Federation of European Directors Fédération Européenne des Réalisateurs de l’Audiovisuel

Newsletter November 2012

News Policy update Editorial Lux Film Prizevv Creative Europe The Virtual Reality Portugese crisis film Cinema Communication since 1980 Roundtable on release windows CMO Directive

The launch of this year’s Lux Film Days was announced by a poster at the entrance to the in Brussels

OUR STORIES. OUR CULTURE

Since 2007, the European They help illustrate the diversity single citizen of the . Parliament LUX prize has been of European traditions and shed The aim of the initiative is “to share casting an annual spotlight on light on the process of European the cultural diversity of European that go to the heart of the integration. cinema with the largest number of European public debate. The Europeans possible, and to debate Parliament believes that the This autumn, the 27 countries of in situ and online the topics depicted cinema, a mass cultural medium, the European Union will share the by the films”. can be an ideal vehicle for debate same images, words and stories For the rest of 2012 and the and reflection on Europe and its on the big screen. The European beginning of 2013 there will be future. The films selected for the Parliament’s LUX Prize is screenings of the three finalist films LUX Prize competition help to air organising the LUX Film Days. in more than 40 Europeans cities different views on some of the with the involvement of the main social and political issues of For its 6th edition, the LUX Prize Information offices of the European the day and, as such, contribute breaks the Parliament’s borders Parliament and in partnership with to building a stronger European for the very first time, to involve International Film Festivals and local identity. every single country and every cinemas.

NEWS

Shun Li and the Poet Lux Film Prize Winner 2012

On 21 November the European The LUX Prize winner does not Parliament's President Martin receive a direct grant. Instead, Schulz awarded this year's LUX the Parliament pays to subtitle Film Prize to the film into the EU’s 23 official (Io sono Li) by Andrea Segre ( languages and for it to be and ) at a ceremony during adapted for the visually or the plenary session in . hearing impaired. It also funds The other two finalists were Just the production of a 35 mm print the Wind (Csak a Széi) by Bence for each Member State. Fliegauf, (, and France), andTabu by Miguel Interviews with the three film Gomes (, Germany, France directors and the list of cities and Brazil). The Members of the and dates of the screening of European Parliament cast their vote the three films can be found after a period of screenings at the HERE The Lux Film Prize @ European Parliament Parliament in Brussels and online. Portugese Lux Prize Finalist I’m glad to see that after all there is some action in Europe. We weren’t sure about that these days, nothing seems to happen politically. I think it’s important… to have the recognition of cinema from the European Union, which understands that cinema is important and must be supported.

Michel Gomez, Director of Tabu

Tabu will be distributed to more than forty countries - a record in Portuguese cinema. Still from ”The M of the Portugese Cinema” @ Joao Viana Portugese filmmakers make crisis film

On Saturday October 27 director Joao Viana To Cinta Gil, co-director of DocLisboa, the film "is presented his new film “The M of the Portugese a parable about the current situation of Cinema”, an hour-long documentary that depicts Portuguese cinema." Susana Sousa Dias, also the current situation of Portuguese cinema and co-director of the festival, explains that the choice features 19 national directors as protagonists. of this film aims to "bring the public to actively They are: Edgar Pera, John Nicholas, Rita Nunes, think about and discuss what is happening" in the Claudia Varejao, Edgar Feldman, Inês Oliveira, sector. The film was the highlight of the new João Pedro Rodrigues, Julio Alves, Leonor Fiance, section “Cinema of Urgency.” The screening was Manuel Mozos, Marco Martins, Pedro Sarrazina, followed by a debate among all players, guests, Renata Sancho, Teresa Garcia, Zé Miguel political parties, cultural institutions and the Ribeiro, Mariana Gaivão, John Salaviza, Sandro general public about the crisis in Portuguese Aguilar and Alberto Seixas Santos. Cinema. NEWS

the situation was unfortunate for smaller artistic films.

The Danish is now trying to develop release scenarios for the different ”lives” a film could potentially have.

