Daniel Shore writes: Despite the low spending by advertisers in China, the immediate global status of China recognized by this article is that China is already a leading commercial market for companies and is only going to get bigger. As we compare our own market with ones such as China, there's simply nothing we can do when it comes to number of consumers. As quoted below, "The fact that China is already the world's largest Internet and mobile market, without even having reached 50 percent penetration..."
It is evident that China is a global leader for marketing, and as we have discussed in class, will thus be a target for international companies to market in. The interesting aspect shown by this consumer-base is that not all types of marketing carry over to other cultures--MySpace being the recent example of a style of media not able to permeate a foreign market. However, the model of interactive media is clearly one that will be able to carry advertisers through even the toughest financial times and into present-day consumerism.
China's New Media Blossoming as Business Models Revamp
BEIJING, Dec 08, 2008 (BUSINESS WIRE) -- In a vast market like China, where advertising spends per capital only approximate 2-3% of the level in the US, the blossoming new media sector is likely to see the fastest growth in consumer demand and wealth creation, according to a recent report by Z. H. Studio. New media leaders are outpacing the old media players as the key driver of innovation, both technology- and business-wise, as well as enhanced value chains.
Just about two years ago, Focus Media was almost a synonym of the "new media" concept in China. The company spearheaded the all-in-one-digital-signage model and operated LCD screen ads in elevator lobbies 24 hours a day. After a high-profiled IPO at NASDAQ, the company's founder Jiang Nanchun became one of the richest men in China at the age of 33. Ever since, LCD screens have been popping up in supermarkets, buses, air flights, railway cabinets, parking lots, restrooms, hairdressing salons ... just everywhere you go you will see the screens operated by Focus Media - or its copycats.
Does the Focus Media model still stand for "new media" today? No longer. In most cases, people are not looking to be entertained - merely as recipients - by those "unavoidable" ads. Consumers like to get more "active participation" with the media.
Interactive instead of unilateral
Small wonder, then, user-generated content and ads have become new fad. KFC Group was among the earliest companies to experiment with guerrilla marketing on Internet. In 2007, it ran a campaign for a new product launch on BlogBus, a Shanghai-based blogging service provider somewhat like Six Apart. Over 200 users blogged about their off-line experience associated with the campaign and created prime buzz for the product. According to Dou Yi, founder and CEO of BlogBus, the site annually generates 10-million-RMB revenue from such product placement campaigns and well-known brand advertisers include Absolut Vodka, General Motor, Lenor, Gillette, Garnier, and L'Oreal.
"Many companies are turning to the Internet users to help with their marketing messages and ads are blending in with entertainment content," says Mr. Dou. "Brands create partnerships with leading influencers on the social web ... In the end, the best advertisements are those that don't look like ads."
James Li cannot agree more. The founder and CEO of Bihu, a leading technology firm specializing in IGA (in-game ads), contends that "pure ads" will have no future due to commercial forwarding devices in the digital entertainment age. It took his company four years to develop a system that enables game publishers to embed commercial ads on a real-time basis, without changing any source code. What's particularly inspiring to Li is the base of 70 million active online gamers in China, plus another 50 million non-active users.
"The fact that China is already the world's largest Internet and mobile market, without even having reached 50 percent penetration, means that Chinese companies can - and in many cases will have to - do things that companies in other markets will never be able to do in terms of scale," argues Steven Schwankert, Desk Editor of IDG News Service in Asia. "Therefore, they can experiment, and a smaller percentage of their customer base embracing something can be counted as a success."
The new media sector has seen experiments in all areas like video-sharing sites, wireless, broadband, avatars in second life, local map, social networking (SNS), and many more. The highly interactive platforms not only enhance the stickiness of media users but also scale back customer acquisition costs.
Making a historic mark
According to iResearch, one of China's most authoritative research agencies on new media, Internet users in China has amounted to 253 million by June 2008. The company's vice president Michael Ruan remarks at the Digital Media Summit 2008 in Beijing that the marketplace has seen an evolving trend of diverse revenue models among Internet-related businesses, and degree of consolidation is expected to drop.
"China leads the world in new in many ways; and I'm not sure that either people in China or in other markets like the U.S. realize it," says Schwankert, half-jokingly.
Indeed, Kevin Wang is one of those who do realize it. When he founded ZCOM - now the largest digital publisher of magazines in China - back in 2004, Wang was determined to make a major mark, by the Chinese, on the world of innovation.
