Evaluation and strategic analysis of film väst by Film Väst

Evaluation and Strategic Analysis of Film Väst with Recommendations for Further Development

Submitted to Film Väst by Olsberg•SPI

14th May, 2015

Film Väst – Evaluation, Strategic Analysis and Recommendations Contents 1.

Executive Summary .................................................................................................................. 1 1.1.

About the Assignment ........................................................................................................ 1

1.2.

Strategic Analysis of Film Väst ............................................................................................ 1

1.3.

Comparison of Film Väst with Key Regional Organisations ................................................. 3

1.4.

Recommendations .............................................................................................................. 3

Strategic Analysis – Findings and Evaluation ............................................................................. 5 2.1.

Context ............................................................................................................................... 5

2.2.

Current Position .................................................................................................................. 6

2.3.

Opportunities ...................................................................................................................... 7

2.4.

Challenges........................................................................................................................... 8

Comparison of Film Väst With Other Key Regional Organisations............................................13 3.1.

Introduction .......................................................................................................................13

3.2.

Funding ..............................................................................................................................13

3.3.

Audience Impact ............................................................................................................... 19

3.4.

Economic Impact .............................................................................................................. 23

3.5.

Delivering on Regional Objectives ..................................................................................... 25

Recommendations for Next Phase Development of Film Väst ................................................ 29 4.1.

A Proactive Approach to Project Development ................................................................. 29

4.2.

A Strong Focus on Regional Sector Development ............................................................. 29

4.3.

Building a Sustainable Production Sector .......................................................................... 30

4.4. A Multi-Purpose Communications Strategy ...................................................................... 32 4.5. 5.

Film Väst Board and Corporate Governance.......................................................................33

Appendix 1 – Methodology...................................................................................................... 36 5.1.

Desk Research ................................................................................................................... 36

5.2.

Data Gathering and Analysis ............................................................................................. 36

5.3.

Confidential Consultations ................................................................................................ 36

5.4.

Film Väst Executive Away Day........................................................................................... 36

5.5.

Final Report ....................................................................................................................... 36

Appendix 2 – Overview of Screen Australia’s Enterprise Program ............................................ 37

Appendix 3 – About Olsberg•SPI ............................................................................................. 39

14th May, 2015

Film Väst – Evaluation, Strategic Analysis and Recommendations 1. EXECUTIVE SUMMARY This section provides context for the assignment, and briefly outlines key findings. 1.1. About the Assignment 

This report was commissioned by Film Väst (the “Client”), which requires a forwardfocused, independent assessment (the “Study”) to assist in its process of strategy formulation.



Film Väst has led the field among European screen agencies (whether regional or national) in its innovative strategies, effective management and high achievements during the last two decades. It has anticipated and adapted well to the ever-changing circumstances of the sector and built an enviable international reputation as a coproduction partner. While doing this, it has delivered for its stakeholders a range of valuable cultural, social, branding and economic benefits to Västra Götaland (“the region”).



However, as other regions have recognised the attraction of a healthy film sector the Client’s market share and potential to deliver for its stakeholders is constantly under threat. This is evidenced by increasing competition from elsewhere in Sweden, in other Scandinavian regions and indeed throughout Europe. Yet at the same time as competition has increased, so has the size and value of the market that is the focus of this activity, hence its attraction to governments worldwide.



Having established a strong platform for its next decade of growth, Film Väst knows there are challenges ahead, as well as opportunities, and seeks to create an efficient strategy to continue to maximise the returns from its activities.



This Study, from the creative industries strategy consultancy Olsberg•SPI provides indepth evaluation of Film Väst’s current activities within the context of an industry which is undergoing rapid change.



It also gives an in-depth evaluation of Film Väst’s contributions and impacts, including a comparison of the funding and impacts created by two key regional organisations that also receive public funding: Gothenburg Opera (“GO”) and Gothenburg Symphony Orchestra (“GSO”).



It also outlines a number of key recommendations for the future development of the organisation.

1.2. Strategic Analysis of Film Väst 

Film Väst has a unique position as a thought leader and an industry driver in Sweden. The fund has become one of Sweden and Europe’s major content funds, with a strong track record in project selection. It has also been able to build fruitful relationships with key producers and film-makers in Sweden, as well as from overseas.



However, it is operating in a fast-changing landscape and is faced with a number of key challenges and opportunities.

1.2.1. Challenges 

A diminishment of project finance in the industry is a key challenge for Film Väst. This has meant fewer ambitious projects being made at a time when competition for these projects is growing from other funders and countries, including in Scandinavia. The lack of an automatic fiscal incentive in Sweden is also a challenge.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

There is also increasing competition at the national level including from countries like Germany, Ireland, Belgium and the UK. The past year has seen the introduction of new film incentives in countries such as The Netherlands and Lithuania.



Funding issues have also meant larger financing gaps for projects, and the requirement that Film Väst must commit higher levels of investment in order to secure projects. The organisation is also investing more in the development of projects, which can carry risk.



Financing issues have also contributed to limited production levels in Sweden, with company sustainability a related issue for Sweden’s independent producers.



The difficulties facing the Swedish industry and the need to improve the situation were recognised in a statement by Sweden’s Minister for Culture and Democracy in May, 2015, which announced that the Film Agreement would be replaced by a new film policy from 2017.1



The skills base is also a challenge, with much of the Swedish industry centred around Stockholm. Ensuring skills development is at a high level and aligned with the needs of the market is important.



Talent drain is also an issue in Sweden, with a number of high-profile film-makers and on-screen talent working overseas.



For Film Väst, profile is also a challenge. Its work reaches huge audience numbers worldwide, but its achievements are not matched by its regional or national profile.

1.2.2. Opportunities 

Film Väst’s expertise, reputation and contacts give the organisation a strong platform. It is already undertaking support initiatives for local production entities – which can only strengthen the organisation.



While funding more development does carry risk, it also enables Film Väst to become involved in projects before competitors – with greater creative influence over a project and its production.



The growth of high-end television drama is also an opportunity. Many production companies in Sweden are exploring the potential of the sector, and Scandinavia has shown particular strength in this market. In addition to funding projects, Film Väst can also help producers exploit opportunities in television.



While competition for prestige international projects with commercial appeal is high, Film Väst’s studio in Trollhättan helps its competitive edge at a time when other parts of Europe are seeing demand for studio space outstripping supply.



Outside of the production sector, there are a number of other opportunities, including the potential for Film Väst to utilise its expertise, knowledge and industry respect to take an expanded role in national film policy and in industry development in Västra Götaland.



New media is also a key opportunity for Film Väst, while the organisation can take a lead in helping producers engage more fully in the circulation of their projects.

Filmavtalet sägs upp 2017 – ersätts med ny filmpolitik. Alice Bah Kuhnke, www.DN.se, 8th May, 2015. Accessed at http://www.dn.se/debatt/filmavtalet-sags-upp-2017-ersatts-med-ny-filmpolitik/

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Film Väst – Evaluation, Strategic Analysis and Recommendations 1.3. Comparison of Film Väst with Key Regional Organisations 

To assess the value of Film Väst’s activities to the region a comparison exercise was undertaken to benchmark the costs and impacts of the organisation against the GSO and GO.



All organisations receive significant amounts of public funding. Film Väst receives the lowest amount, although the proportion of this overall funding within its annual income is slightly higher than GSO and GO. However, total estimated audience reach for Film Väst co-productions in 2013 was many times higher than the output of GSO and GO – with a low estimate of views in Sweden and internationally at 300 million.



Film Väst’s investments also bring major economic benefits. For feature production, the average spend is worth 210% of the organisation’s investment, with every SEK 1 million invested resulting in 3.9 full-time jobs in the region.2



The contributions made by the organisation’s work align closely with the priorities of Region Västra Götaland (“RVG”) – as outlined in Strategy for growth and development in Västra Götaland 2014-2020.

1.4. Recommendations



Film Väst should continue its proactivity in development, both in terms of keeping a close watch on the project pipeline, and in investing at this stage. Development finance, if well targeted, can ensure involvement in the most attractive projects.



Given the challenges in the production sector, the Client should also develop a strong focus on regional sector development, utilising its unique position to provide leadership. For example, it can assist producers in engaging more fully with the circulation of projects.



It should focus on developing a strong, sustainable base of production businesses, and take a leading role in skills development in the region to align it more closely with the specific needs of the marketplace.



Film Väst should undertake further research to assess the ecology of the regional sector, including a skills gap analysis, and should engage with key training providers in the region.



The creation of a funding and training programme for corporate development would enable key businesses in the region to explore entrepreneurial opportunities, new partnerships and multi-platform business models.



