05/10/2009

Scandinavian giant Nordisk Film has closed Nordisk Film & TV AS, its feature film production arm in Norway, as a response to the country’s change in film subsidy rules.

By relying on the generous Norwegian subsidy system that offered matching funds of up to 95% of a film’s box office earnings, Nordisk Film & TV has over the last six years supplied the Norwegian market with a regular flow of commercial children’s films, with the successful Junior Olsen Gang franchise as flagship. During that period, the company received over NOK 224 million (approximately €26.5m) in public support, much more than any other local production outfit.

However, since Norway decided to join the European Co-production Convention, new subsidy rules have been drafted, in consultation with local producers. The main change according to Ivar Køhn, head of production at the Norwegian Film Institute (NFI) is the reduction of the bonus from 95% to 75% of a title’s box office gross. For Køhn, this subsidy level is still much higher than in many other European territories (at 50%).

Rune Trondsen, head of fiction at Nordisk Film & TV, disagrees. “Up until now, Norway had quite a good subsidy system, but this will change. Producing commercial family films will become too risky,” he asserted. Nordisk Film will nevertheless continue to invest in local TV programmes and documentaries and will keep its stake in the two Norwegian production companies: Neon Film and Maipo Film.

The fear for the NFI is that other local production companies will follow Nordisk Film’s example. Max Manus [+see also:
trailer
film profile] producer Sveinung Golimo (Filmkameratene), who sits on the board of the Norwegian Producers Association, agrees that the new rules are tougher but still offer an incentive to make children’s films.