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3, Friday, 16 September 2011 КIEV MEDIA WEEK daily events overwiev DailDailyy № 3, Friday, 16 september 2011 Today, on the 16th of September, Box office and movie theatre IV Film Business in Ukraine attendance in Ukraine are international conference will take place. It is a platform for growing dialogue between the most In the first three quarters of this film distribution year (December 2010 – successful Ukrainian and foreign August 2011) the total box office of the movies released in Ukraine has film market industry insiders, to demonstrate market increased by 19 % (up to $50,1 million) compared to the same period situation analyze, dynamics of Ukrainian, Russian and of last year. At the same time, movie theater attendance in Ukraine has European market trends, all possible forecasts for future increased too. In the 9 months of this year Ukrainian movie theaters have sold all together a little over 10 million tickets, which is 9 % more than in the film industry development, to outline existing problems December –August period of last year. and choose the most proper variants of solutions. This is the main difference in the development of Ukrainian and Russian cinema distribution markets. In Russia, despite the general growth of box Film Business in Ukraine conference organizers will give office by 5 % (up to $865,6 million) in this period, the theatre attendance has the audience unique opportunity to get practical advices decreased by 2,3 % (124,2 million tickets sold). HOW TO CAUSE FUNDS AND INVESTMENT FOR FILM PROJECTS. opinion Among the speakers: • Luke Randolph, Managing Director Completion LUke randoLph Guarantor, International Film Guarantors Ltd, Great Managing Director Completion Guar- Britain - Master class: international film finance antor, International Film Guarantors models, creation & measures of value, finance Ltd (Great Britain) about three main concerns that are usually encoun- versus investment, different types of finance, risk tered in working in Central and East- management, return of investment, how does a ern European countries. producer deal with all this We’ve worked in Russia, Romania, • Illia Neretin, General Producer Raccoon Cinema, Hungary, Czech Republic, Serbia that Russia - State support of film industry: international I can remember. The three significant experience and national realities differences from Western Europe and • J o ël Chapron, Central and Eastern European North America are: manager for the promotion of French cinema abroad 1) That commercial law and corporate UNIFRANCE, France - Business and Art in Cinema: governance are very much less re- how the French system combines them in Eastern liable in Central/Eastern Europe than we are used to Europe • SergeiGratchev, Managing Partner MGAP, Russia/ 2) Production management is gener- Great Britain - Film finance in Russia: investment ally weaker with people being less prepared to take initiative and communicate problems until confronted opportunities, deals structure, future trends with their consequences • NikitaTrynkin, CEO Bazelevs Holding, Russia - New forms of film finance during economic downturns 3) Unreliable book-keeping and financial accounting • Georgi Malkov, General Producer Enjoy movies, These are broad generalisations – each film has its own issues, but these Russia - Case study: development and implementation three concerns are usually encountered in working in Central and Eastern of the film project “Pregnant -man” European countries. Ukrainian tv-advertisement – rapid growth of a miniatUre market By the volume of TV-advertising was held on September 15 with- TV-ad expenditure per capita. market Ukraine ranks 16 among in the framework of KIEV MEDIA No other country in Europe 33 European countries. In num- WEEK. According to MRM re- spends less money on TV-ad- bers it comes to around $500 search, average annual growth vertisement than Ukraine. This million per year or 1.26 % from of Ukrainian TV-advertisement country is 33rd with $11.1 spent the total volume of the Europe- market will be more than 10% per head annually. Only Serbia an TV-advertising market. Such in the next five years. It makes ($11.2) and Kazakhstan ($11.9) data was quoted in the report Ukraine to be among top five have similar situation. Among delivered by the Director of the European countries by the TV- the leaders are Switzerland consulting company “Media Re- advertising market growth rate. ($128.7), Belgium ($110.9) and sources Management” Victoria At the same time, it’s not all so Norway ($110.3), while the av- Yarmoshchuk at the conference rosy: Ukraine, unfortunately, erage European level comes to “Television as Business” that ranks last by the amount of $48.55. Media Resources Management, 22 Zakrevsky Street, Entrance 1, 2nd floor www.kievmediaweek.com 02660, Kiev, Ukrainetel. +380 44 459 46 10; www.mrm.ua 1 CONTENT REPORT DAILY C № 3, Friday, 16 september 2011 aLexander oLshansky: internet is not 7.3 miLLion Ukrainians are ready to pay for profitaBLe, UnLike teLevision the internet-video In August 2011 number of search requests made in Google for “video” came to 6 million, and for “video online” – to 20 million. Around 70% of internet users watch programs online. 