Film Business Asia – The Case For Co-production

Funding analysis
The case for
Co-production
Asia has much to learn from
Europe’s developed co-prod
systems, and even more if the
two regions work together,
consultants Olsberg.SPI propose.
Looper
September's release of Looper (pictured)
might prove to be the high water mark of a
WHY[PJ\SHYRPUKVM,HZ[>LZ[JVWYVK\J[PVU
Certainly China’s State Administration for
9HKPV-PST;LSL]PZPVU:(9-;HWWLHYZ
to be taking an increasingly dim view of
productions which appear to merely use
Chinese money, and claim co-production
Z[H[\Z[VIL[YLH[LKHZHKVTLZ[PJÄST^P[O
minimum Chinese content.
Current trends in Hollywood underline the
perceived importance of the Asian market,
but the studios have focused more on import
efforts and some have closed their inJV\U[Y`JVWYVK\J[PVUVMÄJLZ-V_YLTHPUZ
HUV[PJLHISLL_JLW[PVUOLYL-\Y[OLYTVYL
one must wonder how long scraps of Asian
content - like the use of Shanghai and
4HJH\PU[OLV[OLY^PZL<2MVJ\ZLKSkyfall,
and which were anyway sliced by China’s
JLUZVYZ^PSSZ\MÄJLMVYH\KPLUJLZPU(ZPH
4PNO[[OLYLUV[ILHIL[[LY^H`&
;Y\LJVWYVK\J[PVUTP_PUN[OLILZ[VM
Asia with stories from Rest of the World,
presents itself as an attractive option.
Domestic production in countries like
:PUNHWVYLHUK4HSH`ZPHZOV^Z\W^HYK
[YLUKZ^P[ONV]LYUTLU[Z\WWVY[^OPSLÄSTZ
SPRL0UKVULZPHZThe RaidWYV]PKL[OLÄYZ[
NSPTWZLZVMHM\[\YL^OLYL,\YVWLHU(ZPHU
JVWYVK\J[PVUJHUWYVK\JLZPNUPÄJHU[
ÄSTZ-YVTV\YWLYZWLJ[P]L[OLX\LZ[PVU
[VILHZRLKPZOV^KVLZ[OL,\YVWLHU
Co-Production system work, and can this
21
The European Experience of CoProduction
6SZILYN:70YLJLU[S`HUHS`ZLK[OL
,\YVWLHU*VU]LU[PVUVU*PULTH[PJ*V
WYVK\J[PVUHVULZPaLÄ[ZHSST\S[PWHY[`
[YLH[`\UJV]LYPUNZPNUPÄJHU[HK]HU[HNLZ
[VJVWYVK\JLKÄSTZV]LY[OVZLMYVT
single countries, such as the much greater
likelihood that they see theatrical release.
This goes not only for the countries
concerned in the production of these
ÄSTZI\[HSZVIL`VUK¶^OPSLVUS`
VMUH[PVUHSÄSTZZLLYLSLHZLV\[ZPKL[OLPY
country of origin, for co-produced titles this
NVLZ\W[V
“Stick-on” co-productions are unlikely to be
[OLSVUN[LYTM\[\YLMVYÄSTTHRPUNLP[OLY
MYVT[OLWLYZWLJ[P]LVM[OLÄSTYLN\SH[VY`
bodies or, most likely, from an audience
increasingly looking for stories which speak
[V[OLPYL_WLYPLUJLZ
ILHKHW[LK[VIYPUN[OLILULÄ[ZVM[Y\LJV
WYVK\JLKÄST[V(ZPH&
([[LUKHUJLÄN\YLZHSZVYLÅLJ[[OPZOPNOLY
L_WVZ\YLHZJVWYVK\JLKÄSTZLUQV`
more than twice the numbers of tickets
ZVSKVUH]LYHNLJVTPUNPUH[VM[V[HS
HKTPZZPVUZMVY,\YVWL^P[OUH[PVUHSÄSTZ
JSVJRPUNVUS`0UHKKP[PVU[V[OPZ[OL
increased volume of co-productions has
led to a growth in co-operation between
the production community and the various
UH[PVUHSÄSTPUZ[P[\[LZ;OLYLZ\S[VM[OPZ
has been the adoption of co-productions
HZ[OLKLMH\S[Z[Y\J[\YLMVY,\YVWLHUÄST
production, with investors appreciating the
(XURSHDQ&R3URGXFWLRQV
0DMRULW\
&R3URGXFWLRQV
0LQRULW\
&R3URGXFWLRQV
w w w . f i l m b i z . a s i a
certainty this provides, while also creating
an environment in which participating
JV\U[YPLZJHUI\PSKVU[OLPYL_PZ[PUN
RUV^SLKNLHUKL_WLYPLUJL
;OL,\YVWLHUL_WLYPLUJLVM[OPZZ`Z[LT
Z\NNLZ[Z[OH[[OLYLHYLZPNUPÄJHU[KLJPZPVUZ
^OPJOJHUILTHKL[VLUZ\YL[OLTH_PT\T
chance of success in stimulating coproductions. Creating a multiparty treaty
PZVUL;OL,\YVWLHU*VU]LU[PVUVMMLYZH
ZPTWSLÅL_PISLMYHTL^VYRMVYWYVK\JLYZ
offering the ability for third party countries to
come in to co-productions with convention
members, and supporting a range of budgets
from tiny to huge, allowing less developed
ÄSTLJVUVTPLZ[VILULÄ[
The growth of the Convention has led to a
gradual disappearance of bilateral treaties,
M\Y[OLYILULÄ[[PUN[OLZTHSSLYUH[PVUZ^OPSL
also offering a low-cost solution for national
administrators, as ongoing costs are limited
to administration. As our report stated,
“the simplicity of the arrangements and the
longstanding nature of the Convention drive
down a production’s legal costs allowing the
producer to focus on other elements such as
the technical and creative.”
The Co-Production Tournament
;VTH_PTPZL[OLILULÄ[ZVMJVWYVK\J[PVU
SPI designs and runs an intensive, residential
workshop programme we call the Co7YVK\J[PVU;V\YUHTLU[^OPJOYLKLÄULZ
co-production training methods and builds
producers’ abilities in the co-productions
area. It is most useful where two countries
^PZO[VL_WHUK[OLPY\ZLVMJVWYVK\J[PVU
treaties or conventions, yet a divide in
business practices has acted until now as
an obstacle. To date, the tournament has
ILLU\ZLKPU[OLHYLHVMÄSTIL[^LLU[OL
UK and Sweden and the UK and India, and
in television involving the UK and Canada.
It has proven highly successful in getting
groups of producers to understand each
other’s approaches to production.
Initiatives which stimulate CoProduction in Europe
At the domestic and regional levels, the
]HYPV\ZJVTWL[LU[H\[OVYP[PLZMVY,\YVWLHU
cinema operate a series of incentives
to stimulate this co-production activity.
,\YPTHNLZ»M\UKVMMLYZZ\WWVY[VM\W[V
$655,000 (€500,000) for eligible coWYVK\J[PVUZ^VYRPUN\UKLY[OL,\YVWLHU
Co-Production convention. In recent years,
both Amour (pictured, below) and A Royal
Affair have received this funding, and gone
VU[VÄUKTHQVYZ\JJLZZVU[OLNSVIHSZ[HNL
The fund, however, does not only support
OPNOWYVÄSLÄSTZ0[HSZVM\UKZTVYL
specialised pieces, animation, and
documentary, ensuring a robust and varied
Z\WWS`VMJVU[LU[[V[OL,\YVWLHUTHYRL[
Structured to allow for recoupment of the
investment amount as a percentage of the
WYVK\JLYZ»UL[YLJLPW[Z[OL,\YPTHNLZ
funding is designed to allow recycling
of their funding from successful projects
PU[VUL^VULZ,\YPTHNLZHSZVZ\WWVY[Z
KPZ[YPI\[PVUHUKL_OPIP[PVU
;OL,\YVWLHU4LKPH4\UK\ZWYVNYHTTL
operates differently, providing funding for a
variety of training, market access, crossover,
and circulation and distribution projects, all
aimed at supporting co-operation between
,\YVWLHUWYVK\JLYZHUK[OVZLPU[OL9LZ[VM
the World. Though the funds provided are
relatively small at $6.55 million (€5 million)
per annum, the offer of a diverse range of
low-level support structures has been a big
hit, providing new networking connections
PUNSVIHSÄSTHUKM\YUPZOPUNÄSTTHRLYZ
with the skills to take their stories to a
broader audience.
ÄSTLJVUVTPLZYLHJOPUNV\[[V[OL^VYSKH[
large. This is particularly clear as a trend in
countries like France, Canada, and Australia,
^OLYLUH[PVUHSÄSTIVKPLZOH]LWYVHJ[P]LS`
L_WHUKLKPU[VHSHYNLYU\TILYVMJV\U[YPLZ
[VPUJYLHZL[OLPTWHJ[VM[OLPYÄSTZLJ[VYZ
Indeed, for a French producer, the Centre
Nationale de la Cinematographie (CNC) has
made co-producing with certain developing
countries incredibly advantageous, as state
funds can be leveraged to limit or eliminate
the capital the French partner has to put into
the project.
4LKPH4\UK\Z»LMMVY[ZÄ[PU[VVULVM[OL
major trends in the current global approach
to co-production, that of more developed
Can this be adapted for Asia?
There are already signs that co-production
is starting to work between Asia and the
Rest of the World.While many of these
co-produced ventures have been driven by
WYVK\JLYZ^P[OL_[LUZP]LL_WLYPLUJLPU[OL
YLNPVU2LHU\9LL]LZ»)LPQPUNÄSTLKMan of
Tai Chi suggests that Hollywood is taking the
opportunities for co-production in the region
ZLYPV\ZS`)\[TVZ[YLNPVUHSÄSTTHRLYZ
don’t have a $25+million budget to play
with, so for these individuals a framework
which allows them to tell their stories,
drawing on the best talent from the Rest of
the World, is desirable.
