Navigating the Evolving Landscape of European Film and TV: Insights from the MIA Market

The 10th edition of Rome's MIA Market wrapped up with a notable increase in attendance, showcasing the event's growing significance in the global film and television industries. Organizers reported a 10% bump in participation, welcoming over 2,800 attendees from 60 countries for five days of pitching sessions, panel discussions, and heated debates on the current state and future prospects of the audiovisual sector.

Adapting to a Shifting Industry: Strategies for Success

Italy's Rebates: Opportunities and Challenges

Italy's film and TV market has experienced a significant expansion over the past five years, with investment in original content production reaching more than €2 billion (.16 billion) in 2023. This growth has been largely driven by the country's tax rebates, which have supported approximately 40% of national production in 2022. However, a slowdown is anticipated in 2024 as the government makes modifications to these incentives, potentially shrinking rebate allocations just as international competition heats up. The report presented by Italy's TV producers' association APA at the MIA Market highlights how other European countries, such as France and the United Kingdom, have more generous rebate programs, supporting more than three times as many projects as Italy in 2022. With the Italian rebate capped at €9 million (.75 million) per project, compared to €30 million (.4 million) in France and no cap in the UK, the need for Italy to reevaluate its incentive structure becomes increasingly apparent.

Navigating the Demand for Intellectual Property

In the crowded scripted drama market, known properties continue to be the safer bet for buyers. "The bulk of what is selling right now is based on IP," said Sony Pictures Television head of creative Lauren Stein. "There is a security for buyers that they can point to, whether it be a book, an article, a person's life. There's just less original ideas right now getting made." However, this trend is not without its challenges. Companies with deep libraries and global footprints, like Miramax, are exploring ways to bring "new interpretations" of known commodities to the market. Meanwhile, breakout hits like Netflix's "Baby Reindeer" prove that there is still room for original ideas to find success. As the market remains volatile, industry experts believe that while original voices may face more obstacles, they will continue to emerge and thrive, as the demand for unique storytelling persists.

Navigating the Evolving Landscape of Independent Film Production

International co-productions have long been the lifeblood of independent film production in Europe, but even top producers are feeling the squeeze. "It's getting way more challenging to finance films," said Jonas Dornbach, CEO of Komplizen Films, the German outfit behind "Maria" and "Toni Erdmann." Producers across the continent are grappling with increasingly strict rules and a more closed-off approach from individual countries, making it more difficult to assemble the necessary funding and partnerships. "You have to put together more pieces than before," said Andrea Occhipinti, CEO of Italy's Lucky Red. "You have to be smarter. You have to have relationships. You have to have a project — if you want to make a co-production — that has possibility to travel abroad."

Embracing New Financial Models

While the challenges facing independent producers in Europe are significant, new funding models are emerging that offer creative pathways to finance films. Equity investors with an appetite for risk are increasingly recognizing the potential of international productions. "The more we show that films can perform, films can travel, films can have an international appeal, the risk component is not a scary part," said Andrea Scarso of fund management company IPR.VC. The European Commission's dedicated equity investment instrument has also aimed to spur production and distribution on the continent, though spiraling costs threaten to undermine such measures. Producers are exploring alternative avenues, such as brand partnerships and niche distribution networks, to monetize content in a fragmented media landscape. As the industry navigates these changes, the importance of European subsidy systems in attracting investors remains a crucial factor.

Embracing the Potential of Artificial Intelligence

While the adoption of artificial intelligence (AI) in the European film and television industry has been slower compared to Hollywood, the technology's impact is undeniable. "The broadcasters are a bit behind the game at the moment," said Miki Mistrati, executive producer at Denmark's Snowman Productions, who argued that industry representatives need to push networks and regulatory bodies to recognize the technology's potential benefits while ensuring appropriate safeguards are in place. Concerns around copyright protection and job displacement loom large, but producers like Ariens Damsi of Italy's Eliofilm, whose Venice Critics' Week short "The Eggregores' Theory" was almost entirely produced using AI, have seen the technology's creative possibilities. As the capabilities of AI continue to evolve, the industry must navigate the challenges and opportunities presented by this transformative technology.

Navigating Uncertainty and Embracing Change

The past year has brought significant shifts to the film and television industry, with the emergence of new content-delivery technologies, the introduction of ad-supported tiers on streaming platforms, and "incredible downward pressures on production costs." These changes have required producers to adapt and arm themselves with the latest market intelligence. "The most significant part of [my job] these days has been essentially arming our producers with the information that the market's telling us," said Arvand Khosravi, head of scripted television strategy at Fifth Season.For European producers seeking to forge trans-Atlantic partnerships with American counterparts, the challenge has been to "convince the U.S. that they are different." However, as belt-tightening in Burbank has led to a greater understanding of the co-production model, new opportunities have emerged for European producers to serve as financial and business model vehicles, leveraging tax incentives and talent to assist their American partners.Despite the recent industry upheavals, the long-term prospects for the film and television industry remain strong. "The business is fine. The business is growing. The business is not growing as fast as it has the past 10 years…but there's more money in television than ever," said "Fleabag" and "100 Foot Wave" producer Joe Lewis. As the industry navigates these challenges, the ability to adapt, embrace new technologies, and forge strategic partnerships will be crucial for success in the evolving landscape of European film and television.