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Animation production in France

THE INCENTIVES GUIDE 2013

Conception and writing: Franck Priot, Caroline Julliard-Mourgues, MĂŠlanie Chebance, Patrick Lamassoure


Credits for cover photos: © Universal Pictures and Illumination Entertainment © Universal Studios © Creacon Entertainment AS / Carl Christian Hamre © Moonscoop/France Télévisions/Canal J. All rights reserved

Conception and writing: Franck Priot, Caroline Julliard-Mourgues, Melanie Chebance, Patrick Lamassoure Published by Film France 9 rue du Château d’Eau 75010 Paris Tel + 33 (0)1 53 83 98 98 Fax + 33 (0)1 53 83 98 99 film@filmfrance.net www.filmfrance.net President: Nicolas Traube Chief Executive Officer: Patrick Lamassoure Chief Operating Officer: Franck Priot

With the support of the CNC (National Center for Cinema). All reasonable measures have been taken to ensure the accuracy of information of this guide. The Publisher cannot accept any responsibility for any errors or omissions or for any liability resulting from the use or misuse of any such information. This booklet can be downloaded as a PDF file from www.filmfrance.net Printed in France Dépôt légal à parution Designed By Scope: www.scope-editions.com Copyright: Commission Nationale du Film France, 2013 This booklet is free, it cannot be sold.

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Content

Content PART 1: FILM FRANCE 1 : Who we are Film France, the French Film Commission The network of film commissions in France

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2 : A direct link to identify French Partners

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3 : Contacts

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PART 2: the tax rebate for international production (trip) GET A TRIP TO FRANCE

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I.Eligible companies

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2. Eligible productions

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3.Eligible expenses

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4. Application Process

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5. Trip Line Up

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6. Trip Cultural Test

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PART 3: how to make an official co-production with france Chapter 1: Feature films (animation) A. Qualifying for the French System 1. Why France supports movie production: the spirit of the system 2. Co-production agreements 3.The French Qualification process

a. The European Scale b. The French Scale

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Content B. Available funding for French-qualified co-productions 1. General overview 2. The weight of TV money 3. The automatic subsidies 4. The Soficas 5. Cash flow Production 6. Selective subsidies

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C. CinĂŠmas du Monde (World Cinema Fund) 1. Application requirements and obligations 2. Colleges and procedures 3. Amounts

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Chapter 2 : TV dramas and series (animation) A. Overall market Presentation 1.The State support system for TV production 2. Key figures 3. Most of the productions are majority French

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B. Qualifying for the French system 1. The benefits of qualifying 2. Qualifying criteria 3. The French-Canadian Co-production Treaty 4. The local tax rebate 5. The local subsidies

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APPENDICES

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I. How to meet French producers

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2. Film France services to foreign producers

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3. Institutions & organizations

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4. Regional and local supports

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Film France

PART 1

TheTaxrebate for i n ter n a tional proPART 1 duction (trip) FILM FRANCE

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Film France

Film France, The French Film Commission 1 - Who we are The French Film Commission is a state-funded agency in charge of promoting France for film & TV production, including animation. We coordinate a network of 39 local film commissions throughout the country that offer free information and assistance to facilitate your shoot and local contacts. a. Film France, the French Film Commission Film France is the first stop for foreign production companies and individuals preparing to film or do animation in France. Film France provides free assistance in contacting appropriate agencies regarding immigration/work permits and filming permits, as well as information regarding labor rates, studio facilities, post-production facilities and suppliers. Film France can also provide information about co-productions opportunities in France and assists foreign producers who wants to apply to the TRIP (Tax Rebate For International Production). Nowhere else in Europe will you find such a large diversity of locations combined with a highly skilled workforce. France is home to one of the strongest film communities in the world and is proud of its free spirit. Crews jump from short films to large-scale productions and are recognized for their versatility and adaptability. This is particularly true for animation, a major genre in France, which high-end schools train every year hundreds of students bound to work all around the globe. The Film France board is made up of key film and television producers, prominent people in technical services industries and representatives of the CNC and local governments. Film France – 9 rue du Chateau d’Eau - 75010 Paris - FRANCE Tel + 33 1 53 83 98 98 • film@filmfrance.net • www.filmfrance.net Patrick Lamassoure - Chief Executive Officer Franck Priot - Chief Operating Officer Caroline Julliard-Mourgues - Legal Affairs Melanie Chebance - Foreign Producers Relation Fanny Fan - Foreign Producers Relation Calvin Walker - Information Systems Elsa Chevallier - Administration

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Film France b. The network of film commissions in France The local film commissions promote and facilitate shoots in their area and assist crews with all types of productions (feature films, television programs, animation, commercials and music videos). Each local film commission, also known as a film office, member of the network of the French Film Commission, provides free assistance in the following areas: • information about locations and pre-scouting (constitution of a database, digital photographs, etc.) • search for crew, cast and extras (casting facilities are available in most film offices) • search for local partners • administrative procedures, assistance in obtaining filming permits • logistical and diverse information (vehicle rental, lodging, etc.) • production office facilities and documentation • relations with the press and local authorities. Contacts: see pages 9-10.

2 - A direct link to identify French Partners The second and third parts of this guide provide information about the TRIP, the French support system and the various financial sources available for foreign projects. The appendices tell you about how and where to find a French producer. Film France can provide you with lists of key professionals (such as a French animation studios or producers) to either organize your production in France and/or be eligible to the TRIP. Specific lists of French producers that may fit your criteria can also be compiled by Film France. We have information about foreign animation movies and series co-produced by French companies since 2000: financing, budget, support rate, subsidies... Film France can also help you to identify the key elements that will increase your project’s attractiveness and raise the interest of a potential French partner. We can assist you to figure out how to obtain as many French elements as needed to have your film “qualified as French” (crew members, animation studios, VFX houses, talents, etc), but also to understand how this will maximize the automatic subsidies your future partner will benefit from. Do not hesitate to contact us for more information or assistance with your project at film@filmfrance.net. You may also visit our website at: www.filmfrance.net

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Film France The Network of Film Commissions in France

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Film France

Contacts

The Network of Film Commissions in France

Film France The French Film Commission Tel + 33 1 53 83 98 98 Fax : + 33 1 53 83 98 99 film@filmfrance.net • www.filmfrance.net > 1 / Nord-Pas de Calais Film Commission Pictanovo - www.pictanovo.com Tel + 33 3 20 28 26 53 - jallard@pictanovo.com Jérôme Allard > 2 / Picardy Film Commission ACAP - www.filmpicardie.com Tel + 33 3 22 72 68 30 filmpicardie@acap-cinema.com Juliette Flament

> 10 / Western Loire Film Commission www.agence-paysdelaloire.fr/BAT Tel + 33 2 40 48 81 24 - bat@agence-paysdelaloire.fr Pauline Le Floch > 11 / Loire Valley Film Commission Ciclic - www.ciclic.fr Tel + 33 2 47 56 08 08 - fanny.barrot@ciclic.fr Fanny Barrot > 12 / Burgundy Film Commission www.filmbourgogne.com Tel + 33 3 86 34 47 60 - contact@filmbourgogne.com Gaëlle Laurent

> 3 : Upper Normandy Film Commission Pôle Image Hte-Normandie - www.poleimagehn.com Tel + 33 2 35 70 70 41 - bat@poleimagehn.com Nùria Rodriguez • Carole Laumier

> 13 / Alsace Film Commission Agence culturelle d’Alsace - www.culture-alsace.org Tel + 33 3 88 58 87 57 films.alsace@culture-alsace.org michel.woch@culture-alsace.org Glenn Handley • Michel Woch

> 4 / Lower Normandy Film Commission Maison de l’Image Basse-Normandie www.maisondelimage-bn.fr Tel + 33 2 31 06 23 23 - j.prat@maisondelimage-bn.fr Johanne Prat

> 14 / Strasbourg & Urban Co. Film Commission CU de Strasbourg - www.strasbourg-film.com Tel + 33 3 88 43 61 82 estelle.zimmermann@strasbourg.eu Estelle Zimmermann

> 5 / Ile de France Film Commission www.iledefrance-film.com Tel + 33 1 56 88 12 88 stephane.martinet@idf-film.com Olivier-René Veillon • Stéphane Martinet

> 15 / Lorraine Film Commission www.tournages.lorraine.eu Tel + 33 3 87 31 81 40 marie-alix.fourquenay@lorraine.eu Marie-Alix Fourquenay

> 6 / Paris Film www.parisfilm.fr Tel + 33 1 44 54 19 60 - tournages@paris.fr Sophie Boudon-Vanhille

> 16 / Poitou-Charentes Film Commission www.cinema.poitou-charentes.fr Tel + 33 5 45 94 37 81 m.perronnet@cr-poitou-charentes.fr Marie Perronnet

> 7 / North East Paris Film Commission Pôle Média Grand Paris - www.lepole.org Tel + 33 1 78 35 09 94 - comfilm@lepole.org Stephan Bender > 8 / Champagne Film Commission ORCCA - www.orcca.fr Tel + 33 3 26 55 71 83 - leo.pignaud@orcca.fr Léo Pignaud > 9 / Brittany Film Commission CRTB - www.filmsenbretagne.com Tel + 33 2 99 28 44 60 tournages@tournagesbretagne.com Catherine Delalande • Emmanuelle Lohéac Fanny Sabatier

