Public Funding & Strategy in Focus: Helping Producers Thrive in a Changing Industry

What is boiling in the landscape of public financing for films? Are cultural values at danger when funders are faced with cutbacks? What is the effect of cash and tax incentives? How do the objectives of regional and national funders differ? How do the funders relate to AI – both when being forced to renew their own operation and to the growing use of AI tools among the producers? How much do the funders put focus on the audiences (for example reaching younger target groups?)
What are the fields where the producers should become savvier in their modus operandi towards the funders? How they can survive and thrive?

Cultural Values vs. Financial Pressures: The decrease in direct public funding for films across Europe is visible, with production incentives rising to fill the gap, particularly in larger markets. This shift raises concerns about whether cultural objectives are being compromised for commercial viability. For instance, the European Audiovisual Observatory notes that while total public support has slightly increased, much of it comes from incentives rather than direct cultural funding​. This dynamic could threaten cultural diversity in smaller markets and force funders to re-evaluate their priorities.

Cash and Tax Incentives: Production incentives have become essential in maintaining competitiveness, but there’s tension between their economic benefits and their influence on artistic content. Some argue that incentives promote economic benefits at the expense of supporting culturally significant projects​. The effect of these incentives on the broader film landscape is crucial for funders to consider as they balance their roles in fostering culture and supporting local economies.

AI in Funding and Production: The use of AI is growing, but there’s hesitation within the industry. AI tools are being adopted for script evaluation, audience predictions, and post-production tasks such as color grading and sound design​. Some funders, like the Flanders Audiovisual Fund, are beginning to track AI use in funding applications to better understand its role​. However, the broader ethical and creative implications—such as AI's potential to influence project approval—are still being debated. Funders need to decide whether to embrace AI's efficiencies or protect human-driven creativity.