And other policies are oriented toward industrial support over
the production and other stages of production.
Such industrial development policies are
based more or less on different kinds of subsidies.
And here, we have dealt with two main models of subsidies,
direct subsidies and indirect subsidies.
Direct subsidies represent a kind of grants for specific pupils.
And they are mainly oriented toward curbing market failures.
So, in particular branches of movie industry,
in particular genres of movie industry,
in particular genres of performances et cetera, et cetera.
The market mechanism cannot rentabilise such kind of production, cannot regulate it,
just because it could be art house,
it could be a film where there, we'll say,
particular quite a narrow audiences.
And it's not very interesting for commercial companies to produce such kind of films.
And the state is supporting them by giving automatic grants
so and just according to the model of applications.
So, producers are making application.
If you would like to produce this particular genre,
and the state is examining this application,
and taken the decision whether this application can be supported,
then the money could be granted or not.
This is a case of the direct subsidies.
Indirect subsidies are based on the idea that
more or less such products are oriented to the market.
So, it means that such films could,
such films or such products could attract some possible revenues from the market.
But particular stages of production of such goods are quite difficult,
quite complicated which probably could demotivate companies,
commercial companies to produce such kind of goods.
Which means that final list on direct subsidies are working on a,
we'll say, subsidizing a particular stage of production chain.
For example, the production or distribution for example or scenario making,
scenario writing, et cetera.
So, it's a kind of measure.
It could be fiscal measure now and are the measure
oriented toward support of such stages of production.
So and such indirect subsidies are more or less based on the market rewards criteria.
So are based on the market success of the final product where the state contributed.
So and here, we can compare these two models, yeah.
In the first case,
we have deal with the particular requirement and producer,
if you would like to obtain the public money for the production.
He is making the application which meets such requirement to obtain the money and then,
starting to produce the particular product for the public.
In the second case,
producer meet the particular requirement but instead of obtaining money for production,
he obtain just a guarantee that probably the part of his cost will be covered after the,
we'll say, market reward.
And then, after this film for example if we have deal with a film or documentary,
after his documentaries made public box office so a particular market reward.
According to this market reward,
this producer is obtaining the money so a particular compensation from the fund,
for example in order to meet this requirement.
So, the second model is based on the idea that
you are doing the production which finally can be commercialized.
But inside this production,
you can have a particular complicated stages of production or
post-production and the state could contribute to the financing of such stages,
in case if you are producing a good film for example.
Of course, in different production chain stages,
different kinds of policies could be implemented.
On a French case here,
we are just demonstrating it.
We can see that the level of scenario,
we have dealt with different forms of subsidies for particular films.
For example, the films about particular,
we'll say, socially important issues,
the scenario for such films could be financed,
could be financially supported by the state according to the application principle.
The production is based mainly on a different fiscal measure,
for example VAT reduction et cetera or different
other forms of subsidies given to the production,
producer, producing companies, et cetera.
In field of distribution,
it could be the very complicated regulation of
the timing when the film could appear in different platforms, in different supports.
For example, the differentiation of timing
when a film is appearing in theatrical chains and in,
for example, online movie theaters or online aggregatory platforms.
Then, it could be subsidies for distribution of
particular films which support the distribution of the films,
which cannot be distributed freely according to the marketing principle.
For example, it could be art house movies or
movies which has a particular social importance
or educational movies or documentary movies
such distribution could be supported by the state,
because state considering important to enlarge
the choice of people in theatrical chains, for example.
In order not only to show them a blockbuster or the film which a commercial success,
but also to show the film which represent a particular,
we'll say, social importance.
It could be obligation for
particular television channel to contribute financially to the distribution.
For example, in France,
it's the case of the channel Canal Plus and
this channel has a particular obligation to contribute,
to financially even contribute to the distribution,
or it could be another contribution.
For example, to contribute to the broadcasting of such product.
Exploitation, in field of exploitation, in field of,
in our original production and theatrical chain,
its support for modernization of theatrical chains.
For example, the digitalization of the movie theaters, et cetera.
And in this case the states support the more, we'll say,
modern way to go consume the cultural production
which could present some social effect according to the state policy.
We can do a reference to another industrial policies.
For example, the support of temporary workers in order to motivate them
to stay inside the cultural domain even if doesn't represent the particular,
we'll say, commercial interests for them.
It's for example, some kind of people such are
scene masters in performing arts et cetera, et cetera.
Such people are working from project to project,
and sometimes between these two projects,
during few months, they are remaining without any job.
And the state is subsidizing them,
paying them a kind of salary which
guarantee that they will stay inside the cultural domain,
and will find there any other job which will exclude them from this domain.
And by this way,
the state is supporting their presence.
Another measure is so-called unique price guarantee.
Unique price guarantee or
so-called fixed book price guarantee or fixed book price loss in some countries.
This unique price allows to maintain the diversity of the book production,
and to enlarge the range of books by
guaranteeing the margin to bookstores with a wide range.
Means that, the unique price,
the price which is unique for any book in all bookstores provide such bookstores they
guarantee that they will obtain the margin in
all cases even if the margin is not very high.
But at the same time,
it allows them to obtain
the probably a lower margin but a high amount of the sales,
in case of very popular fiction book which finally motivate the bookstore to sell,
not on the commercially good and interesting book in
terms of margin but also to sell the books which
probably are at the margin level or with
quasi-zero margin just in order to enlarge the choice for the consumer,
the choice of book for the consumer.
