RUSSIAN FILMS ON WESTERN EUROPEAN MARKETS

RUSSIAN FILMS ON
WESTERN EUROPEAN MARKETS
André Lange
Head of Department for Information on Markets and Financing
with the collaboration of Susan Newman and Martin Kanzler
Workshop “The Russian Film Industry and the VoD Market”
KinoExpo, St Petersburg, 21 September 2010
1
2009 : GBO record in the European Union
Source: European Audiovisual Observatory
6 271
5 726
5 656
5 574
5 600
+12%
GBO (in M EUR)
5 377
5 525
5 353
5 220
4 719
1 013
1 007 1 010
Admissions
981
959
+6%
904
2000
899
2001
2002
2003
2004
2005
932
920
925
2006
2007
2008
2009
prov.
2
Headline Figures 2009
Source: European Audiovisual Observatory
EUR 6.27 bn
EU gross box office
+12.0%
EU admissions
+6.0%
981 million
European market share
-1.5%
26.7%
EU production level
+2.5%
1 168
3
Admissions to US films increase, down for European films
in million
Source: European Audiovisual Observatory
539
564
574
585
534
US films
248
240
247
212
233
European films total
EUR inc /
US co-productions
89
Others
23
28
2005
2006
49
64
39
37
16
15
18
2007
2008
2009
prov
4
European market share in the EU down in 2009
Source: European Audiovisual Observatory
nce
a
r
F
Others
2.1%
USA
%
8.7
4.1%
63.2%
67.0%
3.9%
26.7%
y
German
United Kingd
om
3.0%
1.9
%
%
4.2
6.8%
EUR inc / US
5.
1%
Ita l y
Sp
a
in
O
th
er
Eu
ro
pe
5
Lowest European market share since 2005
Source: European Audiovisual Observatory
62.5%
63.4%
62.6%
27.9%
28.1%
65.6%
67.1%
28.2%
26.7%
4.4%
4.2%
US films
24.6%
European films total
10.3%
EUR inc /
US co-productions
Others
5.6%
7.5%
2.6%
3.2%
1.8%
1.8%
2.0%
2005
2006
2007
2008
2009
prov
6
Signs of increasing ‘blockbusterization’
Source: European Audiovisual Observatory
75%
Cumulative market share
of Top 100 films (est)
72%
72%
71%
69%
42
Number of films with
> 5 m admissions
37
33
2005
32
2006
2007
34
2008
2009
prov
7
Number of Russian films in distribution in EU is declining
Graphic 3.4.21 Number of Russian films in
distribution in the European Union
53
46
43
38
36
30
2004
2005
2006
2007
2008
2009
Source: European Audiovisual Observatory / LUMIERE database
8
The success of Night Watch is far away…
Graphic 3.4.22 Admissions of Russian films in distribution
in the European Union (tickets sold)
2,068,913
727,708
637,279
416,536
523,456
99,707
2004
2005
2006
2007
2008
2009
Source: European Audiovisual Observatory / LUMIERE database
9
Top 10 Russian films by admissions in the EU (2000-2009)
Source : European Audiovisual Observatory / LUMIERE database
Nochnoj dozor (Night Watch)
1 746 359
Vozvrashcheniye (The Return)
570 360
Dnevnoy dozr (Day Watch)
430 353
Russkij kovcheg (Russian Ark)
384 722
Karlik nos (Little Longnose)
191 546
Sibirskij tsiryulnik (The Barber of Siberia)
177 722
Ironiya sudby,… (The Irony of Fate 2)
159 059
Oligarkh (Tycoon: A New Russian)
123 315
9-ya rota (The 9th company)
112 659
1612
104 053
10
Top 10 of Russian films in the EU by admissions in 2009
Source : European Audiovisual Observatory / LUMIERE database
Film
Director
Origin
Year
prod.