Film Väst should also seek to maximise opportunities created by an increasing crossover between film, television, digital, animation and games, with borders between these sectors increasingly porous. It should also explore funding opportunities in other forms of digital content.



An ongoing, multi-purpose communications strategy should be a priority. While Film Väst has built a significant profile within the film and television production industry there is a sense that its achievements are not being fully realised by some politicians and other stakeholders – as well as audiences.



The organisation should seek to engage more as a thought leader on the national stage, contributing to film policy debates and the future direction of the Swedish

Note: Figures supplied by Film Väst.

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Film Väst – Evaluation, Strategic Analysis and Recommendations industry. This will be particularly important given the proposed changes to national film policy from 2017. 

It should also look to better communicate the rationale for its funding decisions with the industry, particularly when applications are unsuccessful, and should look to strengthen the Film Väst brand with audiences through the creation of a membership club.



Film Väst should also reconsider its board structure which, at present, consists entirely of politicians and has no professional representatives from the sector. The inclusion of industry executives and practitioners would ensure specific strategic insight into a fastmoving business.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 2. STRATEGIC ANALYSIS – FINDINGS AND EVALUATION This section outlines the findings from Olsberg•SPI’s assessment of Film Väst’s strategy in the context of a rapidly shifting international production environment. 2.1. Context 

Film Väst is operating in a fast-changing landscape that presents a number of key challenges and opportunities. Many of these are linked.



In production terms, the European screen sectors are undergoing a significant period of growth. According to the European Audiovisual Observatory, the number of features produced in the European Union increased from 1,429 in 2009 to 1,546 in 2013.3



The production of high-end television drama is also rising, with online services such as Netflix and Amazon Prime helping drive audiences and, in some cases, financing original content.



While this has meant a rise in projects, wider financing issues mean that it can be difficult to finance films, with budget gaps growing larger. Sources of market production funding have reduced because of a number of issues, including a substantial decline in DVD revenues, a weakening of the presales market and the slow growth of VoD revenues.



The pressure on financing exists in both the Swedish and international production sectors, and is limiting the scope for the type of ambitious projects that the Client seeks to co-produce.



There are also clear marketplace challenges for independent releases. High levels of film and television production globally are exacerbating an environment which will continue to see screen space squeezed by blockbuster Studio franchises and the growth of event and alternative content cinema.



High levels of screen production have also created a competitive international environment for projects, with producers able to assess the most beneficial financial and logistical packages in Europe and around the world in order to decide where to locate their projects.



Against this backdrop nations and regions across Europe are seeking to increase the capacity of their domestic industries through a range of means, including: o o o o



The introduction of automatic production incentives aimed at attracting foreign productions or stimulating local productions Selective direct funding for foreign or local productions Investment in production infrastructure, such as studios Investment in skills and training.

This is leading to increasing competition to attract the sort of prestigious, high-value independent productions that Film Väst is keen to invest in and attract to Västra Götaland. Competition for such productions is coming from funds in Sweden, the Scandinavian region, and from a range of countries.

Focus 2014 – World Market Trends. The Cannes Marche du Film and the European Audiovisual Observatory.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

This can make securing projects difficult, particularly because Film Väst does not have access to an automatic Swedish fiscal incentive to underpin its own attractiveness as a co-producer.

2.2. Current Position



Film Väst is regarded as a key regional European film financier and co-producer and as a leader among regional screen agencies. It has substantial experience of structuring deals on both national and international projects and operates a studio in Trollhättan – a key element of film-making infrastructure in the region, and in Sweden.



Within Sweden the organisation is the most significant source of film funding after the Swedish Film Institute (“SFI”), co-producing and financing around 30-40 features annually as well as television drama, documentaries and short films. Since it was founded in 1992 Film Väst has co-produced more than 450 features and developed a reputation as an experienced operator with a proven ability to choose quality scripts and talent.



To access Film Väst equity financing, projects must be partly shot or post produced in Västra Götaland, and the organisation can invest up to 100% of the production cost in the region. This ensures that the organisation’s investments secure a range of vital benefits for the region, including job creation and local spend (see Section 3.4).



Film Väst is wholly owned by RVG, the region’s county council, with the intention that ‘the work of Film Väst will make a substantial contribution to establishing Västra Götaland as the foremost film production region in Northern Europe’.4



Film Väst is a highly experienced co-producer and investor on the national and international stage, with a correspondingly strong international contacts base with producers, film-makers and other financiers.



It has co-produced a wide range of prestigious international projects that have been shot or post produced in the region. These projects have brought major international film-makers into the region and, in turn, have showcased to the world the region’s locations. They have also put the region on the map in the international film and television industry.



Many of the projects backed by Film Väst have won major awards and been sold around the world. A selection of recent projects include such high-profile titles as: o

Every Thing Will Be Fine, a 3D film directed by Wim Wenders and starring James Franco, Rachel McAdams and Charlotte Gainsbourg that premiered at the 2015 Berlin film festival.

Ruben Östlund’s Force Majeure, which world premiered in Un Certain Regard at the Cannes Film Festival in 2014, where it won the Jury Prize and was sold to 50 territories, including Magnolia Pictures for the US. Also screening in Un Certain Regard at Cannes in 2014 was Kornel Mundruczo’s White God, while Kristian Levring’s The Salvation also world premiered at the festival.

Thomas Vinterberg’s The Hunt, which was nominated in the foreign language category at the Oscars in 2013 – the fourth nomination for Film Väst coproductions in as many years. It was also nominated for a Golden Globe and a Bafta, and premiered at the 2012 Cannes Film Festival, where it won Best Actor

Film i Väst – your partner in co-productions. 2014 booklet.

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Film Väst – Evaluation, Strategic Analysis and Recommendations



Nikolaj Arcel’s A Royal Affair and Joachim Roenning and Espen Sandberg’s Kon-Tiki, which were both nominated for the foreign language Oscar and Golden Globe in 2013.

Lars von Trier’s Nymphomaniac, which premiered at the Berlin Film Festival in 2014, along with Hans Petter Moland’s In Order of Disappearance, which screened in Competition at the 2014 Berlinale.

Waltz for Monica, which was the most viewed domestic film at the Swedish box office in 2013, with over 500,000 admissions. 5

The 100-Year-Old Man Who Climbed Out the Window and Disappeared, which was the second most successful Swedish film of the last 20 years, behind the Swedish production of The Girl with the Dragon Tattoo. According to Film Väst it saw over 1.6 million admissions in Sweden and five to six million admissions worldwide.

Forthcoming Film Väst co-productions include Thomas Vinterberg’s The Collective, which shot interiors in the organisation’s Trollhättan studio; Men and Chicken, starring Mads Mikkelsen and directed by Anders Thomas Jensen; and The Model, a drama from the Sundance-award winning director Mads Matthiesen starring Ed Skrein and Maria Palm.

2.3. Opportunities

5 6



Film Väst’s expertise, reputation and contacts give the organisation a strong platform to continue to thrive and build further profile. The organisation is well established in the independent film business and is known as a skilled and trusted co-producer, with fruitful relationships with major producers and film-makers.



The organisation is already using its position, and insight, to undertake support initiatives relating to production companies. Having a sufficient number of strong, sustainable production entities are very important for Film Väst – and the wider Swedish ecosystem. Assisting in their growth can only help strengthen the production ecology.



For example, in February 2015 the Client announced a new collaboration with Nordisk Film and SVT to co-produce features. Crucially, the initiative aims to encourage filmmakers to focus on production quality and reaching international audiences. The budget level is also around 50% higher than the average Swedish feature budget – at $4 million to $6 million.6



A wide-ranging assessment into projects moving through the development pipeline has also been undertaken, and Film Väst’s proactive engagement with production entities during this process gives it particular insight into sector issues. The organisation is already using its position to offer support to the sector, including an ‘inspiration’ programme that has seen industry figures like Stephen Woolley come to speak to local producers about choosing projects and partners. It has also run programmes for post production companies, and small and emerging entities.



High-end television drama is also an opportunity and many production companies in Sweden are exploring the potential of this sector. There is growth in the international television drama market, driven by consumer demand and the swift rise of on-demand

Admissions and ranking from Facts and Figures 2013, p8. The Swedish Film Institute. Film i Väst, Nordisk Film, SVT join forces. Screendaily.com, 27th February, 2015.

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Film Väst – Evaluation, Strategic Analysis and Recommendations services such as Netflix which, along with some other services, is a major funder of drama. Budgets in the high-end television drama sector are now considerable and, from a production impact perspective, can bring spend and other benefits over a longer period of time than a feature shoot. 

