MEDIA PROGRAMME 2007-2013 SUPPORT MECHANISMS TO THE AUDIOVISUAL EUROPEAN INDUSTRY Education, Audiovisual & Culture Executive Agency

Objectives To preserve and enhance European cultural diversity To strengthen the competitiveness of the European audiovisual sector (film, TV and new media industries) To increase international circulation of European audiovisual works 2

DATES 2010 Cinema Selective 07 April 2010 01 December 2010 Cinema Automatic GENERATION 2010 30 April 2010 Cinema Automatic REINVESTMENTS 2009 30 October 2010

Sales Agent REINVESTMENTS 2009 15 March 2010 (extended) Sales Agent GENERATION 2010 30 April 2010 tbc REINVESTMENTS 2010 30 September 2011 To allow Agents sufficient time to be able to source suitable non national films. (more details to follow)

CINEMA AUTOMATIC 2010 1. The previous double calculation of the eligible period based upon the relevant deadline and proposed release date is replaced by a single eligible period based on the relevant deadline. This simplification will reduce the necessary number of amendments and riders to agreements and avoid technical ineligibility for certain costs in the event of a delayed theatrical release. 2. The advance payment increases from 50% to 60% provided that the successful applicants passes the Financial Capacity test (for awards > EUR25,000). 3. The reference year for admissions changes from 2008 to 2009. 4. The following standard text clarifying the possible penalties in Section 6 Exclusion Criteria is added "and they are subject to the penalty consisting in the exclusion from contracts and grants financed by the budget for a maximum period of ten years." 5. Section 9.5.2. is modified to clarify the fact that an actual sub-licence price previously concluded can be taken into account at the Reinvestment stage i.e. an actual contract amount would replace the guideline percentages set out in this section. 6. As in the Cinema Selective the following specifications relevant to Module 3 Theatrical Distribution are made. Eligible costs – Promotion. A more detailed specification has been added including Press Agency and other costs which often featured in the "Other Costs" category giving rise to occasional difficulties in transfers at the final payment stage. Similarly the following specification has been added. "Personnel costs are not eligible."

CINEMA SELECTIVE 2010 1. 1. The previous double calculation of the eligible period based upon the relevant deadline and proposed release date is replaced by a single eligible period based on the relevant deadline. This simplification will reduce the necessary number of amendments and riders to agreements and avoid technical ineligibility for certain costs in the event of a delayed theatrical release. 2. The allocation of the budget at each deadline between small and medium films is modified from around 40% of the total budget available to around 30%. The definition of small and medium films remains unchanged. 3. The following specifications have been added to the definition of an eligible theatrical distributor at 5.1. - This should be the principle activity of the company or division of the company. Other companies may be considered as eligible if in addition to the Operations Capacity requirements set out at 7.1. below, they submit a distribution plan outlining the technical and operational resources available to execute the proposed action.

CINEMA SELECTIVE 2010.2 The modification proposed at 2, 3 and 6 are in response to our accumulated experience of recent trends in applications following the previous changes in budget allocation and the definition of small/medium films. This has worked well and a significant number of new campaigns for small and difficult films, especially from countries with a low audiovisual capacity have resulted. However we have noticed an increasing trend on the part of a few enthusiastic "believers" to attempt to manufacture applications for films which simply will not find a place in theatrical distribution. The trend includes groupings with significant participation of companies who have no experience of theatrical distribution, applications for films which are subsequently never released (the worst example being one company who applied and succeeded for three films at separate deadlines but has cancelled the agreements one by one as the relevant release dates came around). Other difficulties include "digital" releases which do not comply with the minimum criteria, "ghost" applications and multiple licences with no Minimum Guarantee or theatrical release clauses and so on. The experts have felt obliged to recommend (and the selection panel has agreed) the rejection of certain applications which it has not found credible. Therefore it is proposed to reduce the target allocation to small films from 40% to 30% for this Call. We note that the specification "around 30%" will allow the panel to include funding recommendations for small films over and above the 30% provided that the applications are from credible distribution companies.

CINEMA SELECTIVE 2010.3 4. At 5.3. the annual revision of the definition of a recent European film is modified (from 2006) to "Recent films are those whose first copyright has been established during or after 2007." 5. The rules at 5.4. (Eligible Groupings) concerning those companies joining previous groupings are simplified. The double specification of the release date within 18 months of the first application and the 15% budget allocation is replaced by the single rule of the maximum 15% budget allocation. 6. The following text is added at the end of 5.4. "Groupings must be made up of companies fulfilling the Eligible Distribution criteria set out in 5.1. above. Any grouping which does not fulfil this requirement may be excluded from the selection." 7. The following standard text clarifying the possible penalties in Section 6 Exclusion Criteria are added "and they are subject to the penalty consisting in the exclusion from contracts and grants financed by the budget for a maximum period of ten years." 8. The advance payment increases from 50% to 60% provided that the successful applicants passes the Financial Capacity test (for awards > EUR25,000). 9. At section 9.4. the following specification is added (text in italics):- Subsidised actions may not benefit from any other Community or Eurimages funding for the same activity. (Eurimages. i.e. European cinema support from the Council of Europe).

CINEMA SELECTIVE 2010.4 This is a clarification of an "unwritten rule" which has existed since the introduction of the scheme. In previous years Eurimages did not accept applications from MEDIA countries but as they do currently (especially for documentaries), it is important to clarify this for applicants and also to avoid the difficulty of cross-checking each application. 10. At section 9.5.1. Eligible costs – Promotion. A more detailed specification has been added including Press Agency and other costs which often featured in the "Other Costs" category giving rise to occasional difficulties in transfers at the final payment stage. 11. At section 9.6. The following specification has been added. "Personnel costs are not eligible." The other modifications are updates regarding Call numbers and dates.

SALES AGENTS 2010 8. AWARD CRITERIA 8.1. Generation Stage. Step 1 remains the same except for the final paragraph. and that, during the same period, the sales agent sold the theatrical rights of at least 4 of these films in at least 3 countries participating in the MEDIA 2007 Programme, outside the country of origin of the films. is replaced by:- and for at least 4 of these films in at least 3 countries participating in the MEDIA 2007 Programme, outside the country of origin of the films there was a theatrical release as evidenced by distributor declarations to the MEDIA Programme Cinema Automatic scheme. The potential support is reduced from 25,000€ to 20,000€. Step 2 is modified as follows:- a) The caveat specifying the territories sold is deleted. b) the additional fund per extra film is reduced from 2,000€ to 1,500€.

THANK YOU FOR YOUR ATTENTION! For more information:- http://eacea.ec.europa.eu/media/index_en.htm