> 17 / Limousin Film Commission www.cinemaenlimousin.fr Tel + 33 5 87 21 20 80 cinemaenlimousin@cr-limousin.fr Valérie Fumet • William Windrestin > 18 / Auvergne Film Commission Sauve qui peut le court métrage www.filmauvergne.com Tel + 33 4 73 14 73 14 - cfa@clermont-filmfest.com Stéphane Souillat • Vincent Kaluza

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Film France > 19 / Rhône-Alpes Film Commission www.comfilm-rhone-alpes.fr Tel + 33 4 72 98 07 98 sergetachon@comfilm-rhone-alpes.fr a.malfroy@comfilm-rhone-alpes.fr Serge Tachon • Aurélie Malfroy-Camine > 20 / Drôme Ardèche Film Commission www.cineda.com Tel + 33 9 52 35 26 14 - contact@cineda.com Sébastien Cobos > 21 / Aquitaine Film Commission ECLA Aquitaine - www.ecla.aquitaine.fr Tel + 33 5 47 50 10 06 - yane.lahaye@ecla.aquitaine.fr Yane Lahaye • Mia Baqué > 22 / Dordorgne Film Commission Ciné Passion en Périgord - http://cinema.cg24.fr/ Tel + 33 5 53 07 91 91 thierry.bordes@cine-passion24.com Thierry Bordes • Rafael Maestro • Fanny Stemart > 23 / Gironde Film Commission www.tourisme-gironde.fr Tel + 33 5 56 48 67 85 - m.rateau@tourisme-gironde.fr Frédérique Kohler • Marie Rateau > 24 / Lot-et-Garonne Film Commission Espaces Productions 47 - www.bat47.com Tel + 33 5 53 41 65 19 - info@bat47.com Hervé Bonnet • Sanne Brinkhoff > 25 / Southern Midi-Pyrenees Film Commission Ciné 32 - www.cine32.com Tel + 33 5 62 63 69 30 - accueil.tournages@cine32.com Josiane Bled > 26 / Northern Midi-Pyrenees Film Commission Gindou Cinema - www.gindoucinema.org Tel + 33 5 65 22 89 69 - atmpn@gindoucinema.org Marie Virgo > 27 / Languedoc-Roussillon Film Commission www.languedoc-roussillon-cinema.fr Tel + 33 4 67 64 92 58 marin@languedoc-roussillon-cinema.fr sandrine@languedoc-roussillon-cinema.fr Marin Rosenstiehl • Sandrine Courouble Delphine Jouan > 28 / Provence-Alpes-Côte d’Azur Film Comm. www.regionpaca.fr Tel + 33 4 91 57 59 73 -crf@regionpaca.fr Vassili Meimaris • Fabienne Dabanian > 29 / Southern Alps Film Commission CFAS - www.cinefas.com Tel + 33 6 75 80 37 13 - info@cinefas.com Nathalie Pons IG-10

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> 30 / Marseilles Film Office www.marseille.fr Tel + 33 4 91 55 94 51 missioncinema@mairie-marseille.fr Robert Bayou • Samia Baila > 31 / Aix en Provence Film Commission Tel + 33 4 42 91 97 68 albertinimc@mairie-aixenprovence.fr Christine Albertini > 32 / Luberon Vaucluse Film Commission www.filmvaucluse.com Tel + 33 6 88 55 32 68 - filmvaucluse@gmail.com Joan Azorin > 33 / South of France Film Commission Var www.filmvar.com Tel + 33 4 94 54 81 88 - michel.brussol@wanadoo.fr Michel Brussol > 34 / French Riviera Film Commission www.cote-azur.cci.fr Tel + 33 4 93 13 75 12 - evelyne.colle@cote-azur.cci.fr Evelyne Colle > 35 / West Provence Film Commission Tel + 33 4 42 11 24 47 nathalie.bremond@ouestprovence.fr Nathalie Bremond > 36 / Corsica Film Office Corsica Pôle Tournages - www.outil-culturel.corse.fr Tel + 33 4 20 03 37 11 corsicapoletournages@ct-corse.fr Yolaine Lacolonge • Sandrine Rossi > 37 / New Caledonia - Southern Province Film Commission www.province-sud.nc Tel + 687 24 45 06 aline.marteaud@province-sud.nc tournages@province-sud.nc Aline Marteaud • Bénédicte Vernier > 38 / Guadeloupe Film Commission Tel + 33 5 90 80 41 57 guadeloupefilm@cr-guadeloupe.fr Tony Coco-Viloin > 39 / Reunion Film Commission Agence Film Réunion - www.agencefilmreunion.org Tel + 33 2 62 92 29 18 alain.randresy@agencefilmreunion.com Alain Randresy


Get a TRIP to France

PART 1

TheTaxrebate for i n ter n a tional proPART 2 duction (trip)

The tax rebate for international production (TRIP)

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Get a TRIP to France

Get a TRIP to France The Tax Rebate for International production (TRIP) Approved for the first time by the French Parliament at the end of 2008 and renewed at the end of 2012, the French Tax Rebate for International Productions has been effective since January 1st, 2009. It was initially created for live action films and TV series, and immediately designed to be also applicable to animation and VFX works. The new incentive has been very well-received since it launched. Already 51 productions from 13 different countries have qualified for the TRIP, including 16 animation and/or VFX productions. The animation projects supported came from the USA, Norway, the UK, Qatar and Turkey, and included both TV series as well as Universal / Illumination Entertainment worlds hits like Despicable Me and Dr Seuss’ The Lorax. For animation, the TRIP success is based on two factors: the excellence of French talents and crews and a point system specifically designed for animation. From the very beginning, the first French producers and directors also used animation and “VFX” in their movies, as Georges Méliès for instance. The animation genre is a key part of the French movie and TV industry. Animation schools appeared in several French regions, and brought the education to such a level that every year Hollywood majors themselves directly hire students from les Gobelins, the ENSAD, Supinfocom Arles, Supinfocom Valenciennes, La Poudrière, the Estienne school, the Georges Méliès school… Did you know, for example, that the animation studio Mc Guff Ligne that created the magic in worldwide hit Despicable Me (and soon its sequel) is based in a former parking structure in a tiny Paris street behind the Eiffel tower? And that the ice palace in Marvel’s Thor was designed by the computers of French VFX shop BUF? In a nutshell, the TRIP helps you access this know-how and hire these talents. Here’s one last piece of good news: the rebate for foreign production may only be four years old, but it takes advantage of the long background of similar incentives for domestic productions. This means that it is a system that has already proven itself and doesn’t involve any unexpected complications. It works, and it works very quickly too. The French system boasts the shortest processing time in the world. Just ask how long the same things take elsewhere… It can take only four weeks from the first time a production team contacts Film France to the French government’s official approval of the project’s tax rebate.

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Get a TRIP to France

1 Eligible companies To file a TRIP application, a company must meet the following criteria:

• Be subject to corporate income tax in France. • Act as PRODUCTION SERVICES COMPANY for the sequences filmed or produced in France, and enter a production services agreement with the foreign producer.

The production services company is defined as “the company that has been contracted by the foreign production company to manage the local production.” There is no restriction to the capital mix of the applicant or its main business. The company can thus specialize in production services, act as an executive production company in film & TV or be an animation or VFX studio, a subsidiary of the foreign producer, an ad hoc created company, etc.

> For animation productions, a list of French animation studios may be obtained from the French film commission, Film France: www.filmfrance.net

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Get a TRIP to France

2 Eligible productions > Animation To be eligible for the TRIP, an animation project must meet all of the following criteria: The project must be an animated film or TV movie (that may function alone or as part of a series). Animated documentaries as well as films used for advertising or corporate purposes are not eligible. • The project must not receive any financial support for production from the CNC other than the TRIP. • The project may not be pornographic or promote violence. • The project must spend a minimum of e1M  on eligible expenses in France. For TV series, it is possible to aggregate the costs of several episodes in order to reach the e1M  threshold. • Animated projects must obtain at least 36 points on the rating scale of the Cultural Test, including 9 points in the “dramatic content” block1. > VFX The TRIP also supports live-action projects with a significant proportion of VFX shots, providing VFX and post-production are executed mainly in France (minimum eligible spend of e1M ). “VFX-intensive” means that at least 25% of the shots or an average of two and a half shots per minute of the film are digitally modified. This means : addition of characters, visual elements or objects involved in the action, modification of the rendering of a scene or the camera’s point of view. If the projects fulfill this condition, their producer can apply as an animated project. Indeed, films with a strong proportion of digitally-enhanced shots go through the same production process as animated features, shorts and series. They also include all kinds of non-human characters and undefined locations, for which the live-action cultural test isn’t relevant. For example, where is Thor’s planet Aaasgard? What is the citizenship of an earth-attacking alien? The animation cultural test rewards the involvement of French talents more than the live-action one. But this is still a cultural test, which checks the proportion of European and French elements. Each project is unique, but as a rule of thumb, a non-European film or series will more easily qualify when allocating VFX shots to a French vendor if at least one third of the shots are done in France. Examples of VFX-intensive fils which qualified: Marvel’s Thor (USA), Fox’s The Darkest Hour (USA), Wong Kar-wai’s The Grandmaster (China). 1) See Appendice 3 Trip : the cultural test page 87)