Scandinavia has shown particular strength in the television drama market, exporting popular productions around the world. Film Väst has backed a number of dramas, and a continuing focus on this area represents an opportunity for the organisation to ensure that Västra Götaland becomes the dominant region for the production of Scandinavian television drama.



Swedish feature producers are already exploring opportunities in television drama, and there is scope for Film Väst to lead on assisting the local production sector exploit an increasing overlap between film and television.



While competition for prestige international projects with commercial appeal is high, it is noted that Film Väst’s studio in Trollhättan helps its competitive edge. There is evidence, particularly in successful production hubs like the UK, that the supply of dedicated production space is outstripping demand. That Film Väst’s offer is underpinned by a quality studio – and the region’s wider film-making infrastructure, including crews and post production facilities – is a significant strength.



Film Väst is therefore well placed to take advantage of the burgeoning opportunities in European production, enabling the organisation to help drive regional job creation and GVA.



Outside of the production sector, there are a number of other opportunities. One key area of potential is for Film Väst to utilise its expertise, knowledge and industry respect to take an expanded role in national film policy and in industry development in Västra Götaland. This is outlined further in Section 4.



New media is also a key opportunity for Film Väst in a number of ways. The digital landscape is shifting the entire film value chain and this presents an opportunity for the organisation to explore new funding opportunities but also to take the lead as a driver of change.



The organisation can further take an active lead in helping producers recalibrate their approach to engage more fully in the circulation of their projects and how to maximise audiences.

2.4. Challenges 2.4.1. The Swedish production landscape 

While Sweden has talented film-makers and production businesses creating work that is able to connect with Swedish and international audiences there are major challenges in the business.



Financing can be problematic for Swedish producers and production businesses. In recent years finance has decreased, with a steep decline in the value of the DVD market and no comparable gains from the VoD market. At the same time, Film Väst’s view is that broadcaster investment into features has dropped significantly in Sweden while there is less equity flowing into features from the small number of players active in Sweden. Public funding is also limited. According to the SFI, new automatic funding outlined in the 2013 Film Agreement meant that resources for production funding from

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Film Väst – Evaluation, Strategic Analysis and Recommendations a film commissioner for feature-length fiction films decreased by 24%.7 There is also less distribution investment. 

Film Väst is finding that, in the current financing environment, the feature film financing gap is a significant problem, with the final 5% of a budget so difficult to source that the organisation must be more aggressive in getting films fully financed so that they can get made. This means more investment in fewer films.



Financing issues have exacerbated limited production levels. While SFI statistics show 35 Swedish fiction features released in 2013, Film Väst’s view is that output is rather lower, with a maximum of 20 theatrical features with significant budgets in 2013 (i.e. excluding low-budget releases, and theatrical releases of television dramas). Figure 1 – Number of Swedish Feature-Length Fiction Film Releases, 2009-2013 40 35 35

32 30

30 25

20 15 10 5 0 2009

2010

2011

2012

2013

Source: SFI. Includes feature-length fiction films only.



Data on features receiving funding from SFI film commissioners show a decline, with just 13 films receiving backing in 2014 compared with 23 in 2009 – as outlined in Figure 2. Although five further fiction features received automatic funding in 2013, feature production volume was still lower than in 2012 and 2011.



Average budget was also down year-on-year, as outlined in Figure 3.

Facts and Figures 2013, Swedish Film Institute.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 2 – Number of Feature-Length Fiction Films with Funding From a Swedish Film Institute Commissioner, 2009-2013 25

23 21

0 2009

2010

2011

2012

2013

Source: SFI.

Figure 3 – Average Budget of Feature-Length Fiction Films with Funding From a Swedish Film Institute Commissioner, 2009-2013 (SEK millions) 30 25,3 25

23,1 20,6

18,1

17,2 15

0 2009

2010

2011

2012

2013

Source: SFI.



Relatively flat production levels and a reduction in financing sources have meant that it can be difficult for Film Väst to source high-quality projects with audience appeal and a distinctive edge than in the past. There is a sense that ambition in the sector has retrenched somewhat because of available finance.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

As a result, Film Väst has been proactive in engaging with key companies to gain full visibility of the current development pipeline and the ambitious projects within it.



It has also increased its development investments. While these can bring rights, and some influence over where projects are shot and post produced, there are also associated risks with investing in projects at an earlier stage.



With pressure on project financing, the financial sustainability of independent production companies can also be a problem. While Sweden has some strong producers there is a lack of sustainable production companies. According to data from the Swedish Film Institute, 49 companies made only one film between 2009-2013, with 25 companies making two or more films over the same period.8



The majority of production companies that made at least one short or feature in the five years to 2013 did not have a turnover of more than SEK18 million. There were 201 companies in this bracket. Only 15 had a turnover of SEK 18-89 million; seven had a turnover of SEK90-399 million; and one had a turnover of more than SEK 400 million.



Film Väst’s potential role in developing the production sector as a strategic priority is outlined in Section 4.



Other challenges include the skills base. While Film Väst is located in Trollhättan, much of the Swedish industry is centred around Stockholm. While the organisation’s website lists contact information for more than 450 crew members, the region will need to ensure skills development is at a high level and aligned with the needs of the market in order to ensure success.



On a national level talent drain is also a challenge – particularly when considering Film Väst’s focus on high-quality projects with quality film-makers and audience appeal. Sweden may produce high quality film-makers and on-screen talent but the local industry is not always able to benefit from them.



Recent years have seen talented Swedish film-makers like Daniel Espinosa and Tomas Alfredson working overseas, as well as on-screen talent like Joel Kinnaman, Alicia Vikander and Alexander Skarsgård.



The industry also sees a high number of debut film-makers. SFI data show that 54% of feature-length films with production funding from a commissioner in 2014 were from first-time directors – the highest proportion since 2009, and significantly higher than 2012, which saw 26%.

2.4.2. The international production landscape



Although the European project marketplace has seen growth – as noted, European film production has increased in recent years – securing high quality projects is becoming more difficult.



There is increasing international competition for the type of prestigious, quality productions that Film Väst seeks to attract to the region. This has meant that the organisation is having to invest more in order to secure projects, with an average of €2 million. Large investments clearly carry risk – although the fund does secure a significant portion of the film’s production and post in return. Large investments are also clearly a challenge when Film Väst has only a finite amount of investment.

Facts and Figures 2013. The Swedish Film Institute.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

While Film Väst is an established regional funder, the competitive landscape is shifting quickly with a range of regional funds in Sweden, such as Filmpool Nord and Film i Skåne. There are also regional funds in the wider Scandinavian region including Denmark’s FilmFyn and the Copenhagen Film Fund, which launched in 2013 with €4.7 million to invest over three years.



There is also increasing competition at the national level including from countries like Germany, Ireland, Belgium and the UK. Last year has seen the introduction of new film incentives in countries such as The Netherlands and Lithuania.



In this regard, a significant challenge for Film Väst is the fact Sweden has no national automatic production fiscal incentive. Such an incentive would help underpin and strengthen Film Väst’s offer, and sharpen its competitive edge in its bid to secure higher-quality international projects. For local projects it would also help reduce financing gaps in budgets since it would be additional to existing financing sources.



Indeed, it should be noted that other countries are adapting existing national automatic production incentives to meet market trends: the UK, for example, has introduced new mechanisms aimed at high-end television, video games and animation, while strengthening its existing film incentive in a bid to attract more post production work. Other countries or regions with video games incentives include France and Canadian provinces such as Quebec and Ontario.



Other Nordic countries are also seriously assessing the introduction of fiscal incentives (such as Norway and Finland) and point to Iceland’s successful incentive as a model.9



While the Trollhättan studio is an integral part of the Film Väst offer at a time when studio space is in high demand, this unique selling point may become less competitive as more production spaces come online in Europe. There has also been a corresponding rise in studio infrastructure projects in Europe as investors seek to attract production. Recent years have seen new developments such as Alvernia Studios in Poland and Titanic Studios in Northern Ireland, with a number of new projects in the works.

2.4.3. Local and national profile 

While Film Väst is well-known in the international film business the profile of the organisation with regional authorities, politicians and audiences is something of a challenge. Film Väst is highly successful and creates a wide range of economic, cultural and other benefits. However, these achievements are not matched by its regional or national profile.



Often, there is a lack of profile for Film Väst surrounding some of the big international successes that the organisation has co-produced, with the result that audiences and stakeholders may not be aware of the close local involvement. It is therefore vital that Film Väst enables audiences, stakeholder and authorities to understand its work and success, and the benefits its projects have for the region and Sweden as a whole.

