International co-production
Encyclopedia
An international co-production is a production where two or more different production companies
are working together, for example in a film production. In the case of an international co-production, production companies from different countries (typically two to three) are working together.
Co-production is also refers to the way services are produced by their users, in some parts or entirely.
to take their film profits in the form of foreign exchange
out of European countries. As a result several film companies started studios and production companies in nations such as the United Kingdom and Italy to use their "frozen funds".
To use these profits in England, film companies would set up production companies using the required amount of British film technicians and actors to qualify as British Productions in order to take advantage of the Eady Levy
.
At the same time Americans working outside the USA for 510 days during a period of 18 months would not be taxed on their earnings by the Internal Revenue Service
. Though this scheme was developed for the aid of American humanitarian workers redeveloping nations destroyed in World War II, agents discovered that Hollywood actors, directors, and screenwriters would qualify for the tax break by working outside the USA for the same period.
International film co-production was very common along the 50s, 60s and 70s between Italian, Spanish and French production companies, as exemplified by most of the Spaghetti-western and sword and sandal
movies being Spanish-Italian coproductions, typically directed by an Italian, played fifty-fifty by Spanish and Italian actors and shot in southern Spain landscapes. Due to the worldwide popularity of Hollywood stars they would be used to guarantee a respectable audience around the world as well as the United States. The relatively low production costs and high box office return of these films often led to direct Hollywood investment to the non-American studios and producers such as Dino DeLaurentis. An example of such pan-European coproductions was Treasure Island
(1972), a British-French-German-Italian-Spanish film, starring American Orson Welles
. To qualify as an Italian film a film needed either an Italian director or cameraman plus at least two Italian featured players and an Italian film laboratory to process the film.
Due to the expense of filmmaking, many films made outside the United States
are international co-productions. For example, Amelie
is set in France and stars French actors, but many scenes were shot in a German
film studio and the post-production
work was undertaken by a German
film company. International co-productions open new markets for films and television programs and can increase the output of high quality productions through the sharing of equity investment.
Official co-productions are made possible by agreements between countries. Co-production agreements seek to achieve economic, cultural and diplomatic goals. For filmmakers, the key attraction of a treaty co-production is that it qualifies as a national production in each of the partner nations and can access benefits that are available to the local film and television industry in each country. Benefits may include government financial assistance, tax concessions and inclusion in domestic television broadcast quotas. International co-productions also occur outside the framework of official co-productions, for example with countries that do not have an agreement in place, or projects that do not satisfy official co-production criteria.
In many cases, co-productions are a response to the challenges of internationalisation by countries with small production sectors, as they seek to maintain a viable production industry and produce culturally-specific content for national audiences. However, these dual goals also produce tensions within national film and television sectors. Although a co-production agreement may make available more resources, an international production risks being less relevant to its target audiences than purely local productions.
international and domestic joint ventures identified the benefits as:
Debate concerning international co-productions centres on the potential for productions to have little cultural specificity in any of its home countries. Internationalisation brings tensions in terms of cost, benefit and opportunity. In Australia
, for example, O'Regan and Ward have argued that an influx of international productions to Queensland's Gold Coast
in the 1990s presented a distinct challenge to local producers. In the face of such challenges, local producers need to learn "how to internationalise local film and television production in order to retain and hopefully build market shares; and how to develop new models of financing that combine both local and foreign sources." One approach has been to reconcile this tension by creating "local production with an explicit international orientation." But not everyone agrees this is the best approach. For example, the idea that Australia should produce more 'deterritorialised' programming such as fantasy and science fiction has been met with disquiet in some sections of the industry.
In Australia
, some have suggested that a narrow definition of ‘local content’ has restricted Australia’s
ability to engage with international partners. Julie Hammett-Jamart reflects on the different approaches taken by France
and Australia
to this issue and argues that a literal-minded definition of Australia
n culture has been 'antagonistic to the collaborative nature of film production, and in particular international co-production'.
The Canadian
study found evidence that, for television projects, domestic joint ventures performed better than international joint ventures. However, in the case of larger budget projects, domestic joint ventures were found not to be a viable alternative to international joint ventures. In their later study of co-production in Australia, the authors identified financial pooling as the most important benefit and increased co-ordination costs as the greatest drawback. This suggests that co-production is more suited to larger budget productions, primarily film, which have greater capital needs but do not carry the same dollar-for-dollar coordination costs as smaller projects.
Government bodies are keenly aware of these concerns. A review of Australia
n co-production rules acknowledged the tensions between cultural and economic objectives, and argues that 'requiring the program’s aims to be predominantly economic or cultural would hobble the program and reduce its effectiveness in achieving either outcome'.
Production company
A production company provides the physical basis for works in the realms of the performing arts, new media art, film, television, radio, and video.- Tasks and functions :...
are working together, for example in a film production. In the case of an international co-production, production companies from different countries (typically two to three) are working together.
Co-production is also refers to the way services are produced by their users, in some parts or entirely.
History and benefits
Following the Second World War, American film companies were forbidden by the Marshall PlanMarshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...
to take their film profits in the form of foreign exchange
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
out of European countries. As a result several film companies started studios and production companies in nations such as the United Kingdom and Italy to use their "frozen funds".
To use these profits in England, film companies would set up production companies using the required amount of British film technicians and actors to qualify as British Productions in order to take advantage of the Eady Levy
Eady levy
The Eady Levy was a tax on box office receipts in the United Kingdom, intended to support the British film industry and named for Sir Wilfred Eady. It was established in 1957 and terminated in 1985.- Background :...
.
At the same time Americans working outside the USA for 510 days during a period of 18 months would not be taxed on their earnings by the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
. Though this scheme was developed for the aid of American humanitarian workers redeveloping nations destroyed in World War II, agents discovered that Hollywood actors, directors, and screenwriters would qualify for the tax break by working outside the USA for the same period.
