On the surface, Danish films seem to be doing very well, with a 27% market share in 2007. Yet in Denmark many speak of a ‘crisis' in film production, with some companies facing financial difficulties. What are your personal views of the current state of film production in Denmark?
The big problem is the definition of crisis. If you look at the situation from a political point of view, there is no crisis. The whole idea of heavy government subsidies is about having a fair number of films in production, a large variety of films and hopefully, an audience and artistic recognition. I think we have succeeded in that in the sense that you have everything, from family/youth-oriented films like Anja & Viktor-Flaming Love to other films with artistic ambitions like The Art of Crying or Temporary Release, and all those films have done extremely well. If you look it that way, there is no reason for saying there is a crisis.
However, if you look from many producers' point of view, there is a problem in terms of recoupment. When you start analysing the various reasons, you start wondering was the audience big enough? But 27% market share indicates that that wasn't probably the case. You also ask yourself: do producers earn enough per ticket? (in reference to cinemas being sold through discount schemes.) Finally you also ask yourself if films are too expensive.
We certainly have seen an increase in production costs over the last three-four-five years. Therefore we started having a discussion: should we make cheaper movies? But if you look at the films that were in Berlin and that are coming out this year, it's obvious to everyone that these are very interesting films.
Some of the producers are already changing, in terms of average production costs. What we've seen in 2006-2007, is that too many films ended up costing pretty much the same (around DKK 20m), but I think that what we will see in the next couple of years is a wider variety of production costs, and hopefully, the average production cost will decrease.
The last point about the so-called crisis in Danish film is the view from the critics. For many, 2007 Danish films were too much alike. If you combine that with similar budget levels, it's tempting to wonder if those two things are connected and if the films were thought in the same general direction.
If you put all this together, I think it's wrong to talk of production crisis. But we will have a keen eye on production companies to see if they are able to recoup their investments.
What will be the DFI's main initiatives in 2008, to respond to this specific problem and to other issues?
We have a number of challenges. Of course, Nordisk Film's acquisition of 50% of Zentropa has created a new market situation. I'm sure there will be many changes coming along following this major event. For smaller companies, when the two biggest guys in the schoolyard join up, it's a worry. Nordisk and Zentropa's respective Managing Directors Michael Ritto and Peter Aalbek Jensen have stated that they understood what a move like this means for the market, and stated they would be a generous competitor for the smaller companies. We hope they will keep to this promise and we certainly intend to do our part to keep them on their toes.
At the DFI, we also have the new Low budget pilot fund ‘Rå Film' coming up. We will for a long time, have discussions about the cinema situation: what sort of earnings can we expect? We haven't yet settled on the new standard contract defining the rights of producers versus TV stations. This topic will be quite interesting.
But of course we have more concerns than just feature length movies at the DFI. Danish documentaries are doing very well. Since last fall, our talent fund initiative New Danish Screen is also open to documentaries. We're looking forward to seeing what the new generation of documentary talents can come up with.
We have a big challenge getting movies into schools. We are working on our website www.Filmtribe.dk. We'll see a big leap forward in this area in the year to come. And of course, there is the issue of long term distribution, the future for Danish films on VoD etc. We have a lot on our plate in 2008 and I'm looking forward to it.
Let's go back to Rå Film. How was the project initiated, and what are its main goals?
We started the discussion about it last summer. First of all, there was the issue of films being perhaps too expensive. Secondly, we realised that some filmmakers are too experienced for New Danish Screen but do not yet make it through the other DFI schemes, and thirdly, there was the feeling that too many movies are alike. We thought that by creating this pilot low cost scheme, we could address the three issues in one go.
Then last year, on the Danish market, we saw a couple of films in that price range (around DKK 10m), made outside the subsidy system. We felt that with a little more money, they would have been better movies and producers would have had better chances to recoup. We also started having indications of several projects out there that would benefit from this sort of scheme. Still, Rå Film is in a pilot phase, on a one year test. We're trying to learn as we move along.
Are the DKK 15 million for the Rå Film initiative extra funding that you were allocated by the government?
No because public financing these days doesn't give much possibilities for extra funds. But at the DFI, we had some funds from 2006-2007 that we could move forward. We're doing the first evaluation of the projects submitted in May, then we'll have another round in September. As this is the first scheme that I'm involved in since the beginning, I'm very much looking forward to seeing what the postman has got in the bag!
Who will run the fund?
We've set up a five person group consisting of two of our feature film consultants, plus one person from New Danish Screen, and two outside persons with a commercial insight. Our aim is to have people with specific knowledge in sales and marketing of cultural product, who have been involved in the commercial side of film.
The two ambitions we really have for the scheme is ensuring that the projects will not be just experiments for the sake of experimenting, but films that actually can find an audience. We've set a limit of at least 75,000 tickets sold per film.
On the other hand, films have to have artistic ambitions. Again, this should be another chance to prove that reaching an audience and having artistic ambitions are not contradictions.
If the scheme is to have a long life, it has to show success and distinguish itself from the other schemes. With New Danish Screen, we have the possibility of taking artistic risks without too much consideration for the audience. The scheme has the wonderful possibility of nurturing the talent without thinking market market market!
But Rå Film is a scheme where the two things - commercial and artistic ambitions - should go hand in hand. Because of the budget sizes, the scheme will probably appeal more to relatively young and inexperienced filmmakers, but there is nothing in the regulations saying that well-established filmmakers and producers wanting to give it a try, won't be able to apply. With the discussion on recoupment, it will be interesting to see if producers who will use this new fund will be willing to renew the experience. Although public financing is very important, there is no way we could do this if there was no private investment involved.
On a European and Nordic level, are there specific areas where you think some improvements could be made in terms of collaboration?
I think we're seeing things happening right now. We have a trend of companies moving the pan-Nordic way. When I meet with my colleagues at the other Nordic film institutes, our issues are more or less the same. Among the Nordic schemes, Nordisk Film & TV Fond is one of them that all institutes are quite happy about. We also have the website Dvoted and Filmkontakt Nord in common, and in Denmark, a lot of Scandinavian input of students applying to our Film School.
On a European level, I can see, based on statistics that Danish companies are doing quite well from the MEDIA Programme. We have a good cooperation with the European Film Academy, and of course, some of the issues, on a European level, raised by my predecessor Henning Camre at the Think Tank, are very interesting. Most of us, working on a national level, have far too little time to sit and think further. If it can be established that a small group of people on behalf of all of us can address some of these issues that we know are of great importance, then its' the best trans-European thing you can do.
The DFI is actively supporting the Think Tank and we're looking forward to seeing what will come out of it in the next year.
Also, getting proper statistics, and finding out what the distribution possibilities are with new technologies, is essential. I'm sure cinema owners will retain a strong position because the silver screen is a unique experience, but consumers also want everything now. Like with the music industry, technology changes are setting the tune for the market.
You've been in your DFI job only six months, and had no previous experience in the film industry. How do you see your job today?
Originally, I came from an advertising agency, before I entered the newspaper business, 17 years ago. Here, I'm trying to fight for the things that unite, not for the things that divide. When I was in the newspaper business, we were all trying to kill each other! This is the biggest change. Yes, it's a lot of work, and there are a lot of difficulties, but I love the magic of film.
"I though it would be interesting to explore the brutality of being together under the same roof. It's like a war movie."
Danish filmmaker talking at the last Berlinale about his film Heaven's Heart, opening this Friday. February 29 in Sweden.