Rhine-Westphalia: The pursuit of a dream
Around 20 years ago the regional government fixed the aim of bringing NRW to the forefront of the European cinema industry. In this time the Filmstiftung North Rhine-Westphalia has supported more than 1400 films with a budget totalling over Euro 480m
Building Business Plans
Paco Rodriguez explained the process of making a business plan and the elements it should contain to attract investors. Only films with a budget of over 10M€ are able to travel internationally, but are very difficult to amortise.
Audiovisual Policies in Andalusia
Victoria Fernandez Andrino detailed the different measures that Andalusia set out to support the Andalusian audiovisual industry.
The Role of Banks in the European Film Industry
Juliane Schulze presented the study financed by the Media Programme on the role of the banks in film financing. The difficulty for private investors to invest in the audiovisual industry is that film production is primarily project and fee-based businesses rather than company-based businesses, the kind of investment private funds prefer.
Role of the Public Funding Bodies in Germany
Even if public funds are declining in Europe, they remain the most important source of funding for producers. Michaela Haberlander from the FFF in Bayern presented the German public regional funding system.
Private Investment in Audiovisual
Julian Sculze explains how production finance is affecting the way producers fund their film. On one side the State subsidies are more and more limited. On the other side, the distribution paradigm is also changing. Berlin-based company peacefulfish, in partnership with Cineuropa.org, developed an investment network called Mediadeals.
Tracking the Programme’s Exploitation and Revenues
A great help to international co-productions is offered by collection accounts management companies.The CAM is the impartial receipt, administration and disbursement of an audiovisual production's worldwide revenues by a neutral and trusted third party.This strategy allows the producers to concentrate on their core activities by outsourcing administrative burden.
Panorama of the film financing in Germany II: Regional support
The regional support in Germany represents almost 50% of the overall support in the country. The regions (Länder) started to set up regional programmes and institutions at the end of the seventies.
Panorama of the film financing in Germany I: Introduction and national support
The public film funding structure of a country is linked to the structure and organization of the State. It is especially true in the case of Germany, where the task of supporting the cinema industry is equally shared by the national and the regional Governments.
Panorama of public film support in Spain II: Regional aids.
Regional aids to the cinema industry: the example of Catalonia. The film commissions.
Panorama of the public film support in Spain I: National aids and legislation
Information about the different funding schemes offered by ICAA for short films, feature films, script development, distribution of European works, for the attendance to international festivals, the launching of film festivals in Spain and the preservation of original negatives.
Study: Film Tax Credits, Production Incentives Fail to Spur Economic Growth
The study highlights the preferential tax treatment given to film production companies by state governments. According to the report movie production incentives (MPIs) – such as film tax credits, cash rebates, grants and select tax exemptions – fail to spur economic growth or raise tax revenue.
Study on the Role of Banks in the European Film Industry
The aim of this study is to provide a current overview of the film banking landscape in Europe with a specific emphasis on making recommendations to the MEDIA Programme for actions that they can take to increase the access to bank loans for production companies.
Film financing (in times of financial crisis)
If it was hard for the European cinema to be able to completely finance the movie budgets in the past, what will happen in these times of global financial insecurity? This article tries to answer this question by explaining the historical and current role of bridging and gap financing.
New regulations for the development. Tax Shelter and Tax Credit, the italian support to Cinema
The news rules for development were disscussed during the movie seminar. Tax Shelter and Tax Credit are the new Italian measures presented on 28 October 2008 in Rome at the Teatro Studio dell’Auditorium Parco della Musica. With the help of the Ministry of Culture, this event was the first of three meetings of the General State of Italian Cinema, held during the International Film Festival in Rome.
Business Model of a «Low Budget» Studio - Copenhagen Bombay production
The article presents an interview with Petter Lindblad, producer and line producer of Copenhagen Bombay Productions, working manly on low-budget animation feature films. He talks about the advantages of working with low budgets and the way the company is organised. Dividing the budget and dealing with the financing are explained as well.
Private Investment in Audiovisual
Thierry Baujard, CEO of peacefulfish, explained how production finance is affecting the way producers finance their films. On one side the State subsidies are more and more limited. On the other side, the distribution paradigm is also changing. There is a strong competition between theatre releases and Internet and VOD services, less MG in distribution and sales, decrease of TV advertising efficiency and a lack of sustainable business models in non linear distribution.
The German Federal Film Fund (FFA)
Christine Berg, Project Director at the FFA presented the German tax incentive system. The German tax incentive has an annual funding sum of €60 million for three years for German feature films. The fund is conceived as an automatic funding taking the form of a grant. Until now 99 projects have been supported (14 documentaries, 80 feature films and 5 animation films).
The French tax credit
Caroline Cor, Project Manager at the CNC, presented the evolutions of animation film financing in France. She demonstrated that the feature films’ financing structure had been changing during the last 5 years: more co-productions, more self investment from producers, less involvement of broadcasters. The French Government therefore decided to launch the tax credit to help French producers to find alternative ways of financing.
The Belgian tax shelter
Serge de Poucques, Producer at Nexus Factory presented the Belgian tax shelter. The Belgian tax shelter has been conceived to encourage taxable companies to invest in audiovisual production. Companies can deduct until 150% of the investment. The investment can take the form of loan (maximum 40%) or equity (maximum 60%). The obligation for the producer is to spend a minimum 150% of the equity share in Belgium (within 18 months from the signature of the agreement).