In December 2014, the European Audiovisual Observatory published Olsberg•SPI’s Impact analysis of fiscal incentive schemes supporting film and audiovisual production in Europe. For more information see: http://www.obs.coe.int/en/publications/2015

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Film Väst – Evaluation, Strategic Analysis and Recommendations 3. COMPARISON OF FILM VÄST WITH OTHER KEY REGIONAL ORGANISATIONS This report seeks to assess the value of Film Väst’s activities to the region. To this end, a comparison exercise was undertaken by SPI, based on data in annual reports, to understand the cost of Film Väst and the benefits created by its activities. This was benchmarked against two key cultural organisations that also receive regional funding – Gothenburg Symphony Orchestra and Gothenburg Opera. 3.1. Introduction 

This comparison was undertaken because Film Väst, GO and GSO are all recipients of a significant amount of public funding. While Film Väst receives the lowest amount of public funding its activities can be seen to have a more significant impact in Sweden and globally.



RVG has clearly stated objectives in terms of its strategy for the region. Delivery against these goals was considered.



With such a comparison, there are key differences to consider, including the fact that each organisation operates in very different cultural and economic spaces and their work is therefore not directly comparable.



For example, Film Väst’s output is recorded and able to access a highly-developed theatrical, physical and on-demand distribution networks across the globe. GO and GSO’s output is primarily delivered within the live environment which naturally limits their reach when compared with Film Väst. (Though both are using digital means to access audiences and extend reach).

3.2. Funding 

Each organisation is funded by a range of sources, including public funding. Some sources relevant to GO and GSO – such as corporate sponsorship and restaurant revenue – are not comparable with Film Väst’s model.



Similarly, Film Väst’s return on co-productions is not comparable with GO and GSO’s models.



Analysis of the funding sources outlines in the 2013 annual report for each organisation demonstrates that Film Väst operates with a significantly lower amount of public funding than GO and GSO, although the public funding input as a proportion of overall income is higher for Film Väst than GO and GSO.



As outlined in Figure 4, Film Väst’s annual income was SEK 106.9 million in 2013.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 4 – Total Funds in 2013 (SEK million) 500 448,5

450 400 350 300 250

199,9

200 150

106,9

100 50 0 Gothenburg Opera

Gothenburg Symphony Orchestra

Film Väst

Source: Annual reports. Includes all funds each organisation had access to, including public funds, sales of tickets, renting of space, restaurants, corporate sponsorship and return on coproductions for Film Väst.



Detailed assessment of income by funding sources for each organisation shows a significant proportion of public funding, as outlines in Figures 5, 6 and 7.10



As high-profile regional organisations holding many public events, GO and GSO attract corporate sponsorship worth around 2.5% to 3.5% of their respective annual totals.



Ticket sales also provide significant income for both GO and GSO, worth 16.5% and 11.1% of their respective annual income. Film Väst’s total includes return on its coproductions.

In line with the descriptions given in the annual reports this is defined as income that the organisation had access to – i.e. money received, rather than operating budget.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 5 – Gothenburg Opera Income by Source, 2013 (SEK millions) Total income: SEK 448.5 million

Total public funding, 326.9 Ticket sales, 74.1 Restaurant, 27.6 Corporate sponsorship, 11 Other income and funding, 5.6 Sale of programmes, etc., 3.3

Source: 2013 annual report. Note: ‘Other income’ includes a grant of SEK 0.9 million.

Figure 6 – Gothenburg Symphony Orchestra Income by Source, 2013 (SEK millions) Total income: SEK 199.9 million Total public funding, 153.4 Ticket sales, 22.1 Corporate sponsorship, 6.9 Restaurant, 8.7 Rental of space, 4.8 Other income, 3.9

Source: 2013 annual report. Note: ‘Other income’ includes a grant of SEK 2.5 million. Does not precisely equal total due to rounding.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 7 – Film Väst Income by Source, 2013 (SEK millions) Total income: SEK 106.9 million Total public funding, 85.7 Return on coproductions, 19.4 Other, 1.8

Source: 2013 annual report.



Examination of the proportion of public funding within overall income shows that all three organisations operate with a similar level of public input, although Film Väst has a slightly higher proportion. Figure 8 – Proportion of Public Funding Within Overall Income, 2013 100% 90% 80% 70% 73%

60%

77%

80%

50% 40% 30% 20% 10% 0% Gothenburg Opera

Gothenburg Symphony Orchestra

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Film Väst

Film Väst – Evaluation, Strategic Analysis and Recommendations 

Of the public funds received, the majority for all organisations is from the region. Table 1 – Public Funding Breakdown, 2013 (SEK million) Total public funding

Of which regional

Of which national

326.9

GSO

153.4

152.5

0.9

Film Väst

85.7

84.3

1.4

Source: annual reports



Of Film Väst’s regional funding in 2013, 91.7% came from RVG. A further 6.7% came from the Trollhättan, Vänersborg and Gothenburg municipalities, while 1.6% came from the SFI.



Each organisation also includes an element of own funding, which includes: o o o o o o



Ticket sales Corporate sponsorship Restaurant Rental of venues Recordings Return on co-productions (for Film Väst).

While Film Väst’s proportion of own funding is relatively lower, the comparison is not entirely relative given the fact Film Väst does not have income from direct ticket sales, for example, or restaurants. Figure 9 – Proportion of Own Funding Within Overall Income, 2013 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

27%

21%

18%

Gothenburg Opera

Gothenburg Symphony Orchestra

Film Väst

Note: Figures as stated in GO and GSO annual reports. GSO proportion given in annual report as 13% with tickets, tours and recordings, and 21% with restaurant, sponsorship etc.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

A proportion of Film Väst’s income comes from a return on its co-productions, worth SEK 19.4 million in 2013 and outlined in the figure below. Figure 10 – Film Väst Return on Co-productions, 2011-2013 (SEK million) 25

19,4

13,5

8,9

0 2011

2012

2013

Source: Film Väst

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Film Väst – Evaluation, Strategic Analysis and Recommendations 3.3.

Audience Impact 

While Film Väst receives comparatively less public funding than GO and GSO its audience reach is significantly higher, both in the region, in Sweden and internationally.

3.3.1. Admissions to live or cinema performances 

In the Västra Götaland region audience numbers for Film Väst-backed projects at the cinema reached 565,000 in 2013. These are more than double the audience levels for GO, which saw 222,937 admissions for its live performances. Figure 11 – Audiences for Live Performances / Cinema Screenings in Västra Götaland in 2013 600 000 500 000 400 000

565 000

300 000 200 000 222 937 100 000

155 058

0 Gothenburg Opera

Gothenburg Symphony Orchestra

Film Väst

Source: Annual reports

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

The difference in audience reach of all three organisations changes markedly when live or cinema audiences outside of the region are assessed. In this regard Film Väst has a significantly wider reach than GO and GSO. Figure 12 – Admissions to Live Performances / Cinema Screenings in Sweden and Internationally, 2013 18000000

15682000

16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000

11253

6500

Gothenburg Opera

Gothenburg Symphony Orchestra

0 Film I Väst

Source: Annual reports. Note: Film Väst figure admissions consist of 3.2 million admissions in Sweden and 13 million internationally, minus 565,000 regional admissions. Does not include regional audience numbers from previous chart.

3.3.2. Other Platforms and Total Audience Reach



To varying degrees, products created by the three organisations are also available on television, DVD, online and radio, both in Sweden and internationally.



For Film Väst, television significantly extends the audience for its output. According to an SOM Institute survey Swedes watch approximately 80 feature-length films per person per year, with 80% of these seen on general television channels, a film channel or via VoD services. Only two of the 80 films are watched at the cinema.11



Of Film Väst productions, the organisation estimates almost 50 million views on Swedish television in 2013, with more internationally.

Reported in Facts and Figures 2013, Swedish Film Institute.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 13 – Estimated Number of Views of Film Väst Productions on Television in Sweden and Internationally, 2013 90 80 70 Almost 80 million

60 50 40 30

Almost 50 million

20 10 0 Sweden

International

Note: Estimates provided by Film Väst.



While the output of GO and GSO was not broadcast on television in 2013, GSO broadcast 13 of its productions on national radio in 2013 (audience figures are not provided in its annual report).



Both GO and GSO are also making efforts to extend their audience reach online. GSO has its own web channel, www.gsoplay.se, where it broadcasts concerts live and ondemand in High Definition. Data from GSO show that the organisation attracted 130,000 unique visitors from 150 countries to watch free online shows in 2013. There were also 906,000 YouTube views.



Meanwhile, GO built a studio for live broadcasts in 2013, with the first taking place in 2013. This was broadcast directly into Swedish cinemas in 2013, although no audience figures are included in its annual report.