50% of the popular TV-shows can be found in the Web within 24 hours, and 100 % - within a week. Number of internet viewers in Ukraine grows by 20-24% every year. Moreover, according to the Agency of internet rights data, 7.3 million Ukrainians are ready to pay to watch the video. At the same time, TV channels are not interested in arranging their broadcast via internet. As Eduard Akhramovych, managing partner of Agency of internet rights, has noted, they either set absurd requirements, or don’t express any desire at all to talk with Internet representatives. Generally, TV-channels have quite vague idea about web integration. opinion According to the Imena.ua profitable. Amount of money company president Alexander invested in it is ten times higher Jo L chapron Olshansky, the participant of than the amount of money earned. Ë the panel discussion “Television As for the Internet influence on Central and Eastern European manager for the versus Internet”, Internet other industry sectors it’s worth promotion of French cinema abroad UNIFRANCE: protocol will win over any other mentioning that in the last few means of data transmission. years music industry turnover has Films are not just a matter of art, it is also business But if to talk about Internet as doubled, even though companies – rather profitable business by the way. And East a way of spreading content, were complaining that pirates European countries are becoming more active television could also switch to were stealing their content. In case players not only on the European, but also on the this distribution channel. In his of TV displacement by Internet, whole world film market. Perhaps having analyzed opinion, the main difference lies content will become much worse. France experience in the international promotion in content production. Almost But the main question is what the and distribution of domestic-made films, East all TV-stations are profitable; consumer wants – twice worse European film industry representatives would be able not only to avoid otherwise they go bankrupt in quality or hundred times more some mistakes, but also to develop an effective mechanism of the local two-three years. Internet is not expensive? content distribution to the international market. Ukrainian content market: teLevision in Ukraine is a eUropean LeveL BUsiness for phiLanthropists First international Ukrainian television busi- Ukrainian Content ness is developing in a Market is certainly highly competitive envi- an important event ronment. According to Ol- for the film- and TV- exandr Bohutskyy, Head production industry of StarLightMedia Group not just in CIS region, (ICTV, STB, New Chan- but in Europe in nel, M1, M2, QTV) doing general. Participants television as a business in of the event (more Ukraine is something simi- than 60 companies- lar to philanthropy. And this sellers and over is why: in Ukraine there are 70 buyers from 24 twice more nationwide TV- countries of Europe, channels than in Russia, North America but at the same time the and Asia) are very volume of the advertising satisfied with the sellers questioned by Content market is ten times smaller results of their 2-day work at the Report Daily noted high activity than that of Russia. More- for it to progress faster, Bohytskyy Market, during which numerous of the buyers, while buyers over, the National Television and called advertising agencies and selling and content coproduction complimented wide choice Radio Broadcasting Council has TV channels for convince adver- deals were signed. Though of content for any taste and easily made a decision to increase tisers to invest in TV-commercials. companies prefer not to reveal budget. According to Evgeniy the number of nationwide broad- “To have the number one brand, the details of the agreements Drachov, manager of FILM.UA casters by 8 more TV-channels. don’t be a miser! Spend more on they made (which is typical for all Distribution, the Market is really Nevertheless, even in such highly advertising”, summarized media existing content markets), all the on a European level. competitive conditions, Ukrainian manager. television is developing. But in order www.kievmediaweek.com Media Resources Management, 22 Zakrevsky Street, Entrance 1, 2nd floor 2 02660, Kiev, Ukrainetel. +380 44 459 46 10; www.mrm.ua № 3, Friday, 16 september 2011 C CONTENT REPORT DAILY Media Resources Management, 22 Zakrevsky Street, Entrance 1, 2nd floor www.kievmediaweek.com 02660, Kiev, Ukrainetel. +380 44 459 46 10; www.mrm.ua 3 CONTENT REPORT DAILY C № 3, Friday, 16 september 2011 Media Resources Management, 22 Zakrevsky Street, Entrance 1, 2nd floor 02660, Kiev, Ukraine, tel. +380 44 459 46 10; www.mrm.ua www.kievmediaweek.com Media Resources Management, 22 Zakrevsky Street, Entrance 1, 2nd floor 4 02660, Kiev, Ukrainetel.
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