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Press Release

Strasbourg, 25 January 2012

Film funding in Europe tops the 2 billion euro mark

European Audiovisual Observatory publishes new report

 
 
Public Funding
for Film and Audiovisual Works in Europe

More info on the report here
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  • In 2009 an estimated 2.1 billion euros flowed to the film and television sector from public funding bodies based in Europe.
  • Total spend by these funds grew almost without interruption from 1998 onwards but stagnated in 2009 as fund income came under pressure.
  • Growth in spend was paralleled by rapid expansion in the number of funds – from 208 in 2004 to 280 in 2009, mainly through the creation of regional funds.
  • Public authorities and television are the main sources of finance for funding bodies, though funds seek actively to broaden their income base.
  • Over two-thirds of all spending in 2009 went to production (all phases) with promotion an area of increasing importance.
 

These are some of the key findings of a new report from the European Audiovisual Observatory, part of the Council of Europe in Strasbourg. Public Funding for Film and Audiovisual Works in Europe focuses on film funds in 37 European countries for the period 2005 to 2009 and provides a unique overview of the scale and scope of their activities.

Regional funds have multiplied rapidly

Film funding in Europe is a dynamic area with a total of 280 funds operating at various administrative levels in 2009. This represented 72 more funds than were identified in 2004, date of the previous Observatory census.

All but four European countries have a national film fund, but the majority of funds are in fact administered at the sub-national (community, regional and municipal) level. These funds are also the most dynamic in terms of fund creation – 57 new regional funds came on stream during the years 2004 to 2009. France, Italy, Norway and Poland were all particularly active in this respect and the dynamic carried on over into 2010 and 2011 in Italy and Poland. A reversal of this trend can, however, currently be seen in the United Kingdom with the consolidation of certain regional funds.

 
Number of film funds in Europe
 
2004
2009
Change
National funds
57
67
+ 10
Sub-national funds
138
195
+ 57
Supranational  & other funds
13
18
+ 5
Total
208
280
+ 72
Source: ‘Public Funding for Film and Audiovisual Works in Europe’ - European Audiovisual Observatory

 

Fund spend grew steadily since 1998 but flattened out in 2009

In parallel with the rapid growth in the number of funds, the amount of funding flowing to the sector from these bodies rose steadily from 1998 onwards, reaching the 1 billion euro mark in 1999 and the 2 billion euro mark in 2008. By 2009, however, the effects of a changed economic environment had begun to make themselves felt and spending growth stalled as income came under increasing pressure.

Public authorities and television: core financial resources for funds

This pressure was primarily felt by the core source of income for funds: public authorities at the pan-European, national and regional levels. These sources contributed around 54% of 2009 total income. Taxes and various types of contributions from the television industry also played a vital role, accounting for 28% of the total. Faced with increasing budgetary constraints in both these areas, public policy makers have looked for new ways to finance funds, notably by bringing other users of audiovisual content, such as VOD services and internet-based television, into the contribution base.

Production the main target of spend, but promotion increasingly important

 

The various phases of production, from scriptwriting to post-production, captured 69% (1.4 billion euros) of total funding body spend in 2009, reflecting both the production-oriented remit of many funds and the high value of awards made in this area.

Approximately 65% of the total 2009 production spend went to film projects, both shorts and features, while television works accounted for 28%. Distribution and exhibition support were also important areas of activity, particularly for national funds, while support for promotion was one of the areas that had developed most over the period studied by this report.

 

‘Public Funding for Film and Audiovisual Works in Europe – 2011 Edition’ (154 pages) published by the European Audiovisual Observatory in three language versions (English, French and German), brings up-to-date a major report published on this topic by the Observatory in 2004 (see here). The report focuses on film funds operating at pan-European, national and sub-national levels and looks at their activities in support of film, television and new media. The 2011 edition provides detailed information on fund numbers, income and sources of finance as well as on funding spend and the different types of activities supported. Overview data includes country-by-country funding spend totals and national versus sub-national spend breakdowns. Data covers principally the period 2005 to 2009 with 2010/2011 updates in a series of special country-by-country reviews. The report also provides brief insights into a selection of special topics, including tax incentive schemes in Europe, funding for the transition to digital cinema, broadcasters’ contributions to fund income and inter-regional initiatives.

For further information see:
http://www.obs.coe.int/oea_publ/funding/fundingreport2011.html

Journalists, for a free press copy of this publication, please contact:
Alison Hindhaugh, Information and Press Officer, tel.: (+ 33) (0) 3 90 21 60 10 - alison.hindhaugh@coe.int


To purchase a copy of this new report, click here or contact markus.booms@coe.int.

For further information on the content of this publication, please contact:
André Lange, Head of Department, Information on Markets & Financing - andre.lange@coe.int
Susan Newman-Baudais, Film Analyst, Department for Information on Markets & Financing -
susan.newman@coe.int


The European Audiovisual Observatory

Set up in December 1992, the European Audiovisual Observatory's mission is to gather and distribute information on the audiovisual industry in Europe. The Observatory is a European public service body comprised of 37 member states and the European Union, represented by the European Commission. It operates within the legal framework of the Council of Europe and works alongside a number of partner and professional organisations from within the industry and with a network of correspondents. In addition to contributions to conferences, other major activities are the publication of a Yearbook, newsletters and reports, the compilation and management of databases and the provision of information through the Observatory’s Internet site (http://www.obs.coe.int).