Most filmmakers see funding as the biggest stumbling block to making films in SA. Leading TV-producing nations (such as France, the UK and Australia) have an average state funding ratio of 19%. SA s state funding ratio through recent investment via the National Film and Video Foundation has increased to 2,6% -- still a long way off international benchmarks.
One of the most promising developments in the sector is the growing demand for South African homegrown films such as Yesterday, Tsotsi and Leon Schuster s films. However, funding is often dependent on having an international distribution channel, better to guarantee a return on capital. This acts as a constraint on the filmmakers ability to produce local films.
One way of addressing the issue is to grow local distribution channels and develop audiences in SA -- ensuring financial viability for the industry. The IDC has worked in collaboration with institutions such as the National Film and Video Foundation and the trade and industry department, as well as media companies such as Ster-Kinekor, to find a way to bring film content to the masses, particularly in SA s townships. The recent opening of Ster-Kinekor in Maponya shopping mall in Soweto is a good example of expanding distribution networks, which now reach about 5-million Sowetans.
Another trend, which has vast access implications, is the move to new technologies and alternative digital distribution platforms for content, including mobile technology, internet growth, improved broadband technology, digital broadcasting and digital cinema. As an example, film distributors have historically needed to print copies of each film for use in every outlet, which at about R20000-R30000 a copy is expensive. The move to digital means that just one copy can be used for numerous outlets at a much reduced cost, making expansion of the distribution network much easier.
The fact remains that there is still a significant shortage of funding in this sector, with no major financiers in SA except for the IDC. The IDC s mandate is uniquely developmental, focusing on small and medium-size budgets (R2m-R50m), where we can make an impact. So far, it has been worthwhile, both from a developmental and investment returns perspective.
But there is still a perception of the industry as a risky one to invest in. The way to mitigate this is to take a medium- to long-term view, as we do, and spread investment across a broad portfolio of projects. Funding should be based upon a comprehensive business plan, and the principle of never being the sole investor (we contribute up to a maximum of 49%).
News RSS