Category Archives: Financing

MIP-TV: Yes We Cannes!

Long gap since my last post, apologies. But last week I went to the annual MIP-TV market in Cannes which gave me plenty to think (and write) about.

Four days of meetings equated a big batch of ideas – though the word product seems more appropriate in such a marketplace.
Fewer people were wandering the Palais this year – cuts are biting, and there’s less face to face in the business anyway these days. The cost of attending a market like this for producers and distributors is large, and the pressure is on from day one.
With four of us from SBS all doing separate meetings, we covered a lot of companies. Telling distributors and producers what we needed,  running through their ‘slates’, working off this MIP 2015 SBS Acquisitions Needs brochure.
My main impressions?
You meet who you know already. There should be a ‘lucky dip’ function on the website to put you together with people you’ve never met before.
30 minutes is not long enough for most meetings, given that I usually got there late and kept getting lost in the Riviera part of the market.
There’s no time to digest all the news and industry insight that floods the market – here are just a few of the magazines I picked up before leaving. In there are lots of programmes that I should be watching.
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Caffe Roma, the central cafe for meetings with those who haven’t registered for the market itself – serves terrible tea.
What were the Aussies up to?
The SBS stand was opposite the Screen Australia stand for the Aussie producers, who made merry at a drink on the Tuesday.
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David from Devised TV, Lara & Charlotte from SBS Sales, Claudia from Taglicht
It was good to see so many producers making the long trip to Cannes. Here’s a Screen Australia showreel of Australian projects brought to the market
At 22 minutes long, it’s a great way to get a fix of Australian TV. Spoiler alert: Doesn’t include all the terrible reality shows on Australian TV though.
I got to know a few films  through this showreel. The Secret River, being shown on ABC  looks amazing. Here’s more about The Secret River and the Seven series Gallipoli
And Blown Away (at 2:21) – a very intriguing part-animated doc on Cyclone Tracy which happened 40 years ago. There’s more about the film, shown in late December on ABC1 and co-produced by Rachel Clements, here
The other clips on the reel:
  • Deadline Gallipoli (3:17)
  • Miss Fisher’s Murder Mysteries (4:22) – which I’d love to see bought in the UK
  • Pitch Battle (5:38) – about the Palestinian football team
  • Restaurant Australia (7:22)
  • Sammy J and Randy in Ricketts Lane (9:37)
  • Status: Vacant (11:15)
  • Struggle Street (13:05) – coming to SBS in May
  • Tattoo Tales (14:57)
  • That Sugar Film (16:36) – a kaleidoscopic look at a key health issue.
  • Winter (18:47)
  • Heart and Soul (19:35) – this looks like a good tale of girls making music and growing up
  • Hipsters (22:09) – already screened on SBS2
What were the others up to?
Vice was the star of the show after its meteoric rise. I went for a session in the impressive Grand Auditorium led by Eddy Moretti, the creative director of the trend-setting Vice, launching a new service ‘for and by women’ called Broadly. Though my neighbour, Ene Rasmussen from the Denmark MEDIA Desk, wondered why there weren’t more women and stories aimed at them in the main service.
Eddiy Moretti, Creative Director Vice
Vice is a brilliantly focussed and sure-footed media company and its ideas demand attention. Some ideas at MIP though seem there to test us. The delegate bag was sponsored by DogTV (TV for dogs, in case you were wondering). The Telegraph in the UK has written about the formats on offer, and it’s not too impressed.
One of the other SBSs around the world, in Korea, has the slogan ‘See The Bright Tomorrow’.  Which is a nice thought, even though it doesn’t exactly work as a slogan.
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Party central
MIP wouldn’t be MIP without a bit of socialising, and nothing beats a beachside party at Cannes.  This one on Monday night was from distributor DRG.
If you were at MIP, let me know how you found it. At the Nordic party, I met a gentleman from Finland who reminded me that it’s only 170 shopping days left till MIPCOM…
Kris Kringle (as the Americand call him) and Krishan

Money for nothing and your flicks for nearly free

Berlinale! BAFTAs! The Golden Globes! The Oscars! February seems to be the most concentrated period in the film calendar, especially the ‘award-winning film’ calendar. But how do all these star-laden and artistically challenging films get funded these days? And why do the plots often include scenes in unlikely countries? Step forward into the spotlight the unsung hero of the film business – the Fiscal Incentive.

