The Ministry of culture of Russia shall take legislative initiative to introduce a “tax on rent” from domestic distributors. That movie made it to Russian cinemas, distributors will have to pay 5 (five) million rubles. What that means for a genre film? Let’s think…
For starters, what is this all about? About the cost of the so-called “distribution certificate”, that is, the document giving the right to hire a particular painting in Russia. With regard to timing, the law can be adopted in 2018, although it is likely that the initiative will be discussed and – hopefully – it will be amended.
The Ministry of culture claims that, firstly, the Russian-made films these five million will be compensated by the state, but – note – not immediately. That is, first the distributor needs the money to find and pay, and then he can get them back. Second, the collected funds are supposed to go to the Russian cinema, that is, will be in the form of grants to be allocated in support of production.
Explicit and less fat all this catches the eye immediately: 5 million for the rental will be collected with ANY film, regardless of what his budget, genre, target audience. That is, 5 million will be necessary to pass and for the rental of big-budget Hollywood blockbuster and a small independent film production.
In Russia they say that it will help to remove all of the rental stuff. And it’s hard not to agree – sometimes we launch in a car the movies in the USA go straight to VOD, DVD and Blu Ray. This also applies to horror films. Remember these have already taken place a premiere of 2017, as “Ghosts Eloise” (charges in Russia – 11.1 million rubles) and “Voice of stone” (3.47 million).
However, along the way we will probably be deprived of the opportunity to see on the big screen many good films as well as films and interesting to the specific audience.
How does the rental system in principle? If not to take into consideration various individual nuances that the average income from ticket sales to be divided 50/50 between the theater owners and distributors. That is, if the conditional “Ghosts Eloise” grossed 11 million in the pocket of the distributor got 5 and a half million. In this role some of the funds given to the copyright holder, which has bought the right to distribute. In fact, in the new release “Ghosts Eloise” for a distributor, would bring the loss of millions of rubles. Distributors of “Voice of stone” at all, probably it would have been bankrupt.
Say “so they should be”.
Okay, but let’s remember that this year in some cinemas were shown three classic film by David Lynch “lost Highway”, “twin Peaks: Through the fire” and “eraserhead”. Bad is the movie? Not at all. But all together, on three, they gathered in the Russian hire is less than 4 million rubles, while for a distribution certificate would have to pay $ 15 million. Goodbye, David Lynch, your movies in the cinemas no one else can see.
Bloody horror Rob Zombie “31: Celebration of Death” was shown in domestic cinemas mostly late at night and gathered at the end of the hire of 2.41 million rubles. Goodbye, old friend Rob, your movies we’re more in the movie view.
“The demon inside” was attended by 10.8 million rubles. “Personal shopper” – 4,16 million. “The underworld” – 6,50 million. All of these releases in the new conditions would be strictly unprofitable for distributors. In the category of risky releases can be credited and such horror films as “don’t knock twice”, “It’s after you”, “the Babadook”, charges which in Russia did not exceed 30 million rubles. Not because it’s bad movies, but because it is not franchises and indie movie rental, which worked not too rich companies. These not-too-rich company in the new environment will be the poor bankrupt if I continue the policy of issue of releases of this kind.
In fact, big companies, too, will not just release in Russia, some of their releases. We know that the Studio was in doubt whether or not to release rental horror-Thriller “Off”. Yes, in the end, the movie grossed over 100 million, but doubts were, and in the presence of the 5 million collecting these doubts would have been even greater.
Of course, you can say that distributors need to invest more in advertising if you want to be spending, including a 5-million fee, has paid off. But what if the distributors just don’t have the money?.. What about the festival, art films that will never be able to compete at the box office big-budget blockbusters? Way these movies in our cinemas will also be closed.
It seems that the initiative of the Ministry of culture in the form in which it now offer, will result ultimately in the fact that the “rich become richer” and “poor poorer”. And will suffer from not only a business trying to earn something for distribution, but we are with you, the audience.
What are the advantages, which are visible alternatives to this?
One of the advantages, it seems that this innovation could further motivate major Hollywood companies to invest in joint Russian studios film production – probably so they will be able to compensate for spending this “tax”. Apparently, this may contribute to the development of Russian filmmaking, because there will be some technical equipment, it will be easier to adopt best practices, etc.. But it’s a possibility, not a fact. But the fact that a number of releases won’t reach the cinemas that a number of companies – domestic companies in the first place – become bankrupt – is much closer to reality.
Best of all, I think it would just not make such laws, not so much helping in the development of film business in Russia, how complicating his life. If the necessity of something like this is ripe, then, at least, should think about ranking releases, not equating the responsibilities and financial burdens of blockbusters, collecting hundreds of millions, and indie festival films, which 40-50 million of cash was an outstanding success.
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