A similar trend is seen with some of the
SLHKPUNÄSTMLZ[P]HSZTVZ[UV[PJLHIS`
Rotterdam, where the Hubert Bals Fund
WYV]PKLZZPNUPÄJHU[M\UKPUN[VHYLHZ
like the Philippines. Other festivals are
utilising their prestige and funding to open
UL^VWWVY[\UP[PLZMVY(ZPHUÄSTTHRLYZ
WYV]PKPUNIV[OHWSH[MVYTPU,\YVWLMVY[OL
display of their products, and increasingly
the funding with which to make them. The
Berlinale has under Dieter Kosslik been in
the forefront of this movement.
Globally, co-production treaties are also
becoming more platform-agnostic – though
primarily this is seen by the writing of
television into the treaty structure, for
instance in the recent UK-Brazilian
convention. Nonetheless, SPI’s research
strongly suggests that in future, content will
OH]L[VÄUKT\S[PWSL^H`Z[VHWWYVHJO[OL
market. In countries like Thailand, where
tablet computers are being handed out to
school children, it’s possible that these will
VMMLYHUL^TLJOHUPZTMVYL_OPIP[PVU;OL
increasing penetration of smart-phones and
TVIPSLPU[LYUL[^PSSHSZVSLHKÄSTTHRLYZ
[VX\LZ[PVUOV^[OLPYJVU[LU[ZOV\SKILZ[
reach its audience, and whether it is best to
THRLJVU[LU[PUHTVYLÅL_PISLTHUULY
In the absence of formal co-production
treaties, co-venturing has also become
more of a trend in recent years, though as
with Looper[OLX\LZ[PVUVM^OL[OLY[OPZ
form of work, where one party has limited
or no creative input, is truly viable remains
outstanding. The potential for company-tostate co-production agreements likely has
more long-term potential, with Iron Man 3
Current Trends
taking the lead for Hollywood in this regard,
but at this stage it is too early to tell whether
P[VMMLYZHSVUN[LYTZVS\[PVU:PNUPÄJHU[S`
the Chinese partner in both Looper and Iron
Man 3PZ[OLZHTLJVTWHU`+4.
;OLWVZZPIPSP[`\UKV\I[LKS`L_PZ[ZMVYH
co-production convention for Asia, with
the most likely forum for this being an
VYNHUPZH[PVUSPRL(:,(5[HRPUN[OLSLHK
HUKI\PSKPUNVUP[ZL_PZ[PUNJ\S[\YHS^VYR0U
VYKLY[VÄ[[OLJ\YYLU[Z[HNLVMKL]LSVWTLU[
MVY[OLÄSTZLJ[VYPU(ZPH[OPZJVU]LU[PVU
^V\SKOH]L[VILYLSH[P]LS`ÅL_PISL
allowing local producers to draw on talent
from around the region – including more
KL]LSVWLKÄSTLJVUVTPLZSPRL:V\[O2VYLH
¶^OPSLHU`J\S[\YHS[LZ[TPNO[ILULÄ[MYVT
ILPUNSVVZLY[OHU[OLJ\YYLU[,\YVWLHU
model to allow for this.
(UK^OLYLHZ[OL,\YVWLHUMVJ\ZPZVU[OL
WYVTV[PVUVMUPJOLÄSTZ[VHSSV^HKP]LYZP[`
VMÄSTTHRPUN^P[OPU,\YVWLHU(ZPHU
JVU]LU[PVUTPNO[PUZ[LHKILULÄ[MYVTH
focus on skills development. In order to get
HOLHKVMJ\YYLU[[YLUKZZVTLÅL_PIPSP[`VU
V\[W\[TH`ILYLX\PYLKHSSV^PUNWYVK\JLYZ
to develop content which works for a
multitude of release vectors, including tablet
HWWZHZHUL_HTWSL
Oscar-nominated French-German-Austrian co-production, Amour, by Michael
Haneke, shows what can be achieved in the modern, co-operative era.
w w w . f i l m b i z . a s i a
For some countries, not least China, the
focus may well stay on Hollywood, but
MVYTHU`PU[OLYLNPVU[OLILULÄ[ZVM[OL
simple, robust structure created for the
,\YVWLHU*VU]LU[PVU^V\SK\ZLM\SS`IL
JHYYPLKV]LYWYV]PKPUN(ZPHUÄSTTHRLYZ
with a framework to combine their talents
with those found in other parts of the region
and the world. With the right framework,
it should be more than possible to project
Asian stories to the rest of the world, whilst
HSZVOLSWPUN[VKL]LSVW[OLÄSTJ\S[\YLVMH
number of growing countries.
6SZILYN:70PZHIV\[PX\LZ[YH[LN`
consultancy, specialising in the creative
industries, particularly in digital media.
Since we were formed in 1992 we have
worked globally with governments, screen
agencies, broadcasters, trade associations
and private companies, advising on
everything from innovative growth
strategies to economic impact studies.

Download Report