In her remarks Annette K. Olesen said that the harsh industry reaction to her op-ed was like a ”fatwa”, but that the exhibitors must not make this an ”either – or” proposition.

Filmmakers of course want to show their films in the cinema. But there needs to be some flexibility. She expressed deep concern that companies such as Zentropa can Director Annette K. Olesen (to the left) participated in the roundtable discussion no longer afford to invest in talent development because revenues have dropped dramatically as DVD Commissioner Kroes hosted Roundtable sales fall while online distribution fails to produce any significant on release windows at MIPCOM income at this stage.

On 9 October Commissioner Kroes is still best suited to the new She called for support for rights and Commissioner Vassilliou’s distribution models, taking into clearance of catalogue films as a Head of Cabinet Mr. Brunet account changing audience means to facilitate the online chaired a roundtable discussion in behaviour (content anytime, availability of more films. She also Cannes on the "Financing and anyhow, anywhere) and the fact pointed out that filmmakers are by distribution of European films in that new players like the operators nature prepared to take risks, and the EU digital market: cross border of VoD platforms are potential that the current situation demands distribution and media chronology" investors in film production. that other parts of the industry do with representatives of the main the same - in order to find new European film organisations, well- A year ago, in an op-ed piece in viable solutions. known European film directors, the Danish newspaper Politiken producers, distributors, called “Danish film is locked up in In an official statement following broadcasters, telecom operators the cinema”, Olesen questioned the roundtable, the Commissioners and VOD platforms to exchange the length of the holdback period ”underline the importance of the views on how EU policies can for cinemas, which is negotiated cinema, and recognise that facilitate the distribution and by Danish distributors and cinema theatrical release plays a crucial financing of European films in the owners. An intense public debate role in creating the brand identity digital single market. Danish film followed Olesen’s op-ed. of a film and has an impact on its director Annette K. Olesen was success on other distribution one of three film directors invited to (Read the op-ed in English HERE) platforms. take part. She was accompanied by FERA CEO Elisabeth O. After initial accusations that her Nonetheless, they recognise that Sjaastad as an observer. attitude was ”damaging the film the sector faces major challenges industry”, regional giant Nordisk in terms of adapting release The roundtable's task was to Film (with full vertical integration window practices in most Member examine the sustainability of in producing, distributing and States, and for exploiting the new existing funding models and exhibiting films) spoke out in her opportunities offered by digital whether the current system of defense and acknowledged that distribution”. release windows NEWS

Release windows

(continued)

The results of the roundtable discussion French cinema group boycott experimentation will feed into the preparation of the forthcoming Commission proposal for a In France, recent experiments were met with a boicott from Council recommendation on European some exhibitors. film in the digital era. Paris-based Eye On Films (EoF) and the VOD platform Preparatory action controversy Dailymotion joined forces to offer exclusive, free presentations on the online platform of two feature films The Commission has already launched ahead of their theatrical openings. a ”preparatory action” Circulation of European Films in the Digital Era – a Brazilian filmmaker Marcos Prado’s feature debut Paraísos pilot support scheme for industry-led Artificiais (Les Paradis Artificiels) was shown Dailymotion’s experimentation with release windows site on October 29 from 22.00, ahead of French distributor as a means to test its effect ahead of Damned Distribution’s release on October 31. the new Creative Europe Programme, where it could become a recurring According to the initiative’s two partners, over 6,000 people funding strand. watched Prado’s drama and there were around 400,000 visits to the film’s trailer. This could boost the word of Speaking to Screen, Emmanuel Cocq mouth about the film and benefit the theatrical release. from the Commission’s MEDIA programme unit said that the objective However a chain of cinemas decide to cancel its bookings of the preparatory action “is precisely to of the film for 12 of the planned 15 screens just a day allow a constructive dialogue between before the release. the different segments of the value chain on these questions. We know Speaking to the magazine Ecran Yohann Cornu of that the issue is very sensitive Damned Distribution deemed it a catastrophe: “The media (especially in France and in Germany, chronology has been broken, but now it has killed us.” but not only). It will be up to the three selected projects to deal with the As a result Prado’s film was only shown at three theatres and to find a way to include independent venues from 31 October. them in the game (…) and to promote a win-win model.” Commenting on the French controversy Emmanuel Cocq pointed to the fact that “Interestingly, most of the theatres These initiatives have, however, met which decided to cancel the release are multiplexes with strong reactions, most notably from belonging to the same group. I believe that they have been the cinemas. The leading organisations surprised by the scope of the communication campaign representing European exhibitors – surrounding the Dailymotion event and that their final International Union of Cinemas (UNIC), decision has been led by political reasons on a sensitive CICAE and Europa Cinemas wrote in issue.” an open letter to four Commissioners, the European Parliament and heads of On 19 November the Independent Producers’ Syndicate Member States: “Safeguarding the (SPI) issued a press release stressing "its total and cinema-going experience should be a absolute opposition to film theatres being called into top priority for European audiovisual question, the latter being venues for the exclusive first policymakers. We are therefore screening of films, and demands that the public authorities concerned about continuous attempts and members of the profession appreciate the disastrous by Brussels to decide how films should consequences of these actions, media stunts with be released in Europe”. destructive political and economic consequences.” NEWS

