local marketS report
Transcription
local marketS report
www.ScreenDaily.com local markets report Data, analysis and insight on n Russia n UK n France n Italy n Eastern and south-eastern Europe n Benelux £250 2010 Local Markets Report CONTENTS Special Focus: Russia This 26 page in-depth analysis by Eugene Vorotnikov looks at all aspects of film-making in Russia 3 Market overview Russian cinema is coming of age as production values improve and audiences become more willing to watch local films The UK landscape will change considerably following the axing of the UK Film Council. Geoffrey Macnab looks at the industry as it comes to terms with how local films will be funded in the future 39 France 7 Key players Jean-Philippe Guerand takes a look at the French market, which includes a loyal cinema-going public and how EuropaCorp is bolstering its position as it celebrates its 10th anniversary A focus on the leading companies in production, distribution and exhibition across the territory 49 Italy 12 Data Including top-grossing local and international films 14 Deals A round-up of the deals that are shaping the industry Government support of film-making is at a 20-year low in Italy, but there are opportunities for Italian producers as potential funding arrives from less conventional sources, writes Sheri Jennings 59 Eastern and South-eastern Europe 17 In focus Romania might be starting from a low base, but it is rising fast. And as digital technology rolls out across this corner of Europe, Theo Schwinke investigates how it is affecting cinema attendance. Additional reporting by Vladan Petkovic Russian film-makers split to form breakaway union; how Russia is fighting back against piracy 75 Benelux 16 Digest News stories covering the whole of the market 21 Audience All currencies in this report are converted according to the exchange rates that applied in November 29 UK and Ireland Filmgoers give their view on Russian cinema 23 Case studies Examining the local and international producers trying to make their mark in the territory 25 In production A round-up of the local films currently shooting 28 A look ahead A rundown of major projects in the pipeline Geoffrey Macnab analyses how the different countries in this region have competing tax incentives, and which countries are surviving government cuts better than others Local Markets Report SPECIAL FOCUS: RUSSIA The Irony Of Fate 2: success is overshadowed by general unprofitability of Russian film industry market update according to KinoBusiness, one of Russia’s leading film magazines, This will be the biggest growth seen over the past three years. One of the reasons for this is the ever-growing number of 3D movies, which currently bring more than 60% of revenues to distributors. According to official figures, the share of Russian movies in total box office is estimated at 30%. During the first three quarters of 2010, Russian cinemas Although the first movies appeared in Russia more than 100 years ago, the Russian film industry is still relatively young and undeveloped. But it continues to grow, despite the unfavourable conditions. The collapse of the USSR resulted in a sharp reduction of local film production and loss of cinemas, as well as a substantial drop in the skills level in the industry, which put its very survival in jeopardy. But a new era in Russian cinematography began in 1996 with the opening of the first modern cinema in Moscow. For the past 14 years the situation has changed dramatically. During this time, nearly 2,000 modern cinema screens have opened in the country, while the number of local movies has significantly increased. Growth is box office, overall attendance and the popularity of local movies. In addition, the share of the Russian films is steadily increasing, along with their production and advertising budgets. By the end of 2010, the Russian box office is expected to grow by 100% and will exceed $1bn (RUB 31.3bn), Share of box office in GDP Year Russia USA 2002 0.04% 0.08% 2003 0.05% 0.08% 2004 0.05% 0.07% 2005 0.05% 0.07% 2006 0.05% 0.07% 2007 0.06% 0.08% 2008 0.06% 0.08% 2009 0.06% 0.08% Source: Polit.ru 3 SPECIAL FOCUS: RUSSIA earned nearly $793m (RUB 24.7bn), which is 54% more than over the same period the previous year. But the Russian film industry is full of contradictions: its evolving infrastructure (which is reflected by the construction of new cinemas and multiplexes); low profitability of local movies compared with Hollywood rivals; a strong dependence on public funding and central federal channels involved in promotion of certain projects; as well as the high threat of piracy. the growth of Russian cinema. Nevertheless, the success of a few Russian movies have helped to attract private investments to local film production. Dependence on state funding So far, the production of most of the movies in Russia is heavily state dependent. Producers rely on the Russian Ministry of Culture and other state-owned funds to finance their movies. So, of 341 films produced in the country (between early 2006 until mid 2009), 198 received state aid. The average state support for the production of a movie in Russia is estimated at $600,000 (RUB 19m), with an additional $161,434m (RUB 5m) invested in its further promotion. However, recently the state support system has undergone dramatic changes. Until 2010, most of the state funds were distributed by the Ministry of Culture. But this year, according to an initiative by Nikita Michalkov, head of the Russian Cinematographers’ Union, a special organisation – Fund of the Social and Economic Support of the National Cinematography – was established, which is now responsible for the distribution of state funds among the leading local film studios. In March 2010 it announced eight companies which are expected to receive state grants. Among these are STV, Direkcia Kino, Trite Studio, Central Partnership, Profit, Art Pictures, Bazelevs and Rekun. Each of these companies will receive nearly $8.3m (RUB 260m) in the form of a state grant. The companies were chosen in accordance to criteria developed by Movie Research, Russia’s independent movie business research company. Among the criteria were: Unprofitability Currently, the Russian film industry remains mostly unprofitable, with investors failing to get a return on their investment. Significant box office takings, a critical mass of screens and the ability to sell rights are all needed to tip investments into profitability, and this is before the effect of the global recession hit. Even before the economic crisis, Russian cinema was unprofitable, despite new cinema openings in the country and the success of some Russian movies, such as The Turkish Gambit, The 9th Company, Day Watch and The Irony of Fate 2. Since 2000, nearly 100 movies have been produced in Russia each year, of which only 70 (on average) were released. Very few of them make enough to cover production costs, let alone any profit. The low budgets of the majority of Russian movies do not allow for high-quality film-making, and in particular they rule out the inclusion of costly special effects. So market growth in the region is mainly associated with the success of Hollywood movies, which have traditionally brought more than 70% of all box office receipts, stimulating russian film industry: key figures Figures 2005 2006 2007 2008 2009 Total number of releases 315 293 350 355 324 3D releases – – 22 63 96 Number of Russian releases 62 61 78 78 78 Box office $315.8m (RUB 9.8bn) $411.8m (RUB 12.8bn) $548.0m (RUB 17.1bn) $800.9m (RUB 24.9bn) $705.9m (RUB 22.0bn) Share of Russian movies in total box office 29.7% 25.7% 26.3% 25.5% 23.9% Cinema attendance 83.1m 89.5m 103.4m 118.5m 132.5m Average cost of ticket $3.8 (RUB 118.3) $4.6 (RUB 143.2) $5.2 (RUB 161.9) $6.7 (RUB 208.7) $5.3 (RUB 165.0) Source: RG.ru 4 SPECIAL FOCUS: RUSSIA audience and experts’ opinion, previous work, current activities, the number of prestigious awards gained and the current status of the company in the industry. The new funding scheme is expected to help produce highquality domestic blockbusters that will raise the prestige of Russian cinema in the international film market, according to initiators of the project. But the new project has already drawn sharp criticism from some Russian analysts and film producers, who believe the criteria seems to be fitted to certain film companies. They fear that the criteria are not objective and merely created in order to promote certain individual projects. family will need to pay about RUB 1,000 [$30] for one visit to the cinema. Perhaps, for Moscow or St. Petersburg this is not a very large sum, but for those living in the provinces, where the average monthly salary is RUB 15,000 - RUB 17,000 $500$600] this is a significant amount.” In addition to piracy and high ticket costs, there is an acute shortage of multiplexes in Russia. To date, half of Russian cinemas still only have one cinema screen. This means lengthy film runs are impossible. Many movies, therefore, simply do not have enough time to realise their commercial potential. Foreign players Despite numerous problems, the Russian film market is considered attractive by the world’s largest movie producers, such as Paramount, Sony, 20th Century Fox, Universal Pictures and Walt Disney. All of them have already teamed up with local partners for distribution of their films and co-production of local films. In 2008, Paramount Pictures International (PPI) signed a distribution and co-production agreement with Moscowbased Central Partnership, one of Russia’s largest film distribution and production companies. Under the terms of the agreement, Central Partnership became the official distributor of Paramount movies in Russia and CIS (Commonwealth of Independent States) countries (except Ukraine), while PPI will in turn distribute certain films from its Russian partner in overseas markets. “At the moment we are working closely with Central Partnership to find out what local movies are worth investing in,” says Andrew Cripps, president of PPI. He believes the economic crisis has significantly affected the Russian film industry, but expects it to grow in the long term. “We will wait for the right project and then evaluate its profitability in the Russian and foreign markets,” Cripps adds. Sony Pictures Entertainment also has a strong presence in Russia. In 2006, the US company and the Moscow-based Patton Media Group established a joint venture called Monumental Pictures, which produces and distributes Russian-language films in Russia and the CIS. Sony is involved in Monumental through the company’s motion picture production and distribution unit, Columbia Pictures. Market problems The Russian film market is steadily developing but it still faces some major problems, such as the high threat of piracy, a lack of regulation and control, insufficient multiplex cinemas and the high cost of tickets. Piracy is a major problem. According to the International Intellectual Property Alliance, at present Russia ranks second to China in terms of volumes of pirated market, with the annual loss to the US film studios estimated to be $2bn (RUB 62.3bn) (see In Focus). In Moscow alone there are more than 4000 outlets selling pirated goods, and their average profits may reach $20m (RUB 622.6m) per week, according to the Russian Association of DVD publishers’ calculations, “The situation with piracy in Russia is not improving,” says Eric Schwartz, former vice-president of IIPA. Schwartz claims that most of the anti-piracy measures implemented in Russia have failed. He believes the Russian government still doesn’t pay enough attention to the problem of piracy. To date, pirated products account for up to 70% of Russia’s film market, while US analysts put the figure closer to 80%. One of the main reasons for this is the lack of Russian copyright law. It wasn’t until 1995 that the government adopted a law to establish criminal liability for piracy activities. High admission prices also blight the Russian film market. Natalia Lazareva, a Russian movie business analyst, says: “The cost of tickets in Russian cinemas is on average $6.50 (RUB 203.6), which is too expensive. An average Russian 5 SPECIAL FOCUS: RUSSIA Also in 2006, an official subsidiary of the Walt Disney Company, Disney Company CIS, was established. Its director general, Marina Zhigalov-Ozkan, says that in 2009 the company started local production and released its first Russian film called The Book of Masters. This children’s adventure film, with a budget of $7m (RUB 217.9m), has already won several international awards, and will soon be shown at some big festivals in the UK, US and Australia (see case study). She adds that currently the company is developing several other new projects and will not focus solely on fairytale films. “Russia is a very interesting market for Disney,” says ZhigalovOzkan. “More and more Russian people have started to visit the cinema, which is reflected by an ever-growing box office. We are actively co-operating with Russian production companies and film-makers, as well as with local actors and writers.” She adds Disney plans to produce two to three films in Russia every year and has already launched its own cable channel. production of movies is prevalent not only in Russia, but across the rest of the world, including the US. Most local analysts believe the Russian movie industry should look for additional value growth via the introduction of new technologies, in particular 3D, which should improve the overall quality of the Russian cinema experience, which at s present leaves much to be desired. n Future opportunities The Russian film market has not yet reached maturity. There is still room for new cinema construction. While several major cities in the country have reached market saturation, in terms of the number of screens per 100,000 inhabitants, there is room to open new cinemas in smaller Russian towns. The problem is that opening new sites in these smaller towns is considered unprofitable by many investors, and they prefer to focus on opening multiplexes in big cities. Many of the big cities (with a population of up to 1 million people) still have a shortage of cinemas, so their number is expected to increase in the near future. There is also an opportunity to increase box office receipts by attracting bigger audiences, expanding the local cinemas network and by attracting older viewers. The share of box office receipts in Russia’s GDP is currently estimated at 0.06%, compared with 0.08% in the US. However, thanks to a successful year, some Russian experts believe that by the end of 2010 the share of box office receipts to GDP may have reached US levels. Where growth is not thought possible is through the annual number of films, produced by local companies. Over- 6 SPECIAL FOCUS: RUSSIA key players Central Partnership was founded in 1996. It comprises Central Partnership and Central Partnership Sales House, which is a distributor of film and television rights and owns more than 1400 full-length movie and 3,200 hours of TV series production. Key executives Ruben Dishdishyan, executive producer/CEO. Best known for Wolfhound, The Suit, The Spot, Shadowboxing, Rusalka, Taras Bulba. What the critics say It started as a small seller of foreign movies in Russia and today it is one of Russia’s largest film producers. Unlike many of its competitors, the company was able to avoid affiliation with any Russian channel in its early stages of development, which helped it become more independent. Now as part of Prof-Media holding, Russia’s largest media company, Central Partnership has solid financial resources and benefits from a synergy with other Prof-Media assets, such as TV channels, radio stations, Rambler Internet holding, as well as a regional network of cinemas, Cinema Park. Contact details (+7) 495 777 49 52 www.centpart.com Production Since 2000, the volume of production of Russian movies has increased significantly. In 2006, for the first time in Russian cinema’s history, the number of movies made by local producers exceeded 100 (106) a year. However, last year the number dropped back down to 80 films. At present nearly 350 companies are involved in movie production in Russia. The process of making movies in Russia is decentralised: there are a large number of production centres and production companies, film studios and service companies. Some of them are established for a particular project, disappearing once it is completed. According to Russian analysts, there is no clear structure to the market and it’s difficult to identify major film companies – none of the existing Russian production companies and studios can be compared with major Western studios. Most local production companies are small in terms of production volumes and staff numbers. Russian film-making is not a profitable business and the number of movies and projects, where box office receipts cover the costs of production, remains insignificant. Currently there are seven major production sites owned by film studios in Russia, occupying more than 100 hectares, 50 with a total area of about 30,000sq m, as well as private production sites, which are mainly located on the sites of former factories. Before the economic crisis, several major construction projects for new studios were announced in Russia under private business initiatives, but most of these have stalled. Between 2000 and 2005, two state film studios – Lenfilm and Mosfilm – were the industry leaders in terms of production volumes, with 21 and 14 movies respectively. Among private production companies, STV stands out, which during the same period produced 20 full-length feature films, nine of which were produced with the state financial support. Other prolific companies in that period were NTV-Profit, Slovo and Central Partnership, which produced nine, seven and six movies respectively. During the following four years, Central Partnership became the leader in terms of production volumes (29 movies), with STV and Profit making 14 and seven films respectively. STV was founded in 1992 in St. Petersburg and is one of Russia’s largest film producers. Key executives Sergei Selyanov, head of the company and a well-known Russian producer and member of the Russian Union of Cinematographers. Key releases: Yakuza’s Daughter (3 September 2010) What the critics say Experts estimate that STV is one of the most active production companies in Russia, which has been awarded numerous prizes. However, in recent years the number of its films has significantly declined. Contacts details [email protected] Moscow Office: [email protected] Bazelevs Group of Companies was founded in 1994 by its director and producer Timur Bekmambetov and specialises in the production of movies and advertising. Key executives Timur Bekmambetov, chief director and producer. 7 SPECIAL FOCUS: RUSSIA Best known for The Irony of Fate 2, Night Watch, Day Watch, Wanted, Black Lightning. What the critics say The Bazelevs Group operates both in the domestic and international market, co-operating with Russia’s largest television and radio stations, as well as Hollywood studios such as Universal, 20th Century Fox and Focus Features. The Bazelevs studios have been responsible for films that have had a revolutionary effect when distributed in Russia, such as Night Watch and Day Watch, and the comedy melodrama Irony of Fate: Continued. In addition, Bazelevs is building a close partnership with the Hollywood film company, Universal Pictures. Contact details (7) 495 223 04 00 [email protected] www.bazelevs.ru Key executives Fyodor Bondarchuk and Stepan Mikhalkov, co-founders, Dmitry Rudovsky, CEO. Best known for The Inhabited Island, The 9th Company, Heat. What the critics say Unlike its competitors, the number of films produced by Art Pictures is relatively low. However, many of them have gone on to become real hits, such as The 9th Company, which was honoured with several awards and received an Oscar nomination for Best Foreign Language Film. Another successful project was teen comedy Heat, which earned more than$16m (RUB 501.3m) on a budget of only $5m (RUB 155.7m). HoweverThe Inhabited Island did less well at the box office. Contacts (7) 499 143 49 04 [email protected] http://art-pictures.ru Trite is a Russian production association founded in 1987. Key executives Nikita Mikhalkov, famous Russian film director and head of the Russian Cinematographers’ Union. Best known for The Turkish Gambit, Death Of An Empire TV series, Burnt By The Sun 2. What the critics say Most of the experts believe that one of the reasons for Trite’s success is its charismatic figurehead, Nikita Mikhalkov, who remains one of most influential people in the Russian movie industry. The most productive and successful year for the studio was 2005, when it produced five movies, including The Turkish Gambit, with a budget of only $4m (RUB 124.5m). The box office of this movie reached $18.5m (RUB 576.1m), making it one of the most profitable films for Trite. The Death Of An Empire TV series received critical success in 2005. Other projects from the studio were not so successful – Burnt By The Sun 2, with the budget of $55m (RUB 1.7bn), became the biggest commercial failure in the history of the Russian cinema. Contacts (7) 495 933 60 37 [email protected] Distribution The current Russian film distribution market comprises 30 private distribution companies, most of which have rights for distribution of domestic and foreign movies in Russia, the CIS and Baltic countries. In addition, there are more than 70 regional state-owned organisations, involved in local distribution business. Share of distributors in Russia for JANuary to September 2010 Company Box office Share % Number of movies Central Partnership $221.1m (RUB 6.9bn) 26.4% 31 20th Century Fox C.S $159.7m (RUB 5.0bn) 19.1% 14 WDSSPR $152.2m (RUB 4.7bn) 18.2% 16 Caro Premiere $106.0m (RUB 3.3bn) 12.6% 20 UPI $61.1m (RUB 1.9bn) 7.3% 12 Source: Polit.ru The Russian $1bn (RUB 31.2bn)distribution market is highly concentrated, with five companies (specialising in both Russian and foreign film distribution) accounting for 90% of all the distribution receipts in Russia. The leading players are Buena Vista Sony Pictures Releasing CIS, Caro, Central Partnership, 20th Century Fox and Universal Pictures International. In recent years, in order to strengthen their positions in Russia, almost all the major Hollywood film companies have opened subsidiaries in the country. Art Pictures Studio, a Russian film production company, was founded in 1992. In addition to films, the studio also specialises in producing of music videos and adverts. 8 SPECIAL FOCUS: RUSSIA Key executives Leonid Ogorodnikov, chairman; Aleksey Ryazantsev,CEO. Key releases Going The Distance, Devil’s Flower, Legend Of The Guardians: The Owls of Ga’Hoole. What the critics say Since 2001, Caro Premier has been among the leaders of the Russian market since the beginning of the decade it has also worked with independent distributors, buying movies at international film markets from companies including CLT-UFA International, Universal Pictures International and Wild Bunch/Canal+. In addition to promoting Hollywood blockbusters in Russia (mostly produced by Warner Brothers studio), the company pays special attention to the distribution of Russian films as well as cartoons. One of the most successful in recent times was Belka I Strelka in 3D, whose box office exceeded $6.3m (RUB 190m). The company has worked with many Russian film production companies. Contact details (7) 495 545 05 05 [email protected] www.karofilm.ru Among the other main trends of the distribution market are: the ongoing centralisation and concentration, tightening competition among the major players, integration with production companies and the establishment of their own film production companies. The latter trend is expected to have a positive effect on the volume of film production in Russia, as well as distribution, as companies become more interested in ensuring the successful distribution of movies that they have made themselves. At the same time, one of the main problems of Russian distribution companies is their unwillingness to work with so-called ‘small films’ and their focus on only distributing potential blockbusters. Central Partnership Sales House (CPSH) is the distributor division of Central Partnership Company. Key executives Mark Lolo, general director. Key releases The Ghost, The Switch, Piranha 3D, Moscow, I Love You. What the critics say Central Partnership has a good reputation among western markets with its long-term partnership with companies such as Warner Bros, Paramount Pictures, Universal Pictures, Studio Canal+ and Gaumont. Since January 2009, it is the official distributor of Paramount Pictures in Russia and the CIS region (except Ukraine). The company carefully selects films for distribution in the Russian market, taking into account the habits and preferences of the local audience, according to local experts, In addition to Moscow and St. Petersburg, Russia’s largest film markets, the company pays great attention to work in the vast Russian provinces, making efforts to extend the duration of the distribution of its films. It also focuses on the promotion of arthouse cinema. Contact details (7) 495 777 49 52 www.centpart.com Walt Disney Studios/Sony Pictures Releasing CIS (WDSSPR CIS) is a joint venture, set up in November 2006, between Buena Vista International and Sony Pictures Releasing International to distribute movies from their studios in the CIS region. Between 1998 and 2006, Buena Vista International used Cascade Film to distribute its movies in Russia. Buena Vista and Sony’s joint venture was a natural consequence of their long of history of co-operation outside the US. Key executives Anton Sirenko, general director. Key releases Grown Ups. What the critics say The company holds a strong position in Russia, leading the local distribution market. One of the distinctive features its work in the territory is that it specialises not only in the distribution of highly publicised blockbusters, but also in films, that while not initially necessarily associated with big profits, go on to exceed original expectations. One such example is District 9, whose box office in Russia and CIS exceeded $9.4m (RUB 293.1m). Contact details (7) 495 995 38 05 www.wdsspr.ru Caro Premier, established in August 1999, specialises in the distribution of Warner Brothers and, more recently, New Line Cinema movies in Russia and the CIS countries. The company works with leading Moscow and regional cinema chains, providing films for more than 700 cinemas in Russia and CIS countries. In the past two years, it has become one of the top four film distribution companies in Russia. 