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INDUSTRY France

Consolidating and adapting the French model: a very vast enterprise

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- Fuelled by the Bonnell report, the Assises pour la diversité du cinema (lit. “Assizes for the diversity of cinema”) revived the debate surrounding the funding of French cinema

Consolidating and adapting the French model: a very vast enterprise

"There’s no rush, but it’s time to act.” Invited yesterday in Paris to comment on his report on “the funding of cinematographic production and distribution in the digital age,” (which can be downloaded here), René Bonnell delivered a technical and detailed analysis with 50 more or less coercive suggestions which will now be negotiated amongst professionals, or (in the case of a deadlock) decided in a more abrupt fashion by the Minister of Culture, Aurélie Filippetti.

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The findings deciphers the current imbalances: erosion of funding sources forproduction (theatres, TV, video) which should continue, bipolarisation with sometimes overfunded huge budgets, impoverished fragile small budget works and middle ground films that are slowly disappearing, boom in production costs (a phenomenon that seems to have slowed down a little in 2013), very strong tensions surrounding distribution (which has become a high risk activity), the VoD market not fulfilling its promises... A very sharp description completed by a study from the CNC on the economics of films of French initiative which scrutinized 1283 features released between 2004 and 2011 and led to several important results: a global tendency towards a slight deficit (which is worsening) between revenues and costs, the long-term value of works (40 % of film revenues are made as of the second year of operation and 84 % of films still generate revenue seven years after their release), the fact that about a third of films are profitable for their producers (a significant result for a industry said to be “of prototype”) and profitability especially for features budgeted between 4 and 15 M€.

Offering 50 very precise recommendations to adapt the French system, the Bonnel report aims to “progressively bring back the funding where the resources are found” by: “increasing the involvement of rising broadcasters”, “qualitatively reviewing the level of obligation of mature broadcasters”, "redistributing investments towards mid-range films”, "calming the situation" of production costs (without confusing budget levels and overfunding), ending the “unacceptable” practices concerning the payment of actors (advance incentives), reinforcing the capital of production companies, encouraging them to mutualise their efforts, strongly supporting distribution, optimizing transparency over revenue (which would have an anti-inflationary virtue) as well as bringing forward subscription VoD (SVoD) to 18 months (against 36 currently) after the theatrical release and making the exclusive diffusion of Canal+ and free channels less rigid by offering them in exchange to bring forward their window in the chronology of the media. A very broad set of proposals (including adjustments to automatic and selective funding from the CNC) which will now be brought to the professional for discussion – and it probably won’t be easy, considering everyone has a different vision of priorities. Thus a work group on “fragile” films complained that the report did not sufficiently address the crucial topic of film exposure in theatres. However, the realization that it is necessary to adapt the French system is unanimous. It now remains to see what the first decisions will be and if professional solidarity will win over thanks to compromise or if politics will have to handle the stakes to bring forward the world’s second cinematographic industry.

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