Enhancing freedom of expression in Azerbaijan

On 5 November EU Commissioner and Vice President Neelie Kroes led a delegation of Commission representatives to Azerbaijan on the occation of the annual global conference of the Internet Governance Forum (IGF) in Baku. The Commission used the opportunity to defend freedom of expression and media freedom, both offline and online. FERA CEO Elisabeth O. Sjaastad @ Maarten van Haaff At the end of a meeting with the Azerbaijani media on the safety of journalists, Nils MORE EUROPE Debate: Muižnieks, Council of Europe Commissioner for Human Rights, Dunja Mijatovic, The role of culture in EU’s external relations Organisation for Security and Cooperation in Europe (OSCE) Representative on Beyond Markets: Culture and The EU attracts much interest Freedom of the Media and Commissioner Creative Industries in the EU's at this time since it does need Kroes, welcomed the readiness of the External Relations to (re-)find its place within a Azerbaijani authorities to engage in dialogue with them and to pursue globalised context and the Over 250 international emergence of new powers. cooperation activities in these fields. participants from the worlds of

politics, the creative industries, So how does – and can – the A clear sign of the Azerbaijani government´s arts and culture, business and European External Action commitment to enhancing freedom of academia came together for Service (EEAS) prepare itself expression would be the initiation of the More Europe debate in to live up to these global effective and transparent investigations into Amsterdam on 19 September. shifts? And how can the EU crimes against journalists, thereby putting FERA CEO Elisabeth Sjaastad make best use of the potential an end to continuing impunity in this field. was invited as one of the of culture and creative speakers on the first panel and industries? These were the Another sign of progress would be the she questionned whether the main questions discussed release from detention of all those EU had put sufficient pressure during the Amsterdam debate. journalists, bloggers and citizens reporting, on their Chinese counterparts who have been deprived of their liberty as a result of expressing their views. in the context of initiatives Marietje Schaake, Member such as the 2012 year of EU- of the European Parliament China Intercultural Diaglogue: Committee on Foreign Affairs Commissioner Kroes stressed the role of the media profession itself in upholding “Freedom of expression is the and Committee on Culture genuine freedom of expression with elephant in the room with and Education was the author adherence to high professional standards countries like China.” of an own-initiative report on this topic in 2011. (Read her and in developing a shared vision of these issues and solidarity among all sections of The event was organised by report HERE) the media. the European Cultural Foundation (ECF) and the Mrs. Schaake gave a strong More Europe initiative and is context-setting introduction: Azerbaijan’s filmmakers produce 5 to 6 feature films, 50 to 60 documentaries and 2 part of a year-long campaign animation films per year, and there are that aims to convince “If you want to know where plans to start a film festival. Film is, however, politicians and policymakers hell is, ask an artist, if you can’t find an artist to tell you not a big priority for the government and to place cultural relations – the sector receives very little funding. one of Europe’s strongest then you are in hell.” assets – at the heart of EU Listen to the complete panel Film Directors Guild of Azerbaijan (AZDG) is external affairs. debate HERE a member of FERA. NEWS: EU POLICY EU keeps busy on legislation that affects the audiovisual sector

