Risk, Reward, Media And Culture

Michael Hedges March 21, 2011 Follow on Twitter

Austerity minded policy makers are waving the sword at financial supports for cultural programs and creative industries. At the same time, breaks for banks have never been bigger. And what local politician won’t vote to build that bridge to nowhere? Filmmakers, symphony orchestras and public broadcasters, though, are formidable advocates.

The European Commission (EC) has provided financial assistance to a variety of audiovisual projects since 1990, commonly known as the Media Programme, administered through DG Education and Culture and the Education, Audiovisual and Culture Executive Agency (EACEA). It’s been through several iterations but the current version – Media 2007 – has given, not necessarily lavishly, to training, distribution and promotion. Very little goes to production financing. The current EC allocation the Media Program - €755 million – runs through 2013. Virtually all of that funding has gone to European film, cinema, movies and, yes, animation.

But the European Commission is also looking at its budget, which doesn’t materialize by defying the laws of economics. The accountants at DG Budget are preparing new spreadsheets for the 2012 budget set to be made public this spring. Circulating widely within the audiovisual sector is the suspicion that the Media Programme will be changed, downsized or both.

The mere thought of losing the financial support from the Media Programme sent film industry stakeholders into a spell. “If it was not for (the) Media (Programme),” wrote representatives of a dozen film industry groups to EC President José Manuel Barroso (February 25), “we would not be able today to even talk about a European audiovisual industry because this industry would not have been able to offer the non-national European cinema and TV contents in the various audiovisual market places of the European Union and associated countries.” They were asking President Barroso to refute those rumors.

The media sector has long enjoyed broad governmental support at the national level. There are subsidies and tax breaks for publishers. European public broadcasting is largely tax supported. Of course, support systems are in place for other sectors, from aerospace to agriculture and, of course, the banks. The reasoning is not complex; pure market forces fail.

Creative industries are also able to raise the culture card with plenty of justification. Readers, viewers and film-goers are, naturally, drawn to big, well-known creations in any genre. It’s the power of popularity. And the power of scale can be devastating to tens of thousands toiling for creative reward in Czech, Dutch, Polish and Maltese. “Without this strong support from the EU, most European talents, who are today the pride of the European identity, would not have been discovered and brought to large European and non-European audiences,” continued the producers letter to President Barroso.

The Academy of Motion Picture Arts and Sciences bestowed four Oscars (February 27) on The King’s Speech. It’s unlikely the film would ever have been made without the £1 million (€1.15 million) investment from the UK Film Fund, which the austerity-inclined UK government has now axed. The EC Media Programme also contributed £480,000 (€550,000).

The film lobby is inextricably linked with the culture lobby, both powerful in terms of swaying public opinion. And together they are quite sensitive to any perceived threat, particularly financial. The music industry along with the film industry lobbied successfully for stronger anti-piracy laws, setting privacy rules asunder.

The winds stirring for budgetary reform at the EC mixed with heat from the audiovisual and culture stakeholders. The EC responded. “The Media Programme has played an invaluable role in supporting the European film industry for 20 years. Rumors that we intend to abolish it or reduce its funding are completely unfounded,” said President Barroso in Turku, Finland (March 5). “On the contrary, our plan is to strengthen the program in the future.”

“These fears and concerns, as sincere as they are, about the possible abolition of the Media Programme and the end of its support for European cinema, are nevertheless unfounded and unjustified,” penned DG Education and Culture Commissioner Androulla Vassiliou to Liberation (March 7), the house record of French avant-garde. A stakeholders forum on the Media Programme was organized in Brussels.

And about 300 film industry and culture sector representatives gathered for the day-long public hearing (March 18). The EC, led by DG Education and Culture Director-General Jan Truszczynski, repeated its explanation that the Media Programme isn’t on the chopping block, with certain caveats. “The audiovisual universe as a whole must demonstrate that spending money in the field of culture makes sense and is profitable, so we need to lay the groundwork ahead of the Strategy 2020,” he explained.

The star-studded ensemble of filmmakers expressed concern at any changes in the current Media Programme. Some wanted European public broadcasters making greater financial contributions to the films they broadcast. Others would like to see the Media Programme extended to production financing. “Someone has to pay for taking these risks,” said Cannes Palme d’Or winning director Cristian Mungiu.

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