The financing of French cinema is based on a complex system of aid which makes it possible to support around sixty films per year. How does the cultural exception work in terms of the seventh art?
Palme d’Or Justine Triet’s speech at the closing of the 76th Cannes Film Festival, who accused the government of wanting “break the cultural exception”, revived the debate on the financing of French cinema. Back to a virtuous and complex system.
Aid from admission taxes and TV advertising
“Whatever you think of Justine Triet’s remarks, stop talking about public money and find out about the CNC and its funding”, said Monday on Twitter Pierre Lescure, the former president of the Cannes Film Festival. Because aid for the cinema does not come from taxes but mainly from taxes on the price of admissions and the advertising revenue of television channels.
Thus, a little more than 10% of a cinema ticket (French or foreign film) goes to the National Center for Cinema and the Moving Image (CNC), as does the tax paid by the channels according to their advertising revenue. , which represents the largest share of the CNC’s budget (70% in 2022). Television channels also have an obligation to invest in cinema through co-productions or the purchase of broadcasting rights.
Faced with the rise of streaming, a tax on subscriptions, like Netflix or Amazon Prime, has been put in place. Since 2021, these platforms must also devote 20 to 25% of their turnover in France to financing the production of audiovisual works (series, fiction, live performance, theater, etc.) and cinematographic works. A contribution deemed insufficient by several French audiovisual production associations.
Hit movies help fund others
In 2022, the CNC redistributed 291 million euros in aid for the cinema (aid for creation, aid for production, aid for the distribution of works or aid intended for the restoration of cinematographic heritage). According to a virtuous mechanism, successful films partly finance the others, through an initial production aid.
An essential link in French cultural policy, this system of advances on receipts is celebrating its sixtieth anniversary. The system was set up in 1959 by the Minister of Culture André Malraux. The allocation of advances on receipts is decided on the advice of commissions made up of recognized personalities in the profession (directors, screenwriters, producers, technicians).
Each year, around sixty films benefit from it, for an average amount of 500,000 euros, which was the case for Justine Triet and Anatomy of a fall, which won the Palme d’Or. These advances are repayable according to the success of the film. Depending on their cultural policy, the regional councils can also offer production aid for films shot on site.
In addition, the film tax credit allows a production company to deduct from its taxation 30% of the production cost of a film. Last year, 157 films benefited from it. Shooting in France is also favoured. The CNC also supports cinema exhibitors for equipment, modernization or creation of cinemas.
The environment fears that profitability will take precedence
There is “a slow slide towards the idea that we have to think about (the) profitability of films”exposed Justine Triet, after her uncompromising and very anti-government speech in Cannes. “Obviously, in my position, I find it very easy to finance my films, but I can clearly see around me that, for people who are starting up, the smallest productions are more difficult.”
Since 2019, the community has been concerned about a report produced by Dominique Boutonnat, who has since become the boss of the CNC, on the financing of cinema, advocating developing the private sector in addition to existing public support.
In a press release on Tuesday, the French Society of Directors and Directors (SRF) demonstrated “without reservation” its support for the award-winning director. “Our virtuous system of support for the cinema needs to be protected. Today, competitiveness and profitability are unfortunately essential in favor of films likely to make the most admissions”, said Rosalie Brun, general delegate of the SRF, to AFP. “Filmmakers must be able to create without worrying about the economic objective. We have been ringing the alarm bells for a long time.”