Nowadays, any of the 40 million ZCOM users may browse through over 300 different magazines anytime, which offer an interesting blend of static and interactive content. The articles look like what we'd find in a typical magazine, but what's mostly appealing is the natural embedding of the interactive elements - only possible in the digital world. Interactivity generates the very accurate demo stats, which in turn creates an enabling platform for direct marketing campaigns by brand advertisers.
Among the company's most successful campaigns were for BMW, Intel, Braun, LG, L'Oreal, iPod, Siemens, EPSON and a lot of other well-known brands.
Over 9500 magazines and 2000 newspapers are circulating in China, 50% beyond the levels in the US, according to a recent report by Morgan Stanley. Kevin Wang believes that when numerous players are jockeying for position in the sector, ZCOM's strong brand awareness and "gateway" position in the virtual world creates a competitive edge.
Funded by Carlyle Group, ZCOM has also nurtured a cohort of collaborators - such as Toshiba (chip), Lenovo (PC) and Kingsoft (game) -- in distribution of e-magazine content.
"A lot of the new media companies are asset-light but network- and/or human capital-heavy," contends Edward Yu, CEO of Analysys International, a well-renown independent research firm specializing in TMT industry. "In China, new media players are outpacing their big [old media] brothers when it comes to digitalizing the product-distribution-service chain activities," Yu adds.
While most of new media players in China are overseas VC-backed, industry executives cite the importance of "keeping the business relevant to China". BlogBus CEO Dou Yi says the models of Six Apart, MySpace, Cyworld are not necessarily well-suited for China, where local customer insight - e.g. social context, consumption patterns, opinion leadership, etc. - serves as a key success factor for new media players.
BlogBus hosts over 5 million blogs now; and bloggers are typically higher-end, urban dwellers with decent purchasing power. "These groups tend to be both powerful influencers and early adopters," says Dou Yi. In that light, his company is establishing add-on platforms - ranging from free trial harbor, print media to live performance - with the aim to further monetize the BlogBus' user base.
Caveats and challenges
Still, the new media sphere in China is never without challenges. Relative to quality editorial content, the long-tailed UGC raises the search cost and therefore is typically hard to attract paid subscription, according to Liu Xiangming, Chief Editor of CEOCIO magazine, a 10-year-old journal jointly owned by IDG Group. He believes that new media practitioners will count, to a larger extent, on the scarcity and scalability - as "content creators are always scarce assets and it's critical to have teams that are able to scale up [content creation] in a sustainable fashion."
Regulatory may be another caveat. As state-owned assets, old media companies often benefit from favorable government policies. On the other hand, the inherently swift progress in new media space makes it difficult for policy-makers to keep up. Because of such a "lag effect", new media policies may sometimes create sharp volatility. That said, as a side benefit, new media appear to have stronger "immunity" than their old brothers. Also, regulatory restrictions prevent cross-regional ownership for old media companies; but new media are not subject to such constraints.
The economic meltdown will likely make many organizations conservative towards ads spending. As Edmund Li, a former 4A agency senior executive, warns, "try and err" costs may shift media buyers back to traditional, "proven" platforms, leaving new media companies vying for a smaller slice of the cake.
Despite the fact that global financial crisis makes many lower outlook, some players in new media sector remain optimistic. James Li of Bihu recalls the SARS epidemic period in 2003, in which the business of online gaming managed to double its size. "Our [online game-related] business enjoys a 'counter-cyclic' element: we see 'obsessive' customer loyalty in an economic downturn."
SOURCE: Z. H. Studio Z. H. Studio
Ms. Li CHEN, 86-10-58769825
li.chen@zhstudio.net
Copyright Business Wire 2008
Monday, December 8, 2008
Wikipedia child image censored
Big Brett back again, with my second (and last?) blog on this COLOURFUL website (spelled colorful with a "u" because my chosen article comes from the BBC). Anyways, enough stalling. I found an article today which stated that many UK internet providers are now blocking a page from Professor Pitts' favorite online resource: Wikipedia. There was a dispute over a German band's album cover that displayed a naked girl on it. While one of my favorite albums by Nirvana has a naked baby on it, the naked girl on this German band's album is a whole different issue (plus I don't like heavy metal). Do you think the UK internet providers were right in blocking this Wikipedia page? Is the UK the new "Red China?" Read on and let me know what you think.
A decision by a number of
The blocked page of the online encyclopaedia shows an album cover of German heavy metal band Scorpions, released in 1976.