There are no separate figures for the audiences attracted to Film Väst-backed productions on DVD and VoD services worldwide. However, given the vastly larger numbers evident in the cinema and television markets, and the total reach estimated in the following section, it can be assumed that the audiences will be far larger than for GSO online.



While a detailed breakdown of audience numbers for Film Väst projects on DVD and VoD is not available, the organisation’s estimate of the total number of views is 300 million globally. Estimated total reach for GO and GSO is significantly lower.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 14 – Total Audience Reach Across All Platforms in 2013 (estimated millions) 350 300 300 250 200 150 100 50 0,2

1,2

Gothenburg Opera

Gothenburg Symphony Orchestra

0 Film Väst

Note: GSO figure does not include radio listeners. GO figures do not include the live cinema broadcast. Source: Annual reports. Film Väst total has been estimated.



Film Väst’s co-productions can be seen to outperform GO and GSO in terms of audience reach. This is the case in Sweden, but is particularly marked internationally where Film Väst’s reach is particularly pronounced.



This international reach is highly significant when considering the benefits Film Väst’s work has for the renown of Swedish film-makers and crews on its high-profile productions, and also for the on-screen depiction of the region exported to audiences around the world.



However, although the output of Film Väst far surpasses that of GSO and GO in terms of Swedish and international audiences, there is an assumed disparity between the audience experience of Film Väst productions and their recognition of these as such.



In these terms the experience of the content comes before the awareness of the production entity.



Audiences visiting the opera or symphony clearly know they are in Gothenburg and the production is by GSO or GO. An audience member going to see Melancholia in a cinema in the US, Japan, Germany or the UK, or watching it online, is very unlikely to have similar awareness of its Swedish co-producers. In this sense awareness of Film Väst’s work is unlikely to match the global penetration of its products in the same way as the output of GO and GSO does.



The position of the organisation as a co-producer also plays into the experience/awareness issue. Typically, Film Väst will be one of a number of production entities involved in a project, while GO and GSO will be the producer and funder. Therefore they are more closely related to the project itself.



However, many Film Väst productions showcase locations in the region, which are not actually visible in GSO/GO productions.



A strategy for raising awareness of Film Väst is a key recommendation in Section 4.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 3.4. Economic Impact 

On average, Film Väst invests around 20% of the budget of films it co-produces. The investment brings significant economic benefits, with the value of productions shooting in the region higher than Film Väst’s investment.



For feature production the average spend is worth 210% of Film Väst’s investment, with an average of 135% for feature post production. For television drama the average regional spend is 450% of Film Väst’s investment.12



Spend is almost entirely film related, with almost 70% salaries for workers living in the region. Purchase of services and equipment represents 20%. Non-film related spend (such as hotels and catering) is worth around SEK 45,000 per shooting day.



For every SEK 1 million invested by Film Väst in a project, SEK 3.2 million is spent on film production (not including spend in other sectors, like hotels, restaurants and transport).



Every SEK 1 million invested in a film project by Film Väst results in 3.9 full-time jobs in the region.



Most projects are produced by companies and individuals based in the Västra Götaland region.



Film Väst’s calculations of spend do not include overhead, shares of administrative costs or interest and the only travel costs that may be counted are the ones from local or regional public transport or from taxi companies completely based in the region. Trips booked in the region do not count as spend if the trip itself is carried out by a company based elsewhere. Costs for rental of shooting equipment is only counted if the equipment is permanently placed in the region.



The organisation does not track spend in short films and short documentaries.

3.4.1. Job creation and shooting days



According to Film Väst the annual number of Full Time Equivalent (FTE) jobs generated in the region by production is 560, with an average annual salary of around SEK 30,000. In reality, the jobs are divided between a larger number of individuals.



Production underpins this job creation, and Film Väst tracks the number of shooting days across film and television drama.

Note: the figures in this section were supplied by Film Väst.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Figure 15 –- Shooting Days in the Region on Film Väst-backed Film and Television Drama 800 700 600

350 500

399 Film

400

TV drama

350

300

350

200

375

300 100

145

2011

2012

2013

2014

Source: Film Väst



In 2013 Film Väst started counting the number of working days spent on post production for its co-productions – with 5,840 days during the year.



It also measures production days for animation, which are defined as having a minimum of five people take part (though rarely more than 10). It is standard that one production day is a minimum of 12 hours. Figure 16 – Shooting Days in the Region on Film Väst-backed Animation 300 250 200

259

260 237 205

150 100 50 0

2011

2012

2013

2014 (forecast)

Source: Film Väst

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Film Väst – Evaluation, Strategic Analysis and Recommendations 3.5.

Delivering on Regional Objectives 

In addition to economic impact, Film Väst’s audience reach also gives it a better platform to deliver on the goals of RVG. These are outlined in the regional council’s document Västra Götaland 2020 – Strategy for growth and development in Västra Götaland 2014-2020.



The document outlines 32 priority issues spread across nine areas and four themes: o o o o

A leading knowledge region; A region for everyone; A region taking global responsibility; and A region that is visible and committed.



In terms of a leading knowledge region, RVG points to “a good climate for creativity, entrepreneurship and enterprise,” and “increased international competitiveness through focusing on areas of strength”. The creative industries are one of a number of sectors identified, with the aim to be a world leader in innovation.



The film and television sectors in which Film Väst operates are noted for their creativity, enterprise and innovation. Indeed, they also help drive a wide number of other sectors such as music, theatre, costume design and so on.



These sectors are also highly engaged with the international business, routinely exporting content and bringing creative people – and spend – to the region from overseas.



Film Väst is also a major employer and developer of skills. Film and television production demands a wide range of highly-skilled workers and many of these are found in the region. Indeed, Film Väst aims to employ 70% of local crew on its productions, with over 450 crew members listed on the organisation’s site.



Skills developed for use on film and television can be at the cutting edge of digital innovation, highly valuable and exportable.



The region for everyone theme points to all residents of Västra Götaland having “good opportunities to develop through education, training, work and good communications. Exclusion must be combatted and social and economic differences reduced. Diversity among the inhabitants is a resource that needs to be better utilized”. It points to strong links between education and working life, skills development, and combatting social exclusion and segregation.



In terms of diversity Film Väst operates in a Swedish industry that is highly focused on gender equality, with the Film Agreement stating that funding should be allocated equally between men and women.



It is also working on initiatives that seek to widen industry access. For example, Film Väst is on the steering committee of FilmCloud, an initiative that offers support to young filmmakers.



In 2013 it also supported training initiatives including a workshop for first assistant directors – identified as a key area for development. It also held a screenwriting seminar with director and writer Per Fly and screenwriter Maria Karlsson, and a pitching event for film students, among others.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

It also backed the Nordic Film Lab at the Gothenburg International Film Festival, and supports new and emerging talent by backing short films and documentaries.



The latter activity is particularly beneficial for the region. The organisation coproduced an average of 30 shorts and documentaries annually and in 2013 spent SEK5.5 million on shorts (both fiction and documentaries) and SEK2 million on feature documentaries. Almost all are made by directors living in the region.



In terms of ongoing skills development, the fast-developing nature of film production processes means those that are employed on Film Väst productions are likely undertaking tasks at the cutting edge of their roles.



In terms of a region taking global responsibility, RVG points to “a resource-efficient society with reduced impact on climate,” and “responsible and sustainable consumption”.



In this regard the ease of consuming Film Väst’s products using digital technology should be underlined. Seeing films in the cinema would obviously involve some elements of travel for consumers, but millions of viewings occur on television or digital platforms – all of which are accessible using existing technology.



Film Väst also plans to undertake a research report and a pilot project related to sustainability in 2015.



Finally, RVG points to the theme of a region that is visible and committed. This is described a “leading cultural region with a focus on participation”, while the aim is that “Västra Götaland should be a role model when it comes to using culture as an engine for innovation and societal development”. Youth culture is highlighted as a priority issue in this regard. Meanwhile, “increased exchange with the rest of the world” is also underlined with the aim that “Västra Götaland will be more appreciated by and attractive to the outside world”.



In terms of presenting Västra Götaland to the outside world and boosting regional image, Film Väst’s output and its huge global audience reach provides a major platform.



This is created in two ways. Firstly, Film Väst’s work boosts the knowledge and reputation of the region within the international film and television production communities as a place where high quality products can be created.



Secondly, with total estimated global viewings of Film Väst’s co-productions at 300 million the region is given significant international profile.



Visibility is also increased in the Scandinavian region. In Denmark, for example, Film Väst’s films sold over 1.7 million tickets. This included four Danish co-productions – including The Hunt – which together accounted for almost 40% of the takings for Danish film in Denmark.