9 SPECIAL FOCUS: RUSSIA 20th Century Fox CIS Between 1994 and 2006, 20th Century Fox’s movies were distributed in Russia by Gemini Film International Company. In 2006, Gemini Film International ceased to exist, and in May that year two independent companies – 20th Century Fox CIS and Gemini Entertainment were formed. Following a reorganisation of both companies in 2007, 20th Century Fox CIS became the legal successor of Gemini Entertainment. Key executives Hans Bodo Mueller, managing director. Key releases Vampires Suck, Wall Street: Money Never Sleeps. What the critics say A strong player in the Russia market. Contact details (7) 495 257 87 97 www.foxrussia.com The average number of screens continues to grow and the current estimate is 2.3 screens per cinema. Between 1999 and 2003, Russia’s cinemas enjoyed a period of construction, as well the upgrading of old Soviet-constructed cinemas. One of the major features of the current Russian cinema exhibition market is high concentration, where the top three players (Karo Film Network, Cinema Park and Kinomaks) account for more than 25% of the market, with many small chains forced out of the market. According to Nevafilm Research, Russia’s analytical film business agency, on 1 July 2010, the number of cinemas in Russia reached 829, with a total of 2,246 screens – an increase of 7.5% and 14% respectively on the same period for the previous year. At present, 53% of Russian cinema screens are located in retail centres (1,186 screens in 216 cinemas). Karo Film Network, which owns 7.3% of the modern screens in Russia, remains the leader of the Russian cinema exhibition market. It is followed by the Cinema Park network, just ahead of its primary competitor, Kinomax. Xenia Leontieva, a Nevafilm Research analyst, predicts that by the end of the year the total number of modern cinemas in the country will reach 2500, with annual growth in the number of cinemas about 20%. Digital projection technology is also gaining popularity in the market. By July 2010, 1,525 digital screens (almost all of them equipped for 3D) in 375 cinemas had opened — representing 23% of modern screens and nearly half of all cinemas (45%) according to Nevafilm Research. Universal Pictures International (UPI) was the first foreign distribution company to enter the Russian market in 1989. At that time it had one of its most successful releases – Gone With The Wind, which later helped UPI work with Russian EastWest company, headed by Eugene Beginin. In March 2004, UIP announced it was setting up a subsidiary with East-West. In 2007, the Russian branch of United International Pictures changed its name to Universal Pictures International Russia. Key executives Vadim Ivanov, general director. Key releases Heartbreaker, Scott Pilgrim vs The World What the critics say 2008 was the most successful year for UPI in Russia, due to the distribution of movies such as Madagascar 2, The Mummy: Tomb of the Dragon Emperor, Wanted, Kung Fu Panda and Indiana Jones And The Kingdom Of The Crystal Skull. As a result, UPI won the prestigious Distributor of the Year in the Blockbuster Annual Industry Awards. However, UPI’s interest in distributing Russian movies remains low. The only Russian film included in the company’s distribution package in 2009 was Timur Bekmambetov’s Black Lightning. Contacts www.start.universalpictures.ru Karo Film Network is Russia’s largest cinema chain, and was founded in July 1997. At present, Karo Film comprises 35 cinemas, located in Moscow and Moscow region, St. Petersburg, Nizhny Novgorod, Kazan, Kaliningrad and Samara. Its total number of screens is estimated at 169, consisting of 29,991 seats. It employs more than 3000 people. Karo accounts for 8% of the Russian cinema exhibition market. It focuses on investing in 3D cinemas and updating its projectors and other equipment. In 2005, its subsidiary, Karo Prokat, was founded, specialising in film production. Key executives Igor Ilchuk, general director. What the critics say Karo Film has traditionally focused on developing integrated multiplexes with a large number of screens. The company’s strategy is to open new cinemas in Exhibition The Russian cinema exhibition market is steadily developing, recovering and rebuilding its infrastructure, destroyed during the 1990s. In 1999, there were only 100 screens with modernfilm-processing equipment in Russia; however, by early 2010 the number had increased to 2,000. 10 SPECIAL FOCUS: RUSSIA the best locations in major Russian cities. This allows Karo to consistently increase its audience and remain market leader. Contact details (7) 495 545 05 05 [email protected] www.karofilm.ru and north-west region. It is also one of the top four largest exhibitors in Russia and CIS. The company is part of Eurasia Cinemas BV (the leading and fastest-growing cinema operator in Russia-Ukraine and Turkey region) and includes 16 cinemas in Russia and one in Ukraine. The company operates in Russia’s largest cities, including Moscow, St. Petersburg, Novosibirsk, Kharkov, Magnitogorsk, Murmansk. Key executives Eduard Pichugin, founder. What the critics say The company’s market share is estimated at 4.8%, with the total number of screens about 100. It holds leadership in several cities in Russia, in particular in St. Petersburg. Contact details (7) 812 448 90 01 [email protected] www.kronverkcinema.ru Cinema Park is a national film network owned by ProfMedia Group, Russia’s largest media holding and part of Interros. The company was founded in 2002. Cinema Park operates 16 modern cinemas (with 133 auditoria, 24,125 seats) located across Russia. It has sites in all major Russian cities. Cinema Park is the leader in the digital market, with more than 50 3D screens. It has about 6% of the market in terms of screens. Key executives Sergei Kitin, general director. What the critics say Cinema Park is one of ProfMedia’s most valuable assets. Further developing it, and the Central Partnership Company, is expected to be one of the priorities for Prof-Media in the near future. Contact details (7) 495 933 28 41 [email protected] www.cinemapark.ru Kinostar de Lux film network was established in 2002 by Rising Star Media Company. Rising Star was launched in Moscow by American entrepreneur Paul Heth and is a joint venture between National Amusements (75% share) and Soquel Ventures (25%). Kinostar grew rapidly and it soon became one of the largest cinema chains. Its movie theatres generate annual revenues of almost $50m (RUB 1.6bn). The chain is valued at about $30m (RUB 935.3m). In January 2010, Russian private equity firm UFG Private Equity, together with Shari Redstone (daughter of media magnate Sumner Redstone, and president and owner of 20% of National Amusements shares) bought Rising Star Media from National Amusements and Soquel Ventures. Key executives Shari Redstone, head of the company. What the critics say Rising Star operates eight deluxe multiplex theatre complexes under the Kinostar Delux brand, all of them in prime locations in Moscow and St Petersburg. In addition, all of its venues are equipped with 3D technology, and it also operates two IMAX cinemas. Unlike its competitors’ sites, where the number of screens don’t usually exceed two or three, KinoStar cinemas can reach up to 13-14 screens. It accounts for about 3.8% market share. Contact details (+7) 495 775 44 77 s www.kinostardelux.ru n Kinomax cinema chain was founded in 1996. Today, it is the largest regional cinema operator in Russia, with 24 cinemas and 100 screens. Kinomax cinemas operate under a single brand and are located in more than 19 Russian cities including Moscow and Moscow region, St. Petersburg, Vladimir and Voronezh. Key executives Boris Asriev, president. Key releases The Karate Kid, Piranha 3D, The Last Airbender, The Devil’s Flower, The Edge What the critics say One of the distinctive features of Kinomax is that it has developed its own catering facilities in its cinemas, where guests are offered a varied menu. Kinomax has a 5.1% share of the market. Contacts details (7) 495 221 52 21; (8) 800 555 54 66 www.kinomax.ru Kronverk Cinema is based in St. Petersburg and is the leading player in the exhibition market in the St. Petersburg 11 SPECIAL FOCUS: RUSSIA DATA Top-grossing films in Russia for the past five years Top-grossing films in Russia in 2009 Film (year) Box office 1. Avatar (2009) $117.7m (RUB 3.7bn) 2. Shrek: The Final Chapter (2010) $51.4m (RUB 1.6bn) 3. Irony of Fate: Sequel (2007) $49.9m (RUB 1.6bn) 4. Ice Age: Dawn of the Dinosaurs (2009) 5. Film (year) Box office 1. Avatar $117.7m (RUB 3.7bn) 2. Ice Age: Dawn of the Dinosaurs $44.6m (RUB 1.4bn) 3. 2012 $36.6m (RUB 1.1bn) $44.6m (RUB 1.4bn) 4. Inhabited Island $21.8m (RUB 679.6m) Alice in Wonderland (2010) $42.1m (RUB 1.3bn) 5. Harry Potter and the Half Blood Prince $18.7m (RUB 582.9m) 6. Madagascar: Escape 2 Africa (2008) $40.7m (RUB 1.3bn) 6. The Twilight Saga: New moon $18.6m (RUB 579.8m) 7. 2012 (2009) $36.6m (RUB 1.1bn) 7. Transformers: Revenge of the Fallen $18.2m (RUB 567.5m) 8. Admiral (2008) $34.5m (RUB 1.1bn) 8. High security vacations $17.5m (RUB 545.6m) 9. Day Watch (2005) $32.0m (RUB 1.0bn) 9. Taras Bulba $17.0m (RUB 531.3m) 10. Pirates Of The Caribeean: At World’s End (2007) $30.9m (RUB 1.0bn) 10. Terminator Salvation $14.5m (RUB 451.7m) Source: Arendator.ru Source: Arendator.ru Top-grossing Russian films for the past five years Top-grossing Russian films for 2009 Film Box office 1. Irony of Fate. Sequel $55.6m (RUB 1.7bn) 2. Day watch . (2006) $38.8m (RUB 1.2bn) 3. Admiral (2008) $38.1m (RUB 1.2bn) 3. 4. Night watch(2004) $33.9m (RUB 1.1bn) 5. The best film (2008) $30.5m (RUB 951.7m) 6. Mongol (2007) $26.7m (RUB 833.2m) 7. Company 9 (2006) $25.6m (RUB 799.0m) 8. Inhabited island (2009) $23.5m (RUB 733.5m) 9. Wolfhound (2006) $21.0m (RUB 655.4m) 10. Love-Carrot-2 (2009) $19.2m (RUB 599.0m) Film Box office 1. Inhabited island $23.5m (RUB 733.2m) 2. Love-Carrot-2 $19.2m (RUB 599.0m) High security vacations $17.5m (RUB 546.0m) 4. Taras Bulba $17.04m (RUB 530.3m) 5. The Book of Masters $11.0m (RUB 343.2m) Source: Arendator.ru Cinema visit numbers/ticket price per capita Ticket price Source: Arendator.ru Visitor number Source: Nevafilmresearch Number of screens in biggest Russian cities (including 3D) 2008 2009 2010 All 3D All 3D All 3D Moscow 400 16 466 85 485 366 St. Petersburg 182 6 194 27 199 156 Yekaterinburg 54 8 65 14 69 15 Source: Nevafilmresearch 12 2008 2009 2010 (the first half of the year) $6.12 (RUB 191.0) $5.6 (RUB 174.8) $6.1 (RUB 190.4) 127m 135m 86m SPECIAL FOCUS: RUSSIA DATA Top 10 films June to September 2010 Rank Title Distributor Release Date Date Range * Gross BO Cumulative Gross BO Date Range Admissions 1 The Twilight Saga: Eclipse West Film Group 30/06/2010 $26.9m (RUB 840.9m) $27.5m (RUB 859.7m) 5,039,997 2 Inception Warner Bros International 22/07/2010 $21.4m (RUB 669.0m) $21.1m (RUB 659.6m) 3,398,643 3 Resident Evil: Afterlife Sony International 10/09/2010 $19.6m (RUB 612.8m) $20.5m (RUB 640.9 m) 2,514,389 4 The Last Airbender Paramount International 08/07/2010 $18.2m (RUB 569.0m) $18.4m (RUB 575.2 m) 2,687,042 5 The Sorcerer’s Apprentice Walt Disney International 15/07/2010 $13.7m (RUB 428.4m) $14.0m (RUB 437.5m) 2,510,684 6 The Expendables Central Partnership 11/08/2010 $13.5m (RUB 422.1m) $13.8m (RUB 431.4m) 2,351,259 7 Step Up 3D West Film Group 12/08/2010 $11.8m (RUB 368.9m) $11.9m (RUB 372.0 m) 1,816,004 8 Despicable Me Universal International 08/07/2010 $11.3m (RUB 353.3m) $11.6m (RUB 362.6m) 1,878,565 9 Salt Sony International 29/07/2010 $10.8m (RUB 337.7m) $10.8m (RUB 337.6m) 1,775,370 10 Piranha 3D Central Partnership 26/08/2010 $9.5m (RUB 297.0m) $9.5m (RUB 297.0m) 1,155,235 Source: Rentrak ; * Date range: 25.06.10 to 30.09.10 most popular cinema genres in Russia in Jan-sept 2010 Genre most popular movies in Russia jan-sept 2010 in terms of producer country SHARE Fantasy 31.2% Action 17.1% Comedy 15.1% Animation 15.0% Country Source: Polit.ru USA 78.8% Russia 16.6% Europe 4.0% Other 0.5% Source: Polit.ru Top 10 public organisations in Russian cinematography Name Number of Individual members Number of affiliated organisations Trade Union of Cinema and Theatre Actors 230 – Union of Stuntman 186 – Club of Young Producers 7 – National Association of Cinemas – 10 176 11 Guild of Documentary Film Confederation of Union of Cinematographers – 15 Association of Dvd Publishers – 16 112 17 Russian Guild of Producers Alliance of Independent Film Distribution Organisation – 22 Russian Anti-Piracy Organisation – 33 Cinematographers’ Union 4945 – Total 5656 124 Source: Polit.ru 13 SHARE SPECIAL FOCUS: RUSSIA deals The alliance was kicked off with one of the major summer releases – the Expendables movie. According to Mark Lolo, CEO of Central Partnership Sales House, Ukraine is the biggest film market in the former Soviet Union, and the deal is expected to help CP strengthen its positions in this market. n Walt Disney Company CIS inks licensing deal The Walt Disney Company CIS has signed a licensing agreement with VimpelCom, one of Russia’s largest mobile phone service providers, to allow VimpelCom’s subscribers to watch all the Disney movie premieres simultaneously with their DVD release. In addition, VimpelCom has access to a catalogue of the 60 most popular Disney movies, including WALL-E, The Chronicles Of Narnia and Pirates Of The Caribbean. Disney movies will appear in the video-on-demand services of Beeline TV (VimpelCom’s flagship brand) in HD-quality. Prices of the new releases of Disney films for Beeline TV users will be $2.40 (RUB 75), while the movies from the library will be $1.60 (RUB 50). VimpelCom has not ruled out the possibility of signing a similar contract with Universal. n AFK Sistema invests in new studio All-Russian State Television and Radio Broadcasting Company (ARSTRB) and AFK Sistema, one of Russia’s largest financial conglomerates, headed by a Russian billionaire Vladimir Yevtushenkov, are considering investing up to $150m in the construction of a new film studio in St. Petersburg. It would be part of Russian World Studios, one of the largest film and television production companies in Russia. The total area of the new studio is expected to reach 70,000sq m . In addition to a new studio, a new hotel, an office centre and a concert hall will be also built. Most of the funds for the project are expected to be borrowed from banks. Russian World Studios already has a film studio with a total area of 11,000sq m, which was officially opened in 2008 and includes four production sites with the area of 750sq m, as well as two other 350sq m sites. The investments in its construction amounted to about $10m (RUB 313.7m). n Cinema Park in IMAX tie-up Cinema Park, one of Russia’s largest cinema chains, owned by ProfMedia, has signed an exclusive contract with the IMAX Corporation for the construction of 14 cinemas in IMAX 3D format across Russia. The total investment is estimated to be $20m-$30m (RUB 627m-RUB 941m). Three IMAX halls are expected to be open in Saratov, Voronezh and Novosibirsk by the end of the year, with seven more by the end of 2012. The remaining four IMAX screens will open in Cinema Park cinemas. According to IMAX, this contract is the largest deal it has done in Europe in its 45-year history. The Russian expansion is a result of the profitability of IMAX in the Russian market. At present, the average box office from a single IMAX screen in Russia is among the highest in the world. Overall, by the end of 2012, 32 IMAX screens are expected to launch in Russia. According to Richard Gelfond, managing director of IMAX, Russia has the potential for 65 IMAX screens. n IMAX finalises Karo Film Network deal IMAX Corporation and Karo Film Network have signed an agreement to supply IMAX equipment for Karo’s three cinemas in Moscow and St. Petersburg. Under the terms of the agreement, new IMAX systems are expected to appear in Moscow’s October cinema in January 2011 and then in April 2011 at the St. Petersburg Karo Film on Baykonurskoy. In addition, there is the option for another IMAX screen to be installed in one of Karo Film’s cinemas in either Moscow or St. Petersburg. The launch of the IMAX screens will make Russia and the CIS region the world’s third largest market for IMAX after the US and China in terms of the number of screens, with 32 IMAX-screens scheduled to open by 2012. For the nine months of the current year, seven existing IMAX cinemas in Russia have brought an average of $2.3m (RUB 72.1m) per screen. n Inter-Film in exclusive Central Partnership link Central Partnership, one of Russia’s largest film distribution and production companies, and Inter-Film, the Ukrainian distributor, have established a strategic alliance under which Inter-Film becomes an exclusive distributor of Central Partnership films in Ukraine under the CP brand. 14 SPECIAL FOCUS: RUSSIA n October Cinema stake up for sale The Moscow government has put its 40% stake in October Cinema up for sale. This is the main site of the Moscow International Film Festival and one of the biggest cinemas in Russia and the CIS. Its starting price is $23.4m (RUB 703m). October Cinema is located in one of the most prestigious areas of Moscow – Novy Arbat – and has an area of about 18,000sq m. It houses 11 screens, which can seat 3,000 people; Italian and Japanese restaurants; a French café; a VIP bar; and a further two bars and two cafes. Its equipped with state-of-the-art projection equipment. At present, 60% of October is owned by Gazprom-Media, Russia’s largest media holding founded in 1998 as a subsidiary of Gazprom, and it is the main bidder for the remaining stake. n Russian World Studios sets production target Russian World Studios (RWS), one of Russia’s largest film and television production companies, owned by AFK Sistema company, plans to increase the production of content by 67%, to 500 hours. The company is going to increase the production of TV series, as well as produce three to five feature films a year. By 2014, RWS plans to more than double the value of its back catalogue to $150m (RUB 4.7bn) (compared with its current $60m). By 2013, the total volume of RWS’s library is expected to reach 2,500 hours (compared with a current 1,000 hours). Between 2011 and 2013 the company plans to produce at least s 500 hours of content every year. n 15 SPECIAL FOCUS: RUSSIA digest Exhibition n The Russian government has finally approved an ambitious project for the construction of 253 new cinemas in the country’s regions by 2029. The project was initiated by Russian Prime Minister Vladimir Putin, and is expected to be implemented in conjunction with some leading Russian film producers. Most of the cinemas will be built in small Russian cities with a population of less than 400,000. The level of investments has not yet been disclosed, but according to a source close to the project, it may exceed $274m (RUB 8.6bn). Most of the funds will be provided by state banks in the form of loans for seven to 10 years. Production n The Russian government is planning to invest $20m (RUB500m) in the production of socially significant movies. These non-profit, patriotic films will be chosen by the expert board of the Russian Patriotic Cinema Support Foundation, headed by Boris Lyubimov, the rector of M.S. Schepkin Higher Theatre School. The long-list currently consists of more than 20 movies. Among the most likely candidates to receive the grants are Svyatitel Aleksiy, as well as Gagarin. First in Space, an epic film, directed by Alexei Uchitel. n A group of Russian film producers has filed a complaint to the State Federal Anti-monopoly Service about the existing scheme of Russian cinema financing. According to the group, eight Russian film studios, which received state grants in the region of $8.3m (RUB 260.3m) each, were improperly selected by the state film fund — using the wrong selection criteria and failing to take account of the views of other Russian producers. They want the current scheme of development grants to be revised. The date for the official hearings of the case has not been disclosed n IMAX Corporation and Formula Kino, one of Russia’s leading exhibition chains, has signed an agreement to install two digital IMAX theatre systems in Russia before the end of 2010. Under the terms of the deal, Formula Kino will install an IMAX system at the new Galleria Mall in St. Petersburg, as well as a system in the Mall of Russia, in the heart of Moscow. The first system is scheduled to be installed in time for the IMAX release of Harry Potter And The Deathly Hallows: Part 1 in November, with the second system to follow shortly after. n The Russian government plans to tighten the control of profits of local cinemas with the introduction of a centralised system to keep a record of the movies exhibited in all the country’s cinemas. Those behind the system say it will help deal with those cinemas providing inaccurate data on their box-office takings. At present, some Russian cinemas conceal up to 30-50% of their total box office takings, damaging income for distributors and producers. According to the state’s bill, all Russian film exhibitors will be required to provide information for all tickets sold every hour. The data will be posted on a special public website s controlled by the Russian Ministry of Culture. n Distribution n Freestyle Releasing Company and Cinemarket Films has acquired the rights for the distribution of Andrei Konchalovsky’s Nutcracker And The Rat King musical in the US. The official release of the film is scheduled for 23 November, while in Russia and the CIS it is due out on 23 December. The budget of the film – which will also be released in 3D – is $90m (RUB2.8bn) . It stars Elle Fanning as Mary, Nathan Lane as Uncle Albert and John Turturro as the Rat King. n After 10 years of litigation, Soyuzmultfilm, one of Russia’s largest animation studios, has regained the rights for the foreign distribution of more than 500 Soviet cartoons. The Moscow Arbitration Court declared invalid a contract between Soyuzmultfilm and the US company Films by Jove (FBJ), which in 1992 acquired the rights for the foreign distribution of 1,500 of the best Soviet cartoons and later returned rights for part of the collection in exchange for an extension of the contract. Soyuzmultfilm plans to sell the rights abroad, mainly in Eastern Europe, with an expected annual profit of up to $100,000. 16 SPECIAL FOCUS: RUSSIA In Focus from a lack of strong supporting cast and insufficient training in many departments of the All-Russia State Institute of Cinematography. For instance, most soundmen still learn by using textbooks published in the 1970s, while cameraman are relying on books from as far back as the 1960s. The new union will be headed by Russian producer Boris Khlebnikov, and experts hope it will speed up badly needed reforms in the Russian film industry. Since the beginning of the year, the share of local films in the total box office dropped to 16% compared with last year’s 27%. In addition, the losses from piracy are steadily increasing and have already reached the $1bn mark, which is the equivalent to the value of the present Russian distribution market. However, there are no reliable statistics on the size of the audience. These are all areas the new union is likely to focus on. Vitaly Mansky, one of the founders of KinoSoyuz, says: “The Russian Cinematographers’ Union is in deep crisis. The main difference between it and the alternative union is that the latter is comprised of people who want to make movies in Russia. We are ready to participate in making major decisions in the Russian film industry.” The split in the Russian cinema industry has been brewing for a long time. In late 2008, the Congress of Cinematographers’ Union elected Marlene Khutsiev (a Georgian-born Soviet film-maker best known for his cult films from the 1960s) as the new chairman of the Russian Cinematographers’ Union instead of Mikhalkov. However, Mikhalkov, with the help of a judicial procedure, challenged the decision and during the next Congress in March 2009 was re-elected as chairman. This move was much criticised by a number of Russian Russian film industry rivals go head to head The Russian film industry is on the verge of a split. In September a group of well-known Russian film directors and producers founded KinoSoyuz, a rival to the alreadyestablished Russian Cinematographers’ Union, which is headed by Nikita Mikhalkov, the renowned Soviet and Russian film-maker. Among the founders of the KinoSoyuz, (which is registered in the Russian Ministry of Justice and has gained legal status), are directors Eldar Ryazanov, Alex Herman Sr, Yuri Norstein, Alexander Sokurov and others. They were spurred into setting up KinoSoyuz after disagreements over the policy direction of the current the Russion Cinematographers’ Union and the monopolisation by Mikhalkov, who is also one of the organisers of the Russian ‘Golden Eagle’ award and head of the Moscow International Film Festival. Founders of the new union claim it will better protect the interests of Russian film-makers and the local cinematography industry. Alexey Herman Jr, another of the alternative union’s founders, says the new organisation is planning to work with local film-makers following a US-style model. There, filmmakers have long been united in guilds, similar to labour unions, defending the rights of their members. According to Herman, the current structure of the Russian film industry is outdated and does not meet modern cinematography standards. “We hope we can create a new way of developing the Russian film industry, using the US experience,” says Herman. KinoSoyuz believes the Russian film industry still suffers Make-up of russia’s rival film industry unions Russian Cinematographers’ Union KinoSoyuz Heads Nikita Mikhalov Boris Hlebnikov Key members Alexander Adabashyan, Vasily Livanov, Konstantin Khabensky, Michael Porechenkov Eldar Ryazanov, Aleksandr Sokurov, Otar Iosseliani, Alex Herman, Sr, Alex Herman, Jr, Paul Bardeen, Key areas of activities • Protecting interests of Russian film-makers • Creating conditions for creative work of its members • Raising image of Russian cinema in the world arena • Protecting interests of Russian film-makers • Development of film guilds and associations in Russia under the US model • Development of new technical standards of Russian film production • Development of supporting institutions in Russian film 17 SPECIAL FOCUS: RUSSIA film-makers and producers, and sowed the seeds of the idea of setting up a rival union. However, Mikhalkov claims not to be concerned about the rival group and its impact on the Russian film industry. “The only thing they will achieve by this move is to deprive themselves of the opportunity to fully participate in the Russian film industry. They will not be able to use many facilities and film centres, which are currently under the jurisdiction of the Russian Cinematographers’ Union. So let’s see how they can establish a powerful independent organisation,” says Mikhalkov. In response to Mikhalkov’s criticism, KinoSoyuz founders claim they do not need to rely on Russian Cinematographers’ Union premises because a large number of business centres in Moscow can offer the same facilities. In contrast to some of Mikhalkov’s projects, KinoSoyuz has no plans to spend millions of dollars on the promotion of certain projects, although its founders have not ruled out the possibility of applying for state support, due to its status as a non-profit organisation. The Russian government appears to have no objection to the new Union and has already registered it as an independent organisation. Alexander Avdeev, Russia’s minister of culture, says: “Russian film-makers have the right to express themselves like this. The Ministry of Culture will have to deal with both s cinematographers’ unions.” n 18 SPECIAL FOCUS: RUSSIA In Focus Alexander Akopov, head of Amedia, one of Russia’s leading TV and film production companies, has already branded them “allies of the pirates”. According to him, the problem of piracy on the internet will only be solved when companies start offering legal content for a reasonable price. But many in the industry think this is self-defeating, because the sheer scale of free movies on the internet means users will never start to pay money for the same movies. In the meantime, representatives