Internet providers acted after online watchdog the Internet Watch Foundation warned them its picture may be illegal.
The IWF said it was a "potentially illegal child sexual abuse image".
Some volunteers who run Wikipedia said it was not for the foundation to censor one of the web's most popular sites.
They also argued that the image was available in a number of books and had never been ruled illegal.
But the IWF, which warns internet providers about possible images that could be linked to child abuse, said it had consulted the police before making its decision.
The foundation's list of proscribed sites is widely used by British internet service providers to filter out images showing child abuse and other illegal content.
| | |
As a result, the addition of the Scorpions Wikipedia page has made it inaccessible to the majority of British internet users.
The IWF, which lists the BBC, News International and internet companies AOL (UK) and Ask among its members, said as many as 95% of British users would now be unable to access the page.
Wikipedia volunteer David Gerard said he and fellow users were angry that as well as the photo, the text on the page had been blocked.
"Blocking text is a whole new thing - it's the first time they've done this on such a visible site," he said.
Mr Gerard also told BBC Radio 4's Today programme the album cover was still available as part of the band's box set and could be viewed on retail websites.
"When we asked the Internet Watch Foundation why they blocked Wikipedia and not Amazon, apparently the decision was 'pragmatic', which we think means that Amazon had money and would sue them, whereas we're an educational charity."
Access blocked
Susan Robertson, of the IWF, said the image could potentially contravene the Protection of Children Act 1978.
"We only act on the reports we receive, and as I understand it, the only report we received regarding this content, as of Friday, was the content on Wikipedia," she said.
| | |
Ms Robertson also said the IWF needed to "take a view" on the images available on Amazon with its "analyst team and police partners".
Jay Walsh, a spokesman for the Wikimedia Foundation, which manages the encyclopaedia, said the removal of the page also appeared to have stopped thousands of
"It appears that there's a large number of editors - I can't say all - who appear to have access issues," he said.
The IWF spokeswoman said a reader had brought the image to the foundation's attention last week and it had contacted the police before adding the page to their list.
Wikipedia is one of the world's most popular websites. It is a multi-lingual online database written, edited and funded largely by its users. It has 2.6m articles in English alone.
Saturday, December 6, 2008
Pakistan Feared Indian Attacks
Im sure we have all been hearing about the attacks in Pakistan. I thought this article was an interesting read...
Pakistan feared India was planning to launch a military strike at the height of tensions over the Mumbai attacks, a senior Pakistani diplomat has said.
Pakistan's High Commissioner to London said there was evidence that India wanted "to teach Pakistan a lesson".
Islamabad denies involvement in the attacks which left at least 170 dead, but some of the gunmen are said to have had links to Pakistani militants.
Both sides have taken care not to openly inflame the situation.
High Commissioner Wajid Shamsul Hassan told the BBC that he had received the information in the wake of the three-day siege of key sites in Mumbai.
How would we have reacted? That could be anybody's guess
Wajid Shamsul HassanHigh Commissioner
"This is what we were told by our friends that there could possibly be a quick strike at some of the areas they suspect to be the training camps, an air raid or something of that sort," he said.
Mr Hassan said he alerted his president, Asif Ali Zardari, to the danger and Pakistan urgently passed on its concerns to high level US and British officials, who intervened to calm the situation.
"There was circumstantial evidence that India was going to make a quick strike against Pakistan to teach her a lesson," he said.
Mr Hassan said that in his opinion it was unlikely the two countries, which both possess nuclear weapons and have fought several wars since partition in 1947, would have ended up in all-out conflict.
"We wouldn't have gone, and I'm sure India wouldn't have gone for full-scale war," he said. "But then, on the other side, how would we have reacted? That could be anybody's guess. We are a smaller country, we have to defend ourselves."
India has so far made no comment on Mr Hassan's comments.
US Secretary of State Condoleezza Rice embarked on a diplomatic mission to ease tensions - flying to Dehli and Islamabad for talks this week.
She also called on both countries to show moderation in their response to the Mumbai attacks.
Analysts say that despite both sides' rhetoric, there has been no concrete signs by either side of heightened military activity, such as troop movements to border areas.
Hoax call denied
In an earlier indication of how strained relations had become during the attacks, the Pakistani Dawn newspaper reported that the country had been put on high alert during the crisis after what the paper called a hoax call was made to President Zardari.
India says the surviving gunman, Azam Amir Qasab, is Pakistani
A caller claