Public Investment in Film & TV Works: Film Funds in Europe

1. Public Investment in Film & TV Works:Film Funds in Europe Susan Newman-Baudais Analyst – Film Industry European Audiovisual Observatory Public Investment in Culture and Communications Brussels, 22 November 2011

2. Context – film funds in Europe • Subset of public investment in culture and communications • A European perspective • Covers bodies using public funds to support film and television works • Mapping and quantifying exercise …excludes tax measures

3. A dynamic landscape… … 280 funds identified in 2009 – of which 234 in EU27 and 269 in MEDIA countries … all but 4 European countries have national funds but majority of funds administered at sub-nat. level … 208 funds in 2004 – an additional 72 funds in operation in 2009 … sub-national funds multiplied faster than their national counterparts - + 57 in 6 years … growth was notable in France, Italy, Norway and Poland but reversal of trend in the UK Number of funds in Europe Sub-national funds per country 280 208 +5 Supranational 18 13 195 2004 44 2009 138 33 16 +57 Sub-national 10 67 8 57 3 +10 1 National 0 2004 2009 France Italy Norway Poland Source: European Audiovisual Observatory

4. Spend volume – positive trend but stagnated in 2009 … data reflects both amounts distributed as funding awards/loans and direct spend … almost constant upward trend since 1998 reflecting wider remits, fund creation, new income sources … 2005 to 2008 spend grew by annual average of 6% but flat in 2009 as income squeezed … recovery in 2010 / 2011 unlikely Funding body activity spend 1998 - 2009 in M EUR 2 074 2 078 1 945 1 766 1 754 1 273 1 254 1 119 1 037 964 2005 2006 2007 2008 2009 1998 1999 2000 2001 2002 Source: European Audiovisual Observatory

5. Spend by level – mostly national but regions grew fastest … EUR 2.1 billion in 2009, of which EUR 1.73 billion in EU27 and EUR 1.83 billion in MEDIA countries … vast majority of spend is at the national level – EUR M 1.4 billion or 69% … sub-national funds showed the fastest growth in spend - + 42% between 2005 and 2009 … five large Western European countries account fo 67% of total – France 30% Funding body activity spend 2005 vs 2009 Top 10 Europe - by activity spend in M EUR 1 766 2 074 +22% Supranational 155 127 67% 483 340 +42% Sub-national 1436 1298 64% +11% National 2005 2009 Source: European Audiovisual Observatory

6. Spend by level – small countries spend most per capita … vast majority of spend is at the national level – EUR M 1.4 billion or 69% … but sub-national funds showed the fastest growth in spend - +42% between 2005 and 2009 … five large Western European countries account fo 67% of total – France alone 30% … smaller countries have higher per capita spend but exclusion of tax incentives has impact Funding body activity spend 2005 vs 2009 Top 10 Europe - by per capita spend in M EUR 1 766 2 074 +22% Supranational 155 127 483 340 +42% Sub-national 1436 1298 64% +11% National 2005 2009 Source: European Audiovisual Observatory

7. Fund income – public sources and television form core … primary source of income is public from EU, State and Local Gov. – total value EUR 1.1 billion … an estimated 28% (EUR 591 million) of total fund income in Europe came from broadcasters in 2009 … compared to 2002 public sources have become more important in the mix while television is less so … other taxes, repayments & other sources also contribute proportionately less … increasing pressure on public sources drives search for new sources of finance New sources for fund income Funding body income sources 2009 in % • Broaden definitions of … • … users of audiovisual content => include new types of companies in the taxation or contribution base • VOD services (France, Germany, …) • ISP providers (e.g. France, Belgium) • telecommunications services (e.g. Greece) • … taxable revenues • => advertising revenues include teleshopping and sponsorship 4% 4% 11% 2 087 M EUR 54% 28% 28% Public sources(EU / State / Regional / Local) Lottery Television (tax & contributions) Repayments & others Taxes (cinema, video, other) Source: European Audiovisual Observatory

8. Funding body spend – production key area … production (all phases) captures majority of spend – support in form of subsidies, loans & investment … reflects high value of awards made in this area … distribution, exhibition and ‘other’ also important - ‘Other’ = media literacy and ‘film culture’ activities … in terms of projects supported, feature films worth EUR 857 million, but TV significant also… … digital media as yet insignificant, but development area for many funds Funding body spend by activity 2009 Types of work supported 2009 in % Training 2% Other Festivals 2% 9% Exhibition 6% 2 074MEUR Distribution 8% Production 4% Promotion 69% Source: European Audiovisual Observatory

9. Data source Public Funding for Film and Audiovisual Works in Europe • almost comprehensive coverage of every public fund in Europe with a specific remit to support cinematographic works • covers 37 European countries • for the period 2005 to 2009 • national, sub-national and supranational aggregates • and data on individual funds For further information see http://obs.coe.int under ‘Publications’ contact: susan.newman@coe.int