Good News from Mon, 18 June, 2012:

International money poured into AV industry in 2011

Iron Sky, Finland’s highest-budgeted film of all time, has been sold to nearly 80 countries. Iron Sky, Finland’s highest-budgeted film of all time, has been sold to nearly 80 countries.

In 2011 film and television production companies amassed a total of EUR 43.8 million in export revenue and financing. This is an increase of more than EUR 7 million from the previous year. The results are revealed by a study conducted by FAVEX, the Finnish audiovisual industry export association.

According to the third study of its kind carried out by FAVEX, around EUR 25 million of the export revenue of film and television production companies comes from production and service sales earnings and EUR 18 million from international production investments.

— The AV industry is quickly becoming more international and even us Finns have experienced real breakthroughs. Angry Birds has grown from a game into an international entertainment brand, Iron Sky has been sold to almost 80 countries and several TV formats have been bought by different countries. We are witnessing a shift in which the Finnish creative industry has the opportunity to take a significant leap forward, becoming one of our key export sectors in the future,” clarifies Petra Theman, CEO for FAVEX.

Advance sales of films brought in the most export revenue at around 14 per cent. Film productions accumulate more international financing than TV productions but sales revenues were fairly evenly distributed: TV’s share is 47 while film’s is 53 per cent.

The export revenues of service sales, on the other hand, decreased from EUR 6 million to just over EUR 2 million.

According to Theman, Finnish service production has a good reputation globally. Finland does not use any production incentives, so it is more profitable to shoot international productions overseas even if the film could otherwise be shot in Finland.

The study was carried out through an online questionnaire addressed to production companies, collecting data from altogether 87 organisations. Additional data was compiled through telephone interviews. FAVEX estimates that the study covers some 85 per cent of companies with significant international operations.