11/03/2008

After only four years in effect, the German federal government is set to reform its national film funding directives (FFG). Germany's Minister of Culture Bernd Neumann considers the current law a success: the market share of domestic films has risen from up to 17% before 2003 to a maximum 26% after implementation of the law.

However, the difficult situation for film production in Germany makes new directives necessary. Home entertainment poses a new challenge for the current distribution system. New services like Video on Demand (VoD) will be charged for the films they want to offer yet their suppliers should also be able to receive funding.

These platforms will be recognised as a unique form of distribution and their suppliers should have access to publicly funded films, even those that broadcasters are not interested in airing.

There is no further funding for film producers intended, as in 2007 the German film fund (DFFF) was instated, which Neumann considers to be very successful.

As a good screenplay is crucial to the success of a film, the new law also improves script funding and should make funding available to professional screenwriters as well. Script consulting services and the funding of promising treatments are further planned.

The digitalisation of the medium is going to pose a great challenge for cinemas. Most theatres could not afford the technical modernization required in the past yet as they should remain the main form of film distribution, their technical changeover should be supported. Perhaps even with the help of distributors, who save print and transportation costs with the new technology.

Last week, the German government issued a preliminary draft of the law, which the the film industry is invited to comment on until March 18.