EPC PRESENTATIONLICENCES FOR EUROPE

Brussels, April 17th 2013

EPC Presentation

• EPC is the only organization that brings together European producers as individuals

• EPC’s aim is to build a strong European industry by strengthening European collaboration and representing the true interest of the European producers

• EPC also chairs the EPAA, the European Producers Association Alliance, an organization that gathers national producers associations from Europe

• With these two networks, EPC represents the vast majority of production in Europe

A few films produced by our members

What are the differences between a film and a product ?

• Each film is a prototype

• Each film gathers artistic input driven by a creative team, which make it an artistic work, an expression of a culture

• Each film is designed for a specific audience (the widest possible). THAT DOES NOT signify that it is a product.

• The way of distribution is therefore different: tailor-made for prototype films

• Also, a film is not content that should be contained! Don’t mix the content of our films and our films themselves

Some clarification about the Producers’ Position

• Producers are in favor of selling their films!!

• Producers are happy when they get money back to reimburse the investors who have invested in the film

• Producers are happy to share with the other rights holders the money earned by pan-European distribution of films !

• BUT producers are unhappy if the pan-European distribution will damage the value chain, and, instead of creating value, will destroy it

HOW A FILM IS PRODUCED

• Through our producers’ investments• Through market money, given by distributors, sales agents,

TV stations, through MG or presales based on exclusivity This money will be threatened by any regulation that does not respect our value chain

• Through State funded money, reimbursable or not. These funds are threatened by the change that has been

proposed in the Cinema Communication

• Through private investment, which will fill the gap in the financing of film This money is threatened by the crisis

HOW THE VALUE CHAIN IS ORGANIZED

WHAT IS THE CHAIN OF TITLESCreative Team

Authors, Directors, DP, Musicians…

Producer

DISTIBUTOR

Producer certifies that the film can be sold

by gathering

all the rights

Producer returns the revenues to

the rights holders he contracted

with

THEATERS TV VIDEO/VOD

WHAT DO WE DO TO IMPROVE CROSS BORDER ACCESS TO OUR WORKS

(WHICH ARE NOT CONTENT)

1. COPRODUCING MORE AND MORECoproducing films with other European countries means involving these countries in both production and distribution!

It helps our films cross the borders(encouraged also by the MEDIA PROGRAMME and EURIMAGES SUPPORT)

2. TO SECURE THE INVESTMENTS- A film is a FRAGILE piece of work

- A film is generally designed to be rooted in a national culture and to catch an international audience

- It has to be released in the national territory that is has originated from to validate the audience it catches and the way it is perceived

- A national release gives to the film :- revenues that are a first payback on the investments- a spectrum of the audience - a way to organize a wider release

3. WORK WIDELY WITH GATE OPENERS

• Sales Agents are gate openers

• They can define strategy for films:– a festival strategy for art house films– a key territories’ strategy for mid commercial films

(one territory after another)– few territories at the same time for highly branded

films, such as James Bond films

4. SELLING FILMS IN COUNTRIES UNSOLD BY SALES AGENTS?

• For recent films, if primary rights are not damaged YES

• For less recent film (« heritage ») if the right situation allows it YES

• If the money that can be made by the film is more than the costs YES

• If the release of the film is accompanied by a specific promotion campaign YES

WHAT ARE THE MAIN OBSTACLES WE ARE FACING

1. The language• Language is, simultaneously, an advantage and

an obstacle.• Using our own language is important as we are

producing films (neither Product nor Content) rooted in our culture

• But in order to widen the audiences, films must be “transformed” by using subtitles or dubbing.

2. Finding the Audience

• The film sector is a SUPPLY DRIVEN ECONOMY as opposed to a DEMAND one. Films are produced and they are offered to the public. Producers are not driven by the Demand. Producers do not perform any marketing BEFORE producing a film, to verify the needs of the spectator and how to answer them

• THE AUDIENCE MUST BE CREATED

• It’s a PEOPLE BUSINESS, creating tailor made desire for every film

3. Differences of the market

• The apprehension of the market is important to build the audience. And European countries present different markets:– SIZE of markets are different– Markets have cultural differences– The share of the market left for other films than

US:

European Audiovisual Observatory - 2010

European Audiovisual Observatory - 2010

WHAT SOLUTIONS COULD IMPROVE THE SITUATION

From the technical sideSolutions are there. Films are available, with two main problems:

- the exclusivity has been eliminated- different sizes of films are fighting on the same level (big and low budget, US and European films).

From the Legal SideWe need the EU to help us to PROTECT our Works, our Cultural Diversity and to recognize that films are neither a product nor a content to be contained.