of Russia’s largest internet portals have brushed off the allegations of producers. Maxim Bobin, Mail.ru’s vice-president for legal affairs, says: “We are not spreading illegal content, this is done by our users who violate our terms of use. It is a good idea to create a legal register but it is practically impossible to determine whether a video is legal or not based on its title. What is needed is to create a special archive with legitimate digital copies.” A spokesperson for Yandex, a Russian IT company which operates the largest search engine in Russia, said in an interview with Russian business paper Vedomosti that the producers’ proposal will be difficult to implement in practice, and that copyright holders should find a more constructive way of dealing with internet companies. However, the proposal might be supported by the Russian State Duma, which is planning to consider several amendments, designed to tighten responsibility for internet users who download or watch illegal films – even if they are unaware that the copy is illegal. Russia declares war on piracy Leading Russian film companies and politicians have declared war on internet piracy. They have called for a register of legal internet videos as the first stage in combating piracy. In addition, Russian officials want to introduce fines for all Russian internet users who watch pirated movies. An initiative to create a register of legal internet videos was recently started by the Sistema Mass Media Company, a subsidiary of Russian financial conglomerate AFK Sistema, which owns Russian World Studios, one of the largest film and television production companies in the country. The proposal has already been supported by several other Russian film producers such as Amedia, ArtPictures and Sony Pictures Entertainment. Where internet video is concerned, the film studios are going to require internet companies to spread their content only in accordance with the preliminary lists of films registered for legal internet downloading. In order to maintain control of these lists, a new governmental body is expected to be set up. This proposal has already been submitted to the State Duma (Russian Parliament). The Russian film industry loses between $1.1bn (RUB 34.5bn) and $1.3bn (RUB40.8m) every year because of internet piracy, according to industry experts. The five largest Russian websites offering illegal content – among them are the Russia web servers and networks Mail.ru and Vkontakte.ru – have combined visitors in the region of 3 million a day. top illegally downloaded films in russia 2008-2010 Rank 2008 2009 2010 (1H) 1 The Dark Night Star Trek Iron Man 2 2 Hulk Transformers: Revenge Of The Fallen Knight & Day 3 The Bank Job Rock ’n’ Rolla The Expendables 4 You Don’t Mess With The Zohan The Hangover Robin Hood 5 National Treasure: Book of Secrets Twilight Frozen 6 Juno District 9 Sex And The City 2 7 Tropic Thunder Harry Potter And The Half Blood Prince Prince of Persia: The Sands Of Time 8 I Am Legend The State Play Mr. Nobody 9 In Flight X-Men Origins: Wolverine Leaving Las Vegas 10 Horton Knowing The Twilight Saga: Eclipse Source: Filmreserach 19 SPECIAL FOCUS: RUSSIA At present, only people who download unlicensed films with the deliberate intent to sell them on, face prosecution. But Alexandr Milyavsky, a member of Moscow City Hall and one of the people behind this proposal, says there is a need to impose fines for all internet users who download piracy movies. The fine is expected to be in the range of $60-$200 (RUB 2,000-5000). This proposal was initially put forward more than two years ago, but it was rejected following strong opposition from the Russian internet companies. However, with Russia’s forthcoming accession to the World Trade Organisation (WTO) , these amendments might be adopted after all, as one of the conditions of Russia’s integration into the global community. In the meantime, many Russian analysts believe that the imposition of such strict rules in favour of WTO’s accession makes no sense, because many of the current WTO members have different internet piracy legislation anyway. For instance, Sweden has a rather relaxed attitude towards pirates, while French legislation is some of the strictest in the world – French users can lose their access to the internet altogether if found to be downloading pirated movies. In addition, the Russian Service for Cultural Preservation says there are still no basic principles for regulating internet activities in Russia, so it’s too soon to implement the proposed measures. “We hope that these amendments will not be adopted because we cannot adopt laws whose meaning can neither be explained nor understood,” says Anton Nosik, deputy general director of United Media, one of Russia’s largest media holdings. Meanwhile, several online services providing access to legal videos have been launched in Russia. In February, the portal www.ivi.ru, with free access to a catalogue of s feature films, was launched. n 20 SPECIAL FOCUS: RUSSIA the audience “Hollywood film directors are always able to offer something new and entertaining for viewers. Unlike Russian films, viewers are never indifferent to a Hollywood blockbuster.” Hollywood the main draw Despite the ever-increasing popularity of cinema in Russia, the maximum local audience in the country is estimated at 10 million people, with only 4 million (out of a total population of 140 million) regularly visiting the cinema (at least once a month). The vast majority of Russian cinema-goers (85%) are young people under the age of 30, of which 28% are university students. Valeri Todorovski, a Russian film director, says the Russian cinema audience is too narrow. “We have to work with the audience aged from about 14 to 21 years,” he says. Vladislav V, 19, from Moscow are doomed to failure simply because the low budgets and corresponding poor quality do not appeal to local audiences who can opt for mega-budget Hollywood films instead. The Russian film industry is facing an upward battle to attract older audiences. Part of the problem is the lack of films aimed at older viewers and limited promotion of those few films that do cater to this demographic. In recent years only two movies, Admiral and Mamma Mia!, were able to attract a s more senior audience. n “Compared with Soviet times, there is much less Russian cinema. The majority of the films are produced in haste, hoping for quick profits, but most don’t make any money. The quality of acting among Russian actors also leaves much to be desired. So I don’t attend even the most high-profile Russian releases” “Russian cinema can’t compete with Hollywood films in terms of quality of directing, acting and script. Also high ticket prices, as well as the lack of high-quality cinemas, especially in the province, stops me from regularly visiting the cinema” Evgeniy G, 27, from Voronezh, a provincial town Most Russian cinemagoers are big fans of Hollywood blockbusters. People usually go to the movies to relax, and they enjoy watching highly publicised movies with famous actors. Other Western delights such as popcorn and coca-cola remain essential parts of the Russian cinema-going experience. Up to 80% of viewers buy these products during a cinema visit. But the demand for Russian films remains low among this audience. Where Russian-made movies are concerned, the most popular genre is comedy, especially romantic, such as the recently released The Irony of Fate 2, The Best Film, Nasha Russia: The Fate Of Eggs, Love-Carrot 2, Security Vacation and ZhaRa. Russian comedies are almost the only category of local films that can turn in a profit. Russian movies of any other genres Valeria V, 44, from Moscow 21 SPECIAL FOCUS: RUSSIA audience data Number of cinemas and screens 2500 2500 n Screens n Cinema n Digital screens 2000 2000 1500 1500 1000 1000 500 500 00 2500 2002 2002 2003 2003 2004 2004 2000 Source: Polit.ru * estimate 2005 2005 2006 2006 2007 2007 2008 2008 2009* 2009* 1500 Audience by age in 2009-2010 (1H) 1000 3535 500 30 30 0 2525 2002 2003 2004 2005 2006 2007 2008 2009* 20 20 1515 35 1010 30 25 55 20 00 15 and younger 15 and younger 15 16-2010 16-20 21-25 21-25 26-30 26-30 31-35 31-35 36-40 36-40 45 and and older older 45 5 Source: Polit.ru 0 15 and younger Audience attitude towards local films 16-20 21-25 26-30 Never watches Russian movies Prefer foreign movies Don’t mind Prefer local movies Only local movies 0% 0% 10% 10% 20% 20% 0% 30% 30% Source: Polit.ru 10% 20% 40% 40% 30% 50% 50% 22 40% 50% 31-35 36-40 45 and older SPECIAL FOCUS: RUSSIA and cinematography. So, despite a huge budget (by Russian standards), and Michalkov’s personality, Burnt By The Sun: Prestanding was unable to repeat the success of the original movie. Key learnings The film was slammed by the critics and war veterans. Most of them were unhappy with the bad acting, poor script, excessive violence, as well the historical inaccuracies and the image it portrayed of the Soviet Army and Stalin. Mikhalkov’s response was that his film showed the truth about war, which in the days of the USSR was a forbidden topic. It was a massive production, with thousands of extras necessary for the crowd scenes, which meant costs soared. Most of the battle scenes were produced with the help of Russia’s Ministry of Defence and part of the movie was filmed in Germany, with the German actors, as well as German military equipment and costumes. Although the next instalment, Burnt By The Sun: The Citadel, was initially planned to be released on 4 November 2010, because the first part flopped, the producers have decided to postpone the release . Burnt By The Sun 2: most expensive and most failed film in Russian cinema history case studies Burnt By The Sun struggles to shine Company Trite Studio, Golden Eagle company Aim To produce a film, dedicated to the events of World War II, which could be considered a worthy sequel to the 1994 hit Burnt By The Sun. What they did Nikita Mikhalkov, head of Trite and the Russian Cinematographers’ Union, completed production of a sequel to the Russian film drama Burnt By The Sun (1994) in April 2010. The original won the Grand Prize at the 1994 Cannes Film Festival and the Academy Award for Best Foreign Language Film, among many other honours. Burnt By The Sun 2 is a two-parter, comprising two independent feature films: Burnt By The Sun: Prestanding and Burnt by the Sun: The Citadel. Budget $55m (RUB 1.7bn) Measuring success With a budget of $55m, Burnt By The Sun 2 became the most expensive, and at the same time the most failed film, in the history of the Russian cinema. The film did not recoup even a quarter of its budget, despite more than 1,000 copies of the film being distributed – more than any other film at that time. The film was screened at the 2010 Cannes Film Festival, but received no awards. Tips for working in the territory World War II, and Stalin’s role in the victory, still remain controversial in Russian society Rentrak gains cinema data task Company Rentrak Corporation Client Ministry of Culture of Russia Aim Rentrak Corporation is expanding its presence in the Russian film market through an agreement with the Russian Ministry of Culture, allowing it to collect data from cinema chains. Alexander Babichev, director general of Rentrak Russia, says the company hopes to increase its Russian coverage and presence. In May, new legislation came into effect in Russia stipulating that each Russian cinema must send details of all tickets sold to a single data centre, based at the ministry of culture. The report will include information on the name of the cinema, date, time, title of the film, distribution certificate number, seat numbers, ticket price and other details. Budget The amount of investment in the project has not been disclosed, however, industry experts predict the installation of all the necessary equipment and its maintenance will cost Rentrak up to $6,500 (RUB200,000) per cash desk. What they did The company has already reached a 23 SPECIAL FOCUS: RUSSIA preliminary agreement with the ministry of culture, and is ready to implement the project. Measuring success Most of the Russian cinema chains and producers have already expressed an interest in working with Rentrak, due to the efficiency of its system and the company’s high reputation. Rentrak already works with 99% of the Russian cinemas, including Cinema Park, Kinostar, Kronverk and Formula Kino, collecting data either electronically or via a call-centre. Tips for working in the territory Russian analysts believe that Rentrack will find it very difficult to finally gain a legal foothold in Russia, because some Russian officials (in particular the Russian Ministry of Finance) are reluctant to allow third parties to collect cinema data. Key learnings Co-operation with such a well-known and established company as Rentrak Corporation could be beneficial for most of the Russian film chains and should help to create an effective system between the state and local cinemas. success was that it was based on a genuine Russian folk tale combined with Hollywood shooting technologies. A similar strategy was used by the company when casting by inviting young Russian actors and recognised Soviet masters to be involved. Key learnings According to Disney Russia, The Book Of Masters became the most successful locally made film in Disney history. Moreover, in the case of Russia, the release of the film contributed to the further development of a fairytales film segment in Russia, which had previously been undeveloped. Disney plans to produce two to three movies in Russia every year. Its next two projects are a modern musical s comedy for the youth audience and an adventure film. n Disney takes on Russian fairytale project Company Disney Aim To produce the first Russian Disney movie, based on Russian fairytales, with classical characters such as Baba Yaga the witch, Kashchey the Deathless and Rusalka (mermaid), all played by famous Russian actors. Budget: $8m (RUB 251.1m) What they did The Book Of Masters is the first full-featured Russian film from Disney and was released during the school holidays in Russia. Although based on Russian fairytales and shot in Russia, the film had Hollywood-quality production and with distinctive Hollywood special effects. The film received significant advertising support from Disney. Measuring success The Book Of Masters was released in 29 October 2009, and during the first two weekends of its distribution held the first place in the Russian box office. Overall, it made $10.8 million (RUB 316.5m). The film received seven prizes at various film festivals: two in Russia, one in Germany, one in Belgium and one in Los Angeles. However, the movie received rather low scores among the Russian audience. Some critics slammed its script and the performance of the young actors. Tips for working in the territory A key aspect of the film 24 SPECIAL FOCUS: RUSSIA in production The Best Movie 3D Monumental Pictures, the Russian motion picture company formed in 2006 as a joint venture between Sony Pictures Entertainment and Patton Media Group, and Comedy Club Production, a well-known Russian film studio, have started production of the third part of popular parody film, The Best Movie 3D. This is the first Russian feature film, which will be fully produced in 3D. The movie is scheduled to be released on 20 January 2011, while its official distributor will be Walt Disney Studios Sony Pictures Releasing (WDSSPR). Among the cast are Russian actors Alexander Baluev, Alexander Semchev, Mikhail Efremov and Nina Ruslanova. Kirill Kuzin, who also directed the first Best Film in 2008, is expected to direct the new 3D version. The original was released in January 2008 and made a record box office in Russia of $16.4m. It became one of the most successful in Russia since 1990s and is the 11th top grossing film in Russian cinema history. Contact Comedy Club Production, ((495) 543-88-88 [email protected] www.comedyclub.ru Contact Monumental Pictures, Paul Hat (7) 495 926 27 92 [email protected] www.monumentalpictures.com Prison Break Channel One, Russia’s most widely distributed TV channel, and 20th Century Fox Television Distribution have agreed to launch a Russian version of the TV series Prison Break. Konstantin Ernst, general director of the channel, and film director Denis Evstigneev are to be executive producers of the project. Financial details of the deal have not been disclosed. Shooting of the TV series, expected to have 22 episodes, will start before the end of the year. Contact Larisa Krymova, PR director of Channel One Tel (7) 495 617-73-87 www.1tv.ru Emir Kusturica film project Serbian film-maker Emir Kusturica has announced plans to shoot a movie about Russia. Work on the film is already under way, with production scheduled for the middle of 2011, and filming is expected to take place in several Russian cities. Although the name and budget of the film have not been released, two of Russia’s top actors, Ingeborga Dapkunaite and Konstansin Khabensky, are expected to play leading roles. Contact Emir Kusturica Rasta International (381) 11 24 31 505 Cosmonaut Spanish film director Nicholas Alcala is planning to shoot a movie in Russia,called Cosmonaut. The film is expected to be financed by the crowd funding method, where the film’s budget is met by membership fees of internet users. The minimum contribution is €2, and in return the investor will receive a producer credit, as well as the opportunity to send the studio their own suggestions for the plot. Alcala and his partners will then choose the best one for the final version of the film. The rush prints will be posted on the internet, so investors can make their own movie shorts to put on the project’s website. Production support will be provided by Russia and the US aerospace agencies. Contact Nicholas Alcala, Riot cinema, (34) 91 523 2366 www. riotcinema.com [email protected] $40m historical movie Nikita Mikhalkov is planning to start production of an historical movie dedicated to Russian playwright, poet, composer and diplomat Alexander Griboyedov. The budget for the project, which will be divided into two parts, is estimated at $40m (RUB 1.3bn). Production is expected to start by the end of the year and will take place in Russia, Iran, the Caucasus and Turkey. The plot is partially based on archival documents, and the script runs to 800 pages. Oleg Menshikov is pencilled to take the leading role of Griboyedov. Contact Nikita Mikhalkov, Trite Studio (7) 495 933 60 37 [email protected] http://www.trite.ru 25 SPECIAL FOCUS: RUSSIA Stalingrad Art Pictures, one of Russia’s largest film studios founded by Fyodor Bondarchuk, plans to start production of an epic film called Stalingrad. The new film will be produced in 3D format and will cover the Battle of Stalingrad 1942-1943. The picture is expected to be released just before the 70th anniversary of the Battle, in 2012. The script was written by Russian writer Ilya Tilkin. Art Pictures is also hoping to get Vince Pace, one of the leading specialists in 3D-technology (who took part in the production of Avatar), as well as composer Angelo Badalamenti on board. Actors being linked to the project include Daniel Kozlovsky, Sergei Garmash and German actor Til Schweiger. The total budget is estimated at $28-$30m. At present, Bondarchuk is going through archive material and building sets. Contact Fyodor Bondarchuk (7) 499 143 49 04 [email protected] www.art-pictures.ru Kvartal 95 have started production of only the second 3D film in the history of Russian cinema, called Rzhevskii Against Napoleon. The new comedy has a budget of $5m (RUB 156.9m) and its official release is scheduled for summer 2011. Most of the filming takes place in the Ukrainian Crimea resort, with some scenes shot in local palace interiors. The film will be directed by Marius Weisberg, and among the Russian actors in the movie are Paul Derevianko, Vladimir Zelenski, Mikhail Efremov, Marat Basharov Svetlana Khodchenkova and Michael Galustyan. Jean Claude Van Damme is set to be a special guest star in the film. Contact Leopolis (495) 646-98-60 [email protected] Contact Studio Kvartal (44) 529 31 59, (44) 529 53 43 [email protected] Faust adaptation Alexander Sokurov is completing an adaptation of Goethe’s Faust novel, which has been filmed in Europe, particularly in the Czech Republic and Iceland, as well as at the Proline Film St. Petersburg studio. With a budget of about $12m (RUB 376m), Sokurov has also been endorsed by Russian Prime Minister Vladimir Putin to produce the project. Filming is scheduled to be completed by the end of December, and the official release will probably be next year, initially in Europe. (812) 233-10-51 [email protected] [email protected] Arthouse investment Eight leading Russian film companies that have received $8.33m (RUB 250m) from the state film fund for the production of films of which up to $1m (RUB 30m) is to spend on arthouse film production. According to the head of the fund Sergei Tolstikov, the fund is necessary to help develop Russian arthouse cinema because its popularity in Russia is extremely low. It is 42 times less popular in Russia than in Spain, 30 times less than in Norway and up to six times less than in the US, according to Svobodanews, Russia’s business paper. Among those to have received funding are Central Partnership, Art Pictures, Bazelevs, Rekun and Profit Future but details of their art house releases have not been disclosed. Contact Sergey Tolstikov, The Russian Federal Fund to Support National Cinematography [email protected] www.fond-kino.ru The House on the Sidelines Russian World Studios Company (RWS) and Nikita Mikhalkov’s TRITE Studio have started shooting a large-format feature film called The House On The Sidelines. The budget for the film has not been disclosed. It is a drama focusing on the theme of love in modern Russian society and will star Andrei Merzlikin, Christina Kuzmina and Tatiana Cherkasova. Production has begun in the St. Petersburg region. Rzhevskii Against Napoleon The Russian Leopolis film studio and the Ukrainian Studio 26 SPECIAL FOCUS: RUSSIA The official release of the film is scheduled for the second half of 2011. With Mikhalkov’s involvement there are high hopes it will pull in a large box office. Contact Trite (7) 495 933 60 37 [email protected] Contact Russian World Studios (7) 495 229 63 63 s [email protected] n 27 SPECIAL FOCUS: RUSSIA A look ahead Russian Academy of Cinema Nikita Mikhalkov plans to set up the Academy of Cinema in Russia and, according to some Russian media reports, it may be up and running by the end of the year. Mikhalkov, who will head the Academy, hopes that by setting this up it will help relieve the shortage of professionals in the industry, such as first assistant directors. “These won’t be the courses specifically for writers and directors, but rather courses for the creation of film crews,” says Mikhalkov. He first thought of the idea of an Academy in 2002, and has been holding talks with the Russian Ministry of Culture ever since about the project. Contact Nikita Mikhalkov, Russian Cinematographers’ Union (7) 495 933 60 37 [email protected] Abraham Lincoln: Vampire Hunter Russian film director Timur Bekmambetov, together with Tim Burton are planning to shoot a 3D film, based on Seth Grahame-Smith’s novel Abraham Lincoln: Vampire Hunter at 20th Century Fox studio. Abraham Lincoln: Vampire Hunter is one of the hottest projects in Hollywood, with all the US majors showing an interest. Paramount, Universal and Summit had long talks with Bekmambetov and Burton, before they decided on 20th Century Fox. The estimated budget is $69m (RUB 2.2bn), and its official release is scheduled for 2012. It will be the second joint project between Burton and Bekmambetov after 9, the cartoon for which Bekmambetov won producer of the year in the Best Animated Film of 2010 category by the Producers Guild of America. Contact Timur Bekmambetov 7 (495) 223-04-00 [email protected] www.bazelevs.com Vasilisa Kozhina Russian World Studios (RWS), one Russia’s largest film studios, is planning to shoot a Russian-French historical film called Vasilisa Kozhina. The film will focus on the events of the French invasion of Russia of 1812, and the unfolding romance between a Russian partisan, Vasilisa Kozhina, and French officer Blier. It will draw on memoirs, documentary evidence, portraits and biographical information on the war of 1812. Both Russian and French actors will be used in the movie and filming will take place in both countries. Dmitry Meshiev will direct the film, while Jean de Gliniasty, the French Ambassador in Russia, is expected to be a consultant. 7 (495) 229 63 63 s [email protected] n The 8th Of August Glavkino, the film studio set up by Fyodor Bondarchuk, and Konstantin Ernst, general director of Channel One, are beginning production of a film dedicated to the 2008 Russian-Georgian military conflict. The new film will be called The 8th Of August, and its director will be Janic Fayziev, who previously produced The Admiral, one of the highest grossing movies in the Russian cinema.Some financing for the film is expected to come from the state although its budget has not been released. The 8th of August is an epic, global project based on real events, according to Ilya Bachurin, CEO of Glavkino. Contact Konstantin Ernst, Channel One (+7) 495 617-73-87 www.1tv.ru/ Contact Fyodor Bondarchuk, (+7) 499 143-49-04 [email protected] www.art-pictures.ru 28 Local Markets Report TERRITORY FOCUS: UK AND IRELAND Toy Story 3: summer blockbuster took more than $112m at the box office market update However, the UK’s major studios remained busy with a number of high-profile US films shooting in the UK, among them X-Men: First Class, Pirates Of The Caribbean: On Stranger Tides and Marvel’s Captain America: The First Avenger. In Ireland in mid-September, Screen Producers Ireland (SPI) and SIPTU (the union for film technicians) struck a groundbreaking agreement, whereby minimum rates of pay for crew positions have been set, as well as new arrangements for overtime, night shoots and the like. The unions will now accept different rate levels depending on the size of a film or TV production’s budget. Local producers acknowledge that Ireland has sometimes suffered from the perception that industrial relations are unstable, but it is hoped this will now change. Meanwhile, Ireland’s Section 481 tax incentive is proving popular with international producers. Locals say that the downturn in the economy (Ireland’s new age of austerity) has had at least one positive side-effect for the film industry — prices have come down for everything from production services to living expenses. It has been a contradictory quarter in the UK. The shock late July decision to axe the UK Film Council left the local industry reeling. However, after arguably the most successful ever Toronto International Film Festival for British films in September, and the news in mid-October that Channel 4 was increasing the budget for film financing division Film4 to $24.1m (£15m) for the next five years, the mood improved markedly. In the summer, the Department of Culture, Media and Sport (DCMS) moved quickly to reassure the industry that the UK tax credit would remain, as would the lottery money investment in UK film (worth around $47m/£29.4m a year), which would increase in 2012. The British Film Institute (BFI) was in a position to pick up some of the Film Council’s activities, but still faced a 15% cut in grant aid as part of the UK government’s spending review. It also emerged that film sector funding outside the lottery money and the BFI would be cut by more than 50%. 