28/10/2011

"Film is an important market, it's not just a wild passion: it's an engine for development and an excellent way to promote the country's image abroad".Giovanni Sabatini, ABI DG, of the Association Italian banks, confirmed the financial world's growing interest in an industry that has a turnover of around €6 billion during the conference 'Banks, Businesses and Cinema' organized by ABI, ANICA and Unindustria, which this morning opened The Business Street, at the Rome International Film Festival.

The data, which have not been previously released, were presented by ANICA Secretary-General Lamberto Mancini (see PDF), indicate a solid sector comprising 6,120 active businesses domestically (ISTAT data 2009), with a 50% concentration in Lazio and Lombardia, employing 200,000 professionals (including dependent and independent workers, autonomous and free professionals, whose position is unfortunately raher precarious) and a turnover in 2008 of €5.7bn (of which €3.2bn is for production). These figures are comparable with two large European countries - Germany has a turnover of €6.3bn, while the UK represents €16.8bn.

The total yearly annual investment of Italian private and public capital in film is more than €300 million. The weight of public finance has decreased over the years, to only represent 12% of total investment in 2010, which is why fiscal measures that incentivize investment in film are so important, particularly those aimed at businesses outside the sector which predict a tax credit that is equal to 40% on a maximum ceiling of for each company of €2.5m, provided that the total third-party investment is less than half of the film's total budget (see PDF).

And fiscal incentives are attracting the banks' attention: "The development of the external tax credit is essential," Sabatini insisted, a sentiment that was echoed by ANICA President Riccardo Tozzi: "The tax credit for companies and financial institutes that invest in cinema without being part of the sector is the heart of the fiscal incentives which the cinema industry thrives on."

An assessment of tax credit, a tool that has only become operational in Italy since mid-2009, was provided by the Culture Ministry's DG Nicola Borrelli: "442 film have applied, €75m of tax credits have been authorised. Foreign productions have invested €55m domestically. Foreign investors, of which 16% are banks with 32% of the total income, have contributed €33m, thanks to fiscal incentives." Borrelli added that the instrument is still not very well known outside the world of cinema and it was therefore necessary further to extend incentives to non-sector businesses.

(Translated from Italian)