Orphan Works Cinema Directive Adopted Communication delayed Creative Europe

On 4 October the European The new Cinema Communication, Creative Europe, the new EU Council finally adopted the Orphan the instrument that establishes framework programme (combining Works Directive, with a series of the rules for state aid for cinema, the current Culture and MEDIA amendments to the version initially has been delayed. It had initially Programmes) for the period 2014- proposed by the Commission in been scheduled to be adopted by 2020, is now being debated at the May. Member Sates now have the Commission in October or European Parliament. two years to transpose the November, but has now been Directive into national law. postponed to a ”date to be In October the Silvia arranged.” Costa published her draft Report This Directive allows cultural with numerous amendments (197) heritage institutions to use - for Speaking to Screen, Aviva Silver, to the Commission’s initial proposal. non-commercial purposes - Head of the MEDIA Unit at DG Additional amendments – more 470 artistic works such as books, Education and Culture explained: in total - have now been submitted newspapers, films and recordings “Even if it [the Cinema by other MEPs on the Education protected by copyright whose Communication] was to be and Culture committee. owner is unknown or cannot be delayed for a couple of weeks identified or contacted. into January, the current rules on Among the proposed amendments state aid would still apply.” is an alternative name for the In practice, the Directive programme itself (“Creative & 2012/28/EU enables public The Cinema Communication Cultural Europe Framework institutions to digitize and display defines the compatibility Programme” instead of Creative online works that would have between state support for Europe); the need for different otherwise remained inaccessible. cinema and European approaches within independent According to Michel Barnier, EU competition law. While state aid programmes; the deletion of the Commissioner responsible for the is generally not permitted, there proposed Guarantee Facility; and internal market and services the are some circumstances where even reducing the financial “adoption of the Orphan Works it is necessary for an equitable envelope from €1.8 bn. to €1.15 bn. Directive is a significant economy in order to protect achievement in our efforts to cultural diversity. On 15 November, during the create a digital single market.” Film Festival, Silvia Costa held a The current Communication was speech entitled “Creative Europe The status of an orphan work will published in 2001 and its validity and the State of Play”. be determined subsequent to the has been extended three times. institution conducting a diligent It will expire on 31 December The Education and Culture search for the work's copyright 2012. During the first half of this committee will discuss the owner(s) in the Member State year the Commission launched a amendments to her Report on 18 where the work was first published public consultation on a draft of December. The plenary vote will be or, in the case of co-produced the new Cinema Communication in January or February 2013. audiovisual works, in all of the co- That draft was heavily criticised producing countries. Once a work and firmly rejected by both Creative Europe is supposed to be is proved to be orphan, its status national film funding bodies and adopted in March 2013, provided will be recognized throughout the the film professionals and DG that the Member States have European Union. Competition was sent back to reached an agreement on the next the drawing board. 7-year EU budget. Download the Directive HERE

