Case Study: France

1. −
Frédéric ALLIOD
Regional Attaché for Film, TV, Radio and New Media
(Cambodia, Laos, Myanmar, Thailand, Vietnam)
aar.bcltv@ifv.vn
HOW CAN A GOVERNMENT SUPPORT
THE FILM INDUSTRY?
Case study: France

2. • 12 February 1892: The original cinématographe was patented by Léon
Guillaume Bouly
• 13 February 1895: Auguste and Louis Lumière patented their
own advanced version of cinématographe
• 19 March 1895: First footage ever to be recorded with it: Workers Leaving
the Lumière Factory
• 22 March 1895: First public screening ever in Paris, in front of an audience of
200 people
France: Birthplace of cinématographe

3.  Cultural Exception (L’Exception Culturelle) :
• A political concept introduced by France in General Agreement on Tariffs and Trade (GATT)
negotiations in 1993
• Special status of culture: the unique character and role of the sector means that it cannot be equated
to other purely commercial goods or services
• In other words, its purpose is to consider cultural goods and services as exceptions in international
treaties and agreements especially with the World Trade Organization (WTO)
• Its goals are to point out that States are sovereign as far as limitation of culture free trade is
concerned in order to protect and promote their artists and other elements of their culture
• International recognition of the importance of culture within society and the special protection that it
merits was enshrined in the 2005 UNESCO Convention on the Protection and Promotion of the
Diversity of Cultural Expressions
 The concept “Cultural Exception” has now been replaced by “Cultural Diversity”
From cultural exception to cultural diversity

4.  300 French feature films produced (3rd producer in the world)
 356 French feature films theatrically released
 77,8 million admissions for French cinema
 5981 screens in France
French film industry: statistics (2018)
French films
Other films
European filmsAmerican films
Market share:

5.  Created by law on the 25th of October 1946
• Under the Ministry of Culture since 1959
• A State-owned establishment with legal and financial autonomy
National Center for Cinematography (CNC)
 Mission:
• Regulation
• Market studies
• Support (Production, Distribution, Exhibition)
• Protection of cinematographic heritage
• European and international actions
• …
 Sectors:
• Cinema
• Animation
• TV & Series
• Video Games
• Digital & New media
• …

6.  Tax on Movie Tickets (Taxe Spéciale Additionnelle):
• 10.72% of the ticket price (up to 50% for violent or adult films)
 Tax on TV Broadcasting Services (Taxe sur les Services Télévisuels):
• Publishers: 5.5% of their annual turnover (up to 12.5% for Canal Plus)
• Distributors: Progressive scale based on their annual turnover, from 0.5%
up to 3.5% (beyond 10M EUR)
 Tax on Video sales and rentals (Taxe sur les Ventes et les Locations Vidéo):
• 2% of the sales price (up to 10% for violent or adult films)
• Since 2018, extension to online services like Netflix, YouTube, Amazon, etc.
CNC: Where do the funds come from?

7.  Production (goes to the film producer(s)):
• Provided that the film is certified “French” (Agrément CNC)
• Calculated in proportion of their previous film’s operating revenues (box-office
ticket, TV broadcasting and video sales/rentals)
• This support can be reinvested either to reimburse the preferential creditors of the previously
produced film or to finance the preparation of the next film
 Distribution (goes to the film distributor):
• Calculated in proportion of their previous film’s operating revenues at box-office
• This support can be reinvested either in the new film or to pay publishing fees
 Exhibition (goes to the film exhibitor):
• Calculated in proportion of the tax collected on ticket sales
• This support can be reinvested either in renovating movie theaters, purchasing
equipment, upgrading or building new movie theaters…
CNC: Automatic support
.

8.  Production: advance on earnings (L’Avance sur Recettes)
• Provided that the film is certified “French” (Agrément CNC)
• Up to 500 000 euros (goes to the producer before the shooting of the film)
• Dedicated to first feature, independent or « art house » films…
• If the movie is profitable, the grant has to be reimbursed. If not, it doesn’t have to.
 Distribution:
• Dedicated to independent or « art house » movie theaters
 Exhibition:
• Dedicated to independent film distributors
CNC: Selective support
.

9.  Domestic Film Tax Credit (Crédit d’Impôt Cinéma):
• 30% of production expenses with a maximum of 30 million EUR per film
(since 2016)
• The production house must be based in France
• The film must be certified « French » (Agrément CNC)
 Miscellaneous:
• Short films
• Festivals
• Education
• International cooperation (Aide aux Cinémas du Monde…)
• …
CNC: Other incentives

10.  Companies for the Financing of Films or Audiovisual Works (Sociétés de
Financement et de l’Audiovisuel):
• Public limited companies that act as investment funds whose sole activity is the financing
of films and audiovisual works approved by CNC:
− Created for a minimum of 5 years (10 years maximum)
− Open to private individuals or companies
• Tax relief system :
− Subscription: Min. 5000 EUR - Max. 18 000 EUR (or capped at 25% of total net income)
− 40% of the amount one invested for shares of a SOFICA
− 48% of the amount one invested for shares - if the SOFICA undertakes to use 10% of its investment
capital to acquire shares of production companies (up to 8 640 EUR)
• Profitability: depends if the films make money or not, but is usually very low
• 11 SOFICA approved in 2018 for 2019: CINEAXE, CINECAP3, CINEMAGE 14,
COFIMAGE 31, COFINOVA 16, PALATINE ETOILE 17…
SOFICA

11.  IFCIC: Institut for the Financing of Cinema and Cultural Industries (Institut
pour le Financement du Cinéma et des Industries Culturelles):
• A credit institution under the Ministry of Culture and Ministry of Economy
and Finances
• Offers financial security to banks and loans to private companies from the
cultural sector
 Local support:
• Local grants for production from French regions and territorial authorities
• Film commissions, clusters…
 European suppport :
• Europe Creative
Miscellaneaous

12.  Why should a government support the film industry?
• Cinema is an artform in its own right. Therefore it is part of a nation’s
cultural identity and heritage
• Cinema is a (cultural) industry that can be very profitable (box-office, IP
management, merchandising, etc.), create qualified jobs and, overall,
enrich the nation
• On an international level, cinema is massively efficient in terms of soft
power
Conclusion

13. −
Frédéric ALLIOD
Regional Attaché for Film, TV, Radio and New Media
(Cambodia, Laos, Myanmar, Thailand, Vietnam)
aar.bcltv@ifv.vn
THANK YOU