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INDUSTRY / MARKET Slovakia

Slovak industry agents publish an overview of the consequences of COVID-19

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- The ANP and Creative Industry Forum reflect on the current situation of the country’s audiovisual landscape and on what’s next

Slovak industry agents publish an overview of the consequences of COVID-19

Slovakia’s Association of Independent Producers (ANP) together with Creative Industry Forum, based on the data provided by individual segments of the Slovak audiovisual industry, have published an overview of the financial consequences of COVID-19 infection prevention and control measures for the sector of audiovisual production, assessing the impact of the COVID-19 pandemic on the audiovisual production and film distribution sectors in Slovakia in 2020.

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The complete overview is available here, and Cineuropa is publishing its entire content in partnership with the Slovak Film Institute.

Estimated overall decline of the Slovak audiovisual industry in 2020 due to COVID-19

€58,830,000, thereof:
Estimated financial fallout in audiovisual production: €43,000,000
Expected fallout in film distribution (net income): €15,830,000

Public and commercial broadcasters

Estimated fallout in income in the audiovisual production sector in 2020 is €48–67 mil, i.e. this sum of resources from TV broadcasters will not flow into the Slovak audiovisual environment. In addition, TV broadcasters are the biggest contributors to the public Slovak Audiovisual Fund (60% coming from the private sector, annually approx. €1,700,000; expected fallout in 2020 is €500,000 – €600,000).

At the outset of COVID-19 and the introduction of the protective IPC measures, commercial TV broadcasters employed or commissioned approx. 6,000 employees, self-employed persons and further directly dependent companies, which in turn create additional employment opportunities for the self-employed persons and directly dependent companies within the structure of the audiovisual industry. These groups of film professionals are currently under serious threat.

Foreign audiovisual production

As based on the data provided by the Slovak Audiovisual Fund, expected foreign production investment to Slovak audiovisual industry in 2020 was estimated at 3,000,000 EUR. If the production does not re-start and cross-border collaboration is not re-opened, Slovak economy will not gain the estimated amount of financing.

Impact on film distribution revenues

As based on the daily average revenues in 2019, losses recorded by the sector of film distribution in Slovakia to 22 April 2020, i.e. after 43 days of closed cinemas, was €4,287,276. During the monitored period, cinemas (as the most important part of the audiovisual infrastructure) were severely threatened. Should cinemas remain closed until the end of June 2020, the loss estimate is €11,432,736, bearing in mind that even after loosening the measures and re-establishing the organisation of cultural events, cinema attendance is expected to be deep under average, not to mention all required hygienic (and distancing) measures that will need to be adopted by the cinemas.

Estimated fallout in revenues from film distribution in 2020 of €15,000,000 is a rather conservative calculation, not a overvalued guess. Furthermore, addition income fallout is to be considered (refreshment sales, advertising, rentals) in an estimated amount of approx. €4,000,000.

Expected gross revenues in film distribution and related services in 2020 is €53,000,000, with calculated fallout by €19,000,000 EUR (36%).

On April 2, 2020, a temporary working group was established at the Ministry of Culture of the Slovak Republic to deal with the consequences of spreading of COVID-19 in the cultural sector, the audiovisual sector being represented by the Association of Independent Producers (ANP), Creative Industry Forum (CIF), Slovak Film and Television Academy (SFTA) and the Slovak Audiovisual Fund (AVF) among others.

A proposal of measures for the audiovisual sector in relation with the COVID-19 crisis was presented to the Slovak Ministry of Culture by ANP, CIF and SFTA, listing suggested measures divided into 3 time-defined parts: immediate, short-term and mid-term measures all to be employed in order to secure immediate help to the audiovisual sector and in the long run to recuperate the audiovisual sector after the COVID-19 crisis.

The proposal is to be discussed within specialized working groups with the aim to come up with a realistic arrangement of measures to be presented to the Slovak government. Audiovisual sector is represented in both the AV working group and the cross-industry Creative Industry working group.

Currently, the first stage of state support to small entrepreneurs and artists is being employed in the form of financial support based on the fallout of their income since 13 March 2020 (implementation of IPC measures in Slovakia).

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