Download "Fiction film financing in Europe: Overview and trends 2016-2020" here 

How are film budgets and financing structures of European fiction films evolving over time?  

How did the key financing sources develop between 2016 and 2020?

The answers to these questions and more analytical insights are available in the latest Observatory report Fiction film financing in Europe: Overview and trends 2016-2020, which offers a first-time pan-European analysis of the year-by-year development of financing structures for the years 2016-2020.

Key findings include:

• Close to two-thirds of European films released between 2016 and 2020 had a budget of less than EUR 3 million.
• Median budgets of films produced in small markets increased noticeably over time, significantly reducing their gap with median budgets of films produced in medium markets.
• Despite being the largest source of film financing for European fiction feature films, the share of direct public funding consistently decreased over the time period covered, accounting for 24.0% in 2020, compared to 29.4% in 2016.
• In contrast, the share of production incentives increased significantly, from 9.6% of total financing in 2016 to 17.8% in 2020. This increase stemmed primarily from the growing role of production incentives in medium and large markets. 
• The growth in the importance of production incentives as a financing source of European films outweighed the decrease in the share of direct public funding. As a result, the financing share of total public support slightly increased from 39.0% in 2106 to 41.8% in 2020. Films with budgets over EUR 5 million (super-high-budget films) registered the highest increase in public support.
• The importance of broadcaster investments as a financing source declined in large markets. The drop affected first and foremost films with budgets over EUR 3 million.
• The importance of pre-sales and producer investments remained comparatively steady over time.

The sharp increase of production incentives offset the decrease of direct public funding, causing total public support to slightly increase between 2016 and 2020.
 

Development of shares of total public support by financing source: 2016-2020

In % shares of annual aggregate financing volumes

Source: European Audiovisual Observatory

Methodology

This analysis is based on a data sample comprising detailed financing plans for 2 490 European live-action fiction films - theatrically released / scheduled for release between 2016 and 2020 from 18 European countries. The data sample includes both 100% national films as well as European-majority-led co-productions. It covers a cumulative financing volume of EUR 8.12 billion. The data sample is estimated to cover 48% of the total number of European fiction films released between 2016 and 2020.

“A three act drama but hopefully not a tragedy” is how the European Audiovisual Observatory is pitching its new documentary short on the effects of COVID-19 on the film, TV and VOD industries in Europe. The Observatory traditionally organizes the biggest public cinema conference every year at the Cannes Marché du Film. This year the Observatory is taking part in the Marché du Film online and is showing its new documentary short with a live expert chat session afterwards.

• When: Tuesday 23 June from 17.00 – 18.00 (CET).
• How: This is a public online event and everyone may join and watch by registering free here 

With this documentary, the European Audiovisual Observatory would like to contribute to creating transparent information on the impact of COVID-19 on the audiovisual sector. It was made possible thanks to the insights shared by members of the Observatory’s Advisory Committee and includes interviews with major industry players from all sectors who talk us through their experiences of the three acts of the global pandemic: crisis, resistance and ... the future. Through these interviews the makers of this documentary short explore the dramatic effects of COVID-19 on the audiovisual industries, the measures put in place to support them and look to the future, to the ‘new normal’. Taking part in the film and then sharing their thoughts with us afterwards in a live chat session are:

• Richard Burnley, Director of Legal & Policy, European Broadcasting Union (EBU); 
• Silvia Cibien, General Delegate, EUROVOD;
• Cécile Despringre, Executive Director, Society of Audiovisual Authors (SAA);  
• Benoît Ginisty, Chief Representative, International Federation of Associations of Film Producers (FIAPF); 
• Laura Houlgatte, CEO, International Union of Cinemas (UNIC);
• Elena Lai, Secretary General, CEPI – European Audiovisual Production;
• Alexandra Lebret, Managing director, European Producers' Club (EPC);
• Grégoire Polad, Director General, Association of commercial televisions (ACT);
• Alina Popescu, Secretary General, International Federation of Film Distributors' Associations (FIAD); 
• Julie-Jeanne Régnault, Secretary General, European Film Agency Directors association (EFAD).

The Observatory’s Executive Director, Susanne Nikoltchev, stated that it was “a clear-cut mission for the Observatory to report on the consequences for COVID-19 for the benefit of the audiovisual industries, governments and decision-makers in Europe.” She announced that further Observatory reports on the economic consequences of the pandemic as well as a legal IRIS Plus analysis of the different measures adopted across Europe to support and guide the sector through the crisis were in the pipeline.