28/10/2003

The runaway success of the DVD format has created new problems. Piracy, a low contribution to funding for French films, the lack of regulations in a market dominated by the big French distributors and a concentration of publishers which harms diversity: These difficult themes were tackled during a round table discussion, organised on October 25 by the ARP (Authors-Director-Producers), during the 13th edition of the Bearne Film Meetings.

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The video sector, reinforced by the new energy of DVD, has overtaken the cinema market in just a few years of accelerated growth. In France in 2002, there were 3,118 video released, compared with the 541 films distributed in cinemas. In spite of an increase on video taxes, decided during 2003 by the culture minister, video still plays a minor role in the funding of French cinema: €12 million in 2002 (€18 million in 2003, and probably €40 million in 2004), when compared with the €300 million plus from television and the €100 million from cinemas. This difference is beginning to seriously concern French professionals at a time when funding sources are dropping.
In addition, the lack of a single price for DVDs could lead to a rapid decline in the market, since you can now find promotional offers on the internet selling DVDs from €1.50. Another cause for concern is the poor level of DVD sales of French films that were hits at the box office. Figures show that the audience of between 500,000 and 1 million for an American film generates 5.5 DVD sales more than a French film. But those who are placed in the most disadvantageous position are the TV channels, which are currently the principle financiers of French cinema. The reason for this is that a film is now released on DVD only six months after its distribution in cinemas, while Canal+ broadcasts it 9 months later, pay TV channels show it a year after its main release, and other free TV services ever later.

Following the animated debate on these issues, ARP launched a Beaune Appeal asking for an increase in the DVD contributions to the support funds, a reduction in VAT on DVDs, tracking on their production, transparency and a settlement on the rise of the returns and the upholding of the diversity of films on offer and their access to the market.

(Translated from French)