In Finland the Film Väst co-production Heart of a Lion was viewed by nearly 200,000 people in 2013 while the organisation’s three Norwegian co-productions released in 2013 attracted just under 700,000 admissions in Norway.



While not all Film Väst co-productions are set in the region, many use the wide range of locations on offer there. The experience of a film or television show – or the wider screen brand of a location – is understood to be a key driver of tourism. For example,

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Film Väst – Evaluation, Strategic Analysis and Recommendations recent figures show that the success of Disney’s Frozen has led to a 37% increase in the number of US visitors to Norway in the first three months of 201413. 

The quality and international success of Film Väst’s work is considerable, with a large number of appearances at major international festivals and international awards. These include Oscars, Golden Globes, Baftas and Swedish Guldbagge awards, where Film Väst co-productions won 11 prizes in 2013.



In 2013 Film Väst titles were screened 40 times at the world’s most prestigious festivals, including Cannes, Berlin, Venice and Toronto (with 10 in competitive sections in official selection). Titles included Nicolas Winding Refn’s Only God Forgives, Susanne Bier’s Love Is All You Need, and Lukas Moodysson’s We Are The Best, which won the Tokyo Sakura Grand Prix at the Tokyo International Film Festival.



Film Väst also co-produced the top three co-productions at the Swedish box office in 2013: The Hundred-Year-Old Man Who Climbed out the Window and Disappeared, Waltz for Monica and The Anderssons Hit the Road. The organisation’s 14 Swedish coproductions released in 2013 represented 45% of all Swedish feature films.



The Hundred-Year-Old Man Who Climbed out the Window and Disappeared is the second most successful Swedish film of the last 20 years.



GO and GSO also have considerable international renown. The latter, for example, appointed the renowned Venezuelan Gustavo Dudamel as honorary conductor, and is focused on becoming one of the world’s top 10 orchestras. Both have also had international invites. For example, the Gothenburg Opera Dance Company has undertaken several tours to the US, and was invited to perform at the Nordic Cool festival at the Kennedy Center in Washington DC in 2013. However, it is clear that Film Väst’s output achieves far higher international notice.



For youth culture, the GSO points to its audience focus and its children’s and youth activities, and states that equality and diversity are priority.14 To this end it held a number of school and family concerts in 2013, alongside a range of activities aimed at young musicians.



Similarly, GO points to an engagement with young audiences with a range of projects including family concerts and two children’s choirs, which perform a number of concerts.



GO also undertakes projects which involve children or young people in the creative process. For example, it asked 1,200 fourth graders in the region to write and draw on the theme of bullying, with the results compiled into Bullied?, which played 40 times.15 GO also points to a focus on participation and learning, describing plans to work with groups around the region to offer the opportunity to participate in creative projects.



In terms of audience accessibility Film Väst’s products are easy to access. For its theatrical features cinema tickets are relatively low-cost, and there were 774 cinema screens in Sweden in 2013. Moreover, Film Väst titles are likely to be free to watch on

Disney makes Norway a hot destination. The Times, June 2, 2014. Where the Music Takes You, Gothenburg Symphony Orchestra annual report 2013. 15 Gothenburg Opera annual report, 2013. 14

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Film Väst – Evaluation, Strategic Analysis and Recommendations television at some point in their lifecycles, and on VoD platforms. The organisation’s television productions are also very accessible via broadcast media. 

Film Väst is an active co-producer of family films for children and young audiences, including such titles as Esben Toft Jacobsen’s animated The Great Bear, and Christopher Smith’s Get Santa. Of the 565,000 admissions to Film Väst co-productions in the region in 2013, 143,000 were for children’s and youth films.



Indeed, 25% of the Swedish feature films Film Väst co-produces targeted at children and young people.



When considering accessibility Film Väst’s output is notably more diverse, covering elegant period dramas to cutting-edge arthouse. Indeed, 80% of films are contemporary stories.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 4. RECOMMENDATIONS FOR NEXT PHASE DEVELOPMENT OF FILM VÄST This section outlines a number of recommendations for further development of Film Väst. 4.1. A Proactive Approach to Project Development 

As previously noted Film Väst has responded to the need for high-quality projects by undertaking deep assessment of the local development pipeline. It is also committing more resource into development.



While development finance can carry risk early commitment, if well targeted, can ensure involvement in the most attractive projects – both in terms of rights and having some influence over the production and where it takes place.



Given that financial pressures in the current project market are affecting the volume of quality projects, the organisation should continue this proactive approach to ensure early involvement in the most attractive projects, and that they can be secured for the region.

4.2. A Strong Focus on Regional Sector Development 

Film Väst occupies a unique position within the Swedish film and television industry. As an investor and co-producer it plays a central role in bringing major projects and spend to the country, while its high levels of engagement with prestigious international projects means it is able to offer significant strategic insight and leadership.



While Film Väst has significant experience in this regard, with a track record in backing high quality, successful projects, the organisation should seek to continue and build on what is already a strong, proactive focus on regional sector development.



In addition to its work in development, there is also scope for the organisation to be a more active partner for local production entities – for example, by assisting producers explore burgeoning opportunities in the television drama sector. Many Swedish producers are already looking at these opportunities and Film Väst should assist in helping them maximise opportunities. Strengthening high-end television production in the region would be to the organisation’s advantage, particularly given that around 55% of shooting in the region is for television drama.



It should also utilise its skills, knowledge and contacts to further develop the filmmaking capabilities of Västra Götaland, helping maximise job creation and GVA beyond that created by its own direct investments.



This could be achieved with a focus on developing a strong, sustainable base of production businesses, and by taking a lead on skills development in the region to align it more closely with the specific needs of the marketplace.



Film Väst should undertake further research to assess the ecology of the regional sector. Conducting a skills gap analysis would enable it to analyse existing production infrastructure in order to develop a skills development strategy to direct resources to important areas.



In this regard, it should seek to engage with key training providers in the region, such as the University of Gothenburg. There is also scope for Film Väst to lead on and coordinate the vocational training strategy for young people in the region seeking to enter the sector.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

In terms of sector development it is notable that Film Väst spans two centres of activity: Gothenburg and Trollhättan, its home. The strength of Film Väst benefits both centres and the organisation benefits from both – for example it can draw on Gothenburg’s creative talent pool. Any region developing its film sector needs talent, locations and studios and all three are found between both centres.



The organisation should also seek to engage more as a thought leader on the national stage, contributing to film policy debates and the future direction of the Swedish industry. A key factor in Film Väst’s success has been CEO Tomas Eskilsson, with his deep understanding of the sector.



Such engagement is particularly important given the announcement in May, 2015, that Sweden’s Film Agreement is to be replaced by a new national film policy from 2017.

4.3. Building a Sustainable Production Sector 

As part of a sector development strategy, Film Väst should also look at utilising its position to lead on building a sustainable production sector in the region, empowering local production businesses and enabling them to attain sustainability and corporate growth.



This is a vital consideration in improving the structure of the production sector so it widens its approach to focus on building successful production businesses that maximise opportunities across the value chain.



To achieve this, a two-stage approach is recommended. Stage one would consist of a company strategy and sustainability training initiative, to be delivered by Film Väst. This would aim to support the owners and managers of production businesses in undertaking strategic planning and understanding future sustainability.



Stage two would be a highly selective development programme, with successful applicants taking part in a residential training initiative. This would coincide with an investment programme for corporate working capital, with companies selected on the basis of a developed business plan. This process would see them develop their business model, diversifying either horizontally or vertically, and engaging with digital platforms.



It is noted that Creative Europe is exploring a company funding scheme. A Film Västbacked corporate development scheme as described here would put companies in the region in a stronger position to leverage such investment if available.



While this scheme may be outside the remit of Film Väst’s current funding structure, the organisation could nevertheless seek to lead on and manage such a scheme with other partners. The potential to partner with other organisations on the delivery of such company support should be explored. For example Almi, a government-owned body and the parent company of 16 regional subsidiaries, supplies loans and venture capital and may be a potential partner for such an initiative.



Australia has already had success with this kind of initiative. Introduced in 2009, Screen Australia’s Enterprise Program has helped business in the country become more sustainable.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

In addition to its role as an investor and co-producer, Film Väst should look to attract new investment by encouraging producers from outside the region to establish a meaningful base there (See Appendix 2). Circulation vs Distribution



With rising production in Europe and the increasing challenges faced by independent production in the marketplace it is vital that independent producers think as robustly about the distribution of a project as they do about its production in order to ensure success.



