Film Production and Co-Production in Russia, and the Export of Russian Films Abroad

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Film Production and Co-Production in Russia, and the Export of Russian Films Abroad A publication by the European Audiovisual Observatory FILM PRODUCTION AND CO-PRODUCTION IN RUSSIA, AND THE EXPORT OF RUSSIAN FILMS ABROAD September 2016 Director of Publication: Press and Public Relations: Susanne Nikoltchev, Executive Director Alison Hindhaugh, [email protected] Editors: Publisher: Julio Talavera Milla, Gilles Fontaine, Depart- European Audiovisual Observatory ment for Information on Markets and Financ- 76, Allée de la Robertsau, 67000 Strasbourg, ing, European Audiovisual Observatory France www.obs.coe.int Chief Editor: Tel.: +33 (0)3 90 21 60 00 Xenia Leontyeva Fax: +33 (0)3 90 21 60 19 Section Authors: Chapter 1: Xenia Leontyeva Please quote this publication as Chapter 2, Sections 1–2: Julia Trifonova, “Film Production and Co-Production in Russia, Alexander Luzhin, Xenia Leontyeva and the Export of Russian Films Abroad” Chapter 2, Sections 3–4: Xenia Leontyeva, Tatyana Gorskaya, Valeriy Kustov © European Audiovisual Observatory (Council Chapter 3: Victoria Ivanova, of Europe), Strasbourg, 2016 Xenia Leontyeva Opinions expressed in this publication are Translation and proof-reading: personal and do not necessarily represent the Eclectic Translations views of the Observatory, its members, or the Council of Europe. Layout: Irina Shmidt A publication by the European Audiovisual Observatory FILM PRODUCTION AND CO-PRODUCTION IN RUSSIA, AND THE EXPORT OF RUSSIAN FILMS ABROAD September 2016 European Audiovisual Observatory Council of Europe Table of Contents EXECUTIVE SUMMARY 6 INTRODUCTION 12 1. FILM PRODUCTION IN RUSSIA: INSTITUTIONAL FRAMEWORK 14 1.1. Legislative changes introduced in 2015−2016 14 1.2. Proposed legislation 17 2. QUANTITATIVE RESEARCH 20 2.1. Film production in Russia 20 2.1.1. Volume of film production in Russia and research methodology 20 2.1.2. Major production companies in Russia 24 2.1.3. Conclusions 40 2.2. Co-productions in Russia 40 2.2.1. Research methods 40 2.2.2. Total number of films co-produced with Russia 42 2.2.3. Russia’s co-production partners 43 2.2.4. Russian companies actively participating in international co-productions 45 2.2.5. Foreign companies actively participating in co-productions with Russia 45 2.2.6. Russia and Eurimages 47 2.2.7. Conclusions 49 2.3. The export of Russian films 50 2.3.1. Research methods 50 2.3.2. Overall ranking of foreign markets 50 2.3.3. The markets of the CIS: Ukraine, Kazakhstan, Belarus 51 2.3.4. The European market 54 2.3.5. Assorted other global markets 56 2.3.6. Ratings of Russian films in distribution abroad 57 2.3.7. Conclusions and the future of Russian film exports 58 2.4. The import of European films into the CIS (excluding Ukraine) 59 2.4.1. Research methods 59 2.4.2. Film distribution figures, by region of production 59 2.4.3. Popularity of European films, by country of origin 60 Quantitative research conclusions 63 4 3. QUALITATIVE ANALYSIS 64 3.1. Research methods 64 3.2. Current state of Russia’s involvement in the global film industry 64 3.2.1. The geography of international cooperation: Russian producers 66 3.2.2. What is co-production and what do producers get out of it? 67 3.2.3. How do Russian producers find partners for their co-production projects? 69 3.2.4. How do Russian partners sell their films? 70 3.3. The challenges of international reach: the professional aspect 70 3.3.1. Language 71 3.3.2. The producer’s skill set 71 3.3.3. ...Inertia and lack of information 72 3.3.4. Sociability and diplomacy as professional skills 73 3.4. Russia’s domestic film market from the perspective of international collaboration 73 3.4.1. The monetisation of Russian cinema on the domestic market 74 3.4.2. State support for the domestic film industry 76 3.4.3. State support for international promotion of Russian cinema 80 3.4.4. How profitable is co-production and international distribution for Russian producers? 82 3.5. External political and economic factors 84 3.5.1. Russia’s image on the macro level 84 3.5.2. A trend of mutual mistrust 85 3.5.3. Co-production and international distribution of Russian films: financial consequences for foreign partners 86 3.6. The challenge of international collaboration: the sociocultural aspect 88 3.6.1. Different mentalities and long-standing stereotypes complicate selection of subject matter 88 3.6.2. Viewer expectations of Russian subject matter 89 3.6.3. The perception of Russian cinema abroad 91 Qualitative research conclusions 93 5 EXECUTIVE SUMMARY Scope of study, objectives, of co-productions and exports for Russian films, and research methods and to undertake the first qualitative study of producers working in this field. ilm production, co-production, and export Statistics on Russian co-productions and Fof Russian films abroad are subjects that have film exports from a range of sources (the received little attention from researchers with LUMIERE and LUMIERE.PRO databases regard to Russia. The bulk