| | France
| Spain | Germany
| Italy |
| 2001Cinema admissions (millions)[249]
| 185 | 145
| 178 | 84
|
| 2001 Box office receipts (US$ millions)[250]
| 888 | 531
| 866 | 415
|
| 2001 National films on their own market (%)[251]
| 28.2 | 2.9
| 11.6 | 17.5
|
| Government support[252]
| Centre national de la
cinématographie (CNC) had a total budget of E380,564,287 in 2002. The bulk of this income is derived from a tax on French broadcasters (E330.08 mil. in 2002). CNC operates multiple funds for production, distribution, script writing, exhibition, post-production. Production funds operate using an Advance against receipts system. Awards $290,000-$390,000 per project. Conditions: French production, or international co-production meeting co-production accords. Money must be reimbursed on the first dollar gross basis, negotiated either as a percentage of support account funds, or as a percentage of foreign, video and television sales
| Instituto de las Cinematografia y de las artes Audiovisuales (ICAA). Total budget for 2000 was E31,790,264. Financed by state aid. The ICAA offers subsides to films that earn more than $330,000 at box office. All Spanish films have the right to aid up to 15% of gross takings during first 2 years screening in Spanish cinemas. Amount obtained may not exceed the producer's actual investment, at 50% of production costs or E600,000. Films that have not received selective aid for production can choose between an amount equivalent to 25% of box office takings from first 2 years, or 33% of the producer's investment (E300,000 or less)
| Filmforderungsanstalt (FFA) has a total budget of E45 mil. (to increase to E72 mil. in 2004. Funded by 2.3% tax on all cinema tickets sold, and video rental/sales. FFA backed 45 projects in 2002. The FFA administers the 'success grant' an award paid to German producers whose films attract 100,000+ admissions at local box office. Financed by tax on cinema tickets, award on sliding scale from $98,000- $1.2 mil. A new points scheme is to be introduced - a film must score at least 150,000 'reference points' (which will be allocated according to the no. of domestic cinema admissions and/or success at international festivals and awards.
| Direzione Generale per il Cinema had a budget of E97,453,351 in 2001
funded by State Budget.Its remit is to support and promote Italian cinematic culture: financial support for production, distribution and exhibition; authorises the creation of cinemas, rates films, oversees the allocation of amounts dedicated to film by the Fondo Unico dello Spettacolo (Single Fund for Performing Arts). Annual allocation of E60.4 mil. to the film industry. Funding is split three ways: 58% for film production, 13% for promotion, 29% for State Film bodies, in particular Cinecitta Holding.
|
| National tax incentives[253]
| SOFICAs
Film financing companies that raise money by offering tax write offs to investors Soficas reinvest this money in film and TV via interest-bearing loans. Companies or individuals who invests in one can write off up to 50% of tax on their investment. Individuals can invest up to 25% of their income with 100% tax write off.
| There are three main tax incentives:
Up to 25% of film production investments are deductible from corporate income tax; P&A expenses are 20% tax deductible when occurred though entering markets or developing new products; Up to 5% (or up to 20% for non-Spanish holding companies) of the amount invested in fixed assets can be deducted from corporate income tax, up to 25% of the total tax charge.
| Tax-sheltered Film Funds estimated 35 film funds, collecting a total of over $1.95 bil. in sheltered income in 2001. Most specialise in specific genres. To access the funds, the fiilm has to be fiscally domiciled in Germany. Most funds have loose partnerships with established producers and distributors which absorb most of the money raised. German producers' association is urging Government to adopt either a 'sale and leaseback' model, similar to the UK or Canada's tax credit model.
| Italian producers, distributors and sellers are pushing for the introduction of tax incentives for film. They favour a system similar to the UK's sale and leaseback incentives, or a model similar to Canada's Tax Credit system.
|
| Broadcasters support [254]
| Broadcasters have obligations to re-invest in domestic production. e.g. Canal Plus invests 20% of annual earnings into French and European film production (acquisitions or pre-buys).
| 2001 Cinema Law requires broadcasters to invest 3% of their annual income in Spanish films.
| Public and private broadcasters provide funding for the FFA. From 2004, broadcasters will double their financial contributions to the FFA to a total of Euros 22.4 mil. Public broadcasters are also obliged to back the Regional Film Fund in their specific region. Pay TV platform Premiere has offered to contribute Euros 70-80 mil. to film - if the government will agree to reducing VAT rates for subscribing to pay TV (16%) to the same amount that is set for magazine subscriptions (7%).
| Under the so-called Veltroni law, public service broadcasters, RAI and main private broadcasters, Mediaset, invest €50 million per year each in feature film and TV fiction (mostly in feature film). Both RAI and Mediaset have their own film production, sales and distribution companies. Mediaset owns Italy's largest cinema chain (Cinema 5).
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