On Monday the Danish Film Institute (DFI) presented its’ Film for the Future’ proposals in connection with the forthcoming Film Agreement 2015-2018. Among the proposals is the commitment of VOD streaming services to the financing of Danish films as part of a four-point rescue plan to lift the struggling film production sector.

According to the DFI, the changing market over the last decade due to digital technology has gradually destabilised and weakened the existing financing model of the Danish film production sector and created a gap of DKK 40 to DKK 60 million in the production economy, a critical situation to which the institute is offering solutions via four key measures:

- increase of state support

- reallocation of film income so that producers would get a bigger slice of revenues

- creation of a new structure in the financing of films involving contributions from digital players against an easing of the release windows and introduction of a premium VOD window.

- redistribution of contributions from TV stations to the film sector. So far DR and TV2 reinvest around DKK 120 million from licence fee revenues into film and decide how to invest the money. The DFI proposes to take over the majority of fund allocation decisions.

Claus Ladegaard, Head of Production and Development at the DFI said: “There are several ways to go about trying to fill the financial gap in the economy of Danish film: we can try to get more tax money, or look at the way revenues are shared between producers, distributors, exhibitors, or try to establish new models for VOD transactions and force VOD players to contribute to film, or try to redistribute money from TV licence fees. If we want a more dynamic market structure, we simply need a more flexible system than the one in place.”

Responding to critics already voiced from various industry representatives, including Kim Pedersen, head of the Danish Cinema Association who says the DFI model would be ‘damaging’ to Danish film as it would only hurt the primary release window – ie cinemas - or Klaus Hansen from the Producers’ Association who looks suspiciously at the DFI’s proposed centralization of film subsidies and removal of DR, TV2’s creative decision making, Ladegaard said: “We are in a serious need of money and our proposal is really a way to open up discussions with the whole industry. The thing is that changes will come fast whether or not we do anything. So let’s try to do something now and create new incentives to support Danish film before Netflix or other major players force us to face a different reality”.

Other proposals in the DFI’s ‘Film for the Future’ paper include a strengthening of the quality criteria for grant allocations to film production; the setting up of a new semi-professional Film Talent agency that would supervise all talent organisations and stimulate talent development outside of Copenhagen; and an increase of funds for the digitisation of film archives and film education.

The Film Agreement for 2015-2018 is set to be introduced later in the fall.

For further details about the DFI’s Film for the Future report, check: www.dfi.dk