of quantitative data in administered by the European Audiovisual these areas of study has yet to be systematised, Observatory; studies conducted by Movie and this has made the information impossible Research, Nevafilm Research, Film Business to analyse. And yet the country is in dire need Today Magazine, etc.) have been aggregated of this kind of analysis. Such research would and analysed for the first time. The results are measure the size of Russia’s film export market presented in Chapter 1 of this report. Chapter 2 and point the way towards expanding it. It analyses the responses received from 22 Russian would also help determine why so few films are producers and two members of international co-produced by Russian and foreign filmmakers, film organisations (Eurimages and UniFrance) and would produce recommendations for to questions exploring their attitude towards addressing the underlying issues. Although co-production and international distribution, film industry insiders, from producers and as well as towards the state of Russian cinema distributors to state officials, know that these in general. areas are beset with problems, until now they have had little evidence to prove it. International accords are closely woven Legal framework into our nation’s legal framework. But although Russia has signed a number of film The system of state support for cinematography co-production agreements, the country has has undergone radical reform in Russia since no clearly defined state policy governing 2010. The state now prioritises the support of co-production, no film commissions or fiscal commercial films produced by large, leading incentives to entice foreign film crews, and a film companies. Film industry legislation is shortage of international business and education updated every year: a more comprehensive initiatives in the industry. The only area of anti-piracy law, new regulations on film release international cooperation currently receiving dates in Russia, subsidies for cinemas in small state support is Roskino’s campaign to promote towns to expand the country’s film distribution Russian films abroad. Meanwhile, domestic coverage, the decision to designate 2016 the producers currently set their own priorities for Year of Cinema, and the introduction of new international and export activities, relying on guidelines for film subsidies are examples of the state’s selective financial support system important legislative changes in 2015−2016 alone. It is these independent actors in the that were aimed at supporting the national film industry, and their choices about how film industry. Other initiatives discussed in active or passive a stance they wish to take, 2016, which have not yet entered into force, who dictate the situation on the Russian film included tax breaks for Russian animators, levies market today with regard to co-productions and on cinemas, television channels, and video- exports. It is for this reason that it became so on-demand services designed to support the pertinent both to conduct a statistical analysis Russian film industry, local film commissions 6 Executive summary set up in the provinces, and a fiscal incentive their cost in euros down significantly, making structure. Russia a more attractive destination for foreign Interestingly, our interviews revealed that, in producers. the opinion of producers, the biggest obstacle Still, while the sheer volume of Russian film to expanding co-production with Russia is the production continues to grow steadily, the lack of state support for projects originating number of co-production projects, which had in other countries and produced with Russia been increasing between 2011 and 2014, fell as a minority participant. This issue can be sharply in 2015, from 24–32 films per year addressed at the legislative or executive level by to just 14 (or from 27% to 10% of all films instituting a separate co-production funding released in Russia). It is interesting to note scheme run by the Ministry of Culture or the that 2013–2014 saw a drop in the number of Cinema Fund. Some respondents also believe projects with majority Russian participation foreign producers shy away from co-productions (from 10 to 4–6 per year), while in 2015 the with Russia due to a lack of fiscal incentives trend reversed, and the number of majority for films shot in the country. This is another co-productions increased to seven. pressing issue for the government to consider. This may be connected to a number of While Russian producers did welcome the objective factors: the dissolution of the changes in the state’s anti-piracy legislation, Cinema Fund’s International Department they noted that the problem of piracy remains and the cessation of activities conducted by the largely unsolved. It still has an enormous impact Russian–German Fund for the support of joint on the potential to monetise films produced projects and the French–Russian Academy in and renders the fate of a film after distribution spring 2013, heightened political tensions in commercially meaningless.
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