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The role of film financing
was addressed by a specific set of questions.
Does the government
contribute to financing film productions?
Please indicate
the average percentage ceiling of such governmental financial participation.
Is this participation
regarded as a direct government grant?
Are the funds
managed by professionals themselves?
Are they considered
advances on ticketing revenues?
Do they feed
a special production fund?
Are
there direct grants for film distribution (e.g. to finance copying
or advertising campaigns)?
Is there a tax-reduction
scheme to encourage film investors?
Are there other
regular financing sources for film production?
Is the private
sector funding films?
Are there particular
grants for young filmmakers?
Are there individual
grants for script writing?
Is there tax
exemption for production companies, labs or studios?
Does any film-funding
come from abroad? Specify the sources.
What is the
average percentage of foreign financing in an international film
co-production?
Are public or
private television companies compelled to contribute in film financing?
Is this contribution
a mandatory fixed share /quota to support the film industry?
Is it an advance
on broadcasting rights?
Is it a kind
of financial guarantee?
What is the
average percentage the financial contribution of broadcasting to
film production?
If the government
(through ministerial departments, official agencies, but excluding
public broadcasters) finances film production or audiovisual materials,
please give an estimate of the number of productions receiving grants
and the average share for each production in US$ per year.
The same question
as above, but specifically concerning public (institutional/governmental)
information film and audiovisual productions.
There is a clear dichotomy
between the industrialized world and the developing countries concerning
film financing. The largest-producing nations like India, the United
States America and Hong-Kong SAR, which are at the same time the
largest exporters, are also those receiving the least amount of
state funding. The percentage of public funding varies widely from
one country to another.
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Countries with
highest amount of state funding
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Country
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Percentage of
state funding
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Total industry
turnover in millions of US.$
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Films produced
in 1998
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Austria
Azerbaijan
Luxembourg
Spain
Portugal
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90%
90%
88%
80%
80%
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100
0.5
41.2
23
60
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22
3
1
45
14
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| As
a reference: |
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France
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23%*
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798.3
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183
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*The sum of state funding
and contribution from public/private broadcasters
These figures are in
sharp contrast with the 5% ceiling proposed by the WTO. The most
extensive mechanism for government financing recorded by the questionnaire
is the so-called taxation on ticketing which is probably
also the oldest film financing source. Only in Europe and North
America is there a system by which young filmmakers are financially
supported for the realization of their first work, as well as specific
funds reserved to scriptwriters.
The financial contribution
of broadcasters in film financing has been decisive in maintaining
and encouraging levels of national film production throughout the
1990s. That is particularly the case for medium-producing countries
(from 20 to 199 productions per year), the category which includes
Europe. In most of these countries, financing by broadcasters is
compulsory, ranging from 15.7% in France to 75% in Italy. The participation
of Mexican and Argentine broadcasters in national film production
is 10%.
Last
update 02/10/01
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