29 SPECIAL FOCUS: UK AND IRELAND In July, it was confirmed that Simon Perry will be leaving his job at the helm of Irish Film Board and a new CEO will be appointed early next year. During his five-year stint, Perry has championed co-production and taken a determinedly international approach. It remains to be seen whether his successor will continue to pursue this policy. After a severe dip in cinema-going during the FIFA World Cup, UK distributors reported robust business in the late summer and early autumn. As in other European territories, DVD remained in decline and video-on-demand didn’t make up for the shortfall. “July and August were really strong months. They bounced back after a very soft June,” says Film Distributors’ Association CEO Mark Batey. There were 40.5 million admissions during July and August, up on 35.5 million for the same period in 2009. The stand-out success of the summer was Toy Story 3, which took more than $112.4m (£70m) at the box office. The talk among the independents was of Vertigo’s extraordinary success with StreetDance 3D (in the first half of 2010, the film grossed $18.6m (£11.6m), 95% of that on 3D). UK MARKET SHARE FOR JANuary TO JUNE 2010 n Independent UK films’ market share for the first half of 2010 was 6.2%, while UK-qualifying studio-backed titles (financed by US studios but passing the UK cultural test and featuring UK cast, crew, locations, facilities, post-production and often UK source material) shared 20.2% of the box office. Therefore, total UK share of the UK theatrical market in the first half of 2010 was 26.4%. Source: Source UK Film Council Research And Statistics Unit independent activity than there was three or four years ago,” he adds. British films were conspicuous in their almost complete absence in Venice. Apart from Patrick Keiller’s Robinson In Ruins, the Lido was a Brit-free zone. However, in Toronto, there were 32 British films, 13 of them backed by the UK Film Council. Among the most feted was Tom Hooper’s The King’s Speech, which won the audience prize and is now being tipped as a potential awards winner in Oscar season. “Everyone you speak to will tell you that Toronto is the first market in five years that has seen a positive and quantifiable uplift,” says Paul Brett, director of Prescience Film Finance, who helped finance The King’s Speech through its Aegis Film Fund. British distributors were also very active in Toronto, with Optimum, Artificial Eye and Soda picking up multiple titles. There were pre-buys and bidding wars. However, it was also apparent that the UK distributors and sellers were struggling to come up with a business model for a post-DVD world. The optimism in Toronto was an antidote to the backbiting and uncertainty in all areas of the British film industry caused by the axing of the UK Film Council, although there was plenty of gloating from opponents at its imminent demise. Noting that 46,000 people signed up to a Facebook page to save the UK Film Council (considerably more than the 33,000 who signed the Save The Arts petition on the same site), culture minister Ed Vaizey observed that “some people compared the abolition of the UK Film Council to the closure s of the NHS”. n TV threat The UK is on track for 180 million cinema admissions this year, up on the 173.5 million admissions in the UK last year, according to the Cinema Advertising Association. But Batey has warned that the industry faces a new threat: blockbuster Saturday night TV shows. Early in its autumn run, The X Factor on ITV was posting audiences of more than 12 million and, in Batey’s opinion, keeping people away from cinemas in the process. During the summer, as the 3D boom continued, the UK reached the threshold of 1,000 digital screens – a symbolic landmark; more than 20% of British screens are now 3D-enabled. However, some industry experts are warning that 3D, while clearly here to stay, will now decline in impact. Meanwhile, independent British producers continued to struggle to draw their financing together. In terms of the independent sector, it remains tough,” notes UK tax expert John Graydon, of Tenon Media. “That part of the sector, reliant on inward investment, is probably finding things quite buoyant at the moment... There is a lot of inward investment film activity in the UK at the moment. The amount of tax equity has reduced over the years... It feels like there is less 30 SPECIAL FOCUS: UK AND IRELAND Data Box office results for top 20 films released in the UK, January-June 2010 Rank Title Country of origin box office Gross Opening cinemas Opening weekend Distributor 1 Alice In Wonderland US $68.6m (£42.5m) 533 $17.1m (£10.6m) Disney 2 Sex And The City 2* US $34.8m (£21.6m) 530 $9.8m (£6.1m) Warner Bros 3 Iron Man 2* US $34.1m (£21.2m) 521 $12.4m (£7.7m) Paramount 4 Clash Of The Titans US-UK $32.6m (£20.2m) 446 $10.0m (£5.7m) Warner Bros 5 How To Train Your Dragon* US $27.7m (£17.2m) 471 $7.9m (£4.9m) Paramount 6 Nanny McPhee And The Big Bang* US-UK $26.5m (£16.4m) 512 $4.2m (£2.6m) Universal 7 Robin Hood* US-UK $24.8m (£15.4m) 537 $9.4m (£5.8m) Universal 8 StreetDance 3D* UK $18.7m (£11.6m) 412 $4.0m (£2.5m) Vertigo 9 Kick-Ass US-UK $18.7m (£11.6m) 402 $6.3m (£3.9m) Universal 10 The Princess And The Frog US $17.9m (£11.1m) 1 $0.03m (£0.02m) Disney 11 Shutter Island US $17.4m (£10.8m) 416 $3.7m (£2.3m) Paramount 12 Valentine's Day US $16.5m (£10.2m) 432 $6.0m (£3.7m) Warner Bros 13 It's Complicated US $15.0m (£9.3m) 434 $1.8m (£1.1m) Universal 14 Prince Of Persia: The Sands Of Time* US-UK $14.2m (£8.8m) 468 $2.3m (£1.4m) Disney 15 Percy Jackson & The Lightning Thief US $12.1m (£7.5m) 454 $2.4m (£1.5m) 20th Century Fox 16 Get Him To The Greek* US $11.0m (£6.8m) 389 $2.6m (£1.6m) Universal 17 Up In The Air US $10.5m (£6.5m) 325 $2.1m (£1.3m) Paramount 18 The Lovely Bones US $10.3m (£6.4m) 420 $2.6m (£1.6m) Paramount 19 The Blind Side US $10.0m (£6.2m) 371 $2.1m (£1.3m) Warner Bros 20 The Bounty Hunter US $10.0m (£6.2m) 394 $3.4m (£2.1m) Sony Pictures Source: Rentrak EDI, RSU analysis Gross box office = cumulative total up to 25 July 2010/* films were still being exhibited on 25 July 2010 feature films broadcast on terrestrial television, 1H 2010 Channel Number of films broadcast Number of UK films broadcast UK film as % of total Number of recent* UK films broadcast Recent* UK as % of total film slots BBC1 113 14 12% 7 6.2% BBC2 167 59 35% 21 12.6% ITV1 203 49 24% 23 11.3% Channel 4 245 42 17% 15 6.1% Five 228 28 12% 5 2.2% Total 956 192 20% 71 7.4% Source: Attentional, UK Film Council RSU analysis. * A recent film is one that has been theatrically released, or intended for theatrical release, in the UK since 2002. 31 SPECIAL FOCUS: UK AND IRELAND Data Top UK films released in UK and Republic of Ireland, January-june 2010 Rank Title Country of origin Gross box office Opening cinemas Distributor 1 Clash Of The Titans US $32.6m (£20.2m) 446 Warner Bros 2 Nanny McPhee And The Big Bang* US-UK $26.5m (£16.4m) 512 Universal 3 Robin Hood* US $24.8m (£15.4m) 537 Universal 4 StreetDance 3D* UK $18.7m (£11.6m) 412 Vertigo 5 Kick-Ass US-UK $18.7m (£11.6m) 402 Universal 6 Prince Of Persia: The Sands Of Time* US $14.1m (£8.8m) 468 Disney 7 Green Zone US-UK $9.2m (£5.7m) 419 Universal 8 The Wolfman US $8.1m (£5.0m) 404 Universal 9 The Ghost Writer (aka The Ghost) Fr-Ger-UK $6.6m (£4.1m) 332 Optimum 10 Four Lions* UK $4.7m (£2.9m) 115 Optimum 11 Cemetery Junction UK $2.3m (£1.4m) 330 Sony Pictures 12 It’s A Wonderful Afterlife UK $1.6m (£1.0m) 294 Icon 13 4.3.2.1* UK $1.6m (£1.0m) 260 The Works 14 Sex & Drugs & Rock & Roll UK $1.5m (£0.9m) 131 Entertainment 15 Wild Target* UK $1.3m (£0.8m) 388 Entertainment 16 The Infidel UK $1.0m (£0.6m) 29 Revolver 17 Shank UK $1.0m (£0.6m) 86 Revolver 18 44 Inch Chest UK $0.6m (£0.4m) 75 Momentum 19 The Disappearance Of Alice Creed UK $0.6m (£0.4m) 67 CinemaNX 20 Perrier’s Bounty UK-Ir $0.5m (£0.3m) 90 Optimum Source: Rentrak EDI, RSU analysis Gross box office = cumulative total up to 25 July 2010 / * films were still being exhibited on 25 July 2010 Theatrical market share of UK film by studio and independent titles, 2001-2010 H1 Year H1 Market share of UK films produced with US studio backing ) Market share of UK independent films Total UK film market share 2001 21.2% 3.8% 25.0% 2002 16.1% 6.5% 22.6% 2003 12.5% 3.4% 15.9% 2004 19.5% 3.9% 23.4% 2005 26.2% 6.9% 33.1% 2006 14.4% 4.7% 19.1% 2007 21.8% 6.8% 28.6% 2008 25.4% 5.7% 31.1% 2009 8.5% 8.2% 16.7% 2010 20.2% 6.2% 26.4% Source: UK Film Council 2010 market share calculation based on grosses up to and including 25 July 2010 32 SPECIAL FOCUS: UK AND IRELAND Data Top films at UK Box office 2010 year to date Rank Film Title Distributor Box office Gross To Date Opening Date Director 1 Toy Story 3 Walt Disney Studios International $117.6m (£72.9m) 23/07/2010 Lee Unkrich 2 Alice In Wonderland Walt Disney Studios International $68.6m (£42.5m) 05/03/2010 Tim Burton 3 Inception Warner Bros $57.2m (£35.5m) 16/07/2010 Christopher Nolan 4 Shrek Forever After Paramount $52.0m (£32.2m) 02/07/2010 Mike Mitchell 5 The Twilight Saga: Eclipse eOne Films $48.0m (£29.7m) 09/07/2010 David Slade 6 Sex And The City 2 Warner Bros $34.9m (£21.6m) 28/05/2010 Michael Patrick King 7 Iron Man 2 Paramount $34.2m (£21.2m) 30/04/2010 Jon Favreau 8 Clash Of The Titans Warner Bros $32.6m (£20.2m) 02/04/2010 Louis Leterrier 9 How To Train Your Dragon Paramount $28.0m (£17.3m) 02/04/2010 Christopher Sanders, Dean DeBlois 10 Nanny McPhee And The Big Bang Universal Pictures $26.6m (£16.5m) 26/03/2010 Susanna White 11 Robin Hood Universal Pictures $24.8m (£15.4m) 14/05/2010 Ridley Scott 12 The Karate Kid Sony Pictures International $20.2m (£12.5m) 30/07/2010 Harald Zwart 13 StreetDance 3D Vertigo Films $18.7m (£11.6m) 21/05/2010 Max Giwa, Dania Pasquini 14 Kick-Ass Universal Pictures $18.7m (£11.6m) 02/04/2010 Matthew Vaughn 15 The Princess And The Frog Walt Disney Studios International $17.9m (£11.1m) 29/01/2010 Ron Clements, John Musker 16 Shutter Island Paramount $17.3m (£10.7m) 12/03/2010 Martin Scorsese 17 The A-Team 20th Century Fox $16.6m (£10.3m) 30/07/2010 Joe Carnahan 18 Valentine’s Day Warner Bros $16.5m (£10.2m) 12/02/2010 Garry Marshall 19 The Expendables Lionsgate UK $16.1m (£10.0m) 20/08/2010 Sylvester Stallone 20 Knight And Day 20th Century Fox $15.6m (£9.7m) 06/08/2010 James Mangold Source: UKFC research and statistics Films released 1 January 2010 to 1 October 2010; box office gross to date is to 3 October NUMBER OF FEATURES PRODUCED IN THE UK CO-PRODUCTIONS 2007 Q1-Q3 2008 Q1-Q3 2009 Q1-Q3 2010 Q1-Q3 22 20 12 10 UK DOMESTIC FEATURES 53 62 69 55 INWARD INVESTMENT FEATURE FILMS 26 24 30 23 TOTAL 101 106 111 88 Source: UK Film Council Data for films with budgets more than/equal to £500k. “Q1-Q3” means films commencing principal photography between 1 January and 30 September in each year. Data IS rounded to the nearest £0.1m so may not sum exactly to the totals shown NUMBER OF FEATURES PRODUCED IN THE UK 2007 Q1-Q3 2008 Q1-Q3 2009 Q1-Q3 2010 Q1-Q3 CO-PRODUCTIONS 54.7 46.4 17.1 25.7 UK DOMESTIC FEATURES 126.5 185.5 177.2 130.3 INWARD INVESTMENT FEATURE FILMS 592.0 301.5 788.9 780.1 TOTAL 773.2 533.4 938.2 936.1 Source: UK Film Council Data for films with budgets more than/equal to £500k. “Q1-Q3” means films commencing principal photography between 1 January and 30 September in each year. Data is rounded to the nearest £0.1m so may not sum exactly to the totals shown 33 SPECIAL FOCUS: UK AND IRELAND deals n EOne strikes Sky deal Quietly and discreetly, eOne struck a package deal with Sky over the summer. No formal announcement was made by either party, but an eOne source confirmed the deal had been done. It was clearly driven by the phenomenal success the company has enjoyed as UK distributor for the Twilight movies in its output deal with Summit Entertainment. The tie-up’s significance lies in the fact that BSkyB hardly ever strikes output or package deals with independent UK distributors. The broadcaster holds the pre-eminent role in the pay-TV market and the other independents have been grumbling about how hard it is to get their wares onto Sky’s movie channels. n Goldcrest backs Heights The goldrush days of film financing in the UK are over. Since the end of Section 48 tax breaks and the establishment of the UK Film Tax Credit in 2006, there has been a slow puncturing of the film financing balloon. Some equity financiers are still active, however. Goldcrest Capital has raised $30.5m (£19m) in equity for £3m-£8m ($4.8m-$12.8m)-budget British films through its structure Goldcrest Film Production. One of the first films it has backed is Andrea Arnold’s Wuthering Heights (produced by Ecosse and sold by HanWay). Goldcrest aims to supply around 20% of the budget and is also ready to cash-flow the tax credit and offer post-production facilities. Twilight: output deal with Summit has been a success for eOne Melancholia, which has been purchased at script stage. Other acquisitions are Kaboom, 13 Assassins, Silent Souls, Attenberg, Gorbaciof, Archipelago, The Tree and Vallanzasca – Gli Angeli Del Male. n Entertainment top picks Entertainment Film Distributors has been the leading UK indie for several years. In 2009, it had an 8.56% market share, almost twice as much as that of its nearest competitor. Some speculate that it may be outstripped this year by eOne. However, Entertainment owners, the Green brothers (Nigel and Trevor), remain the doyens of the sector. They picked up a lifetime achievement award at Screen’s inaugural Marketing and Distribution Awards in October. Shortly thereafter, they revealed they had pre-bought some of the most sought-after films in the marketplace, among them Martin Scorsese’s Hugo Cabret, s the new Freddie Mercury biopic and DNA Films’Dredd. n n Soda sets up film fund In the spring, London-based distributor Soda set up a new $3.2m (£2m) distribution fund called the Soda Film Fund to bolster its acquisitions and optimise release campaigns. By the autumn markets, it was clear that Soda was buying more and bigger films. Its autumn market acquisitions included Tran Anh Hung’s Norwegian Wood and Kelly Reichardt’s Meek’s Cutoff. n Artificial Eye’s haul of 11 The UK distribution market is crowded at every level. This quarter has seen the competition in the arthouse sector heat up further. The increasingly ambitious Artificial Eye, which has access to cinemas through its hook-up with parent company Curzon, announced an 11-picture haul in late September. The new additions include Ken Loach’s Route Irish, Jerzy Skolimowski’s Venice Special Grand Jury prize winner Essential Killing and Lars Von Trier’s 34 SPECIAL FOCUS: UK AND IRELAND digest Production n Giving the London Film Festival Keynote Industry Address in October, film-maker Ken Loach launched a fierce attack on the “lunacy” of current working and commissioning practices in the UK TV industry. “I think we now can say that television has become the enemy of creativity,” he commented. Loach showed no sympathy for top BBC executives, who recently learned they are losing their jobs as part of costcutting measures. “I’m pleased to see – I guess we all are – that one or two top-ranking BBC people are going to lose their jobs. It takes a million quid to get them out of the door and a handshake. Nevertheless, they’re on their way. Great. Good riddance. Maybe a few more will join them.” n Speaking at Screen’s Film Summit 2010 in October, culture minister Ed Vaizey called on broadcaster Sky to get behind the UK film industry. “It would be fantastic if an organisation like Sky, one of our most successful British broadcasters, could consider if it could start its own film production fund.” This chimed with remarks made by British producers. “To have such a major film platform in this country and not to invest in indigenous film seems to me just wrong,” producer Rebecca O’Brien of Sixteen Films stated bluntly of Sky’s perceived indifference toward the local production sector. n On the opening day of the London Film Festival (13 October), Channel 4 announced that it was increasing the budget of its film financing division, Film4, to £15m per annum for the next five years. The new budget, effective from 2011, represents a 50% increase on Film4’s current spend on film development and financing. Slumdog Millionaire: Toronto launchpad screens, it was on course to become the largest cinema circuit entirely equipped with Sony 4K digital technology”. n Often festival awards have no bearing whatsoever on a film’s commercial prospects. The Toronto audience award is different. Slumdog Millionaire made more than $375m (£236m) worldwide, and the Toronto audience award is credited with giving Danny Boyle’s crowd-pleaser its initial liftoff. The UK industry will be hoping that the Toronto effect also works for Tom Hooper’s The King’s Speech. Distribution n UK distributor Revolver Entertainment has acquired Srdjan Spasovic’s A Serbian Film, the hugely controversial Serbian horror film that was pulled from London’s Frightfest in the summer when Westminster Council refused to allow it to be shown in an uncut version. The British Board of Film Classification has demanded more than four minutes of cuts to the film for an 18 rating. Revolver is planning a release in December. “As a leading genre distributor we’re geared to offer innovative solutions when we release often challenging, controversial films,” says Revolver CEO Justin Marciano. “Because of this, we’ve established tried-and-tested audiences for a number of genre pictures over the past few years, bringing titles such as A Serbian Film directly to their core audiences – intelligent fans s of horror.” n Exhibition n Throughout the summer and early autumn, the UK financial press has been charting the bidding for Vue Cinemas. OMERS (Ontario Municipal Employees Retirement System), Doughty Hanson and BC Partners are all contenders to buy the chain with a second round of bidding due to begin in November. n In late August, Vue (one of UK exhibition’s ‘big three’ along with Odeon and Cineworld) announced it had struck a deal with Sony Europe to install 4K digital cinema projection systems across its circuit. Vue boasted that with “more than 36 million customers every year at its 68 sites and 657 35 SPECIAL FOCUS: UK AND IRELAND in focus UK film council funding What does UKFC axe spell for the industry? Sustainability has long been the holy grail for British film production. Governments and industry bodies have often talked about the importance of creating commercially sustainable UK film production companies. The decision to abolish the UK Film Council (UKFC) brings this quest back into focus. Two very different perspectives have emerged on what the axing of the Film Council will mean for producers and for the prospects of achieving sustainability.“What has happened, unfortunately, is that they [the government] have opened up factionalism again. There are a lot of oppositional voices all squabbling over not very much money,” says Iain Smith (producer of The A-Team). “One thing the Film Council did was to unite the two hemispheres – what I would call the Soho/ Pinewood divide between culture and commerce. For 10 years, even though people did not know it, the industry was actually working in a coherent way.” n Since 2000 the UK Film Council has invested £160m of lottery funding into more than 900 films, features and shorts. These films have won more than 300 awards, entertained 200 million-plus people and helped to generate more than £700m at the box office worldwide, generating £5 for every £1 the UKFC has invested. Breaking that production investment figure down, the UKFC has funded 206 feature films. This includes both titles that are going to be released in the next few months such as The King’s Speech, Attack The Block and Brighton Rock, as well as franchises that were in the pipeline at the time the council was launched in 2000. Source Film Council “The producer needs some ability not to be a pauper,” Thomas said. He was critical about of the harsh terms on which Film Council funding was made available to producers and called for “a kinder” approach from public financiers toward producers. “When you look at fee structures and what is allowed by UK funders [for producers], they are very, very modest. That doesn’t really sustain a film production company. It sustains someone in the back room of their house with a phone,” Thomas suggested. Broadcasters and financiers remain resistant to the proposals by producers’ organisation Pact for producers to have a far stronger recoupment position from public funding. The debate over producers’ terms of trade is bound to continue. In the current fiscal environment, there is little chance that public money will be thrown at film producers. What Thomas made clear, though, is that producers’ grievances aren’t just to do with their cash-flow struggles. Another deep-lying problem is the way they feel they are perceived. “It’s just the way the film business is structured [in the UK]. The producers don’t have any recognition on a film,” Thomas said. His inference was clear: the UK will have little chance of creating sustainable film companies unless the attitude toward producers changes. “There is this strange idea that a film producer is just like a service guy. He is not. He is an entrepreneur. He needs to be encouraged to be an entrepreneur. That is what nobody has understood.” The relationship between producers and the UKFC was, in some cases, antagonistic and dysfunctional. It’s fanciful in the extreme to imagine that producers’ lives will become easier now UKFC is being dismantled. What they expect is a “plurality of gatekeepers” – a number of different sources from broadcasters to lottery funders they can approach for s backing. And what they hope for is a little n Beyond the UKFC John Woodward, the Film Council’s CEO, warns that the UKFC had served “as a lightning rod for everybody’s discontent”. In its absence, that discontent is bound to be directed elsewhere, he predicts. Producers who have their applications for funding turned down will now have to find someone else to blame. Woodward himself announced he would be standing down in November 2010. He has signed up to a new role, as managing director of Arts Alliance, the European media venture capital company. Woodward is heavily critical of the lack of “a wind-down” strategy for the UKFC, which will officially close its doors in 2012. However, with the dismantling of the UKFC, others have seen an opportunity to transform the way that public funders and producers interact. Jeremy Thomas’s Recorded Picture Company, founded in 1974, is one of the few British production outfits that retains its independence and makes high-profile and challenging films (from Bernardo Bertolucci’s Oscar-winning The Last Emperor to David Cronenberg’s forthcoming A Dangerous Method). What was startling about a keynote address that Thomas gave to the Film London Production Finance Market in October was the low esteem in which he believes producers are held in the UK. 36 SPECIAL FOCUS: UK AND IRELAND In Production handles this foray into Emily Bronte territory. Sales agent Hanway has already secured numerous pre-sales on the project from Ecosse Films, which has been shooting in Yorkshire. International sales Hanway [email protected] Tinker, Tailor, Soldier, Spy There is high anticipation for Working Title’s big-screen adaptation of John Le Carre’s classic espionage novel, which went into production in late September. Gary Oldman is on board as George Smiley (the MI6 intelligence officer pitted against Soviet spies and moles, who was played brilliantly by Alec Guinness in a TV version of the novel). Tomas Alfredson, fresh from his success with cult Swedish vampire film Let The Right One In, is directing. The producers are Tim Bevan, Eric Fellner and Robyn Slovo. StudioCanal is backing the film, which will be released by Optimum in the UK and by Kinowelt in France and Germany. Production company Working Title International sales StudioCanal [email protected] My Week With Marilyn Michelle Williams plays Marilyn Monroe in Simon Curtis’s drama, which began shooting at Pinewood Studios in early October. The film chronicles one week in her life during the mid-1950s, when she was in Britain, working on The Prince And The Showgirl. The then 23-year-old Colin Clark was an assistant on the film and spent a week with Monroe as she tried to escape the shackles of her Hollywood career and embrace British life. The film is produced by Trademark Films and is financed and distributed by The Weinstein Company. BBC Films and Lipsync Productions are also financing the picture. It was developed in association with the UK Film Council and BBC Films. International sales The Weinstein Company s [email protected] n Hugo Cabret It’s a matter of some pride in the UK industry that Martin Scorsese’s first 3D film has been shooting over the summer in England, at Shepperton Studios. Scorsese’s production designer, Dante Feretti, reportedly built a full-scale model of the 1930s Gare Du Nord at the studios. Sony will be releasing the film in time for Christmas 2011. Production company GK Films, Infinitum Nihil, Warner Bros [email protected] Hunky Dory Jon Finn, one of the producers behind Billy Elliot, is also producing this Swansea-set, mid-1970s drama about an idealistic drama teacher who puts on an end-of-year show – a rock ’n’ roll version of The Tempest, featuring the kids’ favourite music of the era. Minnie Driver headlines the cast. Marc Evans (My Little Eye) directs from a script by Laurence Coriat (Genova, Wonderland). Producing alongside Finn is Dan Lupovitz. The film has just finished shooting in Wales. International sales Independent [email protected] Wuthering Heights Andrea Arnold has won a host of awards for her first two features, Fish Tank and Red Road, both set in contemporary urban Britain. Distributors will be very curious to see how she 37 SPECIAL FOCUS: UK AND IRELAND A look ahead Franchises on screen UK exhibitors are primed for a pre-Christmas bonanza with the latest episodes from two huge franchises due for release in November and December. Harry Potter And The Deathly Hallows: Part 1 goes out first and there is a three-week interval until The Chronicles Of Narnia: The Voyage Of The Dawn Treader is released. Release date 19 November and 9 December www.launchingfilms.com Brighton Rock Optimum Releasing is reportedly planning a big seaside premiere for Rowan Joffe’s new, 1960s-set version of Brighton Rock. Release date 4 February www.optimumreleasing.com Film funding deadline “The end of the year” is the absolute deadline the new coalition government has given itself for firming up its plans for public film policy. Sometime in the next quarter, it will become clear who will be in charge of the UK National Lottery production funds for film. What kind of cuts the British Film Institute will endure, as well as the fate of the regional screen agencies, will also be announced as part of the public spending review. [email protected] Ballyhenry Film Studios A brand new facility, Ballyhenry Film Studios, is almost completed and should be ready early next year. Located 37km south of Dublin in County Wicklow, the largest of the facility’s three stages is 28,400 sq ft, with the other two measuring 13,500 sq ft each. Contact Louise Ryan (353) 91 561 398 s www.irishfilmboard.ie n 38 Local Markets Report TERRITORY FOCUS: FRANCE Of Gods And Men: scored 467,950 admissions in its first week