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Get a TRIP to France

3 Eligible expenses To count as eligible, expenses must be incurred by the French production services company who submits the application to the CNC. These expenses must directly contribute to the production needs. The maximum tax rebate is e10M. It comprises 20% of the following expenses, excluding VAT: > Labour cost • Wages, social contribution and compensations for French & European authors, actors & crew members, including teams in charge of: rigging & animation set up, storyboarding, character conception & modeling, set conception & modeling, exposure sheets, previsualization, rotoscopy, tracking, motion capture, lay out, animation, set construction, colorization, lighting & rendering, compositing, visual effects, image & sound editing, mixing… When production staff members are permanent employees of the production services company, the salaries and social contributions for the period during which they are actually working on the eligible production are taken into account. > Expenses incurred for hiring technical companies and other providers of services • equipment, supplies, computer hardware and software used directly for the film (the aforementioned computer software must be paid off during the production of the work for which it was designed or purchased); • post-production: image lab, image editing, voice recording, sound effects and sound design, mixing, sound editing, credits & trailers • digital visual effects • negative image film, magnetic sound film, and in general, all digital or non-digital image and sound media; filming, finishing, video, and subtitling studios. > Transportation and catering expenses • transport of artistic and technical materials and supplies; • transport, accommodation and catering for the artistic and technical teams. This also concerns international transport of materials and crew. > Depreciation expenses • Tax-deductible depreciation accruals for fixed assets held by the French production/ animation company and directly related to the production of the project for which the tax rebate may be claimed. Those depreciation expenses that correspond to the period in which the asset was actually used to produce the work eligible for the tax rebate go toward the rebate.

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Get a TRIP to France

4 Application process 1 - Provisional approval The production services company of the film must submit a file requesting provisional approval from the CNC that includes the necessary supporting documents. The application is available on the websites of the CNC and Film France: www.cnc.fr & www.filmfrance.net. Applications cannot be submitted until a production services agreement has been made between the foreign producer and the French company. This contract (or letter of intent) is one of the supporting documents required for the assessment. The starting date for considering eligible expenses is the reception date of the application at the CNC TRIP office. No expense incurred before this date will be considered as eligible, with the exception of authors fee under the condition that this fee was paid the same fiscal year as that of the application. The CNC, following Film France’s assessment, will come to a decision on the application, based only on the eligibility criteria (including the rating scales) defined in here. Should these criteria be fulfilled, the CNC will issue a provisional TRIP approval to the applicant.

2 - Final approval Once the film has been completed, the production services company must submit a final approval application to the CNC, along with the necessary documents including a digital copy of the film. The CNC, with the support of Film France, will then verify that the finished film complies with the eligibility criteria and will issue a final approval.

3 - Collecting the international tax rebate At the end of each fiscal year, the French company must have the production accounts certified by a statutory auditor (CPA). This certification must be sent with the provisional TRIP approval to the tax authorities along with the company’s income tax return. Most of the French companies end their fiscal year on December 31st, and submit their corporate tax after March 31st. If the amount of the tax rebate exceeds the corporate income tax during the fiscal year, the difference will be paid by the French State. IG-16

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Get a TRIP to France

The tax authorities may pay the tax rebate before the final approval application is submitted. However, the final approval officially confirms the right to keep this tax rebate. In the event that final approval is refused, the tax authorities will demand the reimbursement of the tax rebate granted. For the French company, the amount of the tax rebate paid constitutes revenue that is tax and VAT exempt.

4 - TRIP discount Even though the TRIP is a non-assignable and inalienable debt of the French State to the French Company, as soon as provisional approval has been obtained, it is possible to discount it at a bank, under certain conditions fixed by the law. French banks used to discount tax rebates tend to advance max 80% of the prospective Rebate amount.

5 - Credits During either the beginning or end credits and in either French or the original language, productions that receive the TRIP must mention the following: “Cette œuvre a bénéficié du crédit d’impôt en faveur de la production de films étrangers en France.” Proposed English translation: “This film benefited from the French Tax Rebate for International Production.”

Do not hesitate to contact Film France or the CNC for any questions relating to the approval procedure, as well as information on production, notably for questions concerning shooting in France.

Contacts CNC Magali Jammet Tel: + 33 1 44 34 34 17 magali.jammet@cnc.fr Baptiste Heynemann Tel: +33 1 44 34 35 34 baptiste.heynemann@cnc.fr

Film France The French Film Commission Franck Priot Mélanie Chebance Fanny Fan Tel: + 33 1 53 83 98 90 / 91 rebate@filmfrance.net

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Get a TRIP to France

5 The trip line-up (Animation & VFX) YEAR

GENRE

TITLE

DIRECTOR

COUNTRY OF ORIGIN

PRODUCTION COMPANY

FRENCH LINE PRODUCER

2009

Feature (Animation)

DESPICABLE ME

Chris Renaud, Pierre Coffin

USA

Illumination Ent. / Universal Animation

Mac Guff Ligne, Peninsula 

2010

Feature (Animation)

THE LORAX

Chris Renaud

USA

Illumination Ent. / Universal Animation

Mac Guff Ligne, Peninsula 

2010

Feature

THOR

Kenneth Brannagh

USA

Marvel

Angele & Fine (Buf Compagnie)

2010

Short (Animation)

MINIONS

Samuel Tourneux

USA

Illumination Ent. / Universal Animation

Mac Guff Ligne Angele & Fine (Buf Compagnie)

2010

Feature

THE DARKEST HOUR

Chris Gorak 

USA

Four Times Prod. & 20th century Fox

2010

Feature

THE GRANDMASTER

Wong Kar Wai

CHINA

Jet Tone Films

Angele & Fine (Buf Compagnie)

2011

VFX - LM

Odd Thomas

Stephen Sommers

USA

Two Out of Ten Prod.

Angele & Fine (Buf Compagnie)

2011

Feature (Animation)

Despicable Me 2

Chris Renaud, Pierre Coffin

USA

Universal Animation Studios LLC

Illumination Mac Guff

2011

Feature

A Giant

Gil Kenan

USA

Lava Bear

Angele & Fine (Buf)

2012

Feature (Animation)

Mins (Les)

Pierre Coffin

USA

Universal Animation Studios LLC

Illumination Mac Guff

DM2 shorts

F. Joubert, R. Schuller, B. Dequier, M. O'Hare, Y. Cheney, E. Favela

USA

DM2 Productions LLC / Universal

Illumination Mac Guff

2012

Feature (Animation)

Approximately 30 live action projects also benefited from the TRIP. Please check www.filmfrance.net

Despicable Me 2 was supported by the TRIP (© Universal Pictures and Illumination Entertainment)

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Co-productions:TRIP TV dramas : the cultural and series test

6 TRIP : the cultural test Point rating scale applicable to animation productions Eligibility requirements: To be eligible, the project concerned must receive a minimum total of 36 points, including at least 9 points for the first part “Dramatic content”.

1. DRAMATIC CONTENT (20 points)

Number of points received

Simulation

1.1 - Location (3 points) Criterion no. 1 - Maximum number of points : 3 At least one of the main locations of the action is in France, in a French-speaking country or in a European-looking location

3

Or At least 50% of the action takes place in a location that cannot be determined

2

1.2 - Characters (3 points) Criterion no. 2 - Maximum number of points : 3 At least one of the main characters is French, from a French-speaking or European country, or of a nationality that cannot be determined

3

1.3 - Plot and story (10 points) Criterion no. 3 - Maximum number of points : 3 The plot is meant or adapted for a young audience

3

Criterion no. 4 - Maximum number of points : 4 The plot and story are inspired by or adapted from an existing work (notably a movie or a series (except sequels), a book or a comic, an opera, a play, a video game) or traditional tales.

