30/10/2006

Considered in Europe as a model for film and audiovisual funding, the French system may go a step further with the addition of all distributors of audiovisual services, in particular ADSL, satellite, cable, telephone and digital terrestrial television broadcasting (DTTB), to its current list of contributors.

At present, the support fund managed by the CNC (€505.5m budget for 2007 – see article October 3) is made up of €349.5m in taxes on “regular” television stations (general paying channels, such as Canal +, as well as satellite and cable channels, such as TPS Cinéma and Ciné Cinéma); cinema ticket tax (€121m); and video publishers tax (€34.2m). However, these funding mechanisms – especially those related to production – are likely to undergo serious change in the near future with the emergence of new broadcasting means.

Negotiations are therefore underway to integrate new players of the digital era in the system, including telecommunications operators who are rapidly developing their offers of triple play (Internet, telephone and television). Professional film organisations are hoping to come to an agreement before November 22 with the possibility of an amendment at the French upper house of Parliament, the Senate, at a discussion on audiovisual law in the digital era.

At the Dijon Film Meetings, organised by ARP, France Télécom’s Patricia Langrand revealed that the CNC was considering extending the support fund to distributors who benefit from a 5.5% VAT rate (reduced rate for audiovisual and cultural content compared to the standard 19.6% rate), which would be a feasible change for the telecoms operator if satellite, DTTB and cable stations were also included. New changes and highly technical discussions are taking place behind the scenes.

Without tackling the issue head on, CNC Director General Véronique Cayla underlined the necessity to integrate new players in the digital revolution in the French system of regulation, to form partnerships – which does not mean deviating from leverages. “When the market for films is as strong and powerful as it is at present, it is necessary to channel these forces to fight against the trend that sees creators at the mercy of industry,” Cayla said. Furthermore, she pointed out that – unlike the US, who are investing more and more in downstream financing, such as marketing – Europe, and in particular France, need to invest more in upstream forms, such as creativity.

(Translated from French)