1
Admiral
Andrei Kravchuk
RU
2008
13 879
2
Rusalka
Anna Melikyan
RU
2007
13 655
3
Vse umrut, a ya ostanus
Valeriya Gai Germanika
RU
2008
10 942
4
Kanikuly strogogo rezhima
Igor Zaytsev
RU
2009
7 502
5
12
Nikita Mikhalkov
RU
2007
6 578
6
Obitaemyy ostrov
Fyodor Bondarchuk
RU
2008
6 302
Andrei Konchalovsky
RU / FR /
BE
2007
5 402
2009
4 712
7
Glyanets
Admissions
8
Lyubov v bolshom gorode
Marius Balchunas
RU / US /
UA
9
Vozvrashchenie
mushketyorov
Georgi YungvaldKhilkevich
RU
2009
4 345
Yuryev den
Kirill Serebrennikov
RU
2008
4 139
10
11
Breakdown of admissions to Russian films in the EU (2000-2009)
Source : European Audiovisual Observatory / LUMIERE database
PL
7.0%
LV
5.9%
CZ
2.9%
NL
1.7%
Total admissions
5.7 million
DE
17.8%
LT
4.1%
IT
8.4%
EE
3.8%
HU
2.0%
ES
13.4%
GB
7.1%
FR
20.0%
AT
LV
BE
NL
BG
PL
CZ
PT
DE
RO
DK
SE
EE
SI
ES
SK
FI
FR
GB
GR
HU
IT
LT
12
Comparing success in Russia and in the EU
Graphic 3.4.23 Top Russian films in distribution
in the European Union
160,0%
144.7%
1,735,952
Adm issio ns o f film in EU
140,0%
2
000
00 0
1
800
00 0
1
600
00 0
1
400
00 0
1
200
00 0
1
000
00 0
120,0%
% of R ussian adm issio n o f film in EU
100,0%
80,0%
60,0%
40,0%
80 0
0 00
60 0
0 00
40 0
0 00
20 0
0 00
39.9%
308,695
100,141
1.4%
20,0%
324,426
4.4%
96,440
9.2%
0,3%
13,879
0,0%
0
2004
T he Return
2005
2006
2007
N ight Watc h:
D ay Watc h
D ay Watc h
N oc hnoi D ozor
2008
2009
1612:
A dmiral
Khroniki
Smutnogo
Source: European Audiovisual Observatory / LUMIERE database,
ANKO, Film Business Today, kinopoisk.ru
13
International festivals: they may promote a film or kill it
14
Specialised festivals
15
Specialised festivals
16
Special events
17
Origin of films on 135 TV channels in 15 European countries
1,7%
0,5%
0,8%
0,4%
0,8%
0,3%
7,1%
2008
4,0%
DE
1,3%
ES
5,0%
FR
GB
IT
6,0%
Others EUR
European coprod.
Mixed coprod.
13,4%
54,8%
Non-European coprod
US
CA
AU+NZ
JP
3,8%
Others
18
Case Study: Circulation of Russian Films on German FTA-TV
Source: SPIO
Avg number of films broadcast per year
12 100
Between 2000 and 2008 there were
… on average about 12.100 feature films
broadcast on German free-to-air TV
channels per year…
… about 36% of which were produced in
the European Union (4.300 films)
4 300
… only an average of 17 Russian films
were broadcast each year (0.1%)
17
Total
films
EU
films
Russian
films
19
Accessibility of Russian Film TV channels in Western Europe
Source: European Audiovisual Observatory / MAVISE database
Dom Kino
Nashe Kino
(licensed in Germany)
Bulgaria
CATV, IPTV
CATV, IPTV
Cyprus
IPTV
IPTV
Estonia
CATV, IPTV
CATV
France
IPTV
IPTV
_
CATV, IPTV
CATV, IPTV
CATV, IPTV
CATV
CATV, IPTV
Germany
Latvia
Lithuania
20
European Union: evolution of the DVD and BD market
Source : Screen Digest
12 000
10 000
8 000
BR rental
BD retail
DVD rental
DVD retail
6 000
4 000
2 000
0
2005
2006
2007
2008
2009
21
Circulation of European Films on DVD and BD
NO DATA ON MARKET SHARE BY COUNTRY OF ORIGIN
-
Tracking of sales of DVD and BD in the major retail chains operated by
Media Control GfK
-
The European Audiovisual Observatory and EFARN are currently in
negotiation witth Media Control GfK to obtain access to the data collected,
in order to evaluate the circulation of European films
-
Russia would certainly be welcome to join the project in order to share the
costs.
