© PRIMEHOUSE GmbH, Kantstrasse 149, 10623 Berlin Script Forum Warszawa, 2009.

© PRIMEHOUSE GmbH, Kantstrasse 149, 10623 Berlin

Script ForumScript ForumWarszawa, 2009Warszawa, 2009

© PRIMEHOUSE GmbH, Berlin, 2009

specific economic nature of the cultural specific economic nature of the cultural industriesindustries

cultural diversitycultural diversity

legitimacy of public support to the cultural legitimacy of public support to the cultural industries in competition to the still industries in competition to the still dominating US Film Industrydominating US Film Industry


Support to the film industry is motivated by Support to the film industry is motivated by cultural arguments.cultural arguments.

In smaller Countries Cultural criteria are the In smaller Countries Cultural criteria are the leading evaluation and economic indicators.leading evaluation and economic indicators.


Legal basis of the public support in most of the Legal basis of the public support in most of the bigger European countries are also motivated, bigger European countries are also motivated, and legally organised, as industrial and legally organised, as industrial programmes. programmes.

The objectives are mainly industrial, the The objectives are mainly industrial, the criteria of evaluation and the indicators used criteria of evaluation and the indicators used should of course mainly be of an economic should of course mainly be of an economic nature.nature.


Public support is allocated, in most cases, to Public support is allocated, in most cases, to individual projects, not to companies and not in individual projects, not to companies and not in strategically manners in terms of strengthen strategically manners in terms of strengthen the hole European market. the hole European market.

Public support is more an accumulation of Public support is more an accumulation of micro-economic decisions respectively to the micro-economic decisions respectively to the need of the economic and cultural reasons to need of the economic and cultural reasons to regions, then made in respect to the macro-regions, then made in respect to the macro-economic analysis.economic analysis.

© PRIMEHOUSE GmbH, Berlin, 2009© PRIMEHOUSE GmbH, Berlin, 2009

The higher the level of the The higher the level of the budget of the film, the budget of the film, the greater the level of support. greater the level of support. But the level of support may But the level of support may also relate to the need for also relate to the need for public subsidy to fill the gap public subsidy to fill the gap between the cost of making between the cost of making the films and the revenues the films and the revenues they generate in the market they generate in the market place which relates the level place which relates the level of national production of national production subsidy to the worldwide subsidy to the worldwide market for national films, market for national films, using the number of using the number of admissions as a proxy for admissions as a proxy for the market.the market.

sources: thinktank on european film and film policy the Copenhagen Report


what the money is given for?what the money is given for? who takes the decisions? who takes the decisions? how the decisions are taken? how the decisions are taken? the nature of the interaction the nature of the interaction

between the decision-makers and between the decision-makers and the people to whom they give the the people to whom they give the moneymoney


Secure national film productionSecure national film production Support the building of a sustainable film Support the building of a sustainable film

industryindustry Secure production of quality filmsSecure production of quality films Add value to projects throughout the Add value to projects throughout the

evaluation and production processevaluation and production process Stimulate employment and commercial Stimulate employment and commercial

activityactivity


Automatic funding based on a set of Automatic funding based on a set of objective criteriaobjective criteria

Selective funding based on individual Selective funding based on individual assessment of projectsassessment of projects Script developmentScript development Project developmentProject development ProductionProduction DistributionDistribution PromotionPromotion


Subjective criteriaSubjective criteria Distinctive artistic quality of the script Distinctive artistic quality of the script Entertainment qualities Entertainment qualities Innovative qualities “breaking new Innovative qualities “breaking new

ground” ground” Audience potential based on script Audience potential based on script Cultural importance Cultural importance ““National” characteristics National” characteristics


Objective criteriaObjective criteria Language Language Film for children and young people Film for children and young people Women Women Minorities Minorities Merits of directorMerits of director Merits of producerMerits of producer


Objective criteriaObjective criteria Merits of screenwriterMerits of screenwriter Merits of the core teamMerits of the core team Acknowledged actorsAcknowledged actors Previous support granted Previous support granted Distribution guarantee/ M.G. Distribution guarantee/ M.G. National / regional financial effectNational / regional financial effect


Internal readers make a written analysis of the Internal readers make a written analysis of the project/scriptproject/script

External readers make a written analysis of the External readers make a written analysis of the project/scriptproject/script

Administrative staff assess project, budget, Administrative staff assess project, budget, finance etc.finance etc.

Professional staff assess project, budget, finance Professional staff assess project, budget, finance etc.etc.