In Europe, according to this new report from the Observatoire de l’Audiovisuel Europeene – (stargazers of a different kind) – there are 26 such incentives – eleven tax credits, nine rebates, and six tax shelters – spread across 17 countries. Half of them apply to TV production as well as cinema; three of the twenty-six also apply to funding video games. (Progress! Hooray!). The UK estimates that each £1 spent in the UK on film generates £12 in ‘Gross Value Added’.

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If there are Trade or Culture ministers from some of the countries without such incentives reading this blog by the way, the report itself is yours to own  here if you have a spare €100. Which you probably do.

Each country is establishing these schemes for roughly the same reasons – to attract film production to their nation, give work to the production/facilities sector, and perhaps be sprinkled by some of that awards stardust. Sometimes cultural and artistic reasons to support film are also advanced, but that seems to be further and further down the small print these days.

In the last year alone, Lithuania, the Former Yugoslav Republic of Macedonia, the Netherlands, and Slovakia have all brought in schemes. Ireland’s new Section 481 scheme started last month. Expect to see one or more of these countries on the credits of a few medium-budget productions in the coming months.The report talks about how employment, heritage awareness, consumer interest, economic growth, exports, tourism and so-called national ‘soft power’ are all reasons for these instruments to be set up. It’s certainly not money for nothing (cue the Dire Straits video below) but it comes at a cost.

To the producer, these incentive schemes seem to be an essential part of film and TV financing without which the film simply wouldn’t be made. And taken for granted by the bigger US based studios – who give the impression of just following the money around Europe, Romania one day, then Prague, then Malta. Even within the USA, California is losing out as ‘Hollywood’ movies are now mostly shot elsewhere. The State of California announced a few months ago that it will triple its tax breaks for entertainment companies doing business in the state, the latest effort to stem a tide of runaway production that has cost it billions in revenue.

So in European countries with attractive incentives, a succession of big-budget productions roll into town, with the ‘financial instrument’ largely paying for the employment of the film professionals of that location. The report calls these ‘portable productions’ , and says:

In mature Western European production sectors in particular – such as the UK, France, and Ireland – there are significant numbers of international portable productions attracted to the market. In many cases, portable productions are sourced from the major US studios, which are important users of production incentives.

The money comes in from government and is spent locally. Britain now has a roaring trade in such movies.  Scenes for hundreds of millions’ worth of films are produced in Europe which might otherwise get made somewhere else. Everyone’s a winner, right? I’m not so sure.  If this is national funding, it surely needs to work for the country’s own industry, and questions need to be asked. Does it improve the talent base in a country to make it self-sustaining? Does it encourage (smaller) local producers to work at home, or go abroad? Does it enable a country’s creative community to produce the next Big Thing?

The Muppet Movie, contributing to the UK’s cultural landscape?

The answers are in the Observatory’s densely argued and data-rich study, and I don’t have the film business knowledge to be able to analyse their analysis. The report does say that the government may not particularly care about these issues over pure economic ones

almost all of the incentive structures provide a greater return to the government in tax revenues than they cost to operate, whilst also providing standard trickle-down benefits to the broader economy, also including in areas such as tourism and exports.

I dealt with many creative economy issues when I worked for the BBC on the development of the production sector outside London. How could we incentivise producers? What was the right balance between ‘big producers’ (usually from London) and local/regional ones?  Did the regional film & TV sectors gain at all from this strategy? They weren’t issues with simple answers, and the impact or results weren’t immediately apparent.

As with TV,  measuring the impact of such a film production strategy purely in financial terms may only tell half the story. Is such film funding just making studio popcorn movies easier to finance? Are we using the resources of crews and talent on cinema that has no particular cultural value?  Does it take money away from ‘true cinema’? Or is this all part of a healthy mixed ecology of film production.  Comments, info & links all welcome.