4

Criterion no. 5 - Maximum number of points : 3 The plot and story refer to an event or a period in history, or deal with political, social or cultural problems specific to French or European societies

3

1.4 – Languages (4 points) Criterion no. 6 - Maximum number of points : 4 A dubbed or subtitled French version of the work will be available

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Co-productions: TRIP : the culturalTVtest dramas and series

2. EUROPEAN CREATORS AND CREATIVE COLLABORATORS (23 points)

Number of points received

Simulation

CRITERION NO. 7 - MAXIMUM NUMBER OF POINTS : 2 At least one of the creators: director, screenwriter

2

CRITERION NO. 8 - MAXIMUM NUMBER OF POINTS : 1 At least one of the film composers

1

CRITERION NO. 9 - MAXIMUM NUMBER OF POINTS : 2 At least one of the character and/or set designers

2

CRITERION NO. 10 - MAXIMUM NUMBER OF POINTS : 2 At least one of the producers (individual)

2

CRITERION NO. 11 - MAXIMUM NUMBER OF POINTS : 2 At least one of the production directors and/or visual effects producers

2

CRITERION NO. 12 - MAXIMUM NUMBER OF POINTS : 2 At least one of the artistic directors (animation or visual effects) and/or first cameramen

2

CRITERION NO. 13 - MAXIMUM NUMBER OF POINTS : 2 At least one of the lead supervisors and/or first assistant and/ or visual effects supervisor

2

CRITERION NO. 14 - MAXIMUM NUMBER OF POINTS : 8 At least 50% of the animation supervisors and/or animation directors and/or technical supervisors and/or heads of modeling department and/or texture supervisors and/ or lighting supervisors

8

Or Between 25% and 50% of the animation supervisors and/or animation directors and/or technical supervisors and/or heads of modeling department and/or texture supervisors and/or lighting supervisors

4

Criterion no. 15 - Maximum number of points : 2 At least one of the sound creators

3. PRODUCTION INFRASTRUCTURE (31 points)

2 Number of points received

Criterion no. 16 - Maximum number of points : 1 More than 50% of expenses related to storyboards and/or building sets and animation and/or (3D) pre-vis are paid to service providers established in France

1

Criterion no. 17 - Maximum number of points : 1 More than 50% of expenses related to characters design are paid to service providers established in France

1

Criterion no. 18 - Maximum number of points : 1 More than 50% of expenses related to set design are paid to service providers established in France

1

Criterion no. 19 - Maximum number of points : 5 At least 10% of expenses related to modeling (including digital sets) and/or rotoscoping and/or motion tracking are paid to service providers established in France: 0.5 point per 10% bracket

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0.5 to 5

Simulation


Co-productions:TRIP TV dramas : the cultural and series test

CRITERION NO. 20 - MAXIMUM NUMBER OF POINTS : 10 At least 10% of expenses related to animation (characters and cameras) and/or motion capture are paid to service providers established in France: 1 point per 10% bracket

1 to 10

Criterion no. 21 - Maximum number of points : 5 At least 10% of expenses related to rendering and/or lighting or tracing and/or colorization are paid to service providers established in France: 0.5 point per 10% bracket

0.5 to 5

Criterion no. 22 - Maximum number of points : 5 At least 10% of expenses related to digital compositing are paid to service providers established in France: 0.5 points per 10% bracket

0.5 to 5

Criterion no. 23 - Maximum number of points : 1 More than 50% of expenses related to sound artistry and sound editing are paid to service providers established in France

1

Criterion no. 24 - Maximum number of points : 1 More than 50% of expenses related to music recording are paid to service providers established in France

1

Criterion no. 25 - Maximum number of points : 1 More than 50% of expenses related to voice recording and dialog editing are paid to service providers established in France

1 TOTAL: 74

Eligible countries and territories > French territory Mainland France and the overseas territories: Corsica, French Guyana, French Polynesia, Guadeloupe, Martinique, Mayotte, New Caledonia, Reunion, St. Barthelemy, Saint Martin, Saint Pierre and Miquelon, Wallis and Futuna. > European States (eligible) Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italia, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United-Kingdom. > French speaking countries All members of Organisation Internationale de La Francophonie and Algeria: Albania, Algeria, Andorra, Benin, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Canada New Brunswick, Canada Quebec, Cape Verde, Central African Republic, Chad, Comoros, Congo, Djibouti, Dominica, Egypt, Equatorial Guinea, Gabon, Ghana, Guinea, Guinea Bissau, Haiti, Ivory Coast (Côte d’Ivoire), Laos, Lebanon, Mali, Maurice, Moldavia, Monaco, Morocco, Niger, Rwanda, Saint Lucia, Sao Tome et Principe, Senegal, Seychelles, Togo, Tunisia, Vanuatu, Vietnam.

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Co-productions: Feature films

PART 1

TheTaxrebate for i n ter n a tional proPART 3 duction (trip)

how to make an official co-production with france

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Co-productions: Feature films

OFFICIAL CO-PRODUCTIONS - CHAPTER 1

FEATURE FILMS A Qualifying to the French system 1 - Why France supports movie production: the spirit of the system Under French law, a film is not considered a product, but an artistic good. The French movie industry has strong support from the State because the country feels that it is in its cultural interest to have a dynamic film industry. An artistic work doesn’t directly possess any other nationality than that of its creator and accordingly the French State mainly grants French nationality (and thus French support) according to the citizenship of its filmmakers. Two questions determine whether a movie can receive support: Are the creators European? Are they French? The movie must also be produced or co-produced by a French movie company incorporated in France. This company cannot be owned or controlled by non-European stockholders. The language spoken in the movie, or more precisely, the language in which it has been shot will be one factor among others fixing the level of State support it will enjoy, but it is not a compulsory condition to be eligible for support. Please note that French regional languages count as French.

2 - Co-production agreements The goal of supporting film production for cultural reasons isn’t to prevent foreign and French talents to work together. On the contrary, there is a long tradition in France of artistic co-operation with foreign countries. France has signed bilateral co-production agreements, aiming at giving access to support systems on both sides, with more than 40 countries that also have created State support systems for their own film industries. Part 2 defines what mandatory conditions a movie co-produced by a French producer and a producer from a given country have to meet in order to be considered “national” in

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Co-productions: Feature films

both countries, therefore enjoying double-citizenship. They generally require a minimum investment (20 % or 30 %), and artistic and/or technical elements, from each side, as well as a balance between the investment and spending from each side. This balance is frequently the most tricky co-production-related issue producers have to deal with. Each bilateral agreement is different. For instance, some agreements restrain French and foreign production companies partnering on a movie to have common stockholders, while some do not. France has bilateral co-production agreements with: Algeria, Argentina, Australia, Austria, Belgium, Bosnia-Herzegovina, Brazil, Bulgaria, Burkina Faso, Cameroon, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, Georgia, Germany, Greece, Guinea, Hungary, Iceland, India, Israel, Italy, Ivory Coast, Lebanon, Luxembourg, Macedonia, Mexico, Morocco, Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Senegal, Serbia, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Tunisia, Turkey, Ukraine, United Kingdom, Venezuela. It does not include the USA or Japan. The texts in French are available through Film France or on the CNC’s website. The key issue in the case of a project co-produced within the framework of an international agreement is that the citizens and technical facilities of the foreign partner allot points in the European scales printed on the next pages. Proportion contributed by the respective producers from France and the other countries Country

Minority Contribution

Belgium, Germany, Lebanon, Luxembourg, Switzerland

10%

Italy

10%

Algeria, Austria, Burkina Faso, Cameroun, Canada, China, Georgia, Guinea, Iceland, Ivory Coast, Mexico, Netherlands, New Zealand, Senegal, South Africa, South Korea, Spain, Tunisia, Turkey, UK

20%

Argentina, Brazil, Israel, Romania, Slovenia, Ukraine

20%

Denmark

25%

Boznia and Herzegovina, Chile, Egypt, Greece, India, Macedonia, Portugal, Serbia, Venezuela

30%

Bulgaria, Colombia, Czech Republic, Finland, Hungary, Poland, Russia, Slovakia, Sweden

30%

Morocco

30%

Australia

20%(FRA) 40% (AUS)

Derogation

Majority Contribution 90%

5%

90%

80%

10%

80% 75%

20%

70%

70% 10%

70% 60%(FRA) 80% (AUS)

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Co-productions: Feature films

3 –The French Qualification process The qualification of a film (in development or completed) is determined by the CNC (National Center for Cinema) overseeing all movie affairs and policies on behalf of the Ministery of Culture. The French qualification is given after the decision made by a committee of industry representatives (every two weeks). The CNC1 and its committees make their decision based on two scales that basically check if the movie is European-enough and then whether it is French enough. a. The European scale According to French law, an animation feature must score a minimum of 14 points out of 21 points to be eligible to the State support system. To gain points, authors, actors and crew members must either be of French nationality, come from a European Union state, or from a country with which France has a co-production treaty in the case of movies produced within that framework. Foreigners qualifying as resident in France are treated as French citizens. If there are two directors/ screenwriters, half of the points are gained if one is European. Technical facilities must be established in France or on the territory of a European state. 2D and 3D Animation: European Scale 21 points (required: 14) 6 points 1 point 2 points 2 points 1 point 7 points 2 points 2 points 1 point  2 points 6 points 1 point 1 point 2 points 2 points 2 points

Authors and director(s) Conception or author(s) Script Director(s) Music Pre-production Character design Stortyboard Art director Animation Positionning Production of the animation Caption stand Scene painting 50% of labour costs of animators 50% of labour cost of tracers colorists Post production 

1) See Appendices.

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Co-productions: Feature films

Co-productions are now a very popular sport in Europe; there are more and more films involving producers from more than two countries. This is why members of the European Council1 and a few other European countries agreed on a general framework – the European Convention for Co-productions – for co-productions between producers of 3 or more signatory countries, as well as between producers of 3 or more signatory countries AND a non-signatory country (the part of this last co-producer being no more than 30 % of the budget). Co-productions created using the Convention must also follow some rules and a minimum level of European talents and elements, according to another scale. A movie is considered European if it scores 15 points out of 19. The European Convention for Co-productions countries are: Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia and Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom. European Convention for co-production Scale 19 points (required: 15) 7 points 3 points 3 points 1 point 6 points 3 points 2 points 1 point 6 points 1 point 1 point 1 point 1 point 1 point 1 point

Simulation

Authors and director(s) Direction Script- and screenwriter(s) Other authors (music…) Actors 1st role 2nd role 3rd role Creative collaboration, technical industries, shooting Photography Sound Editing Set design Studio and locations Post-production

1) A transnational organization distinct from the European Union.