This is leading to a model in which the focus is on the overall ‘circulation’ of projects in the marketplace, rather than traditional models of distribution. The circulation approach emphasises the most suitable and effective route to consumers for each specific project, rather than relying on traditional media chronology.



Film Väst should seek to take a leadership role in the paradigm shift. As an investor and co-producer, it should encourage the projects it backs to take a more proactive approach to the circulation of their projects.



It should support independent producers by ensuring that a robust circulation strategy is a requisite part of any funding application. Producers should be expected to outline how they envisage projects reaching audiences, including identifying a project’s target groups, and how these audiences will be marketed to and maximised. The organisation could engage a distribution sector expert to work with producers in this regard. Further Engaging with New Media



Film Väst should also seek to maximise opportunities created by an increasing crossover between film, television, digital, animation and games. There is a sense that borders between these sectors are increasingly fluid, both in terms of creativity and skills but also financing and exploitation. The UK, for example, now has creative sector tax reliefs aimed at film, high-end television, animation and video games.



The organisation should also explore funding opportunities in other forms of digital content, and should seek to develop strong relationships with brands that fund content. This is a growing area of focus in content creation.



One possible partner in exploring further new media engagement is Lindholmen Science Park in Gothenburg. In April, 2014, it was announced that the City of Gothenburg had commissioned Lindholmen to establish an arena for film and the moving image under the name Media Arena Lindholmen, with the goal of increasing film production and providing new development opportunities.16 The potential for a partnership focusing on new media opportunities should be explored – and such collaborations would also increase the focus on delivering regional goals.



Film Väst should also seek to engage closely with new media on a strategic level. Analysis of the data created by the digital distribution of Film Väst-backed projects will provide the organisation with deep insight into consumer behaviour, which can be utilised to improve the results of its projects.

New development of the film and television industry at Lindholmen. News release, April 14, 2014. http://www.lindholmen.se/en/news/new-development-film-and-television-industry-lindholmen

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Film Väst – Evaluation, Strategic Analysis and Recommendations 

New media is a priority in Sweden. The 2013 Film Agreement states that “Sweden shall be a European leader in development, production and distribution using new media”.17

4.4. A Multi-Purpose Communications Strategy 

While Film Väst has built a significant profile within the film and television production industry, both in Sweden and internationally, there is a sense that its achievements are not being fully realised by some politicians and other stakeholders – as well as audiences.



To this end, the organisation has been proactive in appointing the client appointed the press and communications agency Monday in 2014 in a bid to improve communications.



An effective communications strategy is vital given the challenges Film Väst faces in achieving understanding and recognition for its investments and their economic and other benefits. Informing key parties about its activities on an ongoing basis is important, and would include: o o o

Politicians and other stakeholders The industry Audiences and regional inhabitants



Film Väst should be clearer about the wider range of benefits its activities create for the region. These include attracting production spend that has wide-ranging effects throughout the economy, job creation, skills development, cultural benefits and international profile. This is vital to ensure that its work is valued by the groups above.



It is important that Film Väst seeks a higher profile within the Swedish industry. Some consultees expressed a desire to see CEO Tomas Eskilsson taking on more of an industry leadership role and an effective communications strategy would help ensure visibility. At a time of increased competition this will also help the organisation maintain its competitive edge, shining a spotlight on its industry expertise and experience.



Film Väst should also look to better communicate the rationale for its funding decisions with the industry, particularly when applications are unsuccessful.



Finally, it should also look to strengthen the Film Väst brand with audiences. While Trollhättan has acquired the ‘Trollywood’ moniker a targeted communications strategy should aim to give audiences a deeper understanding of Film Väst’s activities, the projects it is backing – and their success. One challenge in this regard is the fact that Film Väst does not always have full ownership over its projects: they may, for example, be produced by overseas companies and draw together a number of coproducers alongside Film Väst. A number may also not be recognisably Swedish, even if shot in the country. o The creation of an audience-facing membership club could help present a stronger Film Väst brand in Sweden and Scandinavia, raising the profile of its work among cinemagoers. o Such a club could operate in a similar manner to other cultural and production organisations, such as the British Film Institute – with membership free to those who sign up.

The 2013 Film Agreement, p2. Swedish Ministry of Culture.

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Film Väst – Evaluation, Strategic Analysis and Recommendations o

o o

Such a club would build a database of interested audience members and could offer them access to information and content. Film Väst could leverage its involvement as a co-producer to arrange exclusive interviews with film-makers and talent for distribution through, for example, email newsletters. Further awareness and engagement could be built through special screenings, competitions and members events. With such a database in place, Film Väst should undertake regular, targeted, contact to raise awareness of its productions and its achievements. Email newsletters could highlight major festival premieres, awards wins, and mark release dates in Sweden – helping promote the organisation’s co-productions theatrically. Social media would play a complementary role in raising – and sustaining – public awareness.

4.5. Film Väst Board and Corporate Governance 

At present, Film Väst’s board consists entirely of politicians and has no professional representatives from the sector. This should be reconsidered.



While the insight and strategy offered by politicians is undoubtedly very valuable, the board’s composition should be widened to include industry executives and practitioners who will be able to provide specific strategic insight into a fast-moving business.



This would help invigorate the board and also bring different perspectives.



It is recommended that three people should be added to the board. It is noted that Film Väst is able to add members to its board with no voting rights, and this could be a way of achieving greater diversity of board members.



Such a move would also bring the Film Väst board in line with other comparable funds. An analysis of the board composition of eight funds showed that most similar funds had a wider representation of skills on their boards.



While the board of the West Danish Film Fund consists entirely of politicians seven other funds had a wider mix. Sweden’s Film i Skåne, for example, has a five-member board made up of professionals from and other sectors, while Denmark’s Copenhagen Film Fund, has a five-member board made up of professionals from film and other sectors.



These are outlined in Table 2 on the following page.



It terms of governance and management, it is also suggested that Film Väst discusses and implements a succession plan. Tomas Eskilsson has a unique position and is a highly-respected head of the organisation, but a long-term plan for the structure and management of Film Väst should be put into place. This should seek to outline longterm career pathways for key executives, in line with Eskilsson’s own future priorities.

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Film Väst – Evaluation, Strategic Analysis and Recommendations Table 2 – Comparison of board structures of regional funds

Film Väst

Fund

Type of board

Number of Members

Breakdown by board member

West Danish Film Fund

Film region StockholmMälardalen

MDM

Politicians/ ministry officials and film professionals

Politicians

Politicians/ film professionals

5 politicians from member municipalities, 2 producers

6 politicians/ ministry officials, 1 rep from film producers association, 3 reps from TV/broadcasting

Local politicians

Representatives of the 10 municipalities that are members of the fund

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Flanders Audiovisual Fund

Film 3

Filmpool Nord

Copenhagen Film Fund

Film i Skåne

Professionals from film and other sectors

1 film sector 4 from other sectors

2 film sector, 3 from other sectors

Politicians and Professionals Professionals professionals from film and from film and from film other sectors other sectors and other sectors 9

4 film/TV sector 5 other sectors

3 politicians, 2 film sector 1 other sector

3 film sector, 2 from other sectors

Film Väst – Evaluation, Strategic Analysis and Recommendations NOTES ON TABLE 2 Flanders Film Fund According to the Fund, the board is selected by the political parties, but there are no politicians or audiovisual sector professionals on the board. The members do have some connection to the VAF's areas of operations however. 1 Financial Director of fashion designer Ann Demeulemeester 1 Manager of local television station 1 television entertainment professional 1 Ministry employee, but with interest in cinema 1 Former ministry employee (social building projects), now retired 1 Academic – Head of Media & Communications department 1 Manager of well-known Flemish orchestra 1 Academic with a background at the Cinematheque/film archive 1 General Manager of Flanders Investment and Trade Film3 3 representatives from municipalities 3 film/other professionals: - 1 manager of business centre for entrepreneurs - 1 Special advisor (former NFI CEO) - 1 pro-vice University chancellor (former television/film producer) Filmpool Nord 1 Consultant/copywriter 1 University lecturer/film producer/film distributor 1 Manager of a local Folkets Hus (culture/events venue) 1 Consultant for real estate company (former television and radio host, actor) 1 Management/leadership consultant Copenhagen Film Fund 1 Editor in chief and Manager (Radio) 1 President, Red Cross 1 CEO of Horesta (Hotel, Restaurant and Tourism Industry in Denmark) 1 Director of European Think Tank (former DFI CEO) 1 Head of Film Programme, Danish Film School Film i Skåne 1 Board president of a communications agency, member of other boards 1 Head of administration, Malmö university (former SFI policy advisor and responsible for film issues at Ministry for Culture) 1 Producer/director/actor 1 Producer 1 Distributor

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Film Väst – Evaluation, Strategic Analysis and Recommendations 5. APPENDIX 1 – METHODOLOGY 

Olsberg•SPI implemented a multi-faceted methodology in undertaking this Study, including a series of meetings with the client, confidential consultations with a wide range of parties, an executive ‘away day’, desk research and data analysis. The key elements of the methodology are outlined in detail below.

