A new report fronted by Eva Bergquist, Director of Culture in Region Stockholm, unveils bold plans for funding and tax cuts.

Sweden's film industry is at a critical juncture, facing a funding crisis that threatens its future. In response, the Swedish government is considering a series of bold proposals aimed at revitalising the nation's cinema. These plans, expected to be presented to Culture Minister Parisa Liljestrand, include a new film fund and lower cinema tax.

Key proposals to bolster Swedish film:

New film fund: The centrepiece of the proposed reforms is the creation of a new film fund. The specifics of the fund, including its size and administration, are yet to be fully detailed, but it signals a significant commitment to injecting capital into the industry.

Lower cinema tax: A reduction in cinema tax is also under consideration. This measure aims to alleviate the financial burden on cinemas, making them more competitive and encouraging greater attendance. In 2017, a prior increase in value-added tax (VAT) from 6 to 25 per cent on cinema tickets led to higher prices and reduced revenue.

Context of the crisis
Swedish film holds a significant place in the nation's cultural identity, with domestic productions often becoming shared cultural reference points. However, the industry faces several challenges:

Funding shortages: A decline in financial support has made it difficult for Swedish filmmakers to produce high-quality films that can compete internationally. Public funding is crucial for a vibrant national film culture.

Increased competition: The rise of global streaming services has intensified competition for audiences, putting pressure on traditional cinemas and domestic film production. In 2023, 65% of the population used streaming services.

Government intervention and policy shifts
Recent government actions indicate a move towards refining policies:

Review of film policy: A special investigator was appointed in January 2024 to review national film policy and propose changes to better meet the challenges and needs of the film sector.

Production incentives: Changes to the ordinance for production incentives have been made, including removing the requirement for support to be announced at least twice a year.

The debate: Culture vs. industry
The discussion around Swedish film policy often involves balancing cultural and industrial objectives:

Cultural significance: Film is recognised as a vital art form with the ability to reflect and shape society.

Economic impact: The film industry is also an important economic sector, providing employment and contributing to local economies.

Future directions
As Sweden seeks to revive its film industry, key areas of focus include:

Strengthening cinema competitiveness: Enhancing the appeal and viability of cinemas to attract audiences.

Promoting Swedish content: Intensifying efforts to increase viewership of Swedish films.

Adapting to technological change: Embracing virtual production and digital tools.

Combatting illegal distribution: Addressing the challenges posed by illegal streaming and piracy. Illegal content consumption is a concern, though less so in Sweden compared to other EU countries.

The proposals represent a critical juncture for Swedish cinema. Whether these measures will be enough to secure the industry's future remains to be seen, but they signal a clear commitment to supporting film as a vital component of Sweden's cultural and economic landscape.

The film inquiry, which produced the report "Publiken i fokus – reformer för ett starkare filmland", was led by Director of Culture in the Greater Stockholm Metropolitan Area (Region Stockholm) Eva Bergquist, who was appointed as a special investigator.

The inquiry also involved a group of experts, including Tomas Eskilsson, Raoul Grünthal, Jan Holmberg, Johanna Koljonen, Lisa Langseth, Pia Lundberg, Ruben Östlund, Matilda Berggren and Tommy Gabrielsson. The team of secretaries were Jakob Kihlberg, Rasmus Gedda, Felicia Gaumont Skaarud, Elisabeth Bill and Josefin Schröder.

To read the report: CLICK HERE (only available in Swedish).