NEWS

Draft Directive on the Collective Management of Copyright

On 11 July the European Rightholders would have a direct Commission published the long say in the management of their Timeline awaited proposal for a “Directive on rights and their ability to choose the collective management of the most efficient collecting 17 December copyright and related rights and society for their purposes would Rapporteur Gallo will multi-territorial licensing be enshrined in law. present a working paper of rights in musical works for online 23 January uses in the internal market.” Some member States have Edcation and Culture criticized the directive for going committee exchange of views This proposal has two specific aims: too far. According to the French Senate and the Polish Sjem, the January/February To put in place an appropriate legal directive is incompatible with the Rapporteur Gallo presents her framework for the collective principle of subsidiarity. report management of rights that are A wide public hearing with all administered by collecting societies The EU Affairs committee of the stakeholders will be organised on behalf of rightholders by Spanish Cortes, believes that providing for rules ensuring better some changes should be made governance and greater to give member States the transparency of all collecting possibility to implement the societies and also by encouraging directive according to their legal with shadow and the and facilitating the multi-territorial and cultural traditions. to allow licensing of the rights of authors in certain topics to be discussed in their musical works by collecting Furthermore, the National more detail. societies representing authors. Assembly of the Republic of is worried that Marielle Gallo plans to present a Collecting societies operating in all “encouraging the establishment working document on 17 sectors would have to comply with of one or maybe two, three December. the new European standards. large pan-European collecting societies would provoke that Three other committees will work There are more than 250 collecting smaller and less popular on Opinions to the directive: societies in the EU that manage repertoire would not find its Culture and Education (CULT), revenues of around 6 billion euro way toward users and as a Industry, Research and Energy annually. The use of rights in the result vanish”. (ITRE), and Internal Market and music sector accounts for about Consumer Protection (IMCO). 80% of the total revenue collected The proposal for a directive is by collecting societies. now being dicussed by member The Education and Culture states in the Council Working committee will have its first The new rules would change the Party on IP (Copyright). exchange of views on 23 January, way in which collecting societies 2013. work across Europe, with new In the European Parliament, the requirements such as improved EPP group, the party of management of repertoire, Rapporteur Marielle Gallo, Download the European quicker payments to members, organised a public hearing on Commission’s proposal for a clarity in revenue streams from the directive on 1 October. directive HERE exploitation of rights, an annual transparency report and additional On 6 November the Legal Affairs information provided directly committee held its first exchange to rightholders and business of views and Rapporteur Gallo partners (such as other collecting outlined the process leading up to societies). Member the drafting of her report, which States would also need to have includes four thematic meetings mechanisms for solving disputes.

