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Exploring the “Ecosystem” and Principles of Austria’s Film Subsidy Schemes: Is Austria a “Best-Practice” Model for a Successful Film Policy?

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Handbook of State Aid for Film

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Abstract

In this chapter, we debate state subsidies to film from two main angles: in the first part, we deliver a synoptic overview to the supply of financial subsidies to film in Austria. We first take an “institutionalist” view and mainly describe the funding principles of the Austrian Film Institute . Doing so, we critically appraise the scheme’s stability in safeguarding the development of original films in the country. In the second part, we argue more theoretically, and to some extent contradictorily, and posit that the subsidy discourse is too narrowly focused on the different technicalities and governance structures and processes, and, notably, the intended effects subsidies should have on the players involved. We find that while subsidies have remained the main pillar of the country’s quest for diversity, more attention should be given to funding concepts that support less “market-driven” productions, that is, independent, original, high-quality productions and the effects these have on film culture and society at large. Because Austrian films attest to a remarkable creative potential and know-how of the country’s film producers albeit limited resources and low funding levels overall, the debate needs to be redirected to the specificities of understanding the wider cultural effects of government subsidies to film.

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Notes

  1. 1.

    Also see Villa (2013) (www.filmsupport.at).

  2. 2.

    Comprehensive information on film and cinema in Austria is provided by the Austrian Film Institute (Österreichisches Filminstitut) which publishes a film industry report (Filmwirtschaftsbericht) once every year.

  3. 3.

    It is based on KommAustria-Gesetz (KOG), BGBl. I Nr. 32/2001 idF BGBl. I Nr. 86/2015. The television fund is part of state media governor Rundfunk und Telekom Regulierungs GmbH.

  4. 4.

    Bundesgesetz vom 25. November 1980 über die Förderung des österreichischen Films (Filmförderungsgesetz) StF: BGBl. Nr. 557/1980 (NR: GP XV RV 277 AB 544 S. 51. BR: AB 2225 S. 403.).

  5. 5.

    Funding for script development may only be granted for scripts or shooting outlines (documentaries) if the film promises to improve the quality and economic viability of Austrian film. A description of the project (treatment with one sample finished dialogue scene or shooting outline) shall be attached to the application. Script development according is funded through a non-repayable contribution (exempt from income tax).

  6. 6.

    A film producer is entitled to submit an application for funding of project development. Funding takes the form of a non-repayable contribution, with the proviso that as a rule the funding awarded by the Film Institute may cover half of the entire development budget. In exceptional justified cases, especially if the Film Institute is the only major funding partner, funding may amount to a maximum of 80% of the overall costs. Project development comprises all measures prior to actual film production and/or shooting (“advance costs,” according to the “Funding Guidelines”), especially the elaboration of the final version of the script/shooting outline, the production management outline, as well as the project-related marketing concept and distribution plan. If the applicant uses the funded script/shooting outline as a basis for a TV movie, he/she shall be required to repay the allocated funding. This obligation to repay is not applicable if the realization starts more than 6 years after disbursement of the last installment.

  7. 7.

    Continuous film-related vocational training is supported through non-repayable contributions (exempt from income tax).

  8. 8.

    On top of this, a purely economic reasoning also ignores the fact that subsidies themselves are highly competitive among the creative industries as such. Who will receive public-sector funds, which are themselves becoming increasingly scarce? Theaters, opera houses, museums, or films?

  9. 9.

    § 107 (3) d) AEUV together with Item 5.2 of the “Communication on State Aid for films and other audiovisual works,” 2013/C 332/01.

  10. 10.

    Council of the European Union, “Handling impact assessments in Council,” p. 4.

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Teichmann, R., Murschetz, P.C. (2018). Exploring the “Ecosystem” and Principles of Austria’s Film Subsidy Schemes: Is Austria a “Best-Practice” Model for a Successful Film Policy?. In: Murschetz, P., Teichmann, R., Karmasin, M. (eds) Handbook of State Aid for Film. Media Business and Innovation. Springer, Cham. https://doi.org/10.1007/978-3-319-71716-6_15

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