{spotlight} feature reports

Screen International, European Film Finance Summit, Berlin [ 10th February 2005 ].

This one day event took place at the start of this years Berlin Film Festival and had the sub title ‘ Europe’s New Money’.

The purpose of the event was too look at new sources of film finance which are becoming available for European film making which, in themselves, represent part of the general upheaval and change being experienced across the sector. There may be more financing opportunities emerging from a more diverse range of sources but it is not yet clear what the new challenges will be in attempting to exploit them.

The event consisted of a days worth of panel discussions with high level industry professionals. These included a US Studio Executive, an Executive from a US mini-major, administrators from several national and pan European film funding entities, private equity investors from the US, film producers, film business consultants, analysts, journalists, lobbyists, bankers and agents.

Headings for the discussions included:

THE NEW DEAL: EUROPE’S INCREASING CONVERGENCE
NEW HORIZONS, NEW MONEY, NEW OPPORTUNITIES
PRIVATE EQUITY: WHAT KIND OF MONEY IS COMING ON STREAM
EURIMAGES, MEDIA 2007 AND BEYOND
THE GERMAN QUESTION
UNCOMMON CURRENCY: NEW FORMS OF INVESTMENT

Highlights for me included the following.

1. The keynote address from Warner Bothers Exec Vice Pres of ‘International’. He wanted to dispel the myth that US studios were bent on a homogenisation of the world’s cultures in order to increase the market dominance of US studio movies. He stated that this is not the case and that in fact it wouldn’t even be a benefit to them if they were somehow able to pull it off. Warner Brothers activities at local level, particularly in Europe, are on the increase. They see great opportunities in exploiting locally made movies in their home markets. This is an end in itself, to an extent that the ability for European films to travel across the borders of their country of origin is not seen as a necessity. He thinks many countries in Europe have managed to make profitable businesses in producing films for their own home markets. He sees Warner Brothers local offices having an increasing part to play in this and they actively pursue the talent relationships which can consolidate and build on this trend. They want to “ facilitate, not to dominate" he said as well as claiming it’s in their own interests to make local movies work – “not to re-tool the entire cultural appetites of the planet!"

2. Contrary to this fairly upbeat picture, the Europeans themselves don’t see the situation as being quite so rosy. In the panel discussing the European subsidy system, Paul Trijbits of UKFC and Peter Aalbeck Jensen from Zentropa in Denmark seemed to be saying that there were still being too many unsuccessful films being made with too much state cash. In detail in actual fact they thought state cash was being spread too thinly over too many underachieving films. This was seen by another speaker as existing within the context of an overall drop in market share for foreign language films. Should subsidy money be pooled to make fewer films that would have a better chance of building market share?

3. German private investment in films is coming under close scrutiny in that country. Politicians are concerned that too much of this type of money ends up being used for US studio projects that do not benefit the indigenous German film industry. There was a lively debate on this question. It’s unclear how this will resolve itself but the sums involved are huge.

4. The line between the worlds of the film industry and advertising are breaking down. It’s now interesting foradvertisers to become more involved in using movies in ways other than simple product placement. They are prepared to pay for this and will increasingly do so. Branded Content is the jargon.

5. The conference ended on a chastening note. Jonathan Davis the UKFC’s strategy adviser warned that the film business across Europe needed to ‘stop springing surprises on politicians’. When beneficial fiscal measures are introduced at national government level these should not be abused. This was in specific reference to last year’s ‘double dipping’ scandal in the UK but applied also to recent events in Germany and Holland.

The Film Finance Summit was worth attending as a reminder that the business operates in different ways and to different rules out side the UK. Also refreshing to have to consider new ways of financing films however distant and uncertain the reality of some of these opportunities might be.

Angus Lamont,
March 2005

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