According to HS information, an investment obligation for streaming services is being imposed in Finland. In this way, they would be offered not only a carrot but also a stick, writes HS culture editor Jussi Lehmusvesi.
in Finland a lot of international TV series and movies have been filmed in recent years, and each of them has made the media more or less excited.
Productions of different sizes have been described as, for example, “mysterious giant series”, “mysterious mega-production”, “international blockbuster” and “fantasy blast of top creators”.
One could imagine that the Finnish forests are full of film crews making international dramas right now. That’s how diverse the incentives are to attract international productions to Finland.
Unfortunately, the picture is not so rosy.
According to HS information, a recent report suggests that Finland impose an investment obligation on streaming services.
When international productions are attracted to any country, it’s about money. In Finland, that money is called production incentives.
The production incentive was also mentioned by the Oscar winner Emma Thompson while praising Finland and Finnish cinematography in his letter to Finns.
Production incentives are payment credits introduced in 2017, which are paid for wages paid to Finland and services purchased. A maximum of 25 percent of these expenses will be reimbursed. Productions eligible for a payment credit must have at least 25 percent foreign funding.
You can get money for fiction films, documentaries, TV series and animations. Instead, for example, reality television productions have been limited out of the scope of support.
During the six-year period, around 70 million euros have been allocated to incentives. With their help, it has been possible to attract several large-scale international productions to Finland.
At least according to industry experts, the incentive money is also returned to Finland with interest. At the same time, the industry is growing and internationalizing. Since the introduction of the incentive, since 2017, the turnover of the Finnish AV industry has tripled.
In addition to Business Finland, Avek and the Finnish Film Foundation provide public money for productions.
Who have they acquired incentive money? Examining the recent statistics of the research center Cupore, it can be concluded that, overall, the incentive money seems to end up in the hands of quite a few companies.
In Finland, support has been given to around twenty operators in the field each year. The number has been increasing, as in 2017 there were 17 companies that received production incentive money, and in 2022 there were 27 companies. The amounts received have also increased significantly. In 2017, the average incentive was 434,000 euros, in 2022 it will already be 722,000 euros. The largest subsidies amount to several millions.
Large some of the money has gone to the productions and sub-productions of international streaming giants such as Viaplay, HBO, Disney and Netflix and Apple TV+.
For example, it has been described in the Turku region Cryptids, in Helsinki Advocacy and Dance Brothersiain Lapland Constellationia and in southern Finland Bear soup. The Tampere region has been filmed, among other things, as a Netflix hit Gap-movie.
The statistics show that in addition to the support they have received through production companies, the streaming giants have also received several millions in direct incentive money. In 2022, Disney has received a generous 1,855,000 euros as a lump sum, and HBO Nordic 1,655,000 euros in the same year.
Business Finland on top of the production incentive money distributed, the regions’ own incentives are added. Since the 2010s, the so-called film commissions have granted their own compensation, which allows you to get back part of the money spent in the region. For example, in Tampere it is possible to get an additional credit of 10–15 percent, in North Karelia as much as 25 percent.
In some areas, the system developed at the time of smaller-scale productions has now been found so generous that expensive international series threaten to completely empty the palace. It is likely that refund percentages are on the way down.
At the moment, with the money granted by the regions, you can make a series or a film in Finland, both in the city, in fell landscapes, in the outer archipelago, and in a small village.
The refund percentage is higher in some areas, depending on how well the Shooting Location stands out in the final product.
Right now there would be more need for international productions than ever. Journalisti magazine according to a recent article the film and TV industry is in big trouble. Yle has put the brakes on ordering decisions for fear of possible cuts, MTV, which has laid off its staff, is in financial trouble and Elisa’s original series have moved to Sanoma’s Ruutu+ streaming service.
“Even if the second coming of Jesus were offered exclusively, it would not sell”. television producer Petteri Ahomaa states in Journalist.
Instead of the labor shortage of the past, foreign production companies would now have a pool of skilled Finnish workers available, whose experience in large international productions has grown year by year.
It’s just a pity that at the same time as domestic demand is waning, international streaming services are also squatting.
Second means are obligations. European Union has responded to the media revolution by reforming the so-called avms directive in 2018. Europe has been shocked by the situation where American streaming giants have taken space from traditional television and the culture has become even more American-led.
Among other things, the directive allows states to force streaming giants to invest in local film and series production.
About half of the member countries have adopted the obligation. At its worst, streaming services are forced to invest about a fifth of their turnover in local production.
For smaller ones, the compensation is a few percent.
According to estimates, the revenue collected by all streaming services from Finland is around 280 million euros annually. Series and films are ordered from Finland for around 160 million euros.
Over here Finland is also likely to join the group. The previous government created a report according to which subscription-based streaming services would be obliged to support domestic drama production.
There are two options that have been presented: either a certain amount of production will be done in Finland, or money will be put into a fund supporting Finnish production.
In addition to foreign giants, the obligation would also apply to domestic subscription-based streaming services.
During the current government’s tenure, the work has progressed to the soon-to-be-presented proposal for measures.
According to HS information, it is expected by the Minister of Science and Culture Sari Multala (cook) on the table to be announced. The minister does not comment on the presentation at this stage.
However, the direction is clear: a stick is given when the carrot is not enough.
Sources: Cultural policy research center Cupore’s review of Business Finland’s business support funding for creative industries in 2017–2022.