1. 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. 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. 3 … 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 A dynamic landscape… Number of funds in Europe Source: European Audiovisual Observatory 33 1 3 0 44 16 10 8 FranceItalyNorwayPoland 2004 2009 67 195 18 2009 Sub-national National Supranational 57 138 13 2004 +10 +57 +5 280 208 Sub-national funds per country

4. 4 Funding body activity spend 1998 - 2009 in M EUR Spend volume – positive trend but stagnated in 2009 2005 1 766 2006 1 754 2007 1 945 2008 2 078 2009 2 074 19981999200020012002 964 1 037 1 119 1 254 1 273 … 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 Source: European Audiovisual Observatory

5. 5 Funding body activity spend 2005 vs 2009 in M EUR 1436 483 155 2009 2 074 Sub-national National 64% 1 766 1298 340 127 2005 Supranational +22% Spend by level – mostly national but regions grew fastest Source: European Audiovisual Observatory +42% +11% … 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% Top 10 Europe - by activity spend RankCountry M EUR 1France581 2Germany303 3Italy145 4UK128 5Spain124 6Russia75 7Austria65 8Netherlands64 9Sweden56 10Norway55 67%

6. 6 Funding body activity spend 2005 vs 2009 in M EUR 1436 483 155 2009 2 074 Sub-national National 64% 1 766 1298 340 127 2005 Supranational +22% Spend by level – small countries spend most per capita Source: European Audiovisual Observatory +42% +11% … 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 Top 10 Europe - by per capita spend RankCountryEUR 1Iceland12.25 2Norway11.43 3Luxembourg11.15 4France9.03 5Austria7.84 6Denmark7.38 7Ireland6.73 8Sweden6.10 9Finland4.85 10Belgium4.70 European average2.60

7. 7 … 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 Fund income – public sources and television form core Funding body income sources 2009 28% Source: European Audiovisual Observatory in % Public sources (EU / State / Regional / Local) Taxes (cinema, video, other) Lottery Television (tax & contributions) Repayments & others New sources for fund income 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% 54% 28% 11% 4% 2 087 M EUR

8. 8 Funding body spend – production key area Distribution Promotion Type of workM EURShare Feature films85762% TV works38828% Short films453% Documentaries423% Other212% Digital media works181% Exhibition Festivals 2% Training 2% 9% 4% 8% 6% 69% 2 074 M EUR Other Source: European Audiovisual Observatory Production … 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 Types of work supported 2009 in % Funding body spend by activity 2009

9. 9 Data source …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 Public Funding for Film and Audiovisual Works in Europe For further information see http://obs.coe.int under ‘Publications’ contact: susan.newman@coe.int