Deloitte Consulting

It is a pity that rarely are articles that explain how it works in reality Spanish cinema. We can find hundreds who criticize it harshly, but it is necessary to leave Spain in order to find something of impartiality. Late in September, Variety magazine published a series of very interesting articles on the situation of the Spanish cinema, one particularly entitled New Reign in Spain (new reign in Spain), is the evolution of the business model in the film, following at a seminar which was held in July, new look to the financing and investment in the production of films in Spain. Under this title so much fun, they managed to gather in the same room to Spanish and foreign producers with Spanish banking and investment specialists (who have no idea of the film business) and foreign (that Yes know this), and these papers drawn a number of conclusions: 1.-There is a big change in the way of achieving investment to produce film. Between the public subsidies and mandatory funding of the TV, covered 80% of the budget of the average Spanish film, according to Deloitte Consulting. This has changed and, in the words of Ignasi Guardans, director general of the ICAA “from now on the producer not call three doors: Ministry, autonomous community and televisions, to assemble the production of a film.” This model is over, you will now need to attend many more doors to get a minimum return on investments (read article in ninjacero2). 2. We are moving towards a model in which capital investment must be mostly private. Through new tax breaks for producers, thanks to the figure of the EIG (economic interest grouping) that allows a few major tax benefits in order to attract the interest of private investment. Banks, specialized investment funds and insurance companies, are destined to become protagonists in this new form of financing, as well as large companies and individuals seeking to make an investment of venture capital (cinema always it is, because you never know how to operate the movie) but has at the same time great advantages (reputation, marketing, image, brand, etc).

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