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Co-productions: Feature films

Please note that what defines the first, second and third characters in this scale is the number of working days, not screen-time or salary!

b. The French scale The law requires a minimum part of French elements and talents in the artistic as well as technical aspects of a movie before qualifying it (i.e. declaring it eligible to obtain the support of the State). Hence this second scale, on which, in order to be qualified, a movie must score at least 25 out of 100 points. Animated movies use different scales depending on if they are 2D or 3D. In order to accumulate points, authors as well as crew members must be of French nationality, come from a European Union state or a European Council signatory state. Foreigners qualifying as residents in France are treated as French citizens. For everyone, points are gained if work contracts or author contracts stipulate the French law as being applicable. Once the movie passes this level, its number of points will fix its BSF (Barême du Soutien Financier/Financial Support Scale), which is a sort of “Frenchness factor” of the movie. This ratio has a long-term effect on the automatic support the French co-producer and distributor will get at each stage of the movie’s lifespan. The higher this number, the bigger the automatic grants to the movie is, and accordingly the higher is the value of the French rights of the movie, which means the French co-producer is more likely to invest time and money into the venture!

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2D Animation: Financial Support Scale 100 points (required: 25) 10 points

Production Company

26 points

Authors

8 points

Director(s)

8 points

Script, screenplay, dialogues

6 points

Graphic Artist

4 points

Composer

5 points

Technicians and creative collaboration

3 points

First assistant director

2 points

Production manager

19 points

Pre-production

6 points

Storyboard

6 points

Drawing of the main characters

6 points

Set design

1 points

Animation positionning

30 points

Production of the animation

2 points

Setting up of set design

3 points

Setting up of animation

10 points

Animation

4 point

Set painting/drawing

4 points

Tracing, painting in gouache or colorization

7 points

Digital assembly, special effects

10 points

Post-production

5 points

Sound post-production

5 points

Image post-production

Simulation

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Co-productions: Feature films

3D Animation: Financial Support Scale 100 points (required: 25)

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10 points

Production Company

26 points

Authors

8 points

Director(s)

8 points

Script, screenplay, dialogues

6 points

Graphic Artist

4 points

Composer

5 points

Technicians and creative collaboration

3 points

First assistant director

2 points

Production manager

22 points

Pre-production

6 points

Storyboard

8 points

Modeling of the main characters

8 points

Modeling of sets

27 points

Production of the animation

3 points

Setting up of 3D scenes

12 points

Animation

7 points

Rendering, lighting

5 points

Digital assembly, visual effects

10 points

Post-production

2 points

Editing

3 points

Laboratory

2 points

Voices recording

1 points

Sound creation

2 points

Mixing

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Co-productions: Feature films

B Funding available to qualified co-productions 1- General overview There are several financial sources tapped into by French producers to produce their movies. Some of them are not specifically French, such as MG from distributors (theater, DVD, international sales), or broadcasting rights sales. With nearly 200 million tickets sold every year, including more than 70 million for French-qualified films, France is obviously one of the world’s top film markets, both for foreign and domestic titles. Therefore, there is money to be found for good projects in France as there is anywhere. That said, there are some extra funding sources specific to French laws and regulations. You will find a description of these in this chapter with explanations about their degree of involvement in foreign animation productions. Here is a general overview of how films are financed in the global amount of money gathered for 209 majority French productions in 2012: TV (Pay and free-to-air) investments (equity and prebuys) Selective subsidies (CNC and the regional governments) Automatic subsidies (CNC) Distributors MG (Th., Vid., Internat. Sales) Investments of French producers Investments of foreign producers Soficas

31,9% 3,8% 2,7% 19,5% 28,9% 9,3% 4%

Out of the 279 movies qualified by the CNC in 2012, 70 were foreign productions with a minority French co-producer. 2010

2011

2012

Fully or mostly French movies

2000 145

172

163

183

167

187

164

185

196

182

203

207

209

Including co-productions

34

46

57

78

37

61

37

52

51

45

60

55

59

Majority foreign movies

26

32

37

29

36

53

39

43

44

48

58

65

70

171

204

200

212

203

240

203

228

240

230

261

272

279

All QualifiedFrench movie

2001

2002

2003

2004

2005

2006

2007 2008

2009

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2 - The weight of TV funding As it appears, a huge proportion of the money invested in movie production in France comes from TV channels. This is due to several regulations described below.

a. The free-to-air networks First, the 3 free-to-air networks (TF1, France 2 & France 3, M6-W9) have to invest 3,2 % of their revenue in pre-buys and co-productions of French-qualified movies, with at least 2,5 % of the revenue (75 % of the available money) devoted to French-speaking ones. The fourth terrestrial network, French-German channel Arte, does not have to obey the same rules, but it nevertheless devotes more or less the same percentage of its revenue to movies (technically, TV investment is divided between pre-buys and co-productions, in proportions reflecting the balance of power between the French producer and the channel). The law states that the networks have to choose the movies they will invest in beforethe production starts. Other TV channels that invest in film productions without having to comply to the obligations are: Direct8, France 4, Gulli & NT1. In 2012, the terrestrial networks invested in 15 French-qualified foreign movies coproduced by minority French producers.

b. The pay-TV channels French law also fixes investment obligations for the pay-TV movie channels. They have to invest 9% of their turnover in pre-buys of French-speaking movies and 12% in European movies. TPS Star and Orange Cinéma Series have to invest 26% of their total yearly resources in European film productions of which no less than 22% have to go to French-speaking movies. For Ciné+, these percentages are respectively 27 and 25%. In 2012, the French pay-TVs, Canal+, Canal J, Ciné+, Orange Cinema Series, TPS Star (owned by Canal+), TV5, pre-bought 21 French-qualified foreign movies co-produced by (minority) French producers for a total of e12,28M.

c. What they look for Although they have to spend a lot of money, the channels are all free to choose what films they will buy. Consequently, domestic commercial French-language projects intended to draw good ratings in prime-time slots are very sought-after as early as

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the script stage, with prices going over E1 M per run on terrestrial networks, and over E4 M on the biggest pay-TV. Both free-to-air networks and pay-TV channels also invest in a few French-qualified foreign-speaking movies, generally by top European filmmakers. They’re interested in using the money devoted to French productions for either Hollywood-like movies that can be aired in prime-time slots after wide releases (for example Pierre Morel‘s Taken with Liam Neeson or From Paris with Love with John Travolta, Oliver Stone‘s Alexander, Tom Tykwer’s The Perfume, The Three Musketeers by Paul Anderson or Largo Winch 1&2 by Jérôme Salle) or for high-level “auteur” films able to get the support of the press and the festivals, such as new films from Christian Mungiu, Paolo Sorrentino, Ken Loach, Nanni Moretti, Michael Haneke or Alex de la Iglesia.

3 - The Automatic subsidies The automatic subsidies, referred to in French as “Compte de Soutien” or “Soutien Automatique” are a key component of the French producing landscape: Each qualified movie producer or distributor receives automatic subsidies in proportion to the film’s success at the French box office, and also in video stores (a percentage of DVD and Bluray sales revenue) and in TV sales (a percentage of broadcasting rights sales). The amount awarded for each ticket sold, or each Euro of DVD sales, varies according to its BSF figure, the “Frenchness factor“ of the movie, exposed in the previous chapter. This means that the more French elements it has, the higher its BSF figure will be, and the higher the automatic support will be given to its French co-producer. At the same time, the theatrical distributor of a French-qualified movie will also receive automatic support, again in proportion to the number of tickets sold. The money goes directly into the CNC account of the French producer (as well as the distributor), and they have to reinvest it in French-qualified movies; therefore, this money will be available for the producer’s next French-qualified movie. Thus, the value of the French rights of any foreign movie increases dramatically if it can be qualified as French, because each step of its exploitation will generate automatic support, available for subsequent films. Therefore, the question arises: ‘‘How can a film project be more attractive to a French producer?” The answer is: “Obtain as many French elements as you can to get the film to qualify as French”, thus increasing the automatic subsidies it will generate for its co-producer and distributor in France: talents, crew members, locations, post facilities, VFX houses, etc. How can you find “French elements”? Ask for help from Film France (contact see page 8) and its network of 40 local film commissions all over France!

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> Case study Let’s consider a foreign-speaking French-qualified movie released in France that sells 100,000 tickets, so its box-office revenue is around E 611,000. Since the theaters usually keep 50 % of box office revenue in France, the distributor’s gross will be E 305,500. It is a minority-French co-production, shot in a foreign language and let’s say that it scored 50 out 100 on the French scale (BSF, see chapter 1) this triggers automatic support (compte automatique de soutien). Solely thanks to theater admissions, the film should generate around E 40,000 for the French producer’s account at the CNC to invest on a future project. Then, for each DVD sold, VOD sale and official TV-run, the movie will also generate some extra revenue in that same producer’s account. The amount of money generated depends on the number of tickets/DVDs/downloads sold, and for TV, on how much the film broadcasting rights were sold. The admissions will also generate some money on the distributor’s account depending also on the number of tickets sold. It can easily represent about half of the distributor’s box-office share! As the distributor has to recoup its P&A before being able to give some money to the rights owner, in some cases, producers don’t get any money back from the release, and the automatic support will stay as the only or the biggest return they get. The automatic support therefore has a huge impact in the risk-assessing equation of the producer.