International film co-production was very common along the 50s, 60s and 70s between Italian, Spanish and French production companies, as exemplified by most of the Spaghetti-western and sword and sandal
Sword and sandal
The Peplum , also known as Sword-and-Sandal, is a genre of largely Italian-made Historical or Biblical Epics that dominated the Italian film industry from 1957 to 1965, eventually being replaced in 1965 by the "Spaghetti Western"...
movies being Spanish-Italian coproductions, typically directed by an Italian, played fifty-fifty by Spanish and Italian actors and shot in southern Spain landscapes. Due to the worldwide popularity of Hollywood stars they would be used to guarantee a respectable audience around the world as well as the United States. The relatively low production costs and high box office return of these films often led to direct Hollywood investment to the non-American studios and producers such as Dino DeLaurentis. An example of such pan-European coproductions was Treasure Island
Treasure Island (1972 film)
Treasure Island is a 1972 film starring Orson Welles as Long John Silver that is based on the novel Treasure Island by Robert Louis Stevenson....
(1972), a British-French-German-Italian-Spanish film, starring American Orson Welles
Orson Welles
George Orson Welles , best known as Orson Welles, was an American film director, actor, theatre director, screenwriter, and producer, who worked extensively in film, theatre, television and radio...
. To qualify as an Italian film a film needed either an Italian director or cameraman plus at least two Italian featured players and an Italian film laboratory to process the film.
Due to the expense of filmmaking, many films made outside the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
are international co-productions. For example, Amelie
Amélie
Amélie is a 2001 romantic comedy film directed by Jean-Pierre Jeunet. Written by Jeunet with Guillaume Laurant, the film is a whimsical depiction of contemporary Parisian life, set in Montmartre...
is set in France and stars French actors, but many scenes were shot in a German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
film studio and the post-production
Post-production
Post-production is part of filmmaking and the video production process. It occurs in the making of motion pictures, television programs, radio programs, advertising, audio recordings, photography, and digital art...
work was undertaken by a German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
film company. International co-productions open new markets for films and television programs and can increase the output of high quality productions through the sharing of equity investment.
Official co-productions are made possible by agreements between countries. Co-production agreements seek to achieve economic, cultural and diplomatic goals. For filmmakers, the key attraction of a treaty co-production is that it qualifies as a national production in each of the partner nations and can access benefits that are available to the local film and television industry in each country. Benefits may include government financial assistance, tax concessions and inclusion in domestic television broadcast quotas. International co-productions also occur outside the framework of official co-productions, for example with countries that do not have an agreement in place, or projects that do not satisfy official co-production criteria.
In many cases, co-productions are a response to the challenges of internationalisation by countries with small production sectors, as they seek to maintain a viable production industry and produce culturally-specific content for national audiences. However, these dual goals also produce tensions within national film and television sectors. Although a co-production agreement may make available more resources, an international production risks being less relevant to its target audiences than purely local productions.
Benefits of international co-production
As a response to internationalisation, co-production offers both benefits and drawbacks. A 1996 survey of CanadianCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
international and domestic joint ventures identified the benefits as:
- the ability to pool financial resources;
- access to the partner government's incentives and subsidies;
- access to the partner's market, or to a third market;
- access to a particular project initiated by the partner;
- access to a desired location; or to cheaper inputs;
- cultural benefits; and
- the opportunity to learn from the partner.
Costs of international co-production
Hoskins, McFadyen and Finn also identify drawbacks of international co-production:- increased co-ordination and shooting costs;
- increased costs of dealing with government;
- loss of control and cultural specificity; and
- opportunistic behaviour by production partners.
Debate concerning international co-productions centres on the potential for productions to have little cultural specificity in any of its home countries. Internationalisation brings tensions in terms of cost, benefit and opportunity. In Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, for example, O'Regan and Ward have argued that an influx of international productions to Queensland's Gold Coast
Gold Coast, Queensland
Gold Coast is a coastal city of Australia located in South East Queensland, 94km south of the state capital Brisbane. With a population approximately 540,000 in 2010, it is the second most populous city in the state, the sixth most populous city in the country, and also the most populous...
in the 1990s presented a distinct challenge to local producers. In the face of such challenges, local producers need to learn "how to internationalise local film and television production in order to retain and hopefully build market shares; and how to develop new models of financing that combine both local and foreign sources." One approach has been to reconcile this tension by creating "local production with an explicit international orientation." But not everyone agrees this is the best approach. For example, the idea that Australia should produce more 'deterritorialised' programming such as fantasy and science fiction has been met with disquiet in some sections of the industry.
In Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, some have suggested that a narrow definition of ‘local content’ has restricted Australia’s
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
ability to engage with international partners. Julie Hammett-Jamart reflects on the different approaches taken by France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
to this issue and argues that a literal-minded definition of Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n culture has been 'antagonistic to the collaborative nature of film production, and in particular international co-production'.
The Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
study found evidence that, for television projects, domestic joint ventures performed better than international joint ventures. However, in the case of larger budget projects, domestic joint ventures were found not to be a viable alternative to international joint ventures. In their later study of co-production in Australia, the authors identified financial pooling as the most important benefit and increased co-ordination costs as the greatest drawback. This suggests that co-production is more suited to larger budget productions, primarily film, which have greater capital needs but do not carry the same dollar-for-dollar coordination costs as smaller projects.
Government bodies are keenly aware of these concerns. A review of Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n co-production rules acknowledged the tensions between cultural and economic objectives, and argues that 'requiring the program’s aims to be predominantly economic or cultural would hobble the program and reduce its effectiveness in achieving either outcome'.