market update World Cup; there were fewer strong releases than usual; and the fact that most of the youth who used to attend the event now own film cards, allowing them to watch as many films as they wish throughout the year for a monthly subscription fee. After the festival, there were 18.4 million admissions to French cinemas in July, according to the CNC, which represents a 12.1% loss compared with the same month in 2009, when 20.9 millions tickets were sold. However, with some stronger releases such as Toy Story 3, Eclipse, Inception and Knight And Day followed by Salt, The Expendables, The Sorcerer’s Apprentice and The Karate Kid, the end of summer proved more successful, with a 16.3% increase in admissions in August. This represents a jump from 15.1 million tickets sold in 2009 to 17.5 million in 2010. Successful French films making an impact on the summer charts were thin on the ground this year. But among those that did draw in audiences were L’Italien, a comedy starring Kad Merad, which attracted 1.1 million people, and Mathieu Amalric’s Cannes entry, On Tour, which achieved more than With more than 200 million admissions last year (January – December 2009), France remains a strong territory, where the local industry still resists US blockbuster domination. This is mainly thanks to a wide range of state grants and subsidies for homegrown cinema, a successful business model that other countries wanting to maintain a strong local focus would do well to replicate. The July to September period 2010 has been one of mixed fortunes, in terms of attendance at least. This year the annual Cinema Feast, which took place from 26 June to 2 July, was extended to one week instead of its usual three days. No longer the sole preserve of dedicated film buffs, 3.2 million people visited a French cinema during the festival week. But this was a significant drop in attendance on 2009 – 30% down on the 4.6 million people who attended last year, despite the extension. There are several possible explanations for the decrease in visitor numbers: the Cinema Feast coincided with the FIFA 39 TERRITORY FOCUS: FRANCE 500,000 admissions. Provocative cult director Bertrand Blier made a successful comeback on 25 August with The Clink Of Ice, which won the Europa Cinema Award at the Venice International Film Festival and should reach 700,000 admissions. A surprise hit came from one of the French entries at the Cannes International Film Festival: Xavier Beauvois’ Of Gods And Men (released on 8 September). In the first week, 467,950 people went to see it, a further 480,944 the next week and some 456,929 in the third week, meaning it has already trumped last year’s hit, A Prophet (1.3 million admissions). As a result, Mars Distribution increased its prints from 252 to 424 and then to 442. Critical acclaim and word of mouth has had a significant impact on attendance figures. Meanwhile, the film has been selected as the French entry for the foreign-language Oscar category. Neither Claude Lelouch’s 50th anniversary film Ces Amours-là (released on 15 September) nor Rachid Bouchareb’s Outside The Law (released on 22 September) got that opportunity. Last but not least, another French winner is 32-year-old director Alexandre Aja, who notched up his third hit in Hollywood with Piranha, following his 2006 remake of The Hills Have Eyes and Mirrors in 2008. He embodies a new kind of French film-maker, who prefers the lure of Hollywood to staying put in France making s films for French audiences. n Cinema attendance in France 2000-2009 Year Population Filmgoers proportion of population who go to cinemas Admissions Admissions per Filmgoer 2000 54.4m 31.8m 58.4% 165.8m 5.2 2001 54.4m 33.4m 61.4% 187.5m 5.6 2002 54.6m 33.3m 61.0% 184.4m 5.5 2003 54.9m 32.4m 59.0% 173.5m 5.4 2004 55.5m 33.1m 59.6% 195.5m 5.9 2005 55.5m 33.2m 59.6% 175.4m 5.3 2006 56.4m 34.8m 61.8% 188.8m 5.4 2007 56.7m 34.6m 61.1% 177.9m 5.1 2008 57.2m 36.4m 63.7% 190.1m 5.2 2009 57.4m 36.2m 63.1% 200.9m 5.5 Source:CNC & Médiamétrie, six years and over 40 TERRITORY FOCUS: FRANCE Data French admissions top 20 films at the box office September 2010 Rank Title Distributor Month Admissions 2010 2009 Change 2009-2010 1 Inception Warner Bros 4,745,170 January 18.8m 15.3m (+) 22.6% 2 Shrek Forever After Paramount Pictures France 4,532,056 February 20.5m 19.1m (+) 7.5% 3 Alice In Wonderland Walt Disney Studios 4,526,481 March 18.7m 17.8m (+) 5.2% 4 Toy Story 3 Walt Disney Studios 4,086,440 April 18.6m 17.4m (+) 6.8% 5 Camping 2 Pathé Distribution 3,967,885 May 15.9m 14.9m (+) 6.6% 6 Eclipse SND Films 3,930,577 June 10.9m 11.2m (-) 3.1% 7 The Princess And The Frog Walt Disney Studios 3,839,308 July 18.4m 20.9m (-) 11.9% 8 Heartbreaker Universal Pictures France 3,735,621 August 17.5m 15.1m (+) 16.3% 9 Invictus Warner Bros 3,109,002 September 10.7m 10.5m (+) 1.7% 10 Shutter Island Paramount Pictures France 3,061,692 Jan-Sept 149.8m 142.0m (+) 5.5% 11 Oceans Pathé Distribution 2 858 192 12 The Round Up Gaumont 2,851,891 13 Iron Man 2 Paramount Pictures France 2,559,297 14 Robin Hood Universal Pictures France 2,337,160 15 How To Train Your Dragon Paramount Pictures France 2,245,058 16 Prince Of Persia : The Sands Of Time Walt Disney Studios 2,166,769 17 Sherlock Holmes Warner Bros 2,143,123 18 Clash Of The Titans Warner Bros 1,876,528 19 Knight And Day 20th Century Fox 1,755,397 20 The Expendables Metropolitan Filmexport 1,632,522 Source : CNC top 10 french distributors september 2010 Rank Source : Ciné Chiffres top 10 french films at the box office September 2010 Rank Title Camping 2 1 Distributor Pathé Distribution Admissions Heartbreaker Universal Pictures France 3,735,621 3 Oceans Pathé Distribution 2,858,192 4 The Round Up Gaumont 2,851,891 5 ...Adèle Blanc-Sec EuropaCorp Distribution 1,613,180 6 Le Mac ARP Sélection 1,481,014 7 Tout Ce Qui Brille Pathé Distribution 1,416,611 8 Of Gods And Men Mars Distribution 1,405,823 9 My Afternoons with Marguerite StudioCanal 1,210,513 10 Fatal Universal Pictures France 1,196,899 Films 1 Warner Bros 11 16,932,919 11.9% 2 Walt Disney Studios 5 16,022,702 11.3% 3 20th Century Fox 11 15,831,422 11.2% 4 Paramount Pictures France 8 14,578,920 10.3% 41 Market Share 5 Pathé Distribution 11 11,805,326 8.3% Universal Pictures International 10 10,218,260 7.2% 7 Metropolitan Filmexport 23 7,547,817 5.3% 8 StudioCanal 16 7,241,740 5.1% 9 SND Films 7 5,216,349 3.7% Sony Pictures 11 5,070,757 3.6% Source : Le Film Français Source : Ciné Chiffres Admissions 6 10 3,967,885 2 Distributors TERRITORY FOCUS: FRANCE Data Market share 2010 Digital penetration Number of Screens number of sites 13.5% December 2009 894 253 September 2010 1,387 435 Change (+) 55.1% (+) 71.9% 33% 53.5% Source : Manice, Cinego and Côté Cinémas French production January 2009-September 2010 2009 2010 change Number of Films 118 131 (+) 11% Total investment $977.8m (€719.8m) $991.5m (€729.7m) (+) 1% n French Films n US Films n Other films Figures for January-August 2010 Source : Ficam Source : CNC French films overseas July-August 2010 Rank Title Admissions Gross box office Prints territories Cumulative box office 1 The Extraordinary Adventures of Adèle Blanc-Sec 172,041 $1.5m (€1.1m) 412 3 $3.0m (€2.2m) 2 Oceans 151,890 $0.8m (€0.6m) 180 4 $8.8m (€6.5m) 3 The Concert 105, 212 $0.9m (€0.7m) 191 7 $2.4m (€1.8m) 4 Heartbreaker 95, 123 $0.6m (€0.4m) 87 3 $0.8m (€0.6m) 5 The Secret Of Moonacre 90,152 $0.3m (€0.2m) 126 1 $1.3m (€1.0m) 6 The Ghost Writer (aka The Ghost) 88,423 $0.4m (€0.3m) 106 5 $8.6m (€6.4m) 7 Little Nicholas 86,751 $0.7m (€0.5m) 155 2 $2.6m (€1.9m) 8 Mammuth 76,811 $0.7m (€0.5m) 66 1 $0.1m (€0.1m) 9 Of Gods And Men 69,301 $0.6m (€0.4m) 32 2 $0.09m (€0.07m) 10 My Afternoons With Marguerite 57,283 $0.5m (€0.4m) 71 3 $0.2m (€0.2m) Source : Unifrance Film International 42 TERRITORY FOCUS: FRANCE Data Age of French filmgoers Year 6-14 years 15-19 years 20-24 years 25-34 years 35-49 years 50 years and over 2000 11.70% 13.00% 17.40% 18.20% 20.10% 19.60% 2001 12.20% 12.00% 15.10% 16.70% 20.40% 23.60% 2002 13.50% 11.50% 14.00% 16.40% 20.60% 23.90% 2003 11.50% 15.10% 14.20% 16.50% 20.50% 22.20% 2004 12.10% 13.20% 13.60% 14.70% 20.10% 26.30% 2005 10.90% 13.10% 14.50% 15.00% 19.10% 27.40% 2006 12.80% 11.80% 11.90% 13.90% 22.00% 27.60% 2007 12.50% 12.70% 14.20% 12.30% 20.00% 28.30% 2008 11.30% 11.90% 13.10% 14.00% 19.30% 30.30% 2009 12.90% 12.70% 12.70% 12.50% 18.20% 31.10% Source : CNC & Médiamétrie, six years and over video sales – film market share January-June 2010 DVD sales january-June) 2010 Turnover Market Share French Films $111.7m (€81.1m) 20.3% US Films $375.6m (€272.6m) 68.4% Other Films $62.1m (€45.1m) 11.3% Total Films $549.3m (€398.7m) 63.1% Non Films $293.8m (€213.3m) 33.7% Promotion Offers $27.8m (€20.2m) 3.2% Total $870.8m (€632.2m) 100% units Change Turnover Change DVD 59.0m (+) 1.3% $767.1m (€557.0m) (+) 1.5% Blu-ray 3.9m (+) 99.1% $103.5m (€75.2m) (+) 75.3% Total 63.0m (+) 4.5% $870.7m (€632.2m) (+) 6.9% Source : CNC/GFK Source : CNC/GFK 43 TERRITORY FOCUS: FRANCE Deals n French films gain US distribution Two of this year’s main French film productions have found US distributors. The first, François Ozon’s Potiche, co-starring Catherine Deneuve and Gérard Depardieu, will be released by Music Box in a deal signed on 12 September with Wild Bunch. The second is Gilles Paquet-Brenner’s Elle S’appelait Sarah, from Tatiana de Rosnay’s best-selling novel, which sold 2 million copies worldwide and has been translated into 15 languages and published in 22 countries. The film, starring Kristin ScottThomas, was sold to the Weinstein Company on 10 September by Kinology. n Artists gain YouTube payment In September, Sacem, the French professional artists’ association, signed a deal with YouTube so that authors, composers and publishers belonging to the association will be paid when their work is used on the website. Meanwhile, YouTube agreed a new partnership with Arte, the European culture channel. From November, the website will have free showings of selected programmes from the channel in catch-up TV both in French and in German. Sammy’s Adventure: The Secret Passage: exclusive rights in Germany existing relationships in the marketplace”. It will also give RTL Television access to a film library including more than 5,000 French, British, Italian, German and American s classics. n n EuropaCorp in exclusive Universum deal On 27 September, EuropaCorp signed a three-year deal with German company Universum Film, giving the distributor the exclusive rights to its next 23 productions in Germany, Austria, Liechtenstein, Luxemburg and German-speaking Switzerland. The deal with the Bertelsmann subsidiary company will guarantee a release in these countries, and those benefiting will include Luc Besson’s Arthur 3: The War Of The Two Worlds and Bibo Bergeron’s next animated movie, A Monster In Paris. n StudioCanal signs RTL output deal On 8 September, StudioCanal and RTL Television signed an output deal due to start in January 2011. The deal gives the main German private network the exclusive rights in Germany to international projects such as 3D animated feature Sammy’s Adventures: The Secret Passage and Paul Haggis’s thriller The Next Three Days starring Russell Crowe as well as to remakes such as Escape From New York and Cliffhanger. According to StudioCanal chairman and CEO Olivier Courson, this new partnership “will serve to further solidify StudioCanal’s 44 TERRITORY FOCUS: FRANCE Digest Production n The CNC has published a new list of projects that will be awarded state subsidies. The first commission granted four first films: 17 Octobre 1961 by Yasmina Adi, De L’Usage Du Sex-toy En Temps De Crise by Eric Pittard, La Papesse Jeanne by Jean Breschand and Sans Toi, Sans Ton Amour, Sans Ton Corps, Sans Ton Sexe by Abdellah Taia. The second commission granted seven projects: Immigrés De Force by Lam Lê, S’enfuir Avec Toi by Gaël Morel, Cabbale by Charles Najman, Un Amour (Ensemble) by Richard Copans, À Moi Seule by Frédéric Videau, Délivrez-moi by Luc and Jean-Pierre Dardenne, Vous N’Avez Encore Rien Vu by Alain Resnais. n Arte France Cinema’s list of co-productions will include Syngué Sabour by Atiq Rahimi, from his own book, which was awarded the Goncourt Prize in 2008; Captured by Brillante Mendoza (Serbis), starring Isabelle Huppert; Eleven Flowers by Wang Xiaoshuai (In Love We Trust); Michael Kohlhaas by Arnaud des Pallières from the Heinrich von Kleist novel already made for the screen in 1937 and 1969; and La Pasión De Michelangelo by Esteban Larraín (Alicia In The Land). 17 Octobre 1961: film will be awarded a state subsidy that will help low-budget (less than $5.4m/€4m) films released with less than 100 copies in France by first-, secondor third-time directors whose previous films did not gross more than 300,000 tickets. In a show of solidarity and recognition between film-makers, every month several experienced directors will cho0se one film by one of their younger colleagues to receive this label and help them to s reach a wider audience. n Exhibition n On 10 July, one third of the French theatres owned by UGC went on strike to protest against a redundancy plan affecting 95 projectionists. The redundancies are a result of the installation of digital equipment that started on 1 September and will roll out over the next two years. n During the 65th French Exhibitors Congress in Deauville (20-23 September) the Minister of Culture, Frédéric Mitterrand, announced that the state will provide a $107m (€125m) grant to help around 1,000 French film theatres equip themselves with digital technology during the next three years, covering about 90% of their technical expenses. A further 500 itinerant and part-time cinemas should soon be included too. On 30 September, an official law was published supporting this change. Distribution n UGC and Canal+ have joined forces for an original initiative, due to start in January 2011, that highlights the importance of film-makers to the French audience. They have created a new label called Cinéastes de demain/Film-Makers of the Future 45 TERRITORY FOCUS: FRANCE In Focus (Memento) and Maggie Grace (Lost) to be co-directed by Stephen St Leger and James Mather, who previously worked together on the short film Prey Alone in 2005. EuropaCorp is also investing in 3D animation, with two major projects already in production: Un Monstre à Paris by French director Bibo Bergeron (Shark Tale) and La Mécanique Du Cœur, inspired by a concept album by pop group Dionysos. Its lead singer, Mathias Malzieu, will direct, along with director Stéphane Berla, who has previously worked with the band. With a catalogue valued at an estimated $128m (€95m), EuropaCorp’s expansion also includes the local market. That is why the company’s autumn releases include auteur films such as Guillaume Canet’s Little White Lies, Eric Lartigau’s The Big Picture – from Douglas Kennedy’s novel – and Nicole Garcia’s A View Of Love. And before the end of 2010, Luc Besson will start his latest film as a director, a mysterious $22m (€16.2m) project, following international hits such as the Arthur trilogy and The Extraordinary Adventures Of Adèle Blanc-Sec, which has already gained $12m (€8.8m) s worldwide, including China. n EuropaCorp invests in the future Founded in September 2000 by film-maker Luc Besson and Gaumont producer Pierre-Ange le Pogam, EuropaCorp made significant changes in its organisation on the eve of its 10th birthday. On 7 July, Christophe Lambert – not to be confused with his namesake and Greystoke actor – replaced Jean-Julien Baronnet as EuropaCorp CEO. Lambert was already in charge of Frontline, the holding company of Luc Besson’s group, and had been dealing with Cinema City, the single-site studio, production offices and post-production facilities Luc Besson has been planning for several years, and in which his company is investing $8.3m (€6m) for a 2012 opening. Once open, EuropaCorp will benefit from the new independence and studio facilities that Cinema City will give it. But this is just part of the changes afoot at the company. As well as Lambert’s appointment, other personnel changes have helped ensure EuropaCorp will be a serious player on the international stage. The arrival of Jean de Rivières in April as its new head of the film department, the acquisition of TV producer Cipango and the promotion of Baronnet to CEO of the company has set the tone for a new era for this mini studio, whose 93 French releases attracted 55 million admissions in 10 years. EuropaCorp has always had ambitious plans, and it has achieved many successes outside of France, including Taken, which recorded a worldwide box office of $221.1m (€162.6m). The company line-up for 2011 includes Colombiana, a $40m (€30m) English-language film starring Zoe Saldana (Avatar) and Lock Out, a $30m (€22m) film starring Guy Pearce EuropaCorp consolidated revenue Revenue stream April-June 2009 April-June 2009 (share) April-June 2010 April-June 2010 (Share) Change International sales $4.3m (€3.2m) 15.2% $6.6m (€4.9m) 20.8% (+) 54.8% Cinemas, France $2.1m (€1.5m) 7.4% $7.7m (€5.7m) 24.1% (+) 273.3% Video, France $8.5m (€6.2m) 30.4% $3.9m (€2.9m) 12.3% (-) 54.8% Television, France $8.3m (€6.1m) 29.5% $5.2m (€3.8m) 16.6% (-) 36.7% Subsidies $1.5m (€1.1m) 5.4% $1.8m (€1.3m) 5.6% (-) 18.2% TV Series – – $5.0m (€3.7m) 15.6% N/A Other Activities $3.3m (€2.4m) 11.8% $1.7m (€1.3m) 5.1% (-) 50% Total $28.1m (€20.7m) 100% $31.6m (€23.2m) 100% (+) 12.7% Source : EuropaCorp (unaudited) 46 TERRITORY FOCUS: FRANCE in production The Fairy (Dominique Abel, Fiona Gordon, Bruno Romy and Philippe Martz) Shooting began on 2 August for 12 weeks in Le Havre. Both behind and in front of the camera, the Iceberg and Rumba directors, Dominique Abel, Fiona Gordon and Bruno Romy, tell a love story between a fairy and a night watchman. It should be ready for Cannes in 2011. Co-production partners Courage Mon Amour, MK2 Prod International Sales MK2 (33) 1 44 67 30 00 s [email protected] n Vous N’Avez Encore Rien Vu The 88-year-old veteran film-maker Alain Renais is now working on the adaptation of Eurydice, a play written by Jean Anouilh in 1942, together with director Laurent Herbiet, who previously worked with him as his co-writer for Wild Grass. Co-production partners F Comme Film (33) 1 40 73 84 20 [email protected] L’Ordre Et La Morale Back from Hollywood after Gothika and Babylon A.D., Mathieu Kassovitz, director of La Haine, tells the story of the dramatic hostage-taking by Kanak separatists in New Caledonia in the spring of 1988. Shooting started on 29 August for 10 weeks on three French Polynesian islands: Moorea, Tahiti and Anaa. French release 21 September 2011 Co-production partners Nord-Ouest Films, UGC Images, Studio 37, France 2 Cinéma. International Sales Kinology, Studio 37, UGC Images Nord-Ouest: (33) 1 53 20 47 20 Switch Novelist Jean-Christophe Grangé wrote the original script of this thriller by Frédéric Schoendoerffer, the director of Crime Scenes and Secret Agents. Shooting started on 2 August in Paris and Montreal, starring Eric Cantona. Co-production partners Carcharodon, L&G, France 2 Cinéma, Jouror, Tercera, with Canal+ CinéCinéma, Pathé, Banque Populaire Image 11, Cofinova 7. International sales: Pathé. (33) 1 71 72 30 00 [email protected] Mon Père Est Femme De Ménage The first film made from a bestseller written by the film-maker herself, Saphia Azzedine. Shooting started on 12 July for four weeks in Paris, starring François Cluzet. Co-production partners La Petite Reine, ARP. International sales ARP Sélection (33) 1 56 69 26 00 / (33) 1 44 90 73 90 47 TERRITORY FOCUS: FRANCE A Look Ahead Release date 15 December (33) 1 53 83 03 03 [email protected] 32nd Festival of 3 Continents in Nantes Twenty feature films receiving their French premiere take part in both the Competition and Official selection. The festival includes a workshop focusing on the outline and structure of film co-production within the industry. There will be tributes to Chinese independent contemporary cinema, including 15 features and documentaries, and to Senegalese director Djibril Diop-Mambéty. Date 23-30 November (33) 2 40 69 74 14 [email protected] Les Émotifs Anonymes Five years after their first meeting in Anne Fontaine’s Entre Ses Mains, Isabelle Carré and Benoît Poelvoorde meet again in a new comedy by Jean-Pierre Améris (Bad Company) about a romance between two shy people crazy about chocolate. International sales StudioCanal Release date 22 December s (33) 1 71 35 10 19 n Point Blank A man who was wounded while witnessing a murder escapes from the hospital with another man whose pregnant wife has been kidnapped by his accomplice. Gilles Lellouche (Little White Lies) and Roschdy Zem (Outside The Law) co-star in this thriller by director Fred Cavayé, whose first film, Anything For Her, inspired the Paul Haggis remake The Next Three Days. International sales Gaumont Release date 1 December (33) 1 46 43 20 35 [email protected] Full Treatment International French star of The Da Vinci Code Audrey Tautou is back to light comedy and romance in this film co-starring Nathalie Baye (Catch Me If You Can) and Sami Bouajila (Outside The Law). Director Pierre Salvadori has already worked with Tautou in his previous film, Priceless. International sales Wild Bunch Release date 8 December (33) 1 53 01 50 20 / (33) 1 53 01 50 36 A View Of Love This is a new film by Nicole Garcia starring Jean Dujardin, Marie-Josée Croze and Claudia Cardinale. A man and a woman who used to live in the same neighbourhood during the war in Algeria try to rebuild their love. International sales EuropaCorp 48 Local Markets Report TERRITORY FOCUS: ITALY The Karate Kid: remake could have performed well as a summer release market update Exhibitors are feeling pretty good in Italy – and it’s been a long road – almost 15 years since the first multiplexes were built in the territory. Gino Zaggari, director of Italy’s Multiplex association, ANEM, says multiplexes are “going strong”. In fact, the leading circuits, The Space Cinema and UCI Italia, say that growth is on the agenda. That said, expansion currently tends to focus on buying up existing structures, creating new alliances or upgrading the technology, rather than investing in new-builds. The Space Cinema, for example, was formed this year when Warner Village cinemas and Medusa Multisala structures were bought by clothing manufacturer Benetton and Italian Prime Minister Silvio Berlusconi’s Mediaset group. In October, the group purchased sites from The Planet circuit and now has 27 locations, with a total of 268 screens, of which approximately 100 are 3D-capable. While it has been a good year so far, The Space Cinema CEO Giuseppe Corrado says: “Distributors have to believe [even more] in our summer market, while exhibitors must work to reinforce the habit of summer movie-going.” And although summer saw a stream of programming, even in July and August, he says “the critical mass still can’t fill the seats in the [biggest] structures”. Even the biggest audiences don't fill to capacity the biggest cinemas in the country. CEO of UCI Andrea Stratta says that, product-wise, distributors would do well to consider more summer release dates as “some distributors don’t take advantage of this time of year”. Stratta cites The Karate Kid and Medusa’s local title, Sharm El Sheik – Un’estate indimenticabile, as films that could have performed very well with summer releases. In fact, the 30% year-on-year rise in attendance in August should show distributors the potential there is for growth during this period. While the scale is different, this is the same increase, year on year, that Avatar created in Italy in 49 TERRITORY FOCUS: ITALY DISTRIBUTION February, and shows that July and August are ripe for these much higher growth spurts. 