This way, foreign movies that can qualify as French become much more interesting to French producers and distributors. Many French distributors therefore act as coproducers of the foreign movies they are releasing to get them to qualify as French.

4 - The Soficas The Soficas are equity funds financed with tax-related money. They are allowed to invest in both film and TV productions, on a project-by-project basis, but most of them only focus on feature films. Their money comes from banks, from private investors who want to pay less income taxes. Sometimes, there is a guarantor (often media companies) who will repay the investors if needed. Soficas want their money back, so they tend to do mostly gap funding, providing producers with the last (and most expensive) money. Soficas generally stand behind the distributor(s) in the recoupment order. Only part of the Soficas’ money is invested in independent productions. Each Sofica can invest 20% of its money in foreign-speaking (qualified) co-productions, as long as the film’s language matches the foreign co-producer’s country’s language. In 2012, the Soficas invested E 44,66 M in 118 movies. 16 of them were majority foreign co-productions, mostly from English or Belgian producers. Some Soficas are specialized in animated films and series. See Film France for details.

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5 - Cash Flow Production In order to encourage French credit houses to cash flow production contracts, France has created the IFCIC (www.ifcic.eu). This State-owned bank can counter-guarantee some loans on collateral and bridge loans to movie producers. It first targets loans against production contracts, but in some cases can also counter-guarantee contracts involving Foreign partners.

6 - Selective subsidies a. National subsidy: advance upon receipts The most important French grant, called “Avance sur Recettes”, is a refundable grant awarded to around 55 projects every year chosen at the script stage for their cultural values by a committee of members of the creative community (producers, directors, distributors, writers, publishers, critics). But only French-speaking (or France regional languages) projects are eligible, which narrows the field, outside France, to French speaking territories, such as Belgium, Switzerland, Québec… Last year, the total budget for this selective mechanism was E21,24 M, and only 1 out of the 51 supported projects were minority French co-productions.

b. Special support for co-productions with Germany and Canada 1) Germany’s Federal Film Fund, Filmförderungsanstalt (FFA) and its French counterpart the CNC have created a selective French-German fund, which gives refundable grants to co-productions between producers of the two countries. Each country contributes to the fund (E1,48 M from France in 2012). Selected projects are given grants on both sides, in proportion to each country’s input. 11 projects received this grant in 2012. 2) Canada’s federal cultural agency Téléfilm Canada and its French counterpart the CNC created a selective fund in 1983, which gives refundable grants to 4-5 co-productions between producers of the two countries every year. Each country contributes to the fund (E300,000 from France in 2011 for 5 projects). Selected projects are given grants from both sides, in proportion to each country’s input.

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Co-productions: Feature films

c. The local subsidies In addition to the State’s Ministery of Culture, some local governments (Regions, Départements and Cities: see contacts in the Appendices) have created funds to support movie & TV production. So far, 23 Regions (please refer to the map in the Appendices), 9 Départements and one City (Strasbourg) have set up a feature film and tv drama fund, each one defining its own support policy. The cultural value of the project is generally the biggest concern of the funds. Some of them develop partnerships with the bordering regions of nearby countries. Most of their investment goes to French-speaking movies or tv dramas. For more information on these local supports, please refer to the guide published by Ciclic available on the website: http://www.ciclic.fr/ressources/le-guide-2013 (in French only)

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C

Cinémas du Monde for foreign feature films The World Cinema Support is a new fund that emerged from the merging of Fonds Sud and the Support to Foreign Language Films in 2012. It is targeted at international co-productions by foreign authors that are produced by a French and a foreign company based preferably in a country who signed the UNESCO 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions, likely to contribute to the promotion of cultural diversity and present different insights as well as new sensitivities to a French and global audience. This fund is managed both by the CNC and the Institut français (Ministry of Foreign Affairs). Priority will be given to films co-produced in the official frame of a bilateral co-production treaty. Although few animation projects apply to that new fund, it is open to the genre. The World Cinema Fund already has supported projects from countries such as Algeria, Argentina, Bielorussia, Croatia, Czech Republic, China, Ethiopia, Georgia, Greece, India, Iran, Iraq, Israël, Italy, Kazakhstan, Lebanon, Netherlands, Norway, Palestine, Paraguay, Peru, The Philippines, Romania, Syria, Tunisia, Vietnam…

1. Application requirements and obligations Application has to be completed by the France-based production (exceptions will be given to projects from certain countries). • Director is foreign (can exceptionally be French if film is shot in a foreign language), • The main language of the film is one of the official languages of the territory where most of the film is shot or in the language of the director (but not French if the director is French), • Part of the production and post-production costs are to be spent in France, between 50 and 75% of the amount of the support granted, • For projects from certain countries (list available from the CNC / Institut français), a minimum of 25% of the support granted has to be spent for the shoot in the other country/ies. The Incentives Guide

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Co-productions: Feature films

2. Colleges and procedures Support is granted as a joined decision by the two entities (Institut français and CNC) after consultation of the Cinémas du Monde committees. Applicants either apply to the first sub-committee for first and second features or to the second sub-committe for directors who already have made a minimum of two feature films. Applicants have to register online via the CNC website as well as physically submit the full application at the Institut français for projects of the first college and at the CNC for projects of the second college. Applications must include, amongst other, the following documents: a copy of the script in French, an estimate, the coproduction contract, financing plan, a proof of rights ownership. The committee will assess the application and express an opinion according to the feasibility and the artistic quality of the project: • If positive: assessment of the amount by the CNC and the Institut français and signature of a contract between the production company and the CNC. • If negative: possibility to ask for support again after production.

3. Amounts A total of around e5M  will be given every year. The amount allocated to each film will depend on the nature of each project, and will be comprised between e 100,000 and a maximum of e 250,000.

CONTACTS CNC Department of European and International Affairs Production and cooperation Magalie Armand / Saâd Ramdane Tel + 33 1 44 34 38 82 / 38 80 magalie.armand@cnc.fr / saad.ramdane@cnc.fr IG-38

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INSTITUT FRANCAIS Head of the Cinema Department Nathalie Streiff Tel: +33 1 53 69 39 79 nathalie.streiff@institutfrancais.com


Co-productions: TV dramas and series

OFFICIAL CO-PRODUCTIONS - CHAPTER 2

TV dramas and series A Market overall presentation 1 – The spirit of the State support system for TV production When France supports film & TV production, the main motive is culture, and the laws were originally designed for feature films (see Part 3, Chapter 1). When assessing how this cultural policy should be applied to TV formats, lawmakers first had to sort out which formats would be considered as “culture” (dramas & series, animation…), and which ones would be regarded as TV entertainment not eligible for state support (commercials, game shows, talk shows…). This chapter focuses on the TV projects that can benefit from CNC subsidies, specifically animation projects.

a. Broadcasters’ obligations In an attempt to promote and support French and European culture, the authorities designed two sets of obligations for the broadcasters: Production quotas: broadcasters have to invest a strong portion of their yearly turnover (at least 12.5% for free-to-air channels) into European production, and most of that money (90%) has to go to French speaking projects (live action as well as animation) produced by “independent” producers (i.e. not backed by any broadcaster). Broadcasting quotas: broadcasters have to show at least 60% of European programs, including 40% French language programs (European directive “Television Without Borders”).

b. CNC support Like its support for feature films, the CNC offers two kinds of subsidies for TV production: automatic support for production, and selective support (production, development, innovation, international promotion…). The automatic support amount per project is based on various criteria like: duration, format, French expenditure… As for feature films, it is generated after the broadcasting of the project, and will be available to the producer for his next projects. Those supports are now open to productions for new media.

