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How French Cinema Works
How French Cinema Works
Nerdwriter1
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9:53 · Jan 31, 2024
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if
you
pay
attention
to
the
opening
credits
of
French
movies
you're
very
likely
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if you pay attention to the opening credits of French movies you're very likely
0:04
to see the same name again
0:06
and again this one the national Center for Cinema
0:09
and the moving image
0:10
or the CNC the CNC is fundamentally different from all the producers Distributors
0:16
and finance years you see at the beginning of American films the us simply
0:21
has no equivalent to it see all these are private for-profit corporations the French
0:27
CNC is a publicly owned government agency for decades it sat at the center
0:33
of Cinema in France affecting every layer of the industry there it represents a
0:39
radical alternative to the economic model of us filmmaking
0:42
but Americans basically know nothing about how it works well at least I didn't
0:48
and when I got curious I found it hard to find a breakdown of
0:52
the French system in English I did some digging some translation
0:56
and I think I understand the basics now
0:58
and I want to share
0:59
that with you because I believe the French system is the missing piece of
1:04
this conversation we have about the state of the movies
1:07
but I'll get back to
1:09
that the first thing to understand is
1:11
that the CNC helps to fund movies TV
1:14
and other digital Creation in France at all levels of the process from pre-production
1:19
to exhibition the two big questions
1:22
that come from this are where does the CNC get its money
1:25
and where exactly does
1:27
that money go well thankfully these questions question s are easy to answer
1:31
because the CNC releases a belon
1:34
or balance sheet of its activities every year itemized in comprehensive an overview of
1:40
the health of the French film industry
1:42
and already here's a major difference from the US where private companies from different
1:47
sectors have no obligation to release precise figures let alone combine them in a
1:52
handy document for public consumption the CNC collects Revenue in three ways the first
1:58
is from attacks on Cinema ad admissions 10.7% of every movie ticket sold in
2:04
France whether the movie is French
2:05
or not goes to the CNC in 2022
2:09
that amounted to €18 million e on 152 million tickets the second source of
2:15
Revenue is a tax on TV providers established in the mid 80s
2:19
when Cinema attendance across Europe was in Decline the TV tax made up for
2:24
the losses in the movie ticket tax
2:26
and then some in less than 5 years the TV contra tions exceeded ticket
2:31
contributions and never look back in 2022 this tax came to 469 million euros
2:38
for the CNC the third source of Revenue is a tax on physical media
2:42
DVDs and Blu-rays video on demand
2:45
and French streaming platforms this amounted to €1 1227 million e in 2022 all
2:51
these taxes go directly to the CNC
2:54
and not into the general coffers of the French government they taxes on the
2:57
industry for the industry tax taxes
3:00
that collected a whopping 714 million in Revenue in 2022 to put
3:06
that in perspective that's 4 times larger than the 2022 budget of the National
3:11
Endowment of the Arts in the states for a country that's five times smaller
3:17
in population so where does all
3:19
that money go well right back into the movies
3:24
and not just the movies it breaks down like this 43% of the support
3:28
account in 22 went toward Cinema 39% went to TV
3:33
and streaming and 18% went toward a selection of other initiatives including support for
3:39
video game creation immersive audio visual Works VFX Studios preservation of old films
3:44
and more for this video I'm going to focus on just the portion
3:48
that went to cinema okay
3:50
so you're a French film producer
3:51
and you want to draw on these funds well there are two ways you
3:55
can do that automatic Aid
3:56
and selective Aid you can think of automatic Aid
3:59
as a credit account for returning filmmakers
4:02
when you make a movie it contributes to the system
4:05
and in turn earns you Credits based on its success credits
4:09
which you can then cash in on your next movie
4:12
and so on and
4:13
so on in this way the automatic Aid is less like a subsidy
4:16
and more like a reinvestment of funds
4:19
that rewards box office success selective Aid on the other hand is awarded via
4:24
the Advance on receipts often to firsttime directors it's meant to be paid back
4:28
if the film becomes profitable
4:29
but few of these films actually make enough money to do
