1.
1
:
Economic
situation
2
:
Source
of
Finance
Financial
Crisis
Credit
Crunch
Reduced
Broadcasters
advertising
revenue
3
:
Second
Reduced
Broadcasters
Digital
Revolution
Contribution
to
Cinema
New
market
Reduced
Investisment
in
New
technologies
new
content
context
for
EI
New
opportunities
New
Financing
sources
Public
Money
is
getting
Scarcer
Traditional
markets
are
saturated
MG’s
have
nearly
New
digital
services
New
ways
of
producing
desappeared
are
booming
&
consuming
content
Distribution
&
Consumption
09.07.11
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Perronnet
/
Eamer

2. -­‐ FF
independant
q
2
worlds
:
-­‐ a)
5
big
countries
able
to
«
auto
finance
»
films
&
invest
in
productions
-­‐
b)
More
than
30
countries
needing
coproduction
to
finance
their
local
filmmakers.
q
#
of
financing
sources
:
15
to
25
is
now
common.
09.07.11
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Perronnet
/
Eamer

3. As
a
consecquence
Now
is
all
about
Loca.on,
loca.on,
loca.on
Ø Tax
and
rebate
incen-ves
abound
Ø Chasing
lower
produc-on
costs
Ø Post
forced
to
chase
produc-ons
40% of FF are Co-produced in EU

4. -­‐ FF
independant
q
2
worlds
:
-­‐ a)
5
big
countries
able
to
«
auto
finance
»
films
&
invest
in
productions
-­‐
b)
More
than
30
countries
needing
coproduction
to
finance
their
local
filmmakers.
q
#
of
financing
sources
:
15
to
25
is
now
common.
q
Much
more
difficulties
to
build
the
budget
q
Less
#
of
projects
q
Price
pressure
stronger
than
ever
q
Digital
more
and
more
considered
as
a
viable
option.
q
Distributors
want
to
see
films
finished
before
buying.
q
National
MG
are
decreasing
q
Int’l
presales
dropping
to
almost
0
q
Technicians
more
negociable
&
Producers
are
taking
the
power.
09.07.11
T.
Perronnet
/
Eamer

5. Dramatic
changes
in
Film
Financing
Structures
(The
French
example)
Financing
source
Vol
2008
M€
Vol
2009
M€
Compare
%
Broadcasters
349
300
-­‐13.8
Producer
336
267
-­‐20.6
Distributor
152
121
-­‐20.9
Equity
/
Sofica
35
34
-­‐1.2
Video
(law
2%
net
rev)
21.5
5.6
-­‐74
Public
funds
subsid.
96.2
92
-­‐4.5
Regional
subsid.
32
18.8
-­‐18.4
Foreign
Co-­‐Prod
85
75
-­‐11.3
Pre
sales
ext.
161
13.1
-­‐91.9
Total
1260
928
-­‐26.3
09.07.11
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/
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6. Dramatic
changes
in
Film
Financing
Structures
(The
French
example)
Budgets
of
Number
of
FF
08
Number
of
FF
in
09
Compare
in
%
films
in
M€
Above
15
18
11
-­‐39
10-­‐15
17
14
-­‐17.6
7-­‐10
25
21
-­‐16
5-­‐7
11
18
+63.6
4-­‐5
17
9
-­‐47
2-­‐4
41
45
+9.7
1-­‐2
23
36
+56.5
Below
1
44
28
-­‐36.3
total
196
183
-­‐7.1
Of
which
co-­‐pro
51
45
-­‐11.7
09.07.11
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7. - If we are very much depending from US releases for prints, US production
content « only » represents 20% of EAMER activity.(even less in 08-09)
- 1 exception : US productions are impacting our emerging territories ( 30 to 40 % of
FF neg sales ) & our services strategy ( Kodak Cinélabs strategy).
09.07.11
T.
Perronnet
/
Eamer

8. -­‐ TVC
:
A
soft
economy
recovery
?
Not
yet
there
.
q
storyboard
seem
to
re
start
to
circulate
a
little
bit
.
q
Red
Hype
very
slightly
slowing
down
(
-­‐>
after
NAB?)
q
Communication
agencies
might
integrate
TVC
producers
in
the
future
q
Canon
&
red
are
approaching
Com
agencies
directly
to
sell
their
cameras
09.07.11
T.
Perronnet
/
Eamer

9. -­‐ TV
Drama
:
National
content
&
US
content
q
S16mm
will
probably
disappeared
within
3
years
.
q
35
2
perf
is
taking
relay
in
some
countries
(
FR,
UK)
q
Fuji
re
attacking
this
segment
since
2010(
after
having
given
up
in
08
&
09
,
our
mkt
share
was
above
90%)
q
Still
a
reasonable
year
in
2010
before
the
arrival
of
Alexa
and
Penelope-­‐D.
q
Degraining
solutions,
package
deals
&
35
2
perf
are
the
only
solutions
to
defend
film
TV
market.
09.07.11
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Perronnet
/
Eamer

10. European Kodak TV Market trend S16mm + 35mm Val ($)
(35 2 or 3 perf is the total EU market)
19.5 18 15.6 17 14.8 10.8 +1.1 8.9 + 2.5

11. Origin of fiction by principal tv channels in EU :
American programmes still make up the majority in the case of series & films.
09.07.11
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Perronnet
/
Eamer

12.
-­‐ End
2010
/
2011
:
No
more
true
allies
on
the
industrial
market
1. 100%
of
camera
manufacturers
will
have
a
strong
digital
offer.
2. Post
have
established
a
good
digital
workflow
for
digital
Images
Acquisition
and
are
able
to
deal
with
various
systems
…
3. Gvts
are
taking
the
relay
of
private
investors
to
finance
digital
distribution
(
Fr,
GE)
4. Gvts
are
financing
digital
re
conversion
for
film
industry
(labs)
via
training
programs
(reconversion
programs)
&
financial
tax
systems
to
convert
these
companies
to
the
future.
09.07.11
T.
Perronnet
/
Eamer

13. Nevertheless
-­‐ In
all
,
EU
states
still
spend
€1.6
Billion
a
year
to
support
their
national
film
industries
,
mostly
in
the
form
of
direct
grants
or
tax
incentives
-­‐
3D
hype
is
everywhere
with
a
lot
of
confusion
(
how
to
do
it
?
Extra
cost
for
a
3D
release
?
3D
means
automatically
digital
,3D
TV….)
09.07.11
T.
Perronnet
/
Eamer

14. The
digital
revolution
will
of
course
mean
profound
changes
for
the
Cinema
industry
:
=>
Mutations
in
distribution,
exhibition
&
productions
sectors
But
the
cost
of
adaption
&
economical
crisis
should
play
in
favour
of
some
technical
suppliers
on
a
short
term
point
of
view
(
24
months
).
2
majors
points
to
consider
-­‐>
These
important
transformations
have
a
high
cost
in
term
of
new
equipment,
dev
of
new
business
models,
development
of
new
ways
of
producing
&
distributing.
-­‐>
On
the
same
time,
the
economic
situation
makes
it
difficult
for
the
European
industry
to
meet
these
costs.
(
private
companies
will
have
difficulties
to
follow
the
necessary
investisment
in
capital
&
Gvts
(
local
+
EU
deficits)
might
also
have
difficulties
to
substitute
themselves
to
private
Investors
for
a
while
.
=>
A
slow
down
in
the
decrease
trends
but
probably
not
an
increase
in
volume
in
2010
09.07.11
T.
Perronnet
/
Eamer