3D is also creating a more secure environment for investment. In Italy, 3D accounted for 18% of admissions for the period 1 January to 30 September. At UCI, that number was even stronger. Stratta says 20% of UCI’s admissions came from 3D titles – and the results have attracted the attention of the circuit’s shareholders, who now see Italy as a solid territory. “Italy also has strong local films. Other territories don’t have this,” he says. Currently, UCI is expanding its technical capabilities with plans in place to digitise 100% of its screens in 2011. Of these, 50% will be 3D-equipped. UCI will have 96 3D-ready screens by the end of November 2010. While 3D certainly provides fuel for expansion – Corrado likens 3D to technical advancements such as the change from silent films to talkies, as well as the emergence of technicolor and surround sound, but says that, as always, it’s the film that counts. “3D gives vitality to the business but it isn’t a solution for cinema. A good film in 2D will make more than an average film in 3D. Avatar and Alice In Wonderland allowed us to test this technical advancement, but those films are good in 2D s as well,” adds Corrado. n 2009 2008 CHANGE TOTAL BOX OFFICE $ 848.0m (€622.7m) $808.5m (€593.7m) +4.9% TOTAL AUDIENCE 98.9m 99.3m -0.4% TOTAL NUMBER OF FILMS DISTRIBUTED 857 845 +1.4% SOURCE: Anica 50 TERRITORY FOCUS: ITALY Data top 20 films july-september 2010 rank tite distributor country of origin release date Box office admissions 1 Eclipse Eagle Pictures US 30/06/2010 $18.1m (€13.3m) 2,127,378 2 Shrek Forever After 3D Universal US 25/08/2010 $14.5m (€10.6m) 1,180,626 3 Toy Story 3 3D Walt Disney Italia US 07/07/2010 $14.3m (€10.5m) 1,171,741 4 The Sorcerer's Apprentice Walt Disney Italia US 18/08/2010 $9.7m (€7 .1m) 1,210,725 5 Shrek Forever After Universal US 25/08/2010 $8.3m (€6.1m) 972,535 6 Law Abiding Citizen Moviemax US 25/08/2010 $6.4m (€4.7m) 779,079 7 Inception Warner Bros Italia US 24/09/2010 $5.6m (€4.1m) 649,446 8 Vampires Suck 20th Century Fox Italia US 17/09/2010 $5.0m (€3.7m) 585,610 9 Resident Evil: Afterlife 3D Sony Pictures Italia US 10/09/2010 $4.8m (€3.5m) 371,315 10 The Solitude Of Prime Numbers Medusa Film IT 10/09/2010 $4.2m (€3.1m) 535,926 11 Toy Story 3 Walt Disney Italia US 07/07/2010 $4.2m (€3.1m) 507,256 12 Eat, Pray, Love Sony Pictures Italia US 17/09/2010 $ 4.1m (€3.0m) 504,822 13 The Expendables 01 Distribution US 01/09/2010 $4.1m (€3.0m) 482,944 14 Sharm El Sheik – Un'estate Indimenticabile Medusa Film IT 17/09/2010 $3.7m (€2.7m) 445,786 15 The Last Airbender Universal US 24/09/2010 $3.5m (€2.6m) 284,982 16 The Karate Kid Sony Pictures Italia US 03/09/2010 $2.7m (€2.0m) 337,230 17 Solomon Kane Eagle Pictures UK 14/07/2010 $2.7m (€2.0m) 322,513 18 A Nightmare On Elm Street Warner Bros Italia US 25/08/2010 $2.7m (€2.0m) 310,434 19 Marmaduke 20th Century Fox Italia US 13/08/2010 $2.6m (€1.9m) 337,774 20 Somewhere Medusa Film US 03/09/2010 $2.6m (€1.9m) 317,140 SOURCE:CINETEL top 20 LOCAL films july-september 2010 rank tite distributor country of origin release date Box Office admissions 1 The Solitude Of Prime Numbers Medusa Film IT 10/09/2010 $4.2m (€3.1m) 535,926 2 Sharm El Sheik – Un'estate Indimenticabile Medusa Film IT 17/09/2010 $3.7m (€2.7m) 445,786 3 The Passion 01 Distribution IT 24/09/2010 $1.6m (€1.2m) 199,439 4 Niente Paura BIM Distribution IT 17/09/2010 $0.5m (€0.4m) 69,562 5 Basilicata Coast To Coast Eagle Pictures IT 09/04/2010 $0.5m (€0.4m) 73,048 6 Miral Eagle Pictures COP 03/09/2010 $0.3m (€0.2m) 32,614 7 Venti Sigarette Cinecitta' Luce IT 08/09/2010 $0.3m (€0.2m) 31,082 8 L'imbroglio Nel Lenzuolo 01 Distribution COP 18/06/2010 $0.3m (€0.2m) 27,677 9 La Nostra Vita 01 Distribution IT 21/05/2010 $0.1m (€0.1m) 24,749 10 The Concert BIM Distribution COP 05/02/2010 $0.1m (€0.1m) 22,992 SOURCE: CINETEL 51 TERRITORY FOCUS: ITALY Data CO-PRODUCTION INVESTMENT IMPORTED FILMS 2009 2008 2007 $104.9m (€77.1m) $104.5m (€76.8m) $124.3m (€91.4m) FOREIGN INVESTMENT IN CO-PROS $195.1m (€143.5m) $142.4m (€104.7m) $282.2m (€207.5m) TOTAL INVESTMENT IN CO-PROS $300.0m (€220.6m) $246.8m (€181.5m) $406.6m (€298.9m) ITALIAN INVESTMENT IN CO-PROS 2009 2008 CHANGE 2008-2009 2007 ALL EUROPEAN FILMS 72 72 – 93 FILMS (NOT EU OR US) 21 30 -9 35 US FILMS 163 194 -31 167 TOTAL 256 296 -40 295 SOURCE: ANICA SOURCE: ANICA Films that have recieved assistance from the state NUMBER OF FILMS 2009 NUMBER OF FILMS 2009 NUMBER OF FILMS 2007 CONTRIBUTION 2009 CONTRIBUTION 2008 CONTRIBUTION 2007 27 25 27 $33.9m (€24.9m) $41.6m (€30.6m) $46.9m (€34.5m) FILMS OF CULTURAL INTEREST 1ST & 2ND WORKS 27 22 26 $13.1m (€9.6m) $14.7m (€10.8m) $16.3m (€12.0m) SHORTS OF CULTURAL INTEREST 24 30 27 $1.4m (€1.0m) $1.6m (€1.2m) $1.5m (€1.1m) SCRIPT DEVELOPMENT 20 20 20 $1.0m (€0.7m) $1.0m (€0.7m) $1.0m (€0.7m) TOTAL 98 97 100 $49.3m (€36.2m) $58.9m (€43.3m) $65.7m (€48.3m) SOURCE: ANICA SITES 2009 VS 2008 2009 SHARE 2008 SHARE CHANGE SINGLE SCREEN 582 52.7% 612 54.2% (-) 4.9% 2-4 SCREENS 312 28.3% 324 28.7% (-) 3.7% 5-7 SCREENS 91 8.2% 80 7.1% (+) 13.8% MORE THAN 7 119 10.8% 113 10.0% (+) 5.3% TOTAL 1,104 100% 1,129 100% (-) 2.2% SOURCE: ANICA 52 TERRITORY FOCUS: ITALY Data DVD SALES DVD RENTALS FORMAT 2006 2007 2008 2009 FORMAT 2006 2007 2008 2009 DVD 753 773 655 544 DVD 260 218 160 114 BLU-RAY DISC – 3 10 21 BLU-RAY DISC – 0 0.2 0.5 OTHER* 12 4 2 0.3 OTHER* 12 0.2 0.2 – TOTAL SALES 765 780 666 565 TOTAL RENTALS 272 218 161 115 SOURCE: Univideo * VHS, UMD, HD-DVD SOURCE: Univideo * VHS, UMD, HD-DVD DVD SALES BY TYPE 2009 Arts spending 2009 3% 5.8% 6% 9% 19% 25.8% 12% 55.5% 3.7% 1.4% 28% 8% 7.7% n Promo n Film n TV series n Music n Special n Animation Source: Univideo 16% n Cinema n Theatre n Concert n Sports activities n Dancing n Travelling shows n Arts exhibitions n Other Source: Univideo 53 TERRITORY FOCUS: ITALY deals n RAI Cinema ties with Disney RAI Cinema signed a multiyear, multi-genre deal with The Walt Disney Company at Mipcom in October, covering feature films Prince Of Persia: The Sands Of Time, Alice In Wonderland and animations Ratatouille, Wall-E, Up and Toy Story 3. The deal also includes animation classics Snow White And The Seven Dwarfs, Cinderella and Sleeping Beauty, which will be made available free for the first time to TV audiences. n Sky Italia teams with Mediaset Rupert Murdock’s Sky Italia signed a volume deal with Silvio Berlusconi’s Mediaset in July that includes 40% of US fare from Medusa’s 2009-2012 film slate and 60% Italian product . n Mediaset signs Mipcom deals Mediaset has announced several Mipcom deals, including the acquisition of PPV/VOD, pay and free rights to titles from the Universal Theatrical slate 2010 such as The Wolfman, The American, Robin Hood and Despicable Me, as well as from the Warner Bros theatrical slate – Clash Of The Titans, Sex And The City 2, Inception, Harry Potter And The Deathly Hallows: Part 1 – and the TV-mini series The Pillars Of The Earth, based on the Ken Follett novel. Prince Of Persia: The Sands Of Time: RAI has picked up a number of films from Disney n Sequel in the pipeline The success of Benvenuti Al Sud, a Medusa-Cattleya co-production remake of the French hit Welcome To The Sticks has prompted Medusa to announce s an immediate sequel: Benvenuti Al Nord. n n Cinecittà Studios upgrade In September, Cinecittà Studios’ board of directors approved a development plan for the studios. The first phase will include a new sound stage equipped for digital and 3D shoots. A new restaurant space, a hotel and a fitness area to help cater for foreign productions, will also be added in the new design. n Medusa links with Brizzi Medusa has signed writer and director Fausto Brizzi to a four-film deal. Meanwhile, Brizzi has completed two films that were in production throughout the summer: Maschi Contro Femmine and Femmine Contro Maschi, valued at a combined budget of $25m (¤18m). The films have split distribution deals, one via 01 Distribution and one via Medusa. The first in the Brizzi/Medusa production deal quartet will be Sex In 3D, for which cameras are set to roll in spring 2011. 54 TERRITORY FOCUS: ITALY digest ticket compiler, which covers 85% of the market. Arthouse or non-multiplex screens numbered 879. Production n Italy and Russia have signed a pact aimed at increasing co-productions between the two countries. The pact was signed between Cinecitta Luce and Russia’s state film fund, the Russian Federal Fund to Support National Cinema, which is making available $2.8m (€2m) for Italian-Russian coproductions. The deal follows on the heels of the travelling film festival of Venice films, Venice to Moscow. It featured several Russian-themed titles including debut film-maker Valerio Mieli’s Ten Winters – the first Italy-Russia co- production. The fund kicks off in 2011, which is also the year of Italian culture in Russia, as well as the year of Russian culture in Italy. n Production is picking up pace at Rome’s Cinecittà Studios, which announced two feature shoots in August and September. One is French director Philippe Garrel’s Un Été Brûlant, starring Monica Bellucci. Meanwhile, Aurelio De Laurentiis’s Filmauro is shooting the third instalment of local blockbuster franchise Manuale D’Amore by Giovanni Veronesi, which will feature a performance from Robert De Niro. n Prominent independent distributor Eagle Pictures is currently shooting Mozzarella Stories, a gangster-inspired comedy, in co-production with Germany’s Bavaria films. It’s the second local film since Quinta Communications’ Tarak Ben Ammar took over the company. The first film, the low- budget Basilicata Coast To Coast exceeded Eagle Pictures’ expectations, raking in $4.7m (€3.4m) in cinemas this summer. Distribution n A sluggish box office in June was perked up by solid releases throughout the summer – the box office registered a rise of 3.31% over 2009 for the June-August period, with July up 12% and August up 30%. n The summer of 2010, despite being a World Cup year in football-crazy Italy, will go down as the year Italy finally offered more than the occasional blockbuster during July and August. A range of films – from family, horror, comedies, local and auteur-driven – were distributed in July and August, including (among other titles) Toy Story 3 3D from Warner Bros and The Adjustment Bureau from Universal. Others included Independent distributor Lucky Red’s Danish gay drama Brotherhood, the Cameron Diaz film The Box, and Eagle s Pictures’ The Twilight Saga: Eclipse (on June 30). n Exhibition n National Association of Exhibitors president Paolo Protti has lobbied culture minister Sandro Bondi about further expected cuts to Italy’s single arts fund/fondo unico spettacolo (FUS) as fears mount that the fund will be cut to $369m (€262m) for 2011 across all the arts. Protti said the cuts represented “the lowest level the funds have reached in the past 20 years, which will directly result in the loss of thousands of jobs, as well as closing many businesses”. n The number of digital screens in the country went up from 50 to 400 in 2009. In October, Italy reached 576 3D screens (out of the 3,000 screens), according to Cinetel, the Italian 55 TERRITORY FOCUS: ITALY In Focus Brizzi’s Wilder productions. “It’s a change in mentality,” says Gianani of the new funding approach. Italian producers have been able – for the past three years – to recoup 15% of their own production costs via a clause aimed at Italian productions in the tax credit law. For co-productions, only the Italian portion of the spend can be considered for the tax credit. But right now the entire film industry is on hold as the renewal of Italy’s tax credit is pending government approval. Tax credit law opens funding door Italian producers have long bemoaned government funding cuts to the arts sector and a sluggish TV sales market – making it increasingly difficult to produce films. Now, with the single arts fund (FUS) looking to hit its lowest level of funding in 20 years in 2011, very few films can expect to obtain government support, which goes almost exclusively to first and second works. The good news is Italians can now reap the benefits of a “freer” market approach – and the tax credit law passed in 2008 has opened new doors to producers. Producer Riccardo Tozzi of Cattleya, who is also president of the producer’s section of Anica, the Italian motion pictures organisation, says producers used to have two funding sources — Mibac [Italian culture ministry] and broadcasters Rai or Mediaset. Now, that is all changing. Producers now need to put together “five or six” sources of funding, he says. This can include product placement or finding non-cinema-oriented companies as investors. The first major investment from Italy’s top banking institution, Banca Intesa, to the tune of $3.28m (€2.5m) went to Paolo Sorrentino’s English-language project This Must Be The Place, starring Sean Penn. The specific clause in the national tax credit law allows non-businesses to invest in films for the first time. The problem is that not all producers have the pedigree of Sorrentino, Medusa Film, Lucky Red and Indigo Film, the team on this film. So what are the smaller producers doing to avoid being seen as too big a risk by investors? Tozzi asserts that producers and directors are hooking up to strengthen their position in the eyes of investors – a practice in which he expects more producers to engage. He cites Fausto Brizzi, one of Italy’s most commercially successful directors, whose popular films make money in the local market and sell well abroad, partnering up with arthouse-oriented producer Mario Gianani and Lorenzo Mieli, a successful television producer. Gianani’s films with directors such as Saverio Costanzo and Marco Bellocchio offer the prestige/art element that attracts financers who want to see their investments exhibited in major festivals. This ensemble covers all three markets – mainstream, prestige and TV markets. The trio have set up Wild Side, a combination of Gianani’s Offside and Fausto PRODUCTION INVESTMENT 2009 2008 INVESTMENT IN 100% ITALIAN FILMS $297.5m (€218.9m) $344.2m (€253.3m) STATE CONTRIBUTION $33.3m (€24.5m) $67.0m (€49.3m) PRIVATE INVESTMENT $264.4m (€194.5m) $277.3m (€204.0m) INVESTMENT IN ITALIAN CO-PROS $104.8m (€77.1m) $104.4m (€76.8m) STATE CONTRIBUTION $18.5m (€13.6m) $29.5m (€21.7m) PRIVATE INVESTMENT $86.4m (€63.5m) $75.0m (€55.1m) TOTAL ITALIAN INVESTMENT $402.6m (€296.0m) $449.1m (€330.1m) Source: ANICA 56 TERRITORY FOCUS: ITALY in production The Imperfectionists Brad Pitt’s Plan B has optioned Tom Rachman’s wacky, irreverent newsroom epitaph, The Imperfectionists, about reporters behind a dying English-language newspaper in the eternal city, Rome. Contact Plan B Entertainment (1) 310 275 6135 This Must Be The Place Paolo Sorrentino’s debut $28m (¤20m) English-language project starring Sean Penn and Frances McDormand has wrapped up principle US shooting in Michigan, New York and New Mexico. Produced by Indigo Film with Lucky Red, with international sales handled by Pathé, the picture focuses on an ageing rock star who decides to hunt down the Nazi criminal who ordered his father’s execution. Contact Pathé (33) 1 71 72 33 05 (Paris) or (44) 20 7462 4427 (London) Angel Face: The True Story Of Student Killer Amanda Knox Michael Winterbottom is in pre-production for Barbie Latza Nadeau’s true-life crime story Angel Face: The True Story Of Student Killer Amanda Knox. Actor Colin Firth is lined up to play a British reporter covering the polarising case about the murder of British exchange student Meredith Kercher for which American exchange student Amanda Knox and her Italian boyfriend have been found guilty and await appeal. A third man, originally from Ivory Coast, has also been found guilty. The trial became a media circus, adding to the already blurred lines of the case. Winterbottom has said the film will focus on the reporters who covered the case – not on guilt or innocence. Contact Revolution Films (44) 20 7566 0700 s [email protected] n Someday This Pain Will Be Useful To You Elda Ferri of Jean Vigo Italia (Life Is Beautiful) has just finished principal photography for the entirely New York-shot Englishlanguage project Someday This Pain Will Be Useful To You, directed by Roberto Faenza and starring Ellen Burstyn and Marcia Gay Harden. Based on Cameron Mitchell’s novel, co-producers are Allen Bain for 7th Floor and John Heyman for the World Film Group in collaboration with Rai Cinema. Contact Jean Vigo Italia (39) 066 780 003 [email protected] The Rite The New Line/Warner Bros production of The Rite, based on Matt Baglio’s eponymous book about an American priest training as an exorcist, has wrapped the Italian portion of principal photography, which took place mostly in Budapest as well as Chicago and stayed in Italy for only five days. Nonetheless, the film is eligible for the Italian tax credit for foreign productions, which it accessed through Gianpaolo Varani’s executive production service, Mouse Films. Contact Catherine Nam [email protected] 57 TERRITORY FOCUS: ITALY The Look ahead Turin Film Festival As the Italian film industry waits to hear if the Italian tax credit for the industry will be given the government’s green light for three additional years, festivals are high on the agenda as the year winds down. The 28th edition of the Turin film festival, which focuses on cutting-edge films, runs from 26 November to 4 December. Film-maker Marco Bellocchio will preside over the jury. A festival highlight includes a complete Claude Chabrol retrospective in honour of the late French film-maker. Date 26 November-4 December [email protected] www.torinofilmfest.org The Cormayeur Noir Infestival The Cormayeur Noir Infestival, which focuses on the noir genre, celebrates its 20th anniversary this year. Nestled in the ski resort under Monte Bianco, Italy’s highest peak, the festival also celebrates noir literature and has announced the winner of its Raymond Chandler Award, which will go to American writer Michael Connelly. For the occasion, Clint Eastwood’s 2002 film Blood Work, inspired by Terry McCaleb, a Connelly-invented character, will be screened. Date 7-13 December Contact Giovanni Marco Piemontese [email protected] The Capri Hollywood festival The elegant island festival will bring the year to a close and will open with a screening of Oscar-winning director Danny Boyle’s 127 Hours, starring James Franco. Date 27 December-2 January [email protected] s www.caprihollywood.com n 58 Local Markets Report TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE Whatever Works: producers objected to a digital release of Woody Allen’s film market update The VPF model works for multiplexes, which rely heavily on major-studio content, but it’s a non-starter for small exhibitors and arthouse distributors. “[The VPF] would be around $1,095 (€800) for one week for each print,” says Premysl Martinek, director of Czech distributor ArtCam, which, despite numerous attempts, has yet to distribute a digital print. ArtCam finds it more cost-effective to stick with 35mm. “If you pay €1,000 [$1,400] for one 35mm print, you have it for 20 years or as long as you want,” Martinek adds. Arthouse cinemas rely on national and European plans to help meet the costs of conversion. The European Commission, which estimates the cost of a new digital projector and server at around $104,763 (€75,000), has provided $34.9m (€25m) in support of digital cinema initiatives since 2007. Brussels is planning to launch a scheme at the end of 2010 that will contribute a further $5.6m (€4m) for digitisation, aimed at cinemas that screen mostly European films. National plans – and their success – vary from territory to The roll-out of digital screens in Eastern Europe is proceeding at a rapid pace, but not without a few bumps and stumbles along the way. Multiplexes are leading the way with high-end technology as well as breaking ground in previously under-served markets. International chains, with deeper pockets, are installing new sites with the latest technology from the outset, saving themselves the cost and trouble of converting later on. Eastern Europe lags behind Western Europe. There were more than 4,500 digital screens in Europe in 2009, but fewer than 800 of those were in Eastern Europe, according to Screen Digest. Palace Cinemas, a multiplex chain operating in the Czech Republic, Slovakia and Hungary, began in 2009 to roll out 170 digital screens across its network, with XDC providing the integration, co-financed by virtual print fees (VPF). XDC services more than 3,000 screens across Europe, including 90 in Poland, 84 in Hungary and 10 in Romania. 59 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE territory, but most have strict guidelines intended to promote European film. Exhibitors in the Czech Republic enjoy robust state support for digitisation. At present there are 99 digital screens in the territory. The Czech Ministry of Culture has spent $79.4m (CZK58m) on digitisation since 2009. In the first phase, $1.4m (€1m) in state aid helped 21 cinemas make the transition. The state money covers half the cost of conversion and has relatively few strings attached in terms of programming requirements. But the Czech government has not yet announced any support for digitisation in 2011. Likewise, Hungarian exhibitors have appealed to the state for $7.5m (€5.4m) for digitisation over the next three years, but no support has materialised yet, despite informal assurances. DIGITAL SCREENS IN EASTERN EUROPE Territory Number of screens total state funding Poland 176 $3.5m* (PLN 10.3m) Slovakia 31 $0.2m (SKK 5.3m) Czech Republic 100 $3.4m (CZK 62.0m) Slovenia 16 $1.4m (€1.0m) SOURCE: Polish Film Institute, Slovak Film Institute, Czech Union of Film Distributors, Slovenian Ministry of Culture *pending multiplex screens were already filled with blockbusters and few arthouses had converted at that time. Plans for a digital release of Woody Allen’s Whatever Works, meanwhile, were scuppered by objections from the producer. Ales Uhan runs the Kinodvor arthouse cinema in Slovenia and leads a project to lobby the government to support digitisation. Like other operators across the region, he acknowledges that where multiplexes go, all exhibitors must follow. “When all the multiplexes go digital, distributors won’t import 35mm copies anymore because it won’t make sense to s do so for just 10% of the market,” he says. n Digital investment The Slovenian Ministry of Culture, meanwhile, has drawn up a €1m plan to support digitisation of small cinemas. The national subsidy would cover half the cost of conversion, while the remainder would come from local or EU sources. The ministry has set aside $349,210 (€250,000) for the first year — enough for four or five screens. European programming is also an important criterion of a $3.5m (€2.5m) national digitisation programme in Poland and a $237,463 (€170,000) plan in Slovakia. Barbora Drobna is director of Slovak distributor Continental Film, which handles programming for the Cinemax cinema chain. Drobna favours state support for digitisation but sees pitfalls in the many small Slovak cinemas that have long suffered from a lack of investment and have structural problems. “A cinema that is not working properly now and has no audience will not be saved by a digital projector,” she says. As yet, digitisation in Eastern Europe has not delivered on its promise of lower costs — tickets to digital screenings cost as much as (or more than, in the case of 3D) admissions to a 35mm show. It does present exhibitors in the region with more freedom in programming but not wider variety – little arthouse content is available on digital copies. Arthouse distributors have little incentive to distribute digital copies when few of their clients have converted. Artcam had planned to release Antichrist digitally, but 60 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: czech republic exhibition production 2008 2009 2010 2008 2009 2010 26 35 28 – – Number of screens 788 796 n/a Number of digital screens 1 28 99 Number of majority co-productions 7 8 Number of cinemas 610 617 n/a Number of minority co-productions 2 8 Number of multiplexes (4+ screens) 23 24 26 Number of screens in multiplexes 188 196 206 Market share of multiplexes 77% 80% n/a Number of local features produced Source: Czech Film Centre top 10 films 2009 Source: Czech Union of Film Distributors (UFD) Leading distributors market share distributor 2008 2009 Rank title admissions gross box office 1 You Kiss Like God 904,589 $5.1m (CZK 92.3m) 2 Ice Age: Dawn Of The Dinosaurs 3D 852,067 $5.5m (CZK 99.6m) 3 Harry Potter And The Half Blood Prince 684,247 $4.0m (CZK 72.4m) 375,733 $3.1m (CZK 56.1m) Bontonfilm 44.4% 34.5% 4 Avatar 3D Falcon 25.6% 31.5% 5 2 Bobule 357,373 $2.0m (CZK 36.2m) Warner Bros 7.2% 10.3% 6 Angels & Demons 308,144 $1.9m (CZK 34.4m) Bioscop/Magic Box 7.2% 8.4% Source: Czech Union of Film Distributors (UFD) box office 2010 7 Michael Jackson’s This Is It 291,505 $1.9m (CZK 34.4m) 8 Peklo s Princeznou 269,593 $1.2m (CZK 21.7m) 9 2012 260,202 $1.5m (CZK 27.2m) 10 Inglorius Basterds 247,017 $1.4m (CZK25.4m) 2008 2009 Total admissions 12.9m 12.5m 6.6m (1H only) Total sales $68.1m (CZK 1.2bn) $73.8m (CZK1.3bn) $42.4m (1H only) (CZK 766m) Average ticket price $5.37 (CZK 97.10) $5.70 (CZK 103.2) $5.60 (1H only) (CZK 101.4) 2 2 Bobule 357,373 $2.0m (CZK 36.2) Total films released 200 253 236* 3 Peklo s Princeznou 269,593 $1.2m (CZK 21.7m) Local films released 38 44 12* 4 Sneženky A Machri Po 25 Letech 246,153 $1.3m (CZK 23.6m) Local films market share 40.6% 23.3% n/a 5 Jánošík: A True Story 95,191 $0.5m (CZK 9.1m) 6 At Žijí Rytíri 89,006 $0.4m (CZK 7.2m) 7 Protektor 88,097 $0.4m (CZK 7.2m) 8 Veni, Vidi, Vici 84,934 $0.5m (CZK 9.1m) 9 Catch The Billionaire 81,507 $0.5m (CZK 9.1m) 10 Three Seasons In Hell 81,031 $0.4m (CZK 7.2m) Source: Czech Union of Film Distributors (UFD) top 10 local films Source: Czech Union of Film Distributors (UFD) * scheduled for release Leading distributors market share 2008 2009 Bontonfilm 44.4% 34.5% Falcon 25.6% 31.5% Warner Bros 7.2% 10.3% Bioscop/Magic Box 7.2% 8.4% Rank title admissions grossbox office 1 You Kiss Like God 904,589 $5.1m (CZK 92.3m) Source: Czech Union of Film Distributors (UFD) Funding* Source: Czech Film Centre Film Industry Support Programme 2008 $12.9m (CZK233.6m) 2008 2009 $9.4m (CZK170.2m) 2009 0 1H 2010 CZK 5.1m 2010 $8.5m (CZK 153.9m) 2011 $22.7m (CZK 411.1m) Source: Czech Ministry of Culture *Czech State Fund for the Support and Development of Czech Cinematograph 61 0 Source: Czech Ministry of Culture TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: Slovakia top 10 films January-September 2010 top 10 films 2009 Rank title admissions gross BOx Office Rank title admissions gross BOx Office 1 Ice Age: Dawn Of The Dinosaurs 399,454 $0.8m (€0.6m) 1 Avatar 242,243 $0.6m (€0.4m) 2 Harry Potter And The Half-Blood Prince) 205,564 $0.4m (€0.3m) 2 Shrek Forever After 224,800 $0.6m (€0.4m) 3 Jánošík: A True Story 151,845 $0.3m (€0.2m) 3 Alice In Wonderland 121,623 $0.3m (€0.2m) 116,690 $0.2m (€0.1m) 4 Angels And Demons 131,942 $0.3m (€0.2) 4 The Twilight Saga: Eclipse 5 Soul At Peace 116,800 $0.2m (€0.1m) 5 Inception 103,944 $0.2m (€0.1m) 6 Avatar 109,584 $0.3m (€0.2) 6 Clash Of The Titans 81,791 $0.2m (€0.1m) 7 Fly Me To The Moon 3D 107,679 $0.2m (€0.1m) 7 Sex And The City 2 77,227 $0.2m (€0.1m) How To Train Your Dragon 73,108 $0.2m (€0.1m) 8 Shameless 93,470 $0.2m (€0.1m) 8 9 The Twilight Saga: New Moon 88,534 $0.2m (€0.1m) 9 Sherlock Holmes 65,764 $0.1m (€0.07m) 10 Twilight 87,331 $0.2m (€0.1m) 10 Prince Of Persia: Sands Of Time 63,914 $0.1m (€0.07m) Source: Slovak Union of Film Distributors (UFD) Source: Slovak Union of Film Distributors (UFD) top local films January-september 2010 Rank title admissions gross BOx Office 1 The Legend Of The Flying Cyprian 50,741 $9,239 (€6,803) 2 3 Seasons In Hell 5,407 $929 (€683) 3 Veni Vidi Vici 3,682 $600 (€441) 4 Erotic Nation 3,183 $610 (€449) 5 Foxes 2,822 $379 (€279) 6 Broken Promise 2,291 $169 (€125) 7 Mongolia: In The Shadow Of Genghis Khan 1,864 $338 (€249) 8 Cooking History 777 $72 (€53) 9 Bratislavafilm 585 $40 (€29) Source: Slovak Union of Film Distributors (UFD) 62 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: romania funding* exhibition 2008 2009 Number of screens 75 182 Number of cinemas 75 74 Number of multiplexes (3+ screens) 14 19 Number of screens in multiplexes 75 n/a 2009 $10.3m (RON 32.6m) 2008 $14.2m (RON 44.9m 2007 $12.9m (RON 40.8m) 2006 $11.5m (RON 36.4m) 2005 $8.3m (RON 26.3m) 2004 $6.4m (RON 20.3m) Source: Romanian National Film Centre Source: Romanian National Film Centre revenues Leading distributors market share distributor 2008 2009 top 10 local films 2009 Rank title admissions En-Image 2000 18.1% 21.3% Intercom Film 17.6% 18.0% 1 Tales From The Golden Age 1 28,105 MediaPro Distribution 12.1% 10.4% 2 Ho Ho Ho 20,998 Clorofilm 3.0% 9.5% 3 Tales From The Golden Age 2 17,365 Odeon Cineplex 10.6% 8.5% 4 Francesca 13,033 5 Police, Adjective 12,064 6 Weekend With My Mother 4,574 7 Angling 3,357 8 The Happiest Girl In The World 2,796 9 Gruber’s Journey 2,071 10 Crossing Dates 1,993 Source: Romanian National Film Centre top 10 films 2009 Rank title admissions 1 Ice Age 3: Dawn Of The Dinosaurs 334,217 2 2012 288,991 3 Avatar 255,590 4 The Twilight Saga: New Moon 134,340 5 A Christmas Carol 120,397 6 The Final Destination: Death Trip 115,830 7 The Hangover 107,537 8 The Proposal 101,796 9 Angels And Demons 97,515 10 Inglorious Basterds 96,017 Source: Romanian Union of Film Distributors (UFD) top 10 local films 1997-2009 Source: Romanian National Film Centre Production 2008 2009 Rank title year of release admissions 1 Garcea Si Oltenii 2002 289,830 2 Asphalt Tango 1997 126,897 3 Philanthropy 2002 113,302 4 4 Months, 3 Weeks, 2 Days 2007 89,339 5 Furia 2002 61,356 6 Occident 2002 53,225 7 Orient Express 2004 51,719 8 The Man Of The Day 1997 45,265 1999 35,160 1999 34,370 Number of local features produced 8 18 9 Veriga Salbatica Number of majority co-productions 2 3 10 Triunghiul Mortii Number of minority co-productions 0 4 Source: Romanian National Film Centre Source: Romanian National Film Centre 63 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: poland exhibition Production 2007 2008 2009 Number of screens 1,008 1,043 n/a Number of digital screens 8 53 176 Number of multiplexes (4+ screens) 59 68 77 Number of screens in multiplexes 526 587 648 Market share of multiplexes 76.7% 80.8% 81.6% Multiplex operators 4 4 3 2007 2008 2009 Number of local/national films produced 39 40 60 Number of co-productions 23 39 28 funding* Source: Polish Film Institute 2007 $26.2m (PLN 76.4m) 2008 $33.9m (PLN 98.8m) 2009 $24.8m (PLN 72.3m) Source: Polish Film Institute box office 2007 2008 2009 Total admissions 32.6m 33.8m 39.2m Total sales $169.1m (PLN 492.2m) $177.3m (PLN 516.2m) $239.2m (PLN 696.4m) Average ticket price $5.18 (PLN 15.1) $5.69 (PLN 16.6) $6.11 (PLN 17.08) Admissions per capita 0.86 0.89 1.03 Total films released 272 260 264 Local films released 25 35 35 Local films’ market share 41.2% 44.4% 30.5% Source: Polish Film Institute 64 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: hungary Leading distributors market share exhibition 2008 2009 Distributor 2008 2009 1H 2010 Number of screens 416 417 Intercom 31.6% 51.4% 34.3% Number of cinemas 187 181 UIP-Dunafilm 