4:33
that so it's effectively a grand critics say this lack of Commercial Success argues
4:38
against this program but that's the point of the Advance on receipts to support
4:43
an independent cinema that is bold in terms of Market standards
4:46
and that can't find its Financial balance without Public Assistance this is such a
4:52
crucial point in the US film industry there's only one metric to judge movies
4:57
Commercial Success without particip ation by the state there can be no other metric
5:02
the market determines everything that's obviously true for Hollywood
5:07
but it's also true for American independent cinema ask any Indie producer investors want
5:13
to see a return maybe a handful are purely philanthropic like family
5:17
and friends but philanthropy is no substitute for public action
5:21
and those Investments are are usually pretty small in 2019 across 53 projects the
5:27
average advance for firsttime Direct s was €80,000 now the CNC doesn't fully fund
5:34
films but that kind of leg up gives lots of new filmmakers a chance
5:40
that they otherwise wouldn't get
5:41
as well as the creative license to make something without the pressure to aim
5:46
for a broad-based box office hit
5:49
but the CNC does more than just give money for production after all the
5:53
movies themselves are only one part of the cinema ecosystem once made they need
5:57
to be distributed exhibited
5:59
and of course watched the CNC supports all these facets of the industry every
6:04
year for example it Awards millions of Euros for the maintenance
6:07
and renovation of theaters especially those
6:10
that show ouse films
6:12
and make sure these theaters exist in communities large
6:15
and small across the country
6:16
so everyone has easy access to a diversity of movies the CNC also invests
6:22
in cinema education working to add film literacy classes to the curriculums of young
6:27
students regularly taking them out to thec local theater with an aim to inspire
6:31
in new generations a love for all kinds of movies not just those
6:35
that giant corporations have millions of dollars to promote you know I actually think
6:40
that these initiatives are just
6:42
as valuable as support for production to maintain a healthy Cinema it's important to
6:47
think of the industry holistically in America
6:50
when we talk about the state of Cinema I think we often just focus
6:55
on the movies but even great films get lost
6:59
when when there's nowhere to see them for anyone who doesn't live in a
7:02
big city when we're conditioned from an early age to see only certain kinds
7:07
of movie in the theater now does the CNC have problems yes lots of
7:13
problems all the problems you'd expect from a large bureaucracy sluggishness red tape waste
7:19
controversies over who gets to choose what films get money it's a system
7:24
that has constantly needed to be tweaked
7:27
as the industry changes
7:28
as it had to do
7:28
when TV arrived and
7:30
then physical media and now streaming
7:32
which it's still trying to figure out this isn't a video about comparing the
7:38
American system to the French system I actually think
7:40
that comparison doesn't really make sense the two systems are too interwoven they can't
7:46
be separated the French program of subsidies
7:49
and quotas was established in large part to fight against Hollywood dominance after the
7:54
world wars and what it perceived
7:55
as American cultural imperialism in the quote unquote free market France didn't stand a
8:01
chance neither did any other country with the exception of maybe India
8:05
which is why so many nations subsidize their Cinema too actually in the last
8:10
20 years or so the US has begun to subsidize its own movies in
8:13
a big way in the form of tax credits
8:16
which is just a perfectly American way to use public funds for market ends
8:22
those subsidies not withstanding it's almost impossible to imagine a CNC like agency in
8:27
the states the American Sensibility is just too allergic to
8:31
that kind of socialist Enterprise
8:33
but I do think it's important to know how other systems can
8:36
and do work for all its issues the French approach to film financing is
8:41
envied throughout the world its commitment to diverse challenging Cinema is unparalleled
8:46
and its investment in the entire Cinema ecosystem has helped to create a public
8:51
of devoted filmgoers people who want to go out to the movie theater
8:55
and have a wide range of experiences there I guess it's no surprise France
8:59
after all is where Cinema was born they should be proud of the work
9:03
they've done to keep it alive hey everybody Welcome to 2024
9:10
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I'll see you next time
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