European film industry rallies behind Finnish AVEK, facing drastic funding cuts

The Finnish government’s plans to reduce the compensation for private copying by half is raising concerns among European film industry operators.

AVEK (Audiovisual Centre) annually distributes €2.5 million in financial support for Finnish documentaries, short films, media art, and internationalisation efforts, as well as training for audiovisual creators. The compensation for private copying is essential for AVEK’s funding.

According to director Ulla Simonen, the implementation of the cutbacks would jeopardise all operations of the Finnish AVEK.

– The effects of these cuts will be massive, if they go through. We would have roughly 700,000 euros left for support. We would need to radically change the way we support the industry, and decide where our very small funding would be most useful.

In Finland the public funding for the audiovisual sector comes mainly from two places: the Finnish Film Foundation and AVEK.

– For media art we are the most important funder in Finland, and for documentaries we are fundamental.

The compensation for private copying is based on an EU directive and legislation and is provided to the creative industries, so that every citizen can copy and store works for private use.

However, Finland is the only European country where the levy is fully integrated into the state budget. The Finnish government allocates a specific amount each year for private copying compensation, which is then distributed through the organisations AVEK and Kopiosto.

Since 2016, the amount of the compensation has been established at 11 million euros in the Finnish state budget. Of the 11 million, approximately 5.5 million euros have been distributed to the audiovisual industry through the organisations Kopiosto and AVEK. Now, the Finnish government has made a budget proposal in which the amount is cut from 11 million euros to 5.5 million euros.

According to Ulla Simonen, the government is actually acting against the EU law.

“The levy is a right that the law provides the copyright holders. It’s not negotiable. This is not something they can wipe out.”

Studies commissioned by the Ministry of Education and Culture indicate that the amount of copying has mostly remained the same since 2017.

According to a recently published analysis conducted by the leading expert of the Finnish Consulting Group, Pasi Holm, the harm caused to the creative industry by private copying is actually 35–45 million euros.

“So, for one thing, the 11 million euros amount to a very moderate compensation. Secondly, they will not save money with these cuts in the cultural sector. The productions we support bring in 3.5 million euros, non-governmental money. And that’s a moderate calculation.”

In 2023, AVEK supported 135 Finnish audiovisual works. Kopiosto also distributed a total of 2.8 million euros in direct copyright remunerations to approximately 8,000 professionals in the audiovisual industry.

Talent Lab under threat

AVEK’s support is often supplied during the early phases of production. For example, the Kehittämö Talent Development Lab, partly funded by AVEK and the Finnish Cultural Foundation, provides 55,000 euros and intensive mentoring to five promising filmmakers each year.

– This funding is essential, coming in before any other money is available to these projects. The aim is to get more funding for Kehittämö, and this is very difficult if our basic funding is cut so severely. It’s the law of money; money attracts money, says Ulla Simonen.

– This will be quite of a challenge and something for me to solve for the next years. The sort of special effort we are making in the very early phases, for example when talents meet the production companies, those are the defining moments of how new talent can become filmmakers who have connections and can work professionally, says Ulla Simonen.

She criticises the Finnish government’s proposal for prioritising traditional industries over the creative sector.

– What is going on is completely value-based. The creative sector is taking on quite a hit, while old-fashioned industries like the shipyard industries are receiving support.

International support

European film industry organisations have shown their support for AVEK in the form of open letters.

“The independent Finnish film industry plays a crucial role in preserving Finnish culture and identity. AVEK is instrumental in this process, providing essential support and resources while also enhancing the visibility of Finnish films on the global market,” Managing Director of Nordisk Panorama Film Festival, Heidi Elise Christensen says in an open letter.

Kristina Trapp, CEO of European Audiovisual Entrepreneurs (EAVE), highlights that AVEK’s support has enabled Finnish filmmakers to participate in international co-productions and has contributed to the global distribution of Finnish films.

“Compared to the savings made by cutting such a comparatively small fund as AVEK, the consequences for the Finnish film industry and its professionals on the long term would be disastrous,” Trapp warns.

Sandra Whipham, Director of the British Doc Society, warns that a 50 per cent cut to AVEK’s funding would severely damage Finnish filmmakers' ability to benefit from international networks, diminishing the country's global influence and connectivity.

“We can only imagine the damage such a large cut in AVEK’s budget will bring and the impact it will have on the country’s ability to remain a key co-producing country in Europe and internationally,” says Director of the Scottish Documentary Institute Flore Cosquer.

Last week, international copyright organisations also called on the Finnish government to cancel the cutback on the compensation for private copying.

The final decision is made when the Finnish Parliament approves the budget in December.