5.1. Desk Research 

Although it already had in-depth knowledge of the client’s development – having undertaken consultancy work for Film Väst in the past – SPI undertook a review of all relevant material on recent Film Väst history, activities, operations and structure in order to ensure its knowledge was base up to date. This process also focused on: o o o o

Global (and local) economic, political and industry trends that could affect Film Väst future activities Relevant aspects of the specific markets that Film Väst serves, including new markets of interest for the future Conditions and circumstances surrounding competitor regions, and agencies Copies of previous evaluation studies.

5.2. Data Gathering and Analysis 

A key element of this Study was assessing the range of impacts created by Film Väst’s activities locally, regionally and internationally.



It was also important to understand how these impacts compared with those created by other key regional cultural bodies that also receive regional funding.



To support this assessment, the Study Team included an experienced Swedish researcher, responsible for drawing together relevant data and assisting in its analysis.

5.3.

Confidential Consultations 

The Study Team undertook over 25 consultations during the evaluation process, gathering information on Film Väst itself as well as the wider economic, political and industrial landscape both within Sweden and abroad. Consultees were drawn from a wide range of areas, including Film Väst executives, selected board members and representatives of regional authorities, existing and potential clients, representatives and clients of comparable regional bodies who compete with Film Väst and other film professionals.

5.4. Film Väst Executive Away Day 

In order to ascertain and identify a clear set of strategic aims and goals for the future development of the organisation, SPI facilitated an ‘away day’ event for key Film Väst executives. This was held in Gothenburg, and took place over a full day.



The principal purpose of this event was to generate a list of strategic goals for future development. It also provided an opportunity to surface key issues, test emerging findings, and to understand the organisation’s processes and the difficulties it faces.



A detailed, thorough and rigorous advanced SWOT analysis of Film Väst and its environment was also undertaken.

5.5.

Final Report 

The results of these steps are contained in this final report.

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Film Väst – Evaluation, Strategic Analysis and Recommendations 6. APPENDIX 2 – OVERVIEW OF SCREEN AUSTRALIA’S ENTERPRISE PROGRAM Since its introduction in 2009, Screen Australia’s Enterprise Program has had a significant effect on the ecology of the Australian independent screen sector. Designed and delivered by Olsberg•SPI, the Enterprise Program is an innovative funding initiative that aims to provide a platform for business development and sustainability by investing in companies rather than individual projects. The scheme provides companies funding of up to $350,000 annually per year for a three-year period and encourages ambitious companies to look at developing private sector relationships, “including producing content that does not rely on Screen Australia production funding and that is capable of realising downstream revenues… from new and emerging markets”. It also emphasises that companies should also look beyond traditional revenue streams and at strategies for exploiting opportunities in the multi-platform marketplace18. Since its introduction the Enterprise Program has allocated $19.5 million over five years to 29 production companies. A 2013 survey analysed the business sustainability measures of 16 companies funded in the first two rounds, in 2009 and 2010, and showed that the scheme had enabled screen production businesses to become more sustainable. Of the companies that had received Enterprise funding 94% were consistently active in production over the previous three years, compared to 40% for the wider production industry surveyed in 2010. Meanwhile, 88% reported a profit in at least one of the previous two years, compared to 56% of businesses in the 2010 survey. The aggregate level of profit for these production companies more than doubled compared with the year prior to receiving Enterprise funding. Speaking at the Screen Forever Conference in Melbourne in 2013, Screen Australia’s Chief Operating Officer Fiona Cameron said: “Businesses have increased and diversified their income, with 75 per cent reporting five or more revenue sources last year, compared to 38 per cent in the year prior to receiving Enterprise funding. "Collaboration levels have increased and broader industry benefits have included the delivery of mentorships, traineeships and internships. Many companies have also enhanced their development capacity through new script initiatives and the appointment of development executives.”19 Other positive effects have included the development of talent, and companies becoming more multi-faceted in terms of the type of production they are active in.20 Successful outfits to have received funding from the scheme include Hopscotch Features and Matchbox Pictures. Both were among the first twelve companies to be backed by the scheme in 2009.

Program Guidelines – Enterprise Program 2013, http://www.screenaustralia.gov.au/getmedia/865bd386-9017-4f77-8a2a50c0b3954210/Gline_Enterprise.pdf 19 ‘Enterprise Companies Prove Very Enterprising’, Screen Australia news release, November 20, 2013 20 Screen Forever 2013: reviewing the Screen Australia Enterprise Program, David Tiley, Screen Hub. November 25, 2013.

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Film Väst – Evaluation, Strategic Analysis and Recommendations The Enterprise Program’s application process involves the submission of a detailed three-year business strategy, with applications assessed by a committee of Screen Australia executives and external assessors (which has included SPI Chairman Jonathan Olsberg). The assessment criteria include:  Strength of the business plan  Track record of the company and its directors  Slate of projects  Resources required to achieve the business plan Companies need to submit Key Performance Indicators, with progress against these reviewed six monthly. In December 2013 a review of the scheme was launched, in order to assess its impacts and consider its future evolution. In May 2014, Screen Australia released draft guidelines for a number of revised schemes under the Enterprise Industry umbrella. These include Enterprise: People, aimed at advancing the skills of early-career writers and creative productions; Enterprise: Stories, which encourages large-scale development projects; and Enterprise: Growth which aims to advance the development of new models for financing, producing and distributing Australian screen content21. The Enterprise Program was created out of a high-level training scheme implemented in Australia by Olsberg•SPI for three years running between 2002 and 2004. Aimed at participants from Australia and New Zealand, Enterprise Tasman was a unique and innovative business strategy programme, focusing on the owners / managers of digital media businesses and assisting them in developing plans to build strong, sustainable companies with strategies for corporate growth and investment readiness. The course was delivered over a four-month period and was key in moving the focus of intervention away from projects and onto companies and their future strategies for growth.

Draft Guidelines for Comment: Enterprise Industry, http://www.screenaustralia.gov.au/getmedia/d4af863f-dc7f-4ec3-a4e94e8c4189f894/Glines_DRAFT_Enterprise_20140509.pdf

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May

12,

2014.

Film Väst – Evaluation, Strategic Analysis and Recommendations 7. APPENDIX 3 – ABOUT OLSBERG•SPI This Study was prepared by Olsberg•SPI, a creative industries strategy consultancy that provides advice to public and private sector clients, specialising in the worlds of film, television and digital media. . Formed in 1992, and based in London, it has become one of the leading international consultancies in these fields. The firm’s expert advice, trusted vision and proven track record create high levels of new and repeat business from a diverse group of companies and organisations, including: 

Multi-national public authorities



National government bodies, including culture and economics ministries, film institutes and screen agencies



Regional development agencies for the creative industries

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Independent companies involved in all aspects of the screen business value chain

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National and international broadcasters

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Trade associations and guilds



Training and skills development organisations



Publishers and conference organisers.

With expertise in all areas of the fast-moving global creative sector, Olsberg•SPI offers a wide range of services, including: 

Analysis and strategic advice for building healthy and sustainable national and regional industries, and recommendations for public policies to support this



Advice on the creation of fiscal incentives for film and television productions



Mapping and economic impact studies



Helping businesses and governments interpret the strategic implications of digital media innovations



Business development strategies for content companies



Evaluations of publicly-funded investment schemes



Acquisition and divestment advice for owners or managers of SMEs



Writing prospectus-style funding proposals



International cost comparisons for small and large film and television productions



Marketing and business strategies for small and large-scale studio facilities



Strategic advice on inward investment and exports for national and regional public bodies



Analysing and explaining the links between growth in tourism and a nation’s film and television output



Providing strategic advice for screen commissions, including business and marketing plans

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Film Väst – Evaluation, Strategic Analysis and Recommendations Olsberg•SPI’s recent clients have included: 

The British Film Institute



The European Audiovisual Observatory

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The Canadian Media Production Association

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Bristol City Council

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Film City Studios, Glasgow

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The New Zealand Film Commission

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Screen Yorkshire

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The Government of Hong Kong

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Mauritius Board of Investment

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BBC Worldwide

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Motion Picture Association of America

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Directors UK



Screen Australia, Sydney.

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