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Currently, territorial licences are deemed a cornerstone of the exploitation marketing single financing of films in Europe. However, current models of film financing are under increasing pressure both from market developments such as the turbulent growth of global online video platforms, and from developments in EU law aimed at removing national territorial barriers to the Single Market.

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Examples are the rule of Union-wide exhaustion of the distribution right, the EU Portability Regulation and the country of origin rules for satellite broadcasting and online simulcasting. The freedom of right holders to preserve territorial exclusivity by way of contract is likely to become increasingly vulnerable to EU competition law, as underlying territorial rights no longer support territorial grants.

Language exclusivity — i. While cinemas, terrestrial and satellite broadcasting and cable distribution remain important channels marketing single film exploitation, online services and platforms have rapidly captured significant market share, with rental and sales of DVDs concomitantly decreasing.

Arguably, the future of film distribution lies largely in the digital realm. Since the internet knows no natural borders, digitisation has enabled new global players to enter European markets, and has put existing business practices einfach kennenlernen hildesheim models marketing single distributing and financing films under pressure.

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EU policies aimed at removing legal obstacles to achieving the Digital Single Market exacerbate this development. In the EU, the exclusivity that a copyright confers upon its owner is, in principle, limited to the Member State marketing single the right has been granted. This allows right holders and licensees to partition markets along national borderlines, and to structure their financing model accordingly.

However, since this may pose obstacles to intra-European trade and services, from the s onwards a variety of European policies and regulatory instruments have been deployed to reconcile territoriality with the evolving needs of the Internal or Single Market.

Film Financing in the Digital Single Market: Challenges to Territoriality | SpringerLink

Marketing single EU policies might affect current film financing practices that are considered by marketing single stakeholders to be vital to the European audiovisual industry. This raises the central questions of marketing single article: What exactly is the role that territoriality plays in the complex puzzle of financing feature films in Europe today?

Marketing single do judicial and legislative developments in EU law aimed at removing national barriers to the Single Market affect film financing singlespeed berlin based on territorial exclusivity? And, if so desired, how could the model of territorial exploitation of films be reconciled with these developments?

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The structure of this article is as follows: Sect. Next, Sect. Reputations of famous actors, directors and studios are one such quality signal. Sequels can also be understood with this background in mind: they have a cast, style and marketing single that is similar to a preceding film and aim to benefit from its success. Second, trailers are a way to allow consumers to sample a film before deciding whether to watch it.

They can be self-reinforcing and lead to positive consumption externalities, as everyone wants to see the film that everyone is talking about. Film production requires relatively high upfront investments, as the whole process of production, marketing and rights clearance e.

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Budgets can reach tens of millions of euros and financiers usually demand that budgets are secured before production starts. High fixed ex ante costs and low marginal costs of serving additional customers imply significant economies of scale: commercially, films benefit from large markets, as the average costs per viewer drop rapidly with market size. For marketing single international blockbuster, even production costs exceeding a hundred million euros can marketing single easily regained.

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High ex ante demand uncertainty and high upfront investments set the stage for the core challenge of financing a film: commercial investors avoid downward risk and require higher expected returns on riskier investments.

The distribution rights of a film may serve as collateral for investors, but the value of these rights is as uncertain as the success of the film itself.

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Recommendations, reviews, awards and trailers are not available until the costs of production have been incurred. Having secured reputable names greatly facilitates film financing. Alternatively, investors may rely on the judgment of other investors and funding bodies by requiring their involvement before committing themselves. Presales are contracts between marketing single marketing single distributors whereby the distributor promises to pay the producer a fixed advance on expected revenues.

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The contracting party may also be an agent, who resells the marketing single rights. Presales can count for anything from a small percentage to more than half of the budget of marketing single film and may form the collateral for a production loan from a bank.

Broadcasters and cinemas in Europe generally operate nationally and are hence predominantly interested in exclusive rights within their own territory. Their interest in rights outside their market is limited at best, and it will be more lucrative for the producer to sell such rights on a territory-by-territory basis to others. Territorial exclusivity may also help distributors to reap the benefits of their marketing expenses.

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It prevents competitors from freeriding on such efforts, which would lead to underinvestment in marketing. For example, a license holder for transactional video on demand TVOD exploitation in country A, traditionally an early exploitation window, will wish to prevent competition from subscription video on demand SVOD exploitation or free-to-air broadcasting in country B, where a film may have been released earlier. Through exclusive windows and territorial licences, distributors can be certain that no-one else may distribute the film in the territory, on the platform or marketing single the timeframe agreed upon.

However, such territorial marketing single is increasingly at odds with EU law and policies, as will be discussed in Sect. First, film consumption is shifting towards platforms that operate globally. Historically, cinema has been the most commercially attractive window, followed by the sale and rental of physical carriers such as DVDs, and broadcasting.

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Second, territories do not perfectly match with homogenous consumer groups or cultural identities. On 1 January All this marketing single that territorial exploitation will leave a significant share of the potential market unserved. InEuropean films accounted for Infeature films were produced in marketing single EU, against marketing single the US.

This implies that in the EU, Marketing single films average four times as many admissions as domestic films not taking into account that not all US films reach the EU market.

  • Experten Double oder Single Opt-in?
  • Double oder Single Opt-in?

One explanation for this relatively weak position of European films are the language barriers and cultural differences within Europe. The EU has 24 official languages, almost as many as it has Member States, and EU citizens predominantly watch films spoken in their native language or in English. About European films were on release in at marketing single one European market inwhile only were screened outside Europe: a ratio of eight-to-one.

Co-productions between European countries perform much marketing single in this respect. They generate three times as many admissions as purely national European films and circulate almost twice as widely.

This makes it harder for such films to recover their production costs and further enhances the financial risks for investors.

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In many genres, smaller production budgets make it harder to compete with single fehmarn films. Contracting a stellar cast and other bankable names marketing single much more difficult for films with a smaller budget.

As marketing single ex ante quality signals for marketing single and investors are out of reach, financing such films becomes even more difficult. More than blockbusters, the typical European film has to rely on reviews, recommendations and awards, which are not available until after their release. Even larger European productions often lack the marketing power and budget to start a pan-European marketing campaign.

They have to gain a reputation outside their producing countries after winning awards or nominations at festivals or through success in their home markets.

Film Financing in the Digital Single Market: Challenges to Territoriality

Acquiring a reputation in this way may take over a year from release, and marketing single often a prerequisite for films to start circulating abroad.

Unlike large blockbusters, for which theatrical releases have become ever more synchronised across territories, 15 smaller yet successful European productions must expect a significant time span marketing single which territorial exploitation windows are out-of-sync.

Consequently, European productions are typically more dependent on territorial marketing single for international success than American blockbusters.

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A free-market outcome that would result from a lack of scale for the average European film would be fewer productions.