Financing film systems in Colombia: A hope for the
Colombian filmmakers
by: Gabriel Camilo Puerto Diaz
“In
keeping with measures, principles, purposes and concepts provided by law 397,
1997, this law seeks to strengthen the objective of promoting a progressive,
harmonious and equitable development of national cinematography and generally
promote the film industry in Colombia.”
"Stimulate
investment in the productive sector of goods and services in the cultural
industry, to facilitate management film as a whole and to convene conditions of
participation, competitiveness and protection for national cinematography”.
“The
concept of film industry designated times and production activities of goods
and services in the audiovisual orbit, especially the production, distribution
or marketing and exhibition. For its part, the concept
of national cinematography includes for purposes of this law the set of public
and private actions that interrelate to bring forward the artistic and
industrial development of audiovisual creation and production and national film
and entrench this production in the domestic wanting while supporting his
greatest achievement, preserving, preserving and disseminating them”.
Films in
Colombia are constituted by some special rules provided to help the film
industry grown in a better financial and economic way. There are many laws that talk about invest in the Colombian
film Industry, but we are going to talk about the main three states that can
give you a whole idea of what can you do to get your movie promote and be
supported.
1.
The creation of the Fund for Film Development: “In 2004 they were awarded $ 2,653 million pesos to 67
film projects. In 2005 the investment corresponds to $ 8,020 million pesos for
production and $ 3,868 million for preservation of audiovisual Heri- child ,
distribution, training (professional and public ) , anti-piracy , and research
in the sector, among others”.
As an industry, you can ask for some help to providers
that can invest in your projects taking into the account a whole number of
ideas of what you have to take into the account like advertisement or piracy.
Film law basically let you invest the capital of even your actors, in those
kind of activities, but careful, all the money that comes for the project must
be re invest to make that project win more money so, in that order of ideas a
big one part of the whole money supported has to be mainly for the movie.As an filmmaker, you can ask for management helping. Like looking fro international providers and future sponsors, of course, if your project has a lot of money invest or if your movie has been very benefit in the marketing place.
HERE COMES THE MONEY!!
Securitisation of film projects , namely
the sale of films in development stages to be acquired as securities private
buyers : One of the big
responsibilities of a producer is looking for ways to finance a movie, this
idea provided by Proimagenes is telling us that privates buyers can also spend
some money in our movie in order to receive some legal benefits. Film law allow
you to associate with private organizations that want to give some referents in
money for your projects, but the idea of benefits can be a lot. We talk about
beneficial money at the moments of sell the movie or advertisement promoting
the Enterprise during the film. With this idea particular investors will have
the choice of reinvent the demand of film benefits by getting some of the
rights of the movie and making some money for them. That will be good for the
film marketing because the whole idea of transactions in movies are not just
provided by enterprises, we can also will be allow to look for particular money
in private and not state ways.
1. Corporate image
Negotiations between the investor /
donor and the producer may include the location of products, services and
company names in the film. This form of advertising , known in Colombia as
collateral (in English product placement ) allows a direct and very persuasive
access the viewer , and also ensures circulation in other windows (satellite ,
cable , DVD, etc. ) for long periods of time .
2. Income from exploitation in
cinemas
According to the negotiation has been
carried out with the producer, you can access a percentage of the box office
profits and thus recover the money that has been invested .
3. Income from operating in other
windows
As will be seen
in detail below , in addition to earnings per share tachy- lla , the investor
can negotiate the exploitation of the film in other windows , such as
television and home video.
The delivery of tax breaks for companies that invest or donate money to
Colombian films profits: If you invest in something you must be sure that it will
really give you something. Enterprises in Colombia and so on the state has the
right and the duty to contribute to some kind of characteristics that a
cinematic project needs to deal with. According to the la won of the dutys of a
enterprise at the moment of invest is the dealing with the taxes that the state
could give it. This could come in many ways
-
Parameters for
the promotion of the movie, invest and control for any additional donation that
the movie can receive.
- When it comes to a Zionist investment , the
taxpayer may be invested any amount and bring in the income statement in the
Glon Ren called other deductions , 125% of the total value in- spill.
- When donation, the value to be deducted in
any case DRA po- exceed 30 % of the taxable income of the taxpayer will ,
determined before subtracting the value of the donation .
To finish, right now we are in
a very good time to make movies, couple of years ago this ideas were not even
in mind of state laws or in any agricultural degree. Right now films have the
advantage of advertisement which is the main purpose of money spend in this
kind of invest. Advertisement and promotions of filmmaking in Colombia helps (
like it said in the financial law) to promote a cultural design in other places
and let the industry of Colombian movies get bigger.
References:
http://www.elpais.com.co/elpais/cultura/noticias/ley-hizo-florecer-cine-colombiano
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