22
Amazon.co.uk : More than 1000 Russian titles available
23
DVD publishers specialised in Russian classical films
24
DVD publishers with titles of Russian arthouse films (Katazanov,
Tarkovsky, Sokhurov, early Mikhalkov…)
25
DVD publishers for Russian films with more commercial potential (Night
Watch, The Return, Litivienko, Mikhailkov…
26
Blu-Ray market for Russian films : still in infancy…
27
Pure online VoD services in the EU
159 in December 2008 – 170 in June 2010
(not included : adults, catch-up TV, channels on video sharing platforms)
50
45
40
35
30
Dec. 2008
June 2010
25
20
15
10
5
0
FR
NL
DE
GB
ES
BE
DK
IT
SE
FI
HU
AT
PL
IE
LU
Source: European Audiovisual Observatory
28
Market share of web VoD in France (2009)
In % of the total transactions – Source: Gfk/CNC
8,7 %
Web VoD
IPTV
29
VoD market for Russian films in France: UniversCiné (Web, IPTV, CATV)
30
Number of film and TV titles in iTunes store catalogues
As of June 2010 – Source: European Audiovisual Observatory
1600
1400
1200
1000
Films
TV programmes
800
600
400
200
0
US
DE
FR
GB
IE
31
Russian films on Over the Top VoD services (iTunes, Zune,…)
1 film on 1 service in 1 country…
32
Number of cable/IPTV VoD households (2003-2009)
in Thousands - Source : Screen Digest
12000
Austria
Belgium
Cyprus
10000
Denm ark
Finland
France
8000
Germ any
Greece
Ireland
6000
Italy
Luxem bourg
Malta
4000
Netherlands
Norw ay
Portugal
Spain
2000
Sw eden
Sw itzerland
UK
0
2003
2004
2005
2006
2007
2008
2009
33
Very few Russian films in mainstream VoD services in France
Films are in dubbed versions and not in sub-titled version
34
Conclusions
-
Despite the recession, the public is still ready to pay to see films
-
3D is now driving the theatrical market
-
Digitisation of arthouse theaters is an important concern in Western Europe
and may affect circulation of European (including Russian) films
-
Blu-Ray is developing slowly and does not compensate the downturn in the
DVD market
-
The VoD market developing slowly but is now becoming a real market –
VoD will become increasingly important with the development of
Connected TV
35
Some reflections on promotion
-
Night Watch was a unique popular success, not reproduced with Day Watch
-
Big production budgets do not guarantee success on the Western European market
-
It is possible to see Russian films in Western Europe, but you need to attend
festivals, visit arthouse cinemas, order DVDs on-line, subscribe to Russian film TV
channels or to specialised VoD services
-
In Western Europe there is a limited cinéphile public for Russian art films, interested
in Russian cinematographic heritage and in the young generation of Russian film
directors.
To enlarge and foster this interest it might help to build a new national brand
with young filmmakers, similat to ‘Danish films’ or the ‘Belgian touch’ films
-
Festivals and specialised film critics play an important role in revealing new directors
and in promoting ‘World Cinema’ in general
-
The development of co-productions could facilitate the access to the market
-
To date, DVD is probably still the best way to promote access to Russian art film.
Multi-linguistic versions of DVD should be favoured
-
Multi-linguistic versions of Russian films on DVD could be sold at tourist sites in
Russian, which would promote awareness, interest and accessibility
36
LUMIERE : http://lumiere.obs.coe.int
KORDA : http://korda.obs.coe.int
http://www.obs.coe.int
37