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2 – Key figures a. Yearly investment and volume In 2011, the French industry has produced a total of 3,777 hours of programming, for a global investment of e1,35 billion in dramas & series, animation and documentaries. French production in 2011 Nb hours

Total amount invested (Me)

Producers investment

Broacasters’ contribution

CNC support

Foreign investment

Other 3,5%

Dramas & series

773

752,3

10,3%

71,4%

9,9%

4,9%

Animation

355

210,6

20,7%

27,5%

14,6%

28,9%

8,4%

Documentaries

2 649

387,3

16,1%

48,8%

20,5%

4,4%

10,3%

TOTAL

3 777

1 350,2

In that chart, 3 figures deserve some attention: • For dramas and series (live action), about 71% of the financing come from the broadcasters themselves, and only 4,9% from foreign partners. The broadcasters have a strong input in the content of these productions and don’t rely on international co-productions. • Foreign partners contribute up to 29% of the global financing of animation, which shows that this format is often based on international co-productions.

b. Average costs and broadcasters’ contributions (eligible productions) The average cost per hour varies depending on the type of broadcaster (public, private, free, pay). Production cost per hour in 2011   Cost / hour (Ke) Dramas & series

Animation

973,5

911,2

Private free-to-air channels

Private pay-TV channels

Regional channels

1 131,0

981,7

192,7

Broadcasters’ contribution (e)

689,1

657,5

788,6

670,8

42,3

Broacasters’ contribution (%)

70,8%

72,2%

69,7%

68,3%

22,0%

Cost / hour (Ke)

593,0

565,7

653,4

539,5

193,7

Broadcasters’contribution (e)

137,1

166,5

128,6

64,9

33,6

Broadcasters’ contribution (%)

23,1%

29,4%

19,7%

12,0%

17,3%

Cost / hour (Ke)

146,2

203

105,5

104,6

103,6

68,4

100,5

64,2

39,5

25

46,8%

49,5%

60,9%

37,8%

24,1%

Documentaries Broadcasters contribution (e) Broacasters contribution (%)

IG-40

Public Average free-to-air for all broadcasters channels

The Incentives Guide


Co-productions: TV dramas and series

The better-financed format is live action “dramas & series”, with an average cost of e973,500 per hour. Animation programs have an average cost per hour of e593,000, although in 2011 some broadcasters got involved in more expensive animation series: TF1 (e735,800), France 4 (e704,900), and the cable channel Canal J (e664,000). However, only three channels have a yearly budget for animation above e4 M: France 3 (e16,7 M), TF1 (e13,2 M) and France 5 (e8,4 M).

3 – Most of the productions are majority French A complete list of foreign TV productions co-produced by French producers and eligible for the CNC support is available at Film France.

a. Animation and documentaries The desire for foreign cooperation is much greater for animation and documentaries, both because these formats are much more suitable to co-productions and because language is less of an issue. 36 foreign animated series have officially been co-produced by France in the past 5 years, coming from countries like Belgium, Canada, Italy, the United Kingdom and even South Korea. b. Dramas & series Whereas many foreign feature films are officially co-produced by France (see Part 2), when it comes to live action dramas & series, there are few examples of foreign programs co-produced by French producers. .

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Co-productions: TV dramas and series

B Qualifying for the French system 1 – The benefits of qualifying • French co-producers can use CNC subsidies for qualifying productions only. • French broadcasters will pay more attention to any program qualifying as “French”. • Sofica funds (private equity) can only invest into qualifying productions. • Regional funds tend to invest only in qualifying productions (see Part 4). > In a nutshell: It makes it easier for the French partner to raise money.

2 – Qualifying criteria • The lead producer must be European; • French contribution to the financing must be at least 30 % of the total budget. • French contribution to the financing must include one or several French broadcasters investments for at least 25 % of the French investment and at least e 9 000 per hour in cash; French Video-On-Demand services are considered as broadcasters. • A minimum of 30 % of the budget has to be spent on French soil. • The production must qualify as “European” according to the CNC point system .

The CNC point system for animation 2D and 3D Animation: European Scale 21 points (required: 14) 6 points 1 point 2 points 2 points 1 point 7 points 2 points 2 points 1 point 2 points 6 points 1 point 1 point 2 points 2 points 2 points IG-42

Authors and directors Conception or author(s) Script Directors Music Pre-production Character design Storyboard Art director Animation Positioning Production of the animation Caption stand Scene painting 50% of labour costs of animators 50% of labour cost of tracers colorists Post production

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Simulation


Co-productions: TV dramas and series

3 – The French-Canadian Co-production Treaty This treaty allows a couple of changes in the rules for TV co-productions between Canada and France. The main changes are: • the minority co-producer has to invest at least 20 % of the total budget, instead of 30 %; so, for majority Canadian productions, the French contribution to the financing must be at least 20 % of the total budget; • same change for local spending: a minimum of 20 % of the budget has to be spent on French soil (instead of 30 %); • in order to qualify as “European” on the CNC point system (next page), Canadian elements score as European.

4 – The tax rebate for French TV prductions It is important to bare in mind that this tax rebate is different from the TRIP mentioned above in this booklet. Any production qualifying to the French system is hence regarded as French, which enables it to apply to the local tax credit for French TV productions. Although the local tax credit is reserved for French language works, it might apply to some foreign animation projects co-produced by a French producer, since the language issue is different for animation than for live action. In any case, this tax rebate will be requested by and awarded to the French co-producer of the drama (or series), thus – very likely – being regarded as part of the French producer’s contribution to the budget. Please contact Film France for details.

5 – The local subsidies In addition to the State’s Minister of Culture, some local governments (Regions, Départements and Cities: see contacts in the Appendices) have created funds to support animation movie & TV production. So far, 23 Regions (please refer to the map in the Appendices), 9 Départements and one city (Strasbourg) have set up a tv drama & series or animation fund, each one defining its own support policy. The cultural value of the project is generally the biggest concern of the funds. Some of them develop partnerships with the bordering regions of nearby countries. For more information on these local support, please refer to the guide published by Ciclic available on the website: http://www.ciclic.fr/ressources/le-guide-2013 (in French only) The Incentives Guide

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APPENDICES


How to meet French producers

1 How to meet French producers The purpose of this chapter is simply to present you with a selection of networking events in France and co-production meetings blending French and foreign producers. The five platforms for feature films presented below organize around 15 different gatherings along the year, often in connection with film festivals. Our advice: prepare well in advance for such events. The deadlines to apply for accreditations as well as booking accommodations are often done many months ahead of time. Even though a lot of the French producers interested in discovering exciting foreign projects will speak English or another foreign language, being able to hand out some documents in French, a synopsis or a director’s statement, may give you an extra chance. When swamped by projects, any producer may be tempted to choose the easy way out and pick the one written in his/her language in the stockpile! (By the way, Film France can provide you with translators’ contacts). > For animation features and series specifically, you may want to consider attending: • Mifa is a 3-4-day must-attend event (market and conferences) for the animation industry that takes place every year early June in Annecy. Deadline accreditation in February www.annecy.org • Cartoon Movie (features, 5-7 March 2014) in Lyon, Cartoon Forum (TV series, 17-20 September 2013) in Toulouse and Cartoon Connection in Canada and South Korea. Annick Maes - Forum & Movie Director www.cartoon-media.be • movie@cartoon-media.eu / forum@cartoon-media.eu > For TV dramas and series specifically, here is a shortlist of relevant events you may want to attend: • MipCom (beginning of October) and its pre-market MipJunior (for children’s & youth programmes) in Cannes : www.mipworld.com/mipcom/ • MipTV (beginning of April) and its pre-markets: MipDoc, MipFormats and MipCube (innovation lab for the future of tv) also in Cannes Nathalie Gastone - nathalie.gastone@reedmidem.com - www.mipworld.com Please check out the websites of all these co-production events before planning your trip as some tend to disclose their dates quite late and cannot be included in this edition.

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The Incentives Guide


How to meet French producers

2 Film France services to foreign producers In brief: Case-by-case advice Description: Film France can help foreign producers look for French partners: provided that part of the animation project is to be made in France. This condition is absolutely mandatory. • At the development stage: We can provide producers with explanations of what to hope from the French market. And we deliver lists of foreign animation features, TV dramas and series which have been co-produced by French producers, with details of the kind of funding they raised in France (subsidies, broadcasters licencing…). • When projects have gathered some key elements (a completed screenplay, a director, an established producer…), Film France can provide information about French national and regional financing, co-production structures, cultural differences between French filmmakers and other countries, regulations and about the TRIP (Tax Rebate for International Production, see part 1). Film France can also draw tailored lists of French producers and animation studios whose background and profile indicate they could be game for sitting down a moment to discover your project. What else: Film France’s staff regularly gives lectures at markets and festivals about France’s film production landscape and co-production processes – the live version of the guide you are currently holding! When: All year round in the Film France offices in Paris, on our boothes at the Berlinale (February), the Cannes Film Festival (May), the Annecy Animation Film Festival (June), the AFCI Locations Show in L.A. (June)… Information Film France Franck Priot - Mélanie Chebance - Fanny Fan Tel: + 33 1 53 83 98 90 / 91 melanie@filmfrance.net / fanny@filmfrance.net / www.filmfrance.net

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Industry directories, Institutions & Organisations

3 Institutions & Organisations CNC - The National Center for Cinema Established by the law of October 25th 1946, the French National Center for Cinema (CNC – Centre National du Cinéma et de l’Image Animée) is a public institution of an administrative nature, financially independent though under the authority of the French Ministry of Culture and Communication.

The CNC’s main briefs are: > Regulations > Financing cinema, TV production, technology and multimedia > Promotion of the film and audiovisual industries – and of the release of films for all types of audience. > Protection and promotion of the cinematographic heritage.