Recommendations for support are made by Recommendations for support are made by individualsindividuals


Recommendations for support are taken by a Recommendations for support are taken by a teamteam

Evaluation and decisions are taken byEvaluation and decisions are taken by: : a board of film professionalsa board of film professionals the institute’s or foundation’s managing directorthe institute’s or foundation’s managing director the institute’s or foundation’s management teamthe institute’s or foundation’s management team the institutes or foundation’s governing bodythe institutes or foundation’s governing body


WriterWriter DirectorDirector ProducerProducer DistributorDistributor


Professional staff (readers, Professional staff (readers, producers, marketing/ distribution producers, marketing/ distribution people)people)

Administrative staffAdministrative staff Decision makersDecision makers


repayable loanrepayable loan ““soft” loan, repayable after the private soft” loan, repayable after the private

investment has been recoveredinvestment has been recovered grant, not repayablegrant, not repayable grant dependent on the commercial grant dependent on the commercial

success of the film, paid upon cinema success of the film, paid upon cinema admissionsadmissions

grant dependent on previous performance grant dependent on previous performance (“reference system” support)(“reference system” support)


Tax subsidy programmesTax subsidy programmes Production-related tax discountProduction-related tax discount Discounts on production related Discounts on production related

expenditureexpenditure Tax shelter programmesTax shelter programmes Investor tax deduction (e.g. sale-and-Investor tax deduction (e.g. sale-and-

lease back)lease back) Tax deduction related to future incomeTax deduction related to future income


attract private funding for domestic attract private funding for domestic productionproduction

attract foreign production attract foreign production bolster employment in the bolster employment in the

audiovisual sectoraudiovisual sector attract risk capitalattract risk capital


Critical acclaim Critical acclaim Festival selections and awards Festival selections and awards Audience response – theatrical release Audience response – theatrical release Audience response – television release Audience response – television release The film’s profitability The film’s profitability Return of public support Return of public support Employment in the production sector Employment in the production sector Distribution to other countries/territories Distribution to other countries/territories


Overall, respondents put a Overall, respondents put a weight of 3.1 (out of 6) on weight of 3.1 (out of 6) on the extent to which public the extent to which public money determined whether money determined whether a project was made. a project was made. Nordic countries put the Nordic countries put the weight at 4.8; all “Small” weight at 4.8; all “Small” and “Super Small” and “Super Small” countries (including CEE countries (including CEE countries) put on a weight countries) put on a weight of 3.6 – 3.8. of 3.6 – 3.8. For “Big” countries For “Big” countries considered that the effect considered that the effect is only marginal (0.0), is only marginal (0.0), although this result arises although this result arises because Italy (+2) and the because Italy (+2) and the United Kingdon (-2) cancel United Kingdon (-2) cancel each other out.each other out.

source: thinktank on european film and film policy the Copenhagen Report


On average, national On average, national funds put the emphasis funds put the emphasis of their public support on of their public support on cultural objectives, but cultural objectives, but there is no pattern tothere is no pattern todistinguish small and distinguish small and large countries, Central large countries, Central and Eastern European and Eastern European countries and Nordic countries and Nordic countries tend to put thecountries tend to put theemphasis most strongly emphasis most strongly on cultural objectives.on cultural objectives.



We see that three Big We see that three Big countriescountries– – Germany, Italy and Spain Germany, Italy and Spain – tend clearly towards – tend clearly towards looking for “commercial” looking for “commercial” success (as does success (as does Luxembourg). The Luxembourg). The countries putting most countries putting most weight on “cultural” weight on “cultural” success criteria are success criteria are Flemish Belgium, France, Flemish Belgium, France, Netherlands, Norway and Netherlands, Norway and Portugal. Portugal.



With the exception of With the exception of Iceland and Norway, Iceland and Norway, “artistic” criteria have “artistic” criteria have more weight than more weight than socio/political” criteria; socio/political” criteria; “Economic” criteria are the “Economic” criteria are the most important in most important in Germany, the Netherlands, Germany, the Netherlands, Poland and Switzerland.Poland and Switzerland.



Automatic schemes are Automatic schemes are more more significant in “Big” significant in “Big” countries and countries and “Super-“Super-small” countries.small” countries.Tax incentive schemes are Tax incentive schemes are more amore afeature in the “Big” feature in the “Big” countries andcountries andless in the “Central & less in the “Central & Eastern” Eastern” countries.countries.Decision-making tends to Decision-making tends to be done by individuals be done by individuals rather than by committees rather than by committees in the “Big” countries and in the “Big” countries and the the “Nordic” countries.“Nordic” countries.



Subsidies are awarded Subsidies are awarded through particular through particular programs four times a programs four times a year. All applications are year. All applications are assessed by assessed by representatives of the film representatives of the film industry appointed by the industry appointed by the Minister of Culture as film Minister of Culture as film experts of the Polish Film experts of the Polish Film Institute. Decisions Institute. Decisions regarding subsidies are regarding subsidies are made by the General made by the General Director of the Polish Film Director of the Polish Film Institute and take into Institute and take into account account the experts’ the experts’ opinions.opinions.

Source: Polish Film Insittute, Poland Film Production Guide 2008

© PRIMEHOUSE GmbH, Kantstrasse 149, 10623 Berlin Script Forum Warszawa, 2009.

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