Because of the coronavirus pandemic, a wide range of cultural sectors are suffering losses, and the film industry is no exception. Self-isolation, quarantine and other restrictive measures hit all areas of the industry, from production to rental.
On April 16, director Karen Shakhnazarov said that the Mosfilm concern subordinate to him suffered enormous losses: over the month, the studio lost more than 90% of its revenue.
Currently, Mosfilm is working only on television programs that are broadcast live. The rest of the production is suspended. Nevertheless, stressed Shakhnazarov, the employees of the concern receive a salary. According to his estimates, the studio will have enough resources for a year. “But, unfortunately, the funds that we could put into development have to be spent today,” TASS quoted him as saying.
The director of the Gorky Film Studio Julian Slashchev said that in March the company's revenue decreased by 30%, however, much greater losses are expected in the future: 50-60%.
In addition to reducing revenue, film companies will face a decrease in investment. So, Leonid Vereshchagin, CEO of TriTe Studio, said that production would not receive from 5 to 7 billion rubles.
He also disclosed projections of losses in the rental sector. “Cinemas do not count about 24-25 billion rubles from fees, they are in distress,” Vereshchagina quoted Interfax as saying.
The situation is aggravated by the fact that distributors spent large sums on the acquisition of licenses before the coronavirus pandemic.
Vereshchagin emphasizes: with the end of the pandemic, other, additional difficulties will arise. So, films whose premieres were scheduled for different dates will now be released simultaneously.
Similar concerns are expressed by Oleg Berezin, head of the Cinema Owners Association. In an interview with Ogonyok magazine, he explained that many fall premieres would have to compete among themselves for revenue, and viewers would not have time to view them all.
At the same time, Berezin emphasized that the return to the normal functioning of the sites will be gradual: after the pandemic, viewers will have to make sure that visiting public places is safe. For this reason, immediately after the opening of cinemas, you should not expect high-profile premieres.
“The total loss for the cinema industry is probably approaching 40 billion,” Berezin concluded. At the same time, up to a quarter of the sites will close by the end of the recovery of the industry, he suggested.
- Photo from the film "Wonder Woman: 1984"
- © imdb.com
On April 14, the Cinema Owners Association called for the signing of a “Declaration of Principles for Fair Competition in the Field of Public Screenings of Films”. It spells out the procedure for interaction between sites, operators and individual workers, as well as secures the rejection of price dumping. Among the signatories of the document are the United Cinema Network (Cinema Formula, Cinema Okko, Cinema Park), Five Stars, Cinema Star, Lumen and other companies and venues.
Chairman of the Association of Film and Television Producers Sergei Selyanov during an online meeting of producers “Stop! Not filmed! The film industry during the coronavirus period "suggested that the operation of cinemas in the previous mode will resume at best by September.
In general, the consequences of a pandemic will have to be dealt with within three years. During this time, losses will amount to more than 150 billion rubles, Selyanov said.
The restrictions imposed by different countries due to the coronavirus pandemic have hit the foreign film industry as well. Cinemas, in addition to the outflow of visitors, also suffer losses due to the fall in the value of shares. So, the five largest North American networks have lost more than half of their market value.
Due to the suspension of production, companies had to abandon the services of full-time employees and freelancers. In March, the International Theater Workers' Alliance (IATSE) announced that around 120,000 people lost their jobs in Hollywood alone. The British Broadcasting, Entertainment, Communications and Theater Union, Bectu, has provided data showing that as a result of the pandemic, some 50,000 freelancers whose activities are related to cinema will lose their seats.
The fight against the film crisis
On March 22, the official recommendation of the Ministry of Culture on the closure of cinemas was published.
AVK reacted positively to this news: this measure allows owners of institutions to draw up a simple and solve a number of financial issues - in particular, with landlords and their own employees.
On April 11, the Minister of Culture Olga Lyubimova asked the head of the Ministry of Economic Development Maxim Reshetnikov to include the production of films, videos and television programs (along with the publication of sound recordings and notes, as well as the activities of museums and zoos) in the list of areas of activity most affected by coronavirus.
A number of countries are also introducing measures to support the film industry during the coronavirus pandemic. Thus, workers are provided with short-term employment, and special loans and privileges are provided to organizations.
The relevant organizations of Belgium, Germany, Greece, Italy and other countries have created funds to support the film industry - some of them are aimed at helping projects launched shortly before the introduction of restrictive measures, some focus on subsidizing short films, documentaries or animated films. Measures are also being introduced to prevent staff reductions.
According to some experts, the loss of the global film industry will at best reach $ 5 billion.