CNC - Centre National du Cinéma et de l’Image Animée 12, rue de Lübeck - 75016 Paris Tel + 33 1 44 34 34 40 www.cnc.fr

SPFA - Animation films producers union Tel + 33 1 55 28 83 05 spfa@wanadoo.fr www.animation-france.fr/

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The Incentives Guide


Industry directories, Institutions & Organisations

4 Local & Regional Support Funds for animation

15

19

17 16

10

13

7

1

5 18

6

4

20 12

3 23

2 14

11

21

8 22 9

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Industry directories, Institutions & Organisations

1.............ALSACE - Region STRASBOURG - Communauté Urbaine 2.............AQUITAINE - ECLA DORDOGNE – Département PYRENEES ATLANTIQUES - Département LOT ET GARONNE - Département 3.............AUVERGNE - Region 4.............BURGUNDY - Region 5.............BRITTANY - Region FINISTERE - Département 6.............CENTRE / LOIRE VALLEY - Ciclic 7.............CHAMPAGNE-ARDENNE - ORCCA 8.............CORSICA - Collectivité Territoriale 9.............GUADELOUPE - Region 10...........ILE DE FRANCE - Region 11...........LANGUEDOC-ROUSSILLON - Region 12...........LIMOUSIN - Region 13...........LORRAINE - Region 14...........MIDI-PYRENNEES - Region 15...........NORD-PAS DE CALAIS - Pictanovo 16...........LOWER NORMANDY - Maison de l’Image Basse-Normandie 17...........UPPER NORMANDY - Pôle Image Haute-Normandie 18...........PAYS DE LA LOIRE - Region 19...........PICARDY - Region 20...........POITOU-CHARENTES - Region CHARENTE - Charente Développement CHARENTE-MARITIME - Département VIENNE - Département 21...........PROVENCE ALPES COTE D’AZUR - Region ALPES-MARITIMES - Département 22...........REUNION - Region 23...........RHONE-ALPES - Rhône-Alpes Cinéma (for features) RHONE-ALPES- Region (for tv dramas) IG-50

The Incentives Guide


Industry directories, Institutions & Organisations

Contacts of French Local & Regional Supports > 11 ALSACE Murielle Famy Tel + 33 3 88 15 69 47 murielle.famy@region-alsace.eu www.region-alsace.eu STRASBOURG Communauté Urbaine Département Audiovisuel et Cinéma Georges Heck Tel + 33 3 88 60 92 97 Audiovisuel_et_cinema@strasbourg.eu www.strasbourg-film.com 1) In this territory, both the Region Alsace and the City of Strasbourg support film production.

> 22 AQUITAINE Ecla Jean-Raymond Garcia Tel + 33 5 47 50 10 01 Jean-raymond.garcia@ecla.aquitaine.fr www.ecla.aquitaine.fr DORDOGNE Conseil Général Direction de la Communication Nicolas Platon Tel + 33 5 53 02 21 02 / 20 27 n.platon@dordogne.fr www.cg24.fr PYRENEES ATLANTIQUES Conseil Général Direction de la Jeunesse, de l’education, de la culture et des sports Laurent Ferriere Tel + 33 5 59 11 44 54 laurent.ferriere@cg64.fr www.cg64.fr

LOT ET GARONNE Conseil Général Direction de la Culture Sébastien Durupt Tel + 33 5 53 69 44 44 sedurupt@cg47.fr www.cg47.fr 2) In this territory, the Aquitaine Region, the Dordogne, Pyrenees Atlantiques and Lot-et-Garonne Départements support film production.

> 3 AUVERGNE Conseil Régional Service Culture Stéphanie Thomas Tel + 33 4 73 31 96 62 s.thomas@cr-auvergne.fr www.auvergne.org > 4 BURGUNDY Conseil Régional Direction de la Culture Marie Chapelet Tel + 33 3 80 44 37 09 mchapelet@cr-bourgogne.fr www.cr-bourgogne.fr > 53 BRITTANY Conseil Régional Direction de la Culture Mission Cinéma et Audiovisuel Guillaume Esterlingot Tel + 33 2 99 93 98 55 g.esterlingot@region-bretagne.fr www.region-bretagne.fr FINISTERE Conseil Général Direction de la Culture Rodolphe Rohart Tel + 33 2 98 76 26 16 rodolphe.rohart@cg29.fr www.cg29.fr 3) In this territory, the Finistère Département may add to the subsidy granted by the Brittany Region.

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Industry directories, Institutions & Organisations > 6 CENTRE / LOIRE VALLEY Ciclic Jérome Parlange Tel + 33 2 47 56 09 20 jerome.parlange@ciclic.fr www.ciclic.fr > 7 CHAMPAGNE-ARDENNE ORCCA Sophie Bousseau Tel + 33 3 26 55 78 17 sophie.bousseau@orcca.fr www.orcca.fr > 8 CORSICA Collectivité Territoriale Service Culture Jean-François Vincenti Tel + 33 4 95 10 98 65 jean-francois.vincenti@ct-corse.fr www.corse.fr > 9 GUADELOUPE Conseil Régional Service Cinéma et Audiovisuel Kelly Palmin Tel + 33 5 90 80 40 72 cinema.audio@cr-guadeloupe.fr www.cr-guadeloupe.fr > 104 ILE DE FRANCE Conseil Régional Service Cinéma et Audiovisuel Sophie Haguet • Mélaine Thomann-Fox Tel + 33 1 53 85 58 81 sophie.haguet@iledefrance.fr melaine.thomann-fox@iledefrance.fr www.iledefrance.fr/cinema VAL DE MARNE Conseil Général Direction de la culture Marie Aubayle Tel + 33 1 49 56 27 04 marie.aubayle@cg94.fr www.cg94.fr 4) In this territory, both the Ile de France Region and the Val de Marne Département support film production.

IG-52

The Incentives Guide

> 11 LANGUEDOC-ROUSSILLON Conseil Régional Service cinéma, audiovisuel et multimédia Emmanuel Feulié Tel + 33 4 67 22 93 68 cinema@cr-languedocroussillon.fr www.cr-languedocroussillon.fr > 12 LIMOUSIN Conseil Régional Pôle Cinéma Catherine Rolland Tel + 33 5 55 45 18 55 c-rolland@cr-limousin.fr www.cinemaenlimousin.fr > 13 LORRAINE Conseil Régional Direction des Affaires Culturelles Marie-Alix Fourquenay Tel + 33 3 87 31 81 40 marie-alix.fourquenay@lorraine.eu www.lorraine.eu > 14 LOWER NORMANDY Maison de l’Image Basse-Normandie Guillaume Deslandes• Fanny Chereau Tel + 33 2 31 06 23 23 www.maisondelimage-bn.fr > 15 MIDI-PYRENNEES Conseil Régional Service des Industries Culturelles - International Benoît Caron Tel + 33 5 61 39 62 19 / 18 benoit.caron@cr-mip.fr www.midipyrenees.fr > 16 NORD - PAS DE CALAIS Pictanovo Emmanuelle Demolder Tel + 33 3 20 28 26 52 edemolder@pictanovo.com www.pictanovo.com


Industry directories, Institutions & Organisations > 17 PAYS DE LA LOIRE / WESTERN LOIRE Conseil Régional Service cinéma et audiovisuel Guylaine Hass Tel + 33 2 28 20 51 28 guylaine.hass@paysdelaloire.fr www.paysdelaloire.fr > 18 PICARDY Conseil Régional Direction de la culture et du patrimoine Pascale Legrand Tel + 33 3 22 97 26 38 plegrand@cr-picardie.fr www.cr-picardie.fr > 195 POITOU-CHARENTES Conseil Régional Poitou-Charentes Cinéma Pascal Pérénnès Tel + 33 5 45 94 37 89 p.perennes@cr-poitou-charentes.fr www.poitou-charentes.fr/vivre-ensemble/cinema CHARENTE Magelis Frédéric Cros Tel + 33 5 45 38 00 00 fcros@magelis.org / www.magelis.org CHARENTE-MARITIME Conseil Général Direction de l’emploi, de l’économie et du tourisme Sophie Lepage Tel + 33 5 46 31 71 00 sophie.lepage@cg17.fr www.charente-maritime.fr VIENNE Conseil Général Direction de l’Action Culturelle Stéphanie Champalou Tel + 33 5 49 55 66 52 schampalou@cg86.fr

> 206 PROVENCE-ALPES-COTE D’AZUR Conseil Régional Service Cinéma et Audiovisuel Chantal Fischer Tel + 33 4 91 57 50 57 cfischer@regionpaca.fr www.regionpaca.fr ALPES-MARTIMES Conseil Général Sous-direction de la Culture Mission Cinéma Pascal Gaymard Tel + 33 4 97 18 65 90 pgaymard@cg06.fr www.cg06.fr 6) In this territory, both the PACA Region and the Alpes-Maritimes Departement support film production.

> 21 REUNION Agence Film Réunion Alain Randrésy Tel + 33 2 62 92 29 29 alain.randresy@agencefilmreunion.com www.agencefilmreunion.com > 22 RHONE-ALPES Rhône-Alpes Cinéma (feature films) Nathalie Huchard Tel + 33 4 72 98 08 94 n.huchard@rhone-alpes-cinema.fr www.rhone-alpes-cinema.fr Conseil Regional (TV dramas) Direction de la Culture Catherine Puthod Tel + 33 4 72 59 52 70 puthod@rhonealpes.fr www.rhonealpes.fr >23 UPPER-NORMANDY Pôle Image Haute-Normandie Denis Darroy • Nuria Rodriguez Tel + 33 2 35 70 70 41 cine.av@poleimagehn.com www.poleimagehn.com

5) In this territory, the Charente, the Charente-Maritime and the Vienne Counties may add to the subsidy granted by the Region Poitou-Charentes

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The Animation Incentives Guide 2013