Co-producing Between France, Belgium and Luxembourg: Dupuis Audiovisuel company
Leon Perahia, the General Manager of Dupuis Audiovisuel, explains how the company manages to finance its projects by obtaining assistance in several territories. He also gives an overview on the possible sources of aid available in France, Belgium and Luxembourg.
The Spanish Audiovisual Funds
Interview with Manuel Cristobal, producer of several short films. He gives an overview on the Spanish audiovisual funds, focusing especially on the main changes that occured in the Spanish audiovisual landscape over the last few years. Hi also talks about the role of TVE, the national television.
FICA: The Portuguese Audiovisual Funds
Luis de Matta Almeida, Director of Zeppelin Filmes Lda., gives us a brief overview on the activity of FICA, the Portuguese Audiovisual Fund. He explains when it was created, what are the objectives and which works are eligible for the Fund.
Micro Budget Movie report, UK Film Council, June 2008
The report shows the situation of micro budget films (£50k - £250k) in the UK over the past five years. It is possible to see how this sector has found its niche in the UK, although the arena is still dominated by big Hollywood studio releases. The micro budget movies are beginning to usurp the position of the ‘calling card’, long held by the traditional short film format.
Small tailor-made funding schemes. Interview with Katriel Schory, Director, Israeli Film Fund
The article presents an interview with Katriel Schory, Director of the Israeli Film Fund. The interview consists of two parts. The first one is about new Israeli films as Waltz with Bashir and The Band’s Visit. The second part focuses on the Euro-Mediterranean Audiovisual programme.
Studio 37 - A Newcomer to Film Financing
The article presents an interview with Renaud Chan, Marketing, Animation Movie & Generic Movie Director at Studio 37, a new co-production company created by Orange. He explains the reasons that led to the creation of Studio 37 and its involvement in animation. He also talks about Les Lascars, the full-length film co-produced by his company.
Investing in New Media: A Producer’s Strategy
Interview with Roch Lener, President of Millimages, one of the leading European animation companies. He explains what have been Millimages’ projects in the new media. He also states how no one so far has found a stable economic model for the exploitation of programmes on the new platforms.
Tax Shelter and Tax Credit Systems in Europe
Camille Deleaus is account manager for Fortis Mediacom Finance. She gives advice on European film financing, co-productions and tax incentives. In this article she presentes tax Shelters and tax Credit Schemes in France, Luxembourg, Ireland, Belgium, Hungary, Germany and the United Kingdom.
Producers’ Economic Models in the New Media
The article presents an interview with Christian Davin, founder of the production company Alphanim and President of the French Syndicate of Animation Producers (SPFA). He explains what is the role of SPFA in the aid system in France and how it works.
Raising Finance from the International Market
The article presents an interview with Jean-Baptiste Babin, Head of Co-productions for Backup Films, a Paris-based Film Financing agency. He explains what is a good financing strategy and shows a standard financing structure for a film. He also gives the definition of the pure equity money.
Cash luring filmmakers to Germany
The German Federal Film Fund was introduced in 2005 and since then the €180 million program had a remarkable effect on the German film industry. It helped revitalize cultural confidence in a country that lost much of its talent and infrastructure during the Nazi era. Bernd Neumann, Minister for Culture, hopes to extend the program beyond its initial three-year run.
State aid for films – a policy in motion? State aid rules in Germany an UK
This dossier explains the importance of state aid for films as well as its legal basis. In 2001 the European Commission published conditions for the application of Article 87(3)(d), which are described in the article. It also shows the UK film tax incentive and the German Film Fund as different solutions. Finally, an extended outlook is presented and question of territorial conditions are raised.
Belgian Tax Shelter: Henry Ingberg draws up balance sheet of the French Community
Patrick Quinet and Luc Jabon : On Tax Shelter in Belgium
Tax Shelter - Ireland
The tax shelters system for audiovisual investments in Ireland in 2006. It shows that production companies may raise funds depending on a film budget and explains why most of the funds come from individual investors. Conditions of eligibility are described as well.
Minutes of the "World Forum on Strategy and Finance for Cinema" seminar (Rome, October 2006)
The “Davos” of cinema, gathered European professionals, experts and guest speakers in five panels of the “World Forum on Strategy and Finance for Cinema”, to exchange analyses, questions and expertise. Main issues were, among others, the digital revolution and shifting economic models, financial and technological changes and solutions for the future of cinema.
Tax Shelter - Luxembourg
The tax shelters set up in Luxembourg and the role of the audiovisual investment certificates (CIAV), which were introduced in 1988. The amount of the certificates is in fact fixed in accordance with the eligibility criteria and within the limit of the stated production costs and expenses incurred in Luxembourg. As a result, the promotion of the audiovisual sector has allowed for a significant number of large projects to be filmed in this small country.
Tax Shelter Belgium
Belgium, this small patchwork of a country, has been present on the international cinema scene for a few years now. Is this only the result of good circumstances? By no means. For thirty years, public authorities have been very committed to initiating incentive policies, and this humble work on the infrastructures has eventually had positive ramifications.
