The Government and the Ministry of Culture
Always close to the sector, during these two years they ensured the tools and resources to first deal with the emergency and then support the reconstruction. More effort is required today.
The emphasis on the “centrality of space” is not a catchphrase. It may seem strange that two major TV groups like
Rai and Mediaset,
to which they belong
Rai Kino and Medusa,
Focus on cinema market crisis. We believe in the centrality of theater not for “romantic” reasons, but for solid industrial and systemic reasons.
First, the income from the distribution of films in theaters has always provided an important stream of resources necessary for the return on investment, which, it should be remembered, includes production and advertising. The success or failure of a film in cinemas has traditionally been an indispensable parameter for evaluating (including economic) work and a fundamental working tool for operators in the sector (including broadcasters). In addition, the importance of theatrical release for the “visibility”, also internationally, of the film and its talents (directors, actors, technical figures) and the “strategic positioning” in the panorama of audiovisual products is undeniable. It is no coincidence that movies are the most widely shared content and have the highest value over time. Finally, it should not be forgotten that the sector provides work for tens of thousands of people between direct and indirect workers.
If all stakeholders (producers, retailers, exhibitors and the government) believe that
the “centrality of space”
is an “added value” for the value chain of the audiovisual product, the next interventions must be geared towards it
securing the exclusivity of the cinema visit
and for a reward reserved for products designed, created and distributed for cinema.
There are four suggestions to avert a dangerous drift in the Italian cinema system.
These are structural interventions for the sector, but their implementation does not require any particular investment of time and resources:
1.
chronology
. As recently announced by
Minister Franceschini,
relative to f
90-day window for all films,
it is commendable and responds to the need for regulation after an unclear period regarding film launch chronology. However, we fear that this will not be enough to return the hall to the centrality it deserves: we understand that while the 15 months adopted in France are effective (just think that in 2021 96 million tickets were sold across the Alps compared to 25 million in Italy) are hard to come by, but we believe in it
180-day windows to protect the room exit make sense and are necessary
at least for the next three years. In terms of chronology, the interventions we propose concern in particular:
o same release windows for all films (Italian and foreign);
o 180-day window to protect the exit from the room compared to other exploits, at least for the next three years (eventually returning to 105 days before the pandemic).
2.
tax credit
for distribution
. The distribution tax credit is an intervention in favor of the product and not the distributor; It does not bring the audience to the cinemas, but allows films to reach the cinemas with a good communication campaign, essential to attract viewers and limit economic losses in times of crisis. This measure makes it possible to invest more in the film’s advertising campaign and give the product greater visibility. So we think it’s appropriate
Extension of the rate of this instrument to 60% for three years
.
3.
Production tax credit
. We think it useful to distinguish a priori between films that are planned to be released in cinemas and films that are aimed at other uses. A theatrical film brings with it a higher economic potential, attributed to the launch and the longer production chain that entails, where every element, including the star system, is upgraded. For these reasons, we propose the following interventions through a redesign of the tax credit:
o Tax credit for the production of works with a priority of 40% cinematographic exploitation;
o 30% tax credit for the production of cinematographic works intended for uses other than theatrical uses, including those using the results of the event.
4.
Regulation of the use of the 3-day event exit and the so-called “technical exits”.
It is necessary to intervene with a clear regulation on the use of the event, which in order to optimize the delivery of special audiovisual products (concerts, historical, cultural and artistic events) has unfortunately been used in recent months as a real trick to get around the windows and get to the other exploits faster.
Not caring about the showing of a film in the hall means creating a separation between the production and the audience that is supposed to enjoy the films. The supply chain would be irreversibly damaged and production would also be affected in the long term. Also for these reasons, in the medium term it would be desirable to continue to strengthen the platforms, whose role has now become indispensable for the Italian sector, by foreseeing a greater commitment to the purchase of films that have had an effective theatrical release and so on to support the production while improving the cinema window. The desire expressed by Minister Franceschini to intervene on this issue and the rapprochement expressed on several occasions between the various political parties, both the majority and the opposition, give hope that we can quickly arrive at the definition of new measures that enable companies to plan activities and investments for the coming months. Without “fixed points” there is a serious risk of not being able to plan the theatrical releases in the coming weeks and the crisis in cinema operations becoming irreversible.
We hope to intervene in time and really give the space the central role it deserves within the industry.