Film Finance: The Role of Private Investors in the European Film Market

  • Olivier Debande
Part of the Media Business and Innovation book series (MEDIA)


This chapter explores the conditions under which a more active role of private investors may substantiate the external financing of the European film industry. In Europe, this industry is characterised by its reliance on public support schemes. While the existing market structure of the European film industry—strong prevalence of SMEs and mid-cap companies—and the nature of the production function might justify a public sector intervention, this chapter argues that the characteristics of the financial markets in Europe, mainly based on financing by banks, has not facilitated the emergence of an active private class of investors.


Debt financing market External financing Film financing instrument Gap financing Hedge funding Informational barriers to entry Intangibles and risk Loan guarantee schemes Presale agreements Private investors Subsidies Third-party financing Venture capital 


  1. Alberstat, P. (2012). The insider’s guide to film finance. Oxford: Focal.Google Scholar
  2. Amram, M. (2003). The value of film studios. Journal of Applied Corporate Finance, 15(2), 24–31.CrossRefGoogle Scholar
  3. Berger, A. N., & Udell, G. F. (1998). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Finance, 22, 613–673.Google Scholar
  4. Binks, M. R., & Ennew, C. T. (1996). Growing firms and the credit constraint. Small Business Economics, 8(1), 17–25.CrossRefGoogle Scholar
  5. Caves, R. E. (2000). Creative industries–Contract between art and commerce. Cambridge, MA: Harvard University press.Google Scholar
  6. Davies, A., & Wistreich, N. (2005). The UK film finance handbook: How to fund your film. London: Netribution.Google Scholar
  7. European Commission. (2013). Survey on access to finance for cultural and creative sectors: Evaluate the financial gap of different cultural and creative sectors to support the impact assessment of the creative Europe programme, Brussels.
  8. European Commission. (2014, September 13). State aid rules for films and other audiovisual works, Competition Policy Brief.Google Scholar
  9. European Commission. (2015). Action plan on building a capital markets union. Brussels, COM/2015/0468 final.Google Scholar
  10. Gaillard, Y., & Loridant, P. (2003). Les aides publiques au cinéma en France, Rapport d'information fait au nom de la commission des finances n° 276 (2002–2003)–6 mai 2003.Google Scholar
  11. Goldman, W. (1984). Adventures in the screen trade: A personal view of Hollywood and screenwritting. New York: Warner Books.Google Scholar
  12. Sauvaget, D. (1999). L’argent de l’Etat et la filière cinématographique en France. In L. Creton (Ed.), Le Cinéma et l’argent (pp. 59–74). Paris: Nathan Université–Série “Cinéma”.Google Scholar
  13. Vogel, H. (2014). Entertainment industry economics (9th ed.). New York: Cambridge University Press.CrossRefGoogle Scholar
  14. von Rimscha, B. (2009). Managing risk in motion picture project development. Journal of Media Business Studies, 6(4), 75–101.CrossRefGoogle Scholar
  15. Young, S. M., Gong, J., & Van der Stede, W. (2010, February). The business of making money with movies (pp. 35–40). Montvale: Strategic Finance.Google Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.European Investment BankLuxembourgLuxembourg

Personalised recommendations