09/10/2009

On Wednesday, a government commissioned paper on the Future Film Policy in Sweden was officially presented by its author, Mats Svegfors. His main recommendation is to put an end to the current Film Agreement – in place since 1963 – and to increase the VAT on cinema tickets.

The report offers a snapshot of the current state of Swedish film and a list of proposals for the government to implement, as the current Film Agreement between the state and the various industry partners (film/TV organisations and broadcasters) will expire on December 31, 2010.

The main recommendation in Svegfors’ report is the replacement of the current Film Agreement with a state-run film policy, similar to the one in place in many other EU territories. To smoothen the transitional period until the new state film policy is introduced, Svegfors suggests to extend the current Film Agreement until the end of 2012.

Specific changes to the current support system recommended by Svegfors include the increase of VAT on cinema tickets from 6% to 25%, which would push average ticket prices up to around SEK87 (€8.50). To reduce the impact of such a measure on the exhibition sector, the current 10% levy on cinema ticket admissions would be abolished.

Svegfors also suggests introducing a new production fund, entitled New Film, for upcoming filmmakers and innovative creative works on different media platforms (games, internet and cross media); opening up support for importing quality films to distribution channels other than cinemas (such as DVD and VoD); and increasing state support to digital cinemas on a national level.

Reactions to the report were mixed. The Swedish Film & TV Producers Association welcomed the report positively, in particular the higher support to digital cinemas to counterbalance the monopoly of SF Film on the exhibition market. Exhibitors on the other hand criticized the proposed raise in VAT on cinema tickets. Cissi Elwin, head of the Swedish Film Institute said that she was satisfied with the report but regretted the extension of the current Film Agreement that is “out of date and under-financed.”