EDITORIAL

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The Virtual Reality

In the past months the debate over it seems, for the long term cost In an open letter to four film release windows – media or consequence for those who Commissioners, the European chronology as the French call it – make or distribute the content Parliament and heads of Member has intensified. they so desire. States, the three leading organisations representing While every politician and The entire audiovisual sector is European exhibitors, UNIC, CICAE policymaker is speaking about the concerned, but a cornerstone of and Europa Cinemas, proclaim that ever elusive ”new business models” the industry appears to feel “… films are initially created to be that will save the day, we in the particularily threatened: The shown on the big screen, as audiovisual sector have patiently cinemas. cinemas are considered the gold explained just how interdependent standard for enjoying a all players in our value chain are, Film directors love the cinema, cinematographic work. It is simply and that the (pre-) financing and we want our films to be seen not possible to compare the distribution of films are inseparably there – and by as many people cinema experience with watching linked. Our current business model as possible. a film on a mobile device.” is not so easily replaced. This makes the transition into the digital However, in a recent interview But with fierce competition for age all the more complex and with Cineuropa, even the head space, time and attention, some challenging. of the Europa Cinemas network, smaller films may only play in Claude-Eric Poiroux, theatres 2-3 weeks before being But even if we’d rather do business acknowledged that ”…there is taken off, and they must also as usual, there is no denying that such competition today that suffer the fate of being completely the world around us has changed. some films perhaps don't have off the market for the remainder of The virtual is a reality. the space that they would like to the holdback period – losing any have in cinemas. So releases on synergies with the promotion and And our audience is famously VoD and not in cinemas, why advertising campaigns mounted wanting to access everything, not? But cinemas won't for its initial release. everywhere, anytime – for free or necessarily take the risk of a very low price, with little regard, doing this at the same time.” And on top of this, statistics show EDITORIAL that piracy is particularily During the roundtable discussion As online services develop and rampant during this time. in Cannes, a representative from diversify, video-on-demand (VOD) the telecom sector relayed their is no longer just one thing. There is So what to do? experience which was that the more already a variety of economic they develop services to be enjoyed models for complementary online Everybody agrees that every in the comfort of your home, the windows at different stages in the film is unique and needs a more people also want to go out. life of a film: Transactional (pay-per- tailored distribution and view or download-to-own), marketing strategy to reach its So why is it that cinemas have so subscription (all you can eat), and potential audience. But to little confidence that audiences free (advertising based or public suggest that some films might would still want the superior service free to air). These can be possibly benefit from changing experience of a night out in their further refined. the chronology of release local movie theatre, if they could windows is just as heretic as also access the film online? Why couldn’t there be an exclusive when Jean-Luc Godard said virtual cinema window – a that ”a story should have a In fact, in many cases they already “cinema-on-demand” (COD) - beginning, a middle and an end, can, because of piracy. controlled and branded by the but not necessarily in that order.” cinemas themselves? A successful theatrical run creates And nowhere does this idea the brand value a film needs to Wouldn’t it make sense to expand court more controvery than in perform well in other release their own online presence beyond France. windows. In the digital age maybe booking tickets and showing the positive rub-off can eventually trailors? Not only did a chain of cinemas go both ways? in France just torpedo the Under the current system it often cinema release of Brazilian The few experiments that are now seems that the further down the filmmaker Marcos Prado’s emerging are mainly targeted at value chain, the less risk you take feature debut Artificial Paradises films which have a very limited and the more money you because it was previewed online cinema release anyway. (potentially) make. to generate advance buzz, also the French Independent Claude-Eric Poiroux of Europa That is no longer sustainable. Producers’ Syndicate (SPI) Cinemas is at least open to try: ”If Online services must also contribute took to the barricades this week some want to experiment, why not, to financing the initial creation, just and issued a statement in which and we will follow them with interest as cinemas do. they do not shy away from to see if its viable or not”. attributing ulterior motives to Considering the bitter lessons from whomever dares challenge the It cannot, however, be viable if our colleagues in the music sector, all professions in the audiovisual established system: ”A previous cinemas are determined to see it or simultaneous online release fail. value chain should now work under the pretext of reaching as together to strengthen what is many viewers as possible is the In Cannes, Danish director Annette perhaps our weakest link – the Trojan horse of a consumerist K. Olesen pointed out that connection to our audience. vision of the sector, to the filmmakers are by nature prepared After all, as Annette K. Olesen wrote detriment of its diversity.” to take risks, and in this time of transition other parts of the industry in her op-ed last November: Interesting results of early tests must do the same. Even cinemas in the USA and UK are quickly “We make films for the audience – must evolve and adapt to the not for the screen.” dismissed as anecdotal and not virtual reality. transferable to European films. If the films we spend years making But, as the French scientist could be seen by more people if we Claude Bernard wrote: ”We can discover different ways of combining solidly settle our ideas only by old and new distribution forms, isn’t Elisabeth O. Sjaastad trying to destroy our own that a good thing for the entire conclusions by counter- sector? experiments.” ALAN PARKER CARTOON

”Classic 3D: Dire, Dopey and Debilitating.”

AGENDA

23 November FERA Creative Council Marco Bellocchio Claire Denis FERA CEO Elisabeth Sjaastad will visit Agnieszka Holland Neil Jordan FERA members in and attend the Alan Parker launching conference on EEA Grants for István Szabó NGOs. FERA Executive Committee Chairman & Vice President 27 November Piers Haggard (UK)

EU Observer conference on ”E-culture and Vice Presidents collective management of creative rights” Gabriel Baur () Maurizio Sciarra (Italy)

28 November Honorary Treasurer Håkan Bjerking () GEMA debate: ”Collective goes digital – André F. Nebe (Germany) The future of collective rights management” Christophe Andrei (France) Gytis Luksas ()

Staff Elisabeth O. Sjaastad (CEO) Mar Bordanova (Office Manager) Antonella Bassi (Intern)

This work programme has been funded with support from the European Commission. This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.