35.8% 17.5% 38.7% Number of multiplexes (4+ screens) 28 27 Fórum-Hungary 12.8% 21.8% 21.6% Budapestfilm 9.1% 4.7% 3.9% Number of screens in multiplexes 219 220 Market share of multiplexes 87% 88% Source: Motion Picture Public Foundation Hungary Source: Motion Picture Public Foundation Hungary top 10 films box office Rank title admissions Box office 2008 2009 1H 2010 1 Ice Age: Dawn Of The Dinosaurs 652,823 $3.9m (HUF 798.8m) Total admissions 9.4m 9.2m 5.5m 2 Harry Potter And The Half Blood Prince 491,597 $2.7m (HUF 553.0m) 3 Avatar 369,962 $2.6m (HUF 535.5m) Total sales $46.8m (HUF 9.6bn) $50.0m (HUF 10.2bn) $37.3m (HUF 7.6bn) 4 The Hangover 318,719 $1.7m (HUF 348.1m) Average ticket price $4.98 (HUF 1,018) $5.43 (HUF 1,112) $6.81 (HUF 1,395) 5 Angels And Demons 286,973 $1.5m (HUF 307.1m) Admissions per capita 0.94 0.92 0.55 6 The Twilight Saga: New Moon 277,543 $1.5m (HUF 307.1m) Total films released 206 192 117 25 13 5% 1% 7 The Proposal 270,628 $1.5m (HUF 307.1m) Local films released 25 8 Up 205,642 $1.3m (HUF 266.5m) Local films’ market share 16% 9 2012 222,774 $1.3m (HUF 266.5m) 10 Inglorious Basterds 244,288 $1.2m (HUF 246.0m) Source: Motion Picture Public Foundation Hungary Source: Motion Picture Public Foundation Hungary top 10 films 1h 2010 Rank title admissions Box office 1 Robin Hood 109,425 $5.7m (HUF 1.2bn) 2 Shrek Forever After 494,111 $3.3m (HUF 675.3m) 3 Inception 339,645 $2.0m (HUF 409.2m) 4 Alice In Wonderland 260,097 $1.8m (HUF 386.2m) 5 The Twilight Saga: Eclipse 258,939 $1.4m (HUF 286.4m) 6 Sex And The City 2 244,551 $1.4m (HUF 286.4m) 7 Sherlock Holmes 226,980 $1.3m (HUF 266.5m) 8 Prince Of Persia: The Sands Of Time 237,629 $1.3m (HUF 266.5m) 9 How To Train Your Dragon 201,306 $1.3m (HUF 266.5m) 10 Toy Story 3 176,244 $1.1m (HUF 225.0m) Source: Motion Picture Public Foundation Hungary 65 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: hungary top 10 local films 2009 Top 10 local films 1H 2010 Rank title admissions Box office Rank title admissions Box office 1 Made in Hungary 224,941 $1.1m (HUF 225.8m) 1 Igazából Apa 25,594 $130,132 (HUF 26.m) 2 Poligamy 90,959 $0.5m (HUF 102.7m) 2 Bibliotheque Pascal 20,734 $86,846 (HUF 17.8m) 3 Papírkutyák 78,221 $0.3m (HUF 61.6m) 3 Death Waltz 7,996 $28,530 (HUF5.9m) 4 Dream Well 54,076 $0.2m (HUF 41.1m) 4 Czukor Show 6,028 $18,534 (HUF 3.8m) 5 Csiribiri 23,589 $0.7m (HUF 143.7m) 5 Szélcsend 3,773 $11,138 (HUF 2.3m) 6 The Secret of Moonacre 16,717 $0.7m (HUF 143.7m) 6 As You Are 4,113 $10,995 (HUF 2.3m) 7 The Last Report On Anna 22,354 $0.7m (HUF 143.7m) 7 Látogatás 3,362 $8,789 (HUF 1.8m) 8 The Real Puskas 24,084 $0.5m (HUF 102.7m) 8 Lost Persons Area 3,197 $8,089 (HUF 1.6m) 9 Intimate Headshot 15,101 $0.4m (HUF 82.2m) 9 A Nibelung-lakópark 2,233 $7,982 (HUF 1.6m) 10 Szíven Szúrt Ország 12,449 $0.3m (HUF 61.6m) 10 Hét Perc A Mennyországban 1,535 $5,251 (HUF 1.1m) Source: Motion Picture Public Foundation Hungary Source: Motion Picture Public Foundation Hungary DATA: croatia top 10 films to october 2010 Rank title local distributor cumulative box office cumulative admission 1 Shrek Forever After Blitz $0.7m (HRK 3.8m) 133,482 2 Twilight Saga: Eclipse Blitz $0.5m (HRK 2.7m) 110,111 3 Inception Blitz $0.5m (HRK 2.5m) 97,768 4 Step Up 3D Blitz $0.3m (HRK 1.6m) 49,766 5 Despicable Me Blitz $0.2m (HRK 1.2m) 51,991 6 Piranha 3D Duplicato $0.2m (HRK 1.0) 28,671 7 Switch Duplicato $0.2m (HRK 0.9m) 36,083 8 The Last Airbender 3D Blitz $0.1m (HRK 0.7m) 24,738 9 Toy Story 3 CF $0.1m (HRK 0.6m) 29,414 10 Resident Evil:Afterlife CF $0.1m (HRK 0.6m) 22,128 Source: Continental Film 66 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA: serbia & montenegro top 20 films july-september 2010 Rank title distributor number of prints number of weeks gross box office admissions 1 Inception Warner Bros 6 13 $0.2m (RSD 13.4m) 45,892 2 The Expendables Independent 5 8 $0.1m (RSD 9.5m) 31,614 3 Twilight Saga: Eclipse Independent 5 16 $0.1m (RSD 7.9m) 28,715 4 The Woman With A Broken Nose ( Ser) Independent 6 7 $0.1m (RSD 7.7m) 24,943 5 Killers Independent 3 15 $0.08m (RSD 6.6m) 22,350 6 Salt Sony 7 11 $0.07m (RSD 6.0m) 21,296 7 Grown Ups Sony 7 6 $0.06m (RSD 4.9m) 16,463 8 Resident Evil: Afterlife Sony 9 4 $0.06m (RSD 4.2m) 13,365 9 The Last Airbender United International Pictures 6 9 $0.05m (RSD 4.0m) 13,697 10 Despicable Me United International Pictures 6 6 $0.03m (RSD 2.8m) 9,583 11 Cats And Dogs: Revenge Of Kitty Galore Warner Brothers 9 11 $0.03m (RSD 2.6m) 10,239 12 The Karate Kid SONY 7 7 $0.03m (RSD 2.6m) 9,399 13 Predators Fox 7 10 $0.03m (RSD 2.5m) 9,195 14 Going The Distance Warner Bros 6 3 $0.03m (RSD 2.3m) 7,181 15 Letters To Juliet Independent 4 9 $0.03m (RSD 2.0m) 6,764 16 Machete Independent 3 5 $0.03m (RSD 2.0m) 6,661 17 Charlie St Cloud United International Pictures 5 5 $0.01m (RSD 0.9m) 2,905 18 When You Are Strange Independent 1 12 $0.01m (RSD 0.9m) 3,162 19 Step Up 3D Independent 3 3 $0.01m (RSD 0.7m) 2,532 20 The Killer Inside Me Independent 1 5 $0.01m (RSD 0.7m) 2,187 Source: Tuck Vision DATA: bosnia & Herzegovina top 10 films to october 2010 Rank title distributor number of weeks number of screens cumulative box office cumulative admissions 1 Salt Sony 10 3 $23,558 (BAM 34,153) 6,908 2 Grown Ups Sony 7 2 $14,842 (BAM 21,507) 4,272 3 The Expendables Independent 9 4 Despicable Me United International Pictures 5 1 14,790 (BAM 21,429) 4,269 2 $10,353(BAM 15,000) 3,103 5 The Switch Independent 5 1 $9,418 (BAM 13,646) 2,735 6 The Karate Kid Fox 6 2 $7,377 (BAM 10,689) 2,209 7 Predators Sony 10 2 $5,408 (BAM 7,837) 1,734 8 Piranha 3D Independent 4 1 $4.902 (BAM 7,104) 1,107 9 Charlie St Cloud United International Pictures 4 3 $4,477 (BAM 6,488) 1,433 10 Marmaduke Fox 4 1 $3,801 (BAM 5,508) 1,258 Source: Blitz Film 67 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE DATA south-east europe: an overview country population admissions screens digital screens % screens in multiplexes average ticket price Albania 3.6m n/a 12 0 n/a $4.0 (€3.0) Austria 8.4m 18,400,000 577 239 60% $9.0 (€6.67) Bosnia and Herzegovina ** 4.6m 445,977 40 2 42.5% $3.4 (€2.5) Bulgaria 7.6m 2,986,611 122 35 62% $5.4 (€4.0) Croatia 4.5m 3,290,108 117 8 35.8% $5.4 (€4.0) Cyprus 0.8m 869,084 36 6 62.8% $4.7 (€3.5) Greece 11.3m 13,500,000 384 n/a 40% $10.1 (€7.5) Hungary 10.0m 10,600 415 31 n/a% $5.7 (€4.2) Macedonia 2.1m n/a 19 0 0% $2.0 (€1.5) Montenegro 0.7m 300,000 15 0 40% $3.4 (€2.5) Romania 21.5m 5,300,000 182 40 n/a% $5.5 (€4.1) Serbia 7.3m 1,713,663 125 5 13.6% $3.4 (€2.5) Slovenia 2.1m 2,793,227 103 9 54.37% $5.7 (€4.2) Turkey 70.4m 36,900,000 1,575 62 24.8% $5.8 (€4.3) UNMI Kosovo 1.8m n/a 2 0 0 $4.0 (€3.0) Sources: IMF, RS, National Film Centers, various sources **sites equiped with 3 or more screens are considered multiplexes advent of digital cinema country 2005 2006 2007 2008 2009 2010 Albania 0 0 0 0 0 0 Austria n/a 18 35 84 239 239 Bosnia and Herzegovina ** 0 0 0 0 0 1 Bulgaria 0 4 4 8 17 35 Croatia 0 0 0 7 7 8 Cyprus 0 0 0 0 6 6 Greece n/a n/a 4 6 31 n/a Hungary 0 1 2 7 31 n/a Macedonia 0 0 0 0 0 0 Montenegro – – 0 0 0 0 Romania 0 0 0 14 40 40 Serbia 0 0 0 0 0 5 Slovenia 1 2 3 9 9 9 Turkey 0 0 1 20 62 n/a UNMI Kosovo 0 0 0 0 0 0 Sources: National film centres, OBS, various *As Montenegro declared independence from State Union of Serbia and Montenegro on May 21 2006, data for Montenegro is calculated from year 2007 68 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE deals n FilmBox In August, the leading independent Serbian distributor Megacom Film bought the rights to Greek company Audio Visual Enterprises (formerly Prooptiki) films for DVD, TV and VoD distribution in former Yugoslavia. Of the 200 titles included in the purchase are: 2046, Ashes Of Time, Bandidas, The Lives Of Others, The Downfall, The Diving Bell And The Butterfly, The Descent, The Banishment, Assassination Of Richard Nixon and The Girl With A Pearl Earring. The sale signifies Audio Visual Enterprises’ exit s from the Serbian market. n n NonStop picks up Little Knights’ Tale NonStop Sales has acquired family adventure Little Knights’ Tale, from Czech director Karel Janak. The medieval adventure tells the story of group of children who must save their father’s land from a vicious warlord. Little Knights’ Tale is produced by Ceska televize and Three Brothers. NonStop presented the film at the American Film Market and will offer it at the European Film Market 2011. n Agora acquires stake in Helios Media group Agora has purchased an 84% stake in Polish cinema operator Helios for $36.6m (€26.2m). Agora president Piotr Niemczycki said the purchase was part of Agora’s long-term strategy to diversify its revenue sources and expand its activities in developing media sectors. The group is seeking to reduce its dependence on the advertising sector, Niemczycki says. Helios is the thirdlargest exhibitor in Poland with a 24% market share. With daughter company Kinoplex, Helios sold 7.7 million tickets in 2009. Agora is aiming to completely digitise the Helios network by the end of 2011. n FilmBox enters Romania SPI International has signed an agreement with Romania’s largest telecommunications company to gain access to the local TV market. Romtelecom will broadcast movie channels FilmBox and FilmBox HD and fashion channel FashionBox HD on DTH platform and IPTV service. FilmBox channels are also broadcast in the Czech Republic, Hungary, Poland and Slovakia. n Polish Alvernia invests in Vamps Warsaw-based Alvernia Production has signed up to Vamps, a romantic vampire comedy written and directed by Amy Heckerling (Clueless, Look Who’s Talking). Vamps is produced by Red Hour Films (Tropic Thunder, Blades Of Glory) and Lucky Monkey Pictures (City Island) and stars Alicia Silverstone, Krysten Ritter and Sigourney Weaver. Alvernia has invested an unstated sum in the production, while affiliate Alvernia Studios is handling special effects. Alvernia Productions is also teaming up with Warner Bros for the production of upcoming Polish release How To Get Rid Of Cellulite. 69 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE digest Production n Fifteen projects have been approved to receive more than $10m (CZK180.8m) in support through the Czech Republic’s new 20% rebate. Paramount’s Mission: Impossible IV is set to receive $3.2m (CZK57.8) through the programme, while the Canal+ 12-part series Borgia is accessing $1.8m (CZK35.5m). The rebate was not enough to induce Paramount to shoot The Return Of Xander Cage in the Czech Republic, however. The production is set to shoot in Hungary, despite qualifying for $1.1m ($19.9m) in Czech support. n Budapest continues to be a hot destination for productions willing to travel to far-flung locations for better shooting conditions this year. Local industry insiders report that US independent The Raven, directed by James McTeigue and starring John Cusack, is lining up for a winter production, as is Universal’s 47 Ronin, rumoured to star Keanu Reeves. The projects come hot on the heels of Angelina Jolie’s Untitled Bosnia War Love Story, which was in production in Budapest in October. n CW Television Networks People’s Choice Award-winning series The Vampire Diaries has been on location in Bulgaria “The episode is set around 1490 and in Bulgaria,” producer Julie Plec said at New York Comic Con. It explores the backstory of the show’s character, Katherine Pierce, played by Nina Dobrev, who was born in Bulgaria. n Romanian director-producer Bobby Paunescu (Francesca, Aurora) will co-produce Itaker with Italian screenwriter-director Toni Trupia. The majority of filming will take place in Romania, with pre-production planned for spring 2011. The story concerns Italian immigrants to Germany in the 1960s. n Danijel Kusan’s Koko And The Ghosts started shooting in Zagreb in October. Based on the children’s bestseller by the director’s father Ivan, who also co-wrote the screenplay, it was the first Croatian film to receive support from the MEDIA programme in 2007. It is co-produced by Kinorama and Croatian National Television. n Period piece The Scent Of The Rain In The Balkans, directed by Ljubisa Samardzic (Sky Hook) and written by Djordje Milosavljevic and Nebojsa Romcevic, has wrapped post-production in Belgrade. The story about a Jewish Sephardic family in Sarajevo starts at the beginning of the World War I and spans the period until World War II. Shot in Avatar: a total of 1 million ticket sales helped Hungary record first half year-on-year growth Belgrade, Sarajevo and Dubrovnik, it is based on the bestseller by Gordana Kuic. Release is scheduled for March 2011. Exhibition n Cinema City International has opened its eighth multiplex in Romania. The 10-screen multiplex in Arad offers 1,622 seats and five digital projectors. Cinema City operates 82 screens – 26 of them digital – in seven cities in Romania. CCI’s revenues from Romania amounted to $12.6m in the first half of 2010. n Year-on-year growth at the Hungarian box office was modest in the first half of 2010. Admissions inched up 0.02% to 3.96 million (with Avatar accounting for more than 1 million tickets), while sales climbed almost 20% to $17.4m (CZK314.4m). Local films’ market share dropped to 6%, with only one film, Dénes Orosz’s Polygamy, exceeding 100,000 admissions. n Eurimages’ Theatres Working Group has signed a deal with XDC that will see the Europa Cinema/Eurimages network member cinemas in Bosnia and Herzegovina, Serbia, Macedonia and Turkey acquire digital equipment. Eurimages plans to contribute $24,184 (CZK 437,101) per screen making the digital switch, while public authorities in all five territories pledged to match the Eurimages funding, leaving the remaining financing to exhibitors. 70 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE n Sarajevo’s five-screen Cinema City has introduced a 3D screen and is planning to build three more screens. There are also 3D screens in two more cities, Zenica and Banja Luka. n The first IMAX theatre in former Yugoslavia is currently being built in Zagreb. It will be a part of the new 10-screen Cinestar Arena, from distributor-exhibitor Blitz Cinestar, and should be finished by the end of the year. Distribution n Olive Films will distribute Hungarian director Benedek Fliegauf’s Toronto title Womb in North America. Camino Filmverleih holds German rights to the film, produced by Razor Films (Germany) with Inforg Studios (Hungary), Boje Buck Produktion (Germany), ARTE France Cinema and ZDF (Germany). The Match Factory handles international sales. n Continental Films is distributing two films in Serbia produced by Kinorama. Ivan-Goran Vitez’s comedy thriller Forest Creatures played in competition at the Zagreb Film Festival and opened theatrically on 11 November. Dalibor Matanic’s drama, Mother Of Asphalt, opens on 12 December. n Vlado Skafar’s Venice Critics Week entry Dad opens in Slovenia on 22 November, distributed by Gustav Film. The intimate father and son story is Skafar’s follow-up to his 2009 documentary Letters To A Child, which premiered s at Rotterdam. n 71 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE In Focus romanian box office Multiplexes lead Romanian revival The Romanian market has exploded in recent years, thanks largely to the rapid growth of new screens feeding audience demand for Hollywood blockbusters. Compared with larger territories, sales in Romania are low, but growth has been astronomic. Local cinemas sold just over 3 million tickets in the first half of 2010, a 59% year-on-year increase. Sales were up 72% year on year to $13.2m (RON41.7m). Admissions for 2010 are expected to pass 7 million. One fourth of the year’s admissions so far are the result of Avatar, released in December 2009. The top local film, Florin Serban’s Berlinale title If I Want To Whistle I Whistle, has drawn more than 52,000 admissions. Romania has an estimated 200 functioning screens at present, roughly half of them built in the past five years. The territory’s leading exhibitor is Cinema City, whose network includes 71 multiplexes across Central and Eastern Europe and Israel. Cinema City Romania operates 57 screens in six sites across the country. In 2009, Cinema City’s box-office gross in Romania was $7.7m (RON 24.1m). “Romania is a country of cinema fans,” says Cinema City deputy CFO Nisan Cohen. “Every Cinema City opened in Romania is enjoying a very warm welcome. We see that people generally like to see films in our cinemas, and the 3D films are very popular, as we have seen in other countries.” Although Cinema City had the highest admissions of any exhibitor in Romania, its sales were slightly outpaced by Hollywood Multiplex Operations, operated by the Media Pro Group. Hollywood Multiplex has only 16 screens on three sites but it nonetheless earned $7.9m (RON 24.9m) on 1.4 million admissions in 2009. In the first half of 2010, Romania accounted for 7.9% of Cinema City’s 1H total revenue ($162.6m/RON 513.1m), up from 3.2% in 1H 2009 ($112.3m/RON 354.2m). Admissions for the period January to June were 1.5 million – 10% of all tickets sold in the Cinema City network, and a year-on-year increase of 189.4% – making Romania the company’s fastest-growing territory. Cinema City ticket prices in Romania averaged $5.09 (€3.65), the cheapest in the CCI network. The average ticket price in Romania is RON 15.17, about $4.93. 2008 2009 1H 2010 Total admissions 3.8m 5.3m 3.2m Total sales (Gross box office) $17.2m (RON88.6m) $28.1m (RON88.6m) $13.6m (RON42.8m) Average ticket price $4.52 (RON14.2) $5.33 (RON16.8) n/a Admissions per capita 0.18 0.24 n/a Total films released 199 211 n/a Local films released 15 19 n/a Local films market share 7.5% 9.0% n/a Source: Romanian National Film Centre Major exhibitors in Romania 2009 exhibitor sites screens admissions gross box office Cinema City Romania 6 57 1.5m $7.8m (RON 24.6m) Hollywood Multiplex Operations 3 16 1.4m $7.9m (RON 24.9m) Movieplex Cinema 1 11 978,187 $6.8m (RON 21.4m) City Cinema Management 3 11 325,417 $1.2m (RON 3.9m) Light Cinema Bucuresti 1 7 282,446 $1.7m (RON 5.4m) Odeon Cineplex 1 8 219,889 $1.1m (RON 3.5m) Radef Romaniafilm 37 39 209,199 $0.4m (RON 1.3m) Starplex 1 9 124,392 $0.6m (RON 1.9m) Chicago Tour 4 4 98,274 $0.2m (RON 0.6m) Source: Romanian National Film Centre Cinema City is committed to expanding operations in Romania, which will soon become the company’s secondlargest territory in terms of number of screens, exceeded only by Poland. “Our operations will be growing in the coming years as we still have 27 lease agreements signed, with openings planned between 2010 and 2013,” Cohen says. The company concedes, however, that opening dates are hard to pin down as construction in Romania runs perpetually behind s schedule. n 72 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE in production (36) 302 700 270 [email protected] Sponsoring Following the success of 33 Scenes From Life, Polish director Małgorzata Szumowska casts Juliette Binoche as the lead in her film, Sponsoring, about a journalist researching university students in Paris who work as prostitutes. An international co-production from Zentropa International Poland, Zentropa International Köln and French firm Slot Machine, the film is scheduled for a December release in Poland. International sales Memento Films International Contact Tanja Meissner (33) 1 5334 9020 [email protected] The House Slovak director Zuzana Liova won the ScriptEast Krzysztof Kieslowski award in 2007 for her script about a daughter who does not want the house her father is building for her. The producers are aiming to have post-production completed by January. International sales Film Europe Contact Marta Lamperova (420) 739 592 040 [email protected] The Door Oscar-winning Hungarian director Istvan Szabo returns with an intimate story about the relationship between a writer and her housekeeper. The $7.5m English-language production stars Helen Mirren. Production continues this winter with a scheduled release in May. International sales Bankside Films Contact Stephen Kelliher (44) 20 7734 3566 [email protected] Circles Circles, by Srdan Golubovic (The Trap), a co-production between Serbia’s Bas Celik, Germany’s Neue Mediopolis and Slovenia’s Vertigo, starts shooting in December. Budgeted at $2.4m, the war drama received $348,104 from Eurimages, won Excellence Award at Sarajevo Film Festival’s CineLink and Best Project at Cannes L’Atelier. Production company Bas Celik Contact Jelena Mitrovic (381) 303 4441 [email protected] Slavic Epopee Slovak director Juraj Jakubisko is filming his historical epic across seven territories. The $17m production ups the ante on his $13.5m Bathory, which became the highest-grossing film in the Czech Republic and Slovakia in 2008. Producer Jakubisko Film Contact Deana Jakubisková (420) 296 236 353 [email protected] Lock Out EuropaCorp’s Lock Out started filming in Pink Film International studios in Belgrade in October. The $30m sci-fi thriller is directed by James Mather (Adam And Paul) and Stephen St. Leger, and stars Guy Pearce, Peter Stormare and Maggie Grace. (33) 303 4441 s [email protected] n Mirage Hungarian director Szabolcs Hajdu’s new production focuses on an African footballer who must go on the run after he is suspected of throwing a match. Hajdu’s previous film, Bibliothèque Pascal, screened in the Berlinale Forum competition last year. Producer Filmpartners Kft Contact Andrea Taschler 73 TERRITORY FOCUS: EASTERN & SOUTH-EASTERN EUROPE The Look ahead Hungarian Film Week This annual showcase of Hungarian film typically presents the latest local films to festival programmers and sales agents. Titles anticipated at this year’s event include the latest offerings from Istvan Szabo, Gyorgy Palffi and Szabolcs Hajdu. Date 1-8 February, 2011 Contact Éva Vezér (36) 1351 7760 [email protected] The Chronicles of Narnia: The Voyage Of The Dawn Treader Part 3 of the Narnia series opens in the Czech market on 9 December, the same date it is released in Hungary and Russia. Bontonfilm hopes a 32-copy release before Christmas will push the film beyond the earnings of the summer release Prince Caspian ($1.2m) and January release The Lion, The Witch And The Wardrobe ($1.5m). Premiere 9 December Contact Aleš Danielis, Bontonfilm director of film distribution (420) 257 415 111 [email protected] White White World Oleg Novkovic’s Serbia-Germany-Sweden co-production White White World, winner of Art Cinema Award and best actress for Jasna Djuricic in Locarno, will open the Belgrade Festival of Auteur Film (30 November-7 December). Prior to that, Megacom Film will release it in “reversed distribution”: it will open in nine Serbian cities starting, before going to key city Belgrade. Contact Megacom Film, Igor Stankovic, (+381) 11 3821 113 [email protected] International sales Films Boutique (49) 30 695 378 50 [email protected] s www.filmsboutique.com n Tallinn Black Nights Film Festival The event features the Baltic Event co-production market (1-3 December) and the Black Market industry screenings and literary rights market (1-4 December). The festival coincides with the European Film Awards in Tallinn on 4 December. Date 19 November – 5 December Contact Tiina Lokk, Black Nights and Black Market (372) 631 4640 [email protected] ScriptEast at EFM The ScripEast training programme brings scriptwriters from Eastern Europe to EFM, where they will have one-to-one meetings with heads of studies Christian Routh and Tom Abrams. Previous projects include Benedek Fliegauf’s Womb and Borislav Chouchkov and Dimitar Kotzev’s Tilt. Date 10-18 February 2011 (48) 22 851 84 40 [email protected] The Little Gypsy Witch Tomislav Zaja’s The Little Gypsy Witch, budgeted at $1.8m, starts principal photography on 2 December. The children’s film is a co-production between Croatia’s Formula Film, Austria’s Knut Ogris Films and Macedonia’s Geyzer Film Production, and received Eurimages support of $252,846. Production company Formula Film Producer Boris Dmitrovic (385) 98 458 917 [email protected] 74 Local Markets Report TERRITORY FOCUS: BENELUX The Forgotten Space: won the Special Orizzonti Jury Prize in Venice market update Belgacom in Wallonia are beginning to generate revenues through VoD. With public broadcasters not buying, the emphasis is firmly on how films perform theatrically. On the positive side, acquisition prices are coming down. “Competition is less,” says Hermeling. “The sales agents finally accepted that the MGs [minimum guarantees] had to go down.” Print and advertising costs are also reducing. Wilco Wolfers, CEO of A-Film Distribution, is upbeat about how Dutch films have been performing in recent months. “The Dutch theatrical market is still growing. We’re still ahead of the same period last year,” he says. “The local chunk is a big chunk of the box office as we speak.” Not even the progress of the Dutch football team to the World Cup final in July put too big a dent in the business. Family fare remains popular and A-Film is giving a major release to kids movie Saint, from director Dick Maas, in time for the St Nicholas holiday on 6 December. On the production front, the big news in Holland is that Paul Verhoeven and producer San Fu Maltha are back in business Budget cuts have been the talk of the industry in Benelux this autumn. Following inconclusive summer elections, both Holland and Belgium were without a new government (the Netherlands eventually formed a minority government supported by Geert Wilders’ Freedom Party in mid-October). During the political limbo, both countries have been bracing themselves for reductions in public funding of film. In the Netherlands, cuts of up to 20% are anticipated in culture budgets. This means that local producers, expecting public funding to be reduced, are pushing hard for the country to set up its own tax shelter system (see In Focus). On the distribution front in Holland, DVD sales have continued to fall. Pim Hermeling, boss of Wild Bunch Benelux, estimates this sector has shrunk 30% in Benelux over the course of 2010. Video-on-demand (VoD) platforms, meanwhile, are not yet generating enough returns to make up for the shortfall, although local distributors say that cable companies such as UPC and Ziggo in Holland, Telenet in Flanders and 75 TERRITORY FOCUS: BENELUX together. They are to make Hidden Force, a drama based on the classic Dutch novel by Louis Couperus. Shooting is expected to begin next year. Holland has been enjoying a mini production boom. There were 39 productions last year (including seven minority and eight majority co-productions) and production has been brisk this year too. Dutch movies achieved a 17.4% market share in 2009. The downside is that international profile remains relatively low. Dutch films have been sparsely represented at the big autumn festivals, although The Forgotten Space won the Special Orizzonti Jury Prize in Venice, while Nanouk Leopold’s Brownian Movement was warmly received in Toronto. In Flanders, the budget for public investment in films, education and training through the Flemish Audiovisual Fund (VAF) is expected to be down 10% in 2011. Between September and December, 10 new Flemish films are being released locally – an unprecedented number. Titles such as Hans Van Nuffel’s Oxygen (a prize-winner in Montreal) and Vanya D’Alcantara’s Beyond The Steppes (in official selection in Locarno) have been winning plaudits on the festival circuit. Most are being handled by Kinepolis, still the major player in Flemish distribution. VTM, the commercial TV channel, has also been active in supporting Flemish film production, while local viewers are tuning in too. When Christophe Van Rompaey’s crowd-pleaser