1.1 Definition and scope of study

Cinematographic production is the implementation of film projects through budget management and the search for financial and technical resources. Film producers are responsible for the production of cinematographic works, which they then sell to distributors.

A distinction is made between film production and audiovisual production.

A cinematographic work is one "that has been approved for exhibition in France, or a foreign work that has been commercially exhibited in its country of origin";
An audiovisual work is a program "that does not belong to one of the following genres : full-length cinematographic works; news and current affairs programs; variety shows; game shows; programs other than dramas, the majority of which are setalized; sports broadcasts; commercials; teleshopping; self-promotion; teletext services".

In simple terms, cinematographic works are characterized by their vocation to be shown in cinemas. However, the worldwide success of video-on-demand platforms such as Netflix and Prime Video is now challenging the definition of cinematographic production, as this new trend is fuelling a transformation in the way audiovisual content is consumed and produced, namely delinearization. Netflix's eviction from the Cannes Film Festival in 2019, due to its refusal to release its films in cinemas, illustrates this upheaval.However, delinearization represents a considerable opportunity, as illustrated by the coronavirus epidemicduring the coronavirus epidemic, the film industry was able to adapt by offering films released at the beginning of the year on VOD.

The global market continues to boom, particularly with the emergence of the Chinese market. The global market was valued at $94.45 billion in 2022, and is expected to grow at a CAGR of 7.21% until 2030.North America accounted for the largest market share in 2022, with 35%. The industry is one of the most competitive in the world, with a large number of players constantly striving to stand out from the crowd.

France, Europe's leading market, has suffered the full force of the health crisis, but is experiencing a very encouraging acceleration (+25% in market size between 2021 and 2022). Attendance levels are recovering increasingly rapidly, as are the number of screenings offered by cinemas, though without reaching pre-Covid figures. The balance between French and American films shown in French cinemas is shifting. the market is undergoing a veritable revolution, with the rise of streaming platforms and video-on-demand (VOD) services, while sales of films in physical format are collapsing.

The market is still highly fragmented, and benefits from a variety of sources of funding, including public funding from the CNC (Centre National du Cinéma et de l'image animée), particularly in the wake of the health crisis, to revitalize this particularly hard-hit market.

1.2 A fast-growing global market, driven by the United States

The global film and entertainment market was valued at $**.** billion in ****, and is expected to grow at a CAGR of *.**% to ****. It's a high-growth market.

Sales projections for the global film and entertainment market World, **** - ****, in $ billions Source: ****

The film and entertainment industry encompasses the production, distribution and broadcasting of ...

1.3 A healthy French market

Code **.**C - Production of motion pictures for the cinema covers the production and direction of auteur films and videos, both short and feature-length, intended primarily for theatrical release, so this is the sector we're interested in.

Size of the national film production market France, **** - ****, € billion Source: ****

The film production ...

1.4 Impact of Covid-19 on the sector

The Covid-** crisis affected the film production sector on several levels:

postponement of shoots, reshoots at extra cost; rescheduling of certain releases, with the temporary closure of cinemas, reduced capacity and the introduction of strict sanitary protocols in cinemas (***); declining investment by TV channels.

It should be noted that business in ...

2.1 Cinema attendance still reeling from health crisis

A large part of producers' income depends on box-office takings from films shown in cinemas (***). Cinema attendance is thus a major determinant of producers' business.

Attendance at French cinemas fell by **.*% in ****, to just **.* million admissions, compared with over *** million admissions in ****. The year **** was also marked by very low attendance, ...

2.2 Changes in the French film-going population

The cinema-going population is defined as all individuals aged three and over who went to the cinema at least once during the year. Regular movie-goers are defined as those who go at least once a week, regular movie-goers as those who go at least once a month (***).

Structure of cinema-going public France, ...

2.3 The popularity of French films with audiences

In France, the majority of films shown in cinemas are French or American, and have been for a long time. American films are generally shown more than French ones, but this is not always the case. For example, in **** and ****, French films were more widely screened than American films.

Films shown ...

2.4 Film broadcasts on television

To broadcast cinematographic content, TV channels buy the rights to broadcast it. Thus, the number of films broadcast by TV channels, which depends on the amount of their investments, is another determinant of the activity of film producers.

In ****, cinematographic films accounted for only *.*% of the television offer, but *.*% of consumption ...

2.5 Falling sales of films in physical format, the rise of video-on-demand and the rise of piracy

Once a film has been shown in cinemas and/or broadcast on television, it can be released on physical media (***) or in digital format. Producers are remunerated on the basis of sales, and online film piracy is a major drawback for producers.

DVD and Blu-ray film sales have fallen sharply over ...

3.1 Sector organization

The diagram below highlights the main activities carried out by film producers.

Source: ****

Producers are also in charge of mobilizing the necessary financing, both public and private.

Producers are thus upstream of the film industry, responsible for the production of works that will be exploited by various players:

cinema exhibitors ; video ...

3.2 Number of companies and associated workforce in film production

The number of establishments registered under NAF code **.**C, dedicated to the production of films for the cinema, experienced a period of decline between **** and ****, falling from *,*** to *,*** (***), before gradually increasing until today. The health crisis has had no significant effect on the sector's workforce.

Number of establishments and employees registered ...

3.3 Market concentration, filming and post-production

The film production sector in France is relatively fragmented:

numerous small- to medium-sizedindependent companies, often specialized by content type or genre; subsidiaries of major audiovisual groups, such as Canal + or TF* ; production groups, such as Gaumont, Mediawan or EuroparCorp.

In ****, *** different companies produced the *** approved French-initiative films, including ** co-delegated productions, illustrating ...

3.4 Financing film production in France

Overall, the two main sources of financing are :

contributions from French producers: **.*% in **** ; tV channels (***): **% in ****.

Forecast financing for French-initiated films France, ****, in Source: ****

However, the financing structure varies according to the type of film and its budget.

Funding for French-initiated films fell between **** and ****, reaching *** million euros (***), before falling again ...

3.5 Public funding

The CNC is a key player in the French cinematographic and audiovisual landscape, and is also involved in financing these sectors through grants. In ****, the CNC disbursed ***.* million euros in support. The breakdown by sector was as follows.

Breakdown of CNC support by sector France, ****, in Source: ****

Cinema therefore benefited most ...

4.1 Typology of film productions

The chart below shows the breakdown of approved films by genre, with fiction dominating other genres (***).

Number of films approved by genre France, ****, in number of films Source: ****

However, there is an upward trend in the production of documentaries and animated films, although the latter are more volatile.

number of approved ...

4.2 A relatively constant number of films produced per year

In ****, French film production reached just *** approved films, down *.*% compared with the annual average of *** approved films between **** and ****. This decline follows a very dynamic ****, when filming was halted for *.* months in **** and many projects were postponed. the number of French-initiated films also fell by **.*% on the ****-**** average, to ***. However, ...

4.3 Highly fluctuating quotes

The average film estimate corresponds to the average estimate (***) after having reached its lowest level in ****. The value of the average estimate in **** was the highest it had been since ****.

Average estimates for French-initiated films France, **** - ****, in M€ Source: ****

In ****, the median estimate for French-initiated films was €*.** million, down *.*% on ...

5. A sector largely dependent on public aid and subsidies

CNC's role in the industry :

The Centre National de la Cinématographie was created in ****. Its role is to manage the State's financial support for the film industry. Among the CNC's most important prerogatives are [***]:

support for film production and distribution; creation and modernization of movie the aters ; production of programs ...