27/03/2008

Dependent upon a system of diversified funding, French film production is, however, undergoing certain changes worth watching in terms of investment sources, as revealed in the 2007 assessment by the National Centre for Cinematography (CNC).

The importance of mandates (theatrical distribution, video and international sales) continues to increase, now representing 21.2% of the €1bn invested in 2007 in the 185 accredited French Initiative Films (FIF) (compared to 13.8% in 2006 and between 6 and 9% during the period 1998-2002).

The MGs (Minimum Guarantees) paid by international sales companies have seen a spectacular increase of 127.9% compared to the previous year and now cover 8.2% of funding. And even though two features in particular contributed largely to this trend (Babylon A.D and Taken [+see also:
trailer
film profile]), Véronique Cayla, the director general of the CNC, emphasised the fact that numerous French auteur films also benefited from the generosity of international sales agents.

A rise (+48.9%) has also been recorded in credit for theatrical distribution, amounting to 9.5% of financing for FIFs and video mandates 2.1%.

Contributions from television networks nonetheless remain the primary source of funding for French production, amounting to 30.5% (26.7% in pre-sales and 3.8% in co-production). Pay TV broadcaster Canal + leads the way with a contribution of €160.28m for 140 pre-bought films (126 FIFs and 14 minority co-productions).

Investments from hertzian channels shot up from €101.91m in 2006 to €124.92m in 2007 for 104 features thanks to TF1 (€41.1m), France 2 (€31.1m), France 3 (€23.49m), M6 (€22.68m) and Arte (€5.56m).

Finally, TPS Cinéma invested €20.46m in 2007 and Ciné Cinéma €13.75m. Last year, a total of 39 FIFs were produced without television financing.

The automatic and selective support from the CNC last year covered 8.9% of the estimated costs of FIFs with around €21m for the advance on receipts system (whose budget will be increased this year to €24m) which funded 54 films produced in 2007.

The advances on receipts help to maintain a high level of renewal in the French film industry with 72 debut features produced last year, i.e. almost 39% of FIFs.

In terms of funding sources, €15.86m was also provided by regional funds, which supported 65 films and €40.59m came from the Soficas who backed 26 FIFs.

Lastly, the tax credit played an outside role (equal to 20% of eligible expenses and with an upper limit fixed at €1m per feature),a aiding 120 FIFs produced in 2007.

(Translated from French)