Moscow, Belgium (2008) premiered in October 2009, it posted viewing figures that came close to toppling the all-time record set by Titanic. On its first airing, viewing figures were 1.1 million (a 48.5% market share) – a huge number given that there are only six million Flemish people. When the film screened again this year, it attracted 438,274 viewers – still a sizeable number. But the upsurge in Flemish production will be tough to sustain. “There is too much emerging new talent for our budget to support,” notes a VAF source. The VAF, which underpins local film production, backs between eight and 10 feature films a year, but there is currently a talent pool of 30-35 directors. This means there is a bottleneck forming and that film-makers will get a chance to make a new feature only every three to four years. Flemish producers have been hit by public broadcaster VRT’s decision to reduce its commitment to the film arena. Peter Bouckaert of Eyeworks refers to “the enormous drop in Netherlands: Exhibition 2009-2010 Number of cinemas 242 Number of screens 751 Number of 1.4K digital screens 37 Number of 2.0K digital screens 151 Number of 4.0K digital screens 6 Number of 3D screens 150 Number of IMAX-screens 3 Number of seats 123,000 Number of admissions per capita 1.7 Average ticket price $10.10 (€7.40) Netherlands: Exhibition 2009-2010 Total cinema admissions Gross Box office 27.3m $273.6m (€201m) National share National share 17.4% 16.3% Source : Netherlands Film Fund commissions” from the broadcaster, which has been suffering its own cuts. Bouckaert, producer of recent Flemish hit Dossier K, already accepts that Double Face, his next project based on the crime novels by Jef Geeraerts (author of Dossier K and The Alzheimer Case), will have to be done on a lower budget than its predecessor In Wallonia, new films are on the horizon from double Palme D’Or winners the Dardennes brothers (Set Me Free, with Cecile De France) and from Bouli Lanners (Les Géants). In Belgium, the tax shelter system continues to flourish. One continuing trend is the number of high-profile French films shooting in Belgium to take advantage of the shelter. Among them are Dany Boon’s Nothing To Declare, Virginie Despentes’ Bye Bye Blondie and Francois Ozon’s Potiche. Luxembourg, meanwhile, remains active as a co-production partner. Nicolas Steil of Luxembourg-based Iris Productions achieved an unlikely double coup in the autumn when two films he produced were put forward as Oscar candidates by different countries – Illegal from Belgium and La Petite Chambre from Switzerland. Steil put together around 45% s of the financing for both projects. n 76 TERRITORY FOCUS: BENELUX data Netherlands box office 2010 The Netherlands: Television & video 2009 Number of public nationwide broadcasting channels 3 Number of commercial nationwide broadcasting channels 14 Number of public internet television channels 17 Source: NFV/NVPI as of 31.12.09 Share TV 98% Analog 60% Digital 50.8% DVD players 54.9% Harddisc recorders 21.6% Access to Internet 80% WEB-TV (watching television on the internet) 34.9% $179.8m (€131.9m) $91.1m (€66.8m) n Films from Netherlands n Films from other countries 37 331 n Dutch market share in admissions 17.4% The Netherlands: TV & Internet penetration of households Medium n Majors n Independents Source: NFV/NVPI as of 31.12.09 new releases 2009* admissions gross box office 4.7m 37 $44.8m $45.9m (€32.9m) (€33.7m) 4.8m 178 153 n Films from The Netherlands** n Films from the US n Films from other countries Source: Netherlands Film Fund 17.8m $183.2 €134.5m) n Films from The Netherlands** n Films from the US n Films from other countries n Films from The Netherlands** n Films from the US n Films from other countries Source: Netherlands Film Fund Source: Netherlands Film Fund * releases from NVF members ** including co-productions 77 TERRITORY FOCUS: BENELUX data top 10 international films Belgium june-september 2010 Rank title distributor release date date range gross box office cumulative gross box office 1 Inception Warner Bros International 21/07/2010 $4.9m (€3.6m) $6.2m (€4.6m) 2 The Twilight Saga: Eclipse Belga 30/06/2010 $4.5m (€3.3m) $6.8m (€5.0m) 3 Toy Story 3 Walt Disney International 23/06/2010 $4.4m (€3.2m) $5.5m (€4.0m) 4 Shrek Forever After Paramount International 14/07/2010 $3.7m (€2.7m) $5.0m (€3.7m) 5 The Last Airbender Paramount International 28/07/2010 $2.9m (€2.1m) $3.2m (€2.4m) 6 Step Up 3D Belga 04/08/2010 $2.7m (€2.0m) $3.6m (€2.6m) 7 The Karate Kid Sony International 21/07/2010 $2.2m (€1.6m) $2.5m (€1.8m) 8 Knight And Day Fox International 28/07/2010 $2.1m (€1.5m) $2.3m (€1.7m) 9 The Expendables Benelux Film Distribution 18/08/2010 $1.7m (€1.2m) $2.7m (€2.0m) 10 Salt Sony International 04/08/2010 $1.4m (€1.0m) $1.9m (€1.4m) Source: Rentrak Dutch top 20 films January-december 2009 Rank title distributor release date number of admissions GROSS BO 2009 total prints released 1 A Woman Goes To The Doctor Benelux Film Distribution 26/11/2009 922,000 $9.7m (€7.1m) 129 2 The Storm Universal Pictures International 17/9/2009 730,000 $6.4m (€4.7m) 123 3 The Dark House eOne 29/10/2009 355 ,000 $3.7m (€2.7m) 90 4 Sinterklaas En De Verdwenen Pakjesboot eOne 8/10/2009 284,000 $2.2m (€1.8m) 106 5 Spangas on Survival Walt Disney Studios 1/10/2009 275,000 $2.2m (€1.8m) 117 6 Anubis En De Wraak Van Arghus Independent Films 17/12/2009 255,000 $2.2m (€1.7m) 117 7 Lover Or Loser eOne 24/9/2009 226,000 $1.9m (€1.4m) 101 8 Spy Of Orange A-Film Distribution 5/2/2009 210,000 $2.2m (€1.6m) 110 9 Frogs & Toads A-Film Distribution 12/2/2009 181,000 $1.5m (€1.1m) 107 10 The Hell of ’63 eOne 17/12/2009 127,000 $1.4m (€1.0m) 86 11 Suske En Wiske: De Texas Rakkers eOne 23/7/2009 99,000 $0.8m (€0.6m) 89 12 Limo Independent Films 9/4/2009 84,000 $0.7m (€0.5m) 110 13 The Misfortunates Wild Bunch 8/10/2009 72,000 $0.7m (€0.5m) 16 14 Het Sinterklaasjournaal: De Meezing Moevie Independent Films 15/10/2009 70,000 $0.5m (€0.4m) 83 15 The Indian A-Film Distribution 9/8/2009 56,000 $0.4m (€0.3m) 71 16 The Last Days Of Emma Blank A-Film Distribution 7/5/2009 48,000 $0.4m (€0.3m) 23 17 Zonder Pardon Independent Films 12/11/2009 43,000 $0.4m (€0.3m) 33 18 My Dad’s A Detective eOne 9/4/2009 28,000 $0.3m (€0.2m) 44 19 Nothing Personal Cinema Delicatessen 10/12/2009 23,000 $0.2m (€0.1m) 28 20 Can Go Through Skin A-Film Distribution wk 43 2008 13,000 $0.1m (€0.08m) 8 Source: Netherlands Film Fund 78 TERRITORY FOCUS: BENELUX data top 20 films Netherlands july - September 2010 Rank title distributor date range gross box office date range admissions 1 Inception Warner Bros International $4.8m (€6.5m) 770,473 2 Shrek Forever After Universal Pictures International $71.m (€5.2m) 596,803 3 Toy Story 3 Disney $5.2m (€3.8m) 482,195 4 Step Up 3D Independent Films $4.8m (€3.5m) 393,934 5 The Karate Kid Sony $3.5m (€2.6m) 354,505 6 The Last Airbender Universal Pictures International $3.5m (€2.6m) 296,077 7 Knight And Day Fox International $3.4m (€2.5m) 315,238 8 The Twilight Saga: Eclipse Independent Films $3.3m (€2.4m) 311,167 9 Salt Sony $3.0m (€2.2m) 292,831 10 The Expendables Benelux Film Distribution $2.4m (€1.8m) 247,500 11 The Sorcerer's Apprentice Disney $1.9m (€1.4m) 181,388 12 Sammy’s Adventures: The Secret Passage Universal Pictures International $1.8m (€1.3m) 165,930 13 Marmaduke Fox International $1.6m (€1.2m) 185,487 14 Cats & Dogs: The Revenge Of Kitty Galore Warner Bros International $1.4m (€1.0m) 138,957 15 Grown Ups Sony $1.4m (€1.0m) 150,809 16 Piranha 3D A-Film Distribuition $1.0m (€0.7m) 82,851 17 Dinner For Schmucks Universal Pictures International $0.8m (€0.6m) 85,576 18 Machete eOne $0.8m (€0.6m) 82,131 19 Sex And The City 2 Warner Bros International $0.8m (€0.6m) 66,601 20 Going The Distance Warner Bros International $0.7m (€0.5m) 84,897 Source: Rentrak 79 TERRITORY FOCUS: BENELUX data Number of admissions: distributor market share Netherlands 2008/2009 (majors) majors 2008 share 2009 share titles with most admissions 2009 Warner Bros Pictures International Holland BV 3,578,000 15.2% 6,857,000 25.1% Harry Potter And The Half-Blood Prince Universal Pictures International Netherlands BV 6,361,000 27.1 % 4,627,000 16.9% The Storm Walt Disney Studios Motion Pictures Netherlands 1,590,000 6.8% 3,148,000 11.5% Up Sony Pictures Releasing Holland BV 1,702,000 7.2 % 2,673,000 9.8% Angels & Demons 20th Century Fox** 984,000 4.2% – – – 2009 share (%) titles with most admissions 2009 Source: Netherlands Film Fund ** Since last year, 20th Century Fox is part of Warner Brothers Number of admissions: distributor market share Netherlands 2008/2009 (independents) independents 2008 share (%) A-Film Distribution BV 1,162,000 4.9% 1,183,000 4.3% Spy Of Orange eOne Entertainment Benelux BV 1,809,000 7.7% 2,510,000 9.2% The Dark House Independent Films BV 3,200,000 13.6% 1,556,000 5.7% The Twilight Saga: New Moon Paradiso Entertainment Nederland BV 666,000 2.8% 491,000 1.8% He’s Just Not That Into You Cinemien (ABC Theatrical Distribution BV) 252,000 1.1% 293,000 1.1% Gomorrah Filmmuseum Distributie 113,000 0.5% – – – Moonlight Films BV 125,000 0.5% 68,000 0.2% Righteous Kill Shooting Star Filmcompany 0 0.0% 1,000 0.0% Salt Of This Sea Benelux Film Distributors 1,339,000 5.7% 2,092,000 7.7% A Woman Goes To The Doctor Cinéart Nederland BV 285,000 1.2% 995,000 3.6% Slumdog Millionaire European Film Partners BV 16,000 0.1% – – Amstelfilm BV 8,000 0.0% 23,000 0.1% North Twin Film 12,000 0.1% 27,000 0.1% Kidz In Da Hood Wild Bunch Benelux Distribution BV – – 249,000 0.9% The Misfortunates Eye Film Institute Distribution – – 122,000 0.4% Modern Life Cinema Delicatessen – – 43,000 0.2% Nothing Personal LOC Film Distribution – – 40,000 0.1% Donkey Punch Source: Netherlands Film Fund 80 TERRITORY FOCUS: BENELUX data dutch half-year entertainment results 2010 technology 2010 2009 change 2010 (units) 2009 (units) change DVD $165.6m (€121.5m) $177.9m (€130.7m) (-)7.1% 11.4m 13.9m (-)18.0% Blu-Ray $ 17.4m (€12.8m) $10.2m (€7.49m) (+) 71.4% 0.7m 0.3m (+) 120.4% Other $0.01m (€0.01m) $0.05m (€0.04m) (-)65.6% 0 0 (-)54.7% Total Video $182.7m €134.3m $188.2m (€138.2) (-)2.8% 12.1m 14.2m (-)15.1% Source: NVPI belgium half-year entertainment results 2010 technology 2010 2009 change 2010 (units) 2009 (units) change DVD $120.9m (€88.9m) $132.1m (€97.2m) (-) 8.56% 7.4m 8.6m (-)13.79% Blu-Ray $9.1m (€6.7m) $6.0m (€4.4m) (+) 55.20% 0.3m 0.2m (+) 88.24% Total Video Sales $130.2m (€95.8m) $138.2m (€101.7m) (-) 5.78% 7.8m 8.8m (-)11.82% Source: Belgium Entertainment Association 81 TERRITORY FOCUS: BENELUX DEALS n Wild Bunch lands film rights In Toronto, Wild Bunch Benelux picked up the Benelux rights to Mike Mills’ Beginners and Abdellatif Kechiche’s Black Venus. As company boss Pim Hermeling points out, Benelux asking prices used to be between 1% and 2% of a film’s budget, but that price has come down. Wild Bunch is focused on arthouse films that are strongly marketing- and director-driven. These high-profile films can still be successful even at a time when arthouse is generally suffering in Benelux. n Delphis in Turquaze deal Canadian sales outfit Delphis Film has taken on international rights for Kadir Balci’s Turquaze. Delphis has strong connections with the Benelux industry, and with this deal the Canadian sales company clearly believes there is an international market for Benelux fare. This is interesting because one of the paradoxes about Benelux is that the most successful local films, whether kids’ fare or drama, don’t travel well within the territory. Dutch audiences don’t like Flemish movies – it was telling that rather than acquire Flemish box-office hit Loft for Dutch distribution, producer distributor Rachel Van Bommel decided to remake it instead, arguing that this way she would have a better chance of reaching a big audience. Silent Souls: one of four titles picked up by Cineart n A-Film puts focus on indie fare A-Film’s pick-ups include Sofia Coppola’s Somewhere, Gareth Edwards’ Monsters, Steven Soderbergh’s Haywire and Tony Goldwyn’s Conviction. A-Film, under Wilco Wolfers, focuses on both high-profile independent English-language fare from the major markets and on Dutch movies aimed at local audiences. But the Dutch arthouse films are generally struggling for traction in the Dutch market. Films such as Katia’s Sister, Calimucho, Can Go Through Skin and Nothing Personal all had festival success in 2009-2010 but struggled to reach big audiences when screened in Dutch cinemas. “The market is so jammed. There is so much going on. It feels like the audience is looking at only one or two films and they forget about the rest,” says A-Film managing director Wilco Wolfers of the great divide s between Dutch arthouse and mainstream cinema. n n Cineart takes four Independent arthouse distributor Cineart has picked up four new titles. It acquired Venice critics’ favourite Silent Souls from Memento and Dennis Villeneuve’s Incendies (from eOne). The company also prebought Café De Flore from director Jean-Marc Vallee (starring Vanessa Paradis) and Les Pauvres Gens (the new film from Robert Guediguian.) Cineart is one of the blue-chip companies in Benelux distribution and it has an extraordinarily diverse catalogue. The company was one of the beneficiaries of phenomenon that was The Lord Of The Rings, when it came in early to pre-buy Peter Jackson’s epic films from New Line. However, its slate also includes every new film from the Dardenne Brothers. n First Hand Films gains Paradox rights Swiss outfit First Hand Films has taken international sales rights on documentary feature Paradox, about maverick Dutch film-maker Pim de la Para, from Fu Works. 82 TERRITORY FOCUS: BENELUX DIGEST financing from KBC, one of Belgium’s biggest banks, and is now looking to buy bigger titles. The significance of this deal (announced in July) is that it is an example of a bank investing in the film industry in a period when big financial institutions are generally giving the sector a wide berth. Sources refused to reveal how much money KBC was providing but it is understood the bank has taken a 20% stake in Lumiere, which currently acquires 15-20 movies a year. “We won’t buy more but we’ll buy bigger,” said Lumiere co-chairman Jan de Clercq, commenting on how the bank investment will change the business. Production n In Holland, Oscar-winning actress Charlize Theron has acquired remake rights to Dutch psychological thriller Two Eyes Staring by Dutch writer/director Elbert van Strien. The remake will be made through Theron’s company, Denver & Delilah, and the actress is expected to appear in the film. The acquisition has been hailed as a big local success given that the film does not yet have an international sales agent. Producers Claudia Brandt and Van Strien have been handling the film in the market and have closed deals to South Korea (KT&G) and France (Zyko). n Accento Films is in advanced development on two further projects, both written by Elbert van Strien together with UK writer Ben Hopkins (The Market, Simon Magus). The first, supernatural thriller Marionette, is a remake of a short film by Van Strien. The second is Out Of Mind, a psychological thriller. n Brownian Movement (sold by Films Distribution) is looking for a slot in the Berlinale in 2011 after being premiered in Toronto in September but failing to receive a showing at this year’s Dutch film festival in Utrecht. Director Nanouk Leopold is a festival favourite whose work has screened in Cannes and Berlin. He is a prime example of a Dutch director feted by international festival programmers and widely admired by critics, but whose work remains tough to sell in the international marketplace. n Dutch co-production Amphibious 3D (sold internationally by Celsius) will premiere in Sitges prior to screening in the market at the American Film Market (AFM). Celsius has already closed a raft of deals on the film, a rare Dutch foray into the monster genre. The Dutch-Belgian-Indonesian co-production, directed by Brian Yuzna (Re-Animator 2), is about a supernatural prehistoric creature that terrifies members of a marine research expedition. Exhibition n After almost two years (since January 2009), the longrunning dispute between Belgian distributors and exhibitors over how box-office figures are calculated is yet to be resolved. The dispute began when leading exhibitor Kinepolis decided not to make available figures about ticket sales to centralised system IT Helps. Kinepolis sources claimed that these figures were being leaked in advance to the press and that, as a result, the company share price was suffering. Other exhibitors soon followed suit. As yet, exhibitors have not accepted the distributors’ attempts to set up a centralised accounting system. The net result is that every Monday morning it is unclear which films have done well and distributors are still obliged to ring cinemas for box-office information. They then provide their data to non-profit industry body Service Professionel de Controle des Recettes, which represents the interests of both distributors and s exhibitors and is able to provide accurate figures. n Distribution n September saw the launch of Starway, a distribution company backed by Flemish media giant VMMA, the owner of commercial TV station VTM. Starway will be handling eOne’s films. If it moves into third-party distribution, some locals predict Starway could challenge the dominant position that Kinepolis currently holds. n Brussels-based distributor Lumiere has secured extra 83 TERRITORY FOCUS: BENELUX IN FOCUS with foreign backers will give their work the leverage to reach the international market. Even so, in recent years, some outsiders have felt that Holland is not an easy co-production partner. Its “matching fund” (through which producers with two thirds of their financing in place and a guarantee of distribution can apply for the final third of their backing from the Dutch Film Fund) is hard for outsiders to access. Benelux neighbours Belgium (with its tax shelter) and Luxembourg (with CIAV, its audiovisual investment certificate programme worth up to 30% of a budget to producers working in Luxembourg) have incentive schemes that draw international producers. The Dutch don’t. Leading Dutch producer San Fu Maltha (Black Book) points out that the post-production sector is already suffering Why the Dutch need a tax shelter Without a tax shelter, the Dutch are failing to attract co-production partners. They may have a 17% market share for their own films at the Dutch box office, but the local industry is not attracting inward investment. Once government cuts hit the Dutch Film Fund, there will be less public funding for film production. The Dutch are a part of Eurimages (the Council for Europe fund for co-production, distribution and exhibition of cinematographic work) but producers complain regularly that they aren’t happy with what they get from the fund. If they want to make films of a certain scale, Dutch filmmakers need international partners for financing, and working feature film production 2010: dutch productions shot mainly or wholly in the netherlands title production companies budget start Date of shoot (2010) Sint TDMP/Parachute Pictures $6.0m (€4.4m) 15 Februry Heading West KeyFilm $1.1m (€0.8m) 8 March Among Us Lemming Film $1.3m (€0.9m) 22 March Het Geheim IDTV Film $1.9m (€1.4m) 3 April Pizza Maffia IDTV Film $2.0m (€1.5m) 12 April Ernst & Bobbie En ‘Het Geheim Van De Monta Rossa’ M4ALL $2.2m (€1.6m) 16April Alle Tijd NL Film $2.5m (€1.9m) 8 May Me & Mr. Jones Talent United $0.7m (€0.5m) 5 June Snuf De Hond En Het Spookslot Steven de Jong $1.4m (€1.0m) 6 June Sinterklaas En Het Pakjes Mysterie SRSP $1.0m (€0.7m) 12 June New Kidz Turbo Eyeworks Film $1.4m (€1.0m) 26 June Dik Trom Eyeworks Film $2.9m (€2.2m) 6 July 170 Hz Column Film $1.1m (€0.8m) 08 6 July Penny, De Film! Penny’s Shadow filmfonds $3.5m (€2.6m) 02 August Lotus IJswater Films / Revolver $1.3m (€0.9m) 21 August Gooische Vrouwen Endemol Entertainment $3.3m (€2.4m) 22 August Stilettos Nedfilm & Television $2.2m (€1.6m) 21 August Nick IDTV Film/De Productie $0.9m (€0.6m) 24 August Summer Circe Films $1.4m (€1.0m) 12 August feature film production 2010: dutch productions shot mainly or wholly abroad title production companies budget start Date of shoot (2010) Majesty Fu Works/IDTV Film $2.7m (€2.0m) 29 March Ataraxia – Poodle Shaving For The Blind SeriousFilm/Poodle Shaving $0.9m (€0.7m) 21 August Source: Netherlands Film Fund 84 TERRITORY FOCUS: BENELUX because of the lack of international activity in the Netherlands. “In the future, there probably won’t be any expertise available in Holland, which is really bad for us. To be interesting co-production partners in the future, you need to have post-production facilities. Also, a Dutch tax shelter will be essential.” The production community in Holland and in Europe has reacted positively to the international perspective and consensus-building of Doreen Boonekamp, who became head of the Netherlands Film Fund last year. Local producers compare the mood in the Dutch industry favourably with the backbiting that existed during the reign of her predecessor, Toine Berbers. Boonekamp is leading the lobbying for a new incentive. “Co-production is vital when you want to have a lively film production [sector] in your own country,” she says. “Even without the cuts, we need a tax scheme to keep the industry healthy.” The Film Fund’s budget is stable at $48.4m (€35.5m) a year until 2012. By then, the hope in the Dutch film community is s that some form of tax incentive will be in place. n feature film production 2010: Majority Dutch international co-productions shot mainly or wholly in The Netherlands title production companies budget start Date of shoot (2010) Sonny Boy Shooting Star Filmcompany $7.0m (€5.12m) 15 February De Eetclub Infinity Film & TV/Rinkel Film & TV $3.8m (€2.80m) 10 April Lena Isabella Films $2.3m (€1.69m) 16 September feature film production 2010: Majority Dutch international co-productions shot mainly or wholly abroad title production companies budget start Date of shoot (2010) Black Butterflies IDTV Film/Cool Beans/Riba Film $6.2m (€4.52m) 8 March Somewhere Tonight Column Film $1.4m (€1.00m) 22 March Loft Pupkin Film $4.7m (€3.46m) 8 June Isabelle IDTV Film $2.9m (€2.15m) 9 June Tony Ten Lemming Film $5.2m (€3.83m) 5 July Code Blue IDTV Film $1.9m (€1.40m) 17 Sepember De President Lemming Film $3.7m (€2.75m) 22 September Queleh Flinck Film $1.6m (€1.21m) 24 October feature film production 2010: Minority Dutch international co-productions shot mainly or wholly abroad title production companies budget start Date of shoot (2010) Oxygen Lemming Film $2.2m (€1.6m) 11 January Sleeping Sickness IDTV Film $2.9m (€2.15m) 26 January The Devil’s Double Corrino Media Corporation $20.4m (€15.0m) 6 February Simon And The Oaks Flinck Film $7.6m (€5.6m) – Rundskop Waterland Film & TV $2.6m (€1.9m) 24 March The Other Side Of Sleep Rinkel Film $1.9m (€1.4m) 29 March Ausencias Waterland Film & TV $1.1m (€0.8m) 19 April Istanbul Phanta Vision $1.9m (€1.4m) 12 July Bringing Up Bobby Rinkel Film $1.6m (€1.2m) 19 July Montana Volya Films $3.9m (€2.9m) 6 September Source: all tables – Netherlands Film Fund 85 TERRITORY FOCUS: BENELUX IN PRODUCTION van Meurs of Pupkin Film, the Belgian outfit Woestijnvis in association with Dutch broadcaster BNN. It’s about a group of young married male friends who secretly hire an apartment to entertain their mistresses without their wives finding out. Their little scheme comes unstuck when a dead body turns up in the apartment. In post-production. Contact Eline de Boer (31) 205 314 263 (31) 650 247 741 [email protected] Suskind Dutch director Rudolf Van Den Berg, whose feature Tirza is the Dutch Oscar candidate, is to direct $6.1m (€4.5m) World War II drama Süskind, about a German Jew who helped Jewish children in Holland escape from the Nazis during the war. The film is being produced by Fu Works and Cadenza. The producers are Jeroen Koolbergen, San Fu Maltha and Reinier Selen and it begins production next year. Contact San Fu Maltha, Fu Works (31) 205 307 110 [email protected] Délivrez-Moi Belgium’s Dardenne brothers have been shooting Déliverz Moi, their new film with Cecile De France and Jeremie Renier. Sold by Wild Bunch, the film is produced by Les Films Du Fleuve, Archipel 35 and Lucky Red. Shooting finished in late October, and the film is currently in post-production. The film is likely to surface in Cannes, where the brothers are two-time Palme D’Or winners. International sales Wild Bunch (33) 611 912 393 s [email protected] n Hasta La Vista! Geoffrey Enthoven is embarking on his fifth feature, Hasta La Vista! (produced by Fobic Films). Thanks to earlier films such as Children Of Love and The Only One, Enthoven is one of the most highly regarded directors in Flanders. Local hopes are that Hasta La Vista! will prove to be his international breakthrough. His new film stars French actress Yolande Moreau and tells the story of three disabled friends who share the same dream – to go on holiday to Spain to lose their virginity while they’re still able. Due to start shooting this autumn. Contact Mariano Vanhoof (32) 93 36 39 36 [email protected] Madonna’s Pig A tale about a sales agent of a computerised pig fertilisation machine who gets stuck in Madonna, an isolated and scenic village that is paralysed by a conflict over a new road. The screenplay is by Frank Van Passel and Marc Didden, the writer-director of Brussels By Night (1983), one of the key Belgian films of the 1980s. Starts shooting this autumn. Producer Caviar (32) 24 23 20 26 [email protected] Loft Dutch remake of Erik Van Looys’ hit Belgian thriller of the same name. The film is directed by Antoinette Beumer and produced by Rachel Van Bommel of Millstreet Films, Sander 86 TERRITORY FOCUS: BENELUX A look ahead International Documentary Film Festival Amsterdam (IDFA) Despite competition from Sheffield and Hot docs, IDFA is still the world’s pre-eminent documentary festival. Its forum is a key event for commissioning editors, producers and financiers to come together to finance new projects. This year’s festival is to open with Stand Van De Sterren by Dutch-Indonesian director Leonard Retel Helmrich, whose earlier documentary Shape Of The Moon won the Grand Jury prize for world cinema at the 2005 Sundance Film Festival. Date 17-28 November (31) 206 273 329 [email protected] European Film Awards (EFA) Even in advance of the main nominations for this, the 23rd EFA, it was clear that Benelux talent was going to be well represented in Tallinn, Estonia. Dutch director Urzula Antoniak is in the running for the EFA Discovery Award for her highly regarded debut feature Nothing Personal. Meanwhile, Belgian animator Ben Stassen – one of Europe’s leading 3D pioneers – has been nominated for the animated feature award for his film, Sammy’s Adventures: The Secret Passage. There are also Benelux shorts up for awards, among them young Flemish director Nathalie Teirlinck’s Venus vs Me and, from the Netherlands, Paloma Aguilera Valdebenito’s Stay, Away. Date 4 December Contact Marion Döring, director, European Film Academy (49) 308 871 670 [email protected] International Film Festival Rotterdam The festival will be holding sidebars on ‘Red Westerns’ – Soviet and Eastern European westerns from 1924 to 1980 – and on ‘Out of Fashion’, which will explore the growing interaction between the fashion industry and independent film-making. Date 26 January-6 February 2011 Contact Ert-Jan Zoetr (31) 108 909 090 [email protected] http://www.filmfestivalrotterdam.com 87