State aid to film and audiovisual industry

Abstract

An audiovisual production involves common techniques for the communication of images with or without sound and protected by copyright. Such a definition obscures the ambiguous nature of the product from which the specificity of its financing needs is derived. Unlike an industrial product, an audiovisual work is unique, born of the imagination of its author and the development given to it by the director. However, to have the dissemination which a work's creator legitimately wishes to see and enjoy, the producer must bring together industrial means for its production, distribution and exploitation, thus calling upon significant financial resources. A huge disparity still exists between the average budget and box office revenues of a European and a Hollywood production. Moreover, the cost and income of films produced in countries such as France and the United Kingdom are much higher than those produced in smaller States like Denmark, Ireland or Latvia. In any case however, very large sums are involved which simply cannot be spontaneously borne by independent authors or producers. In Europe, audiovisual works and cinematographic production in particular, play an important role in the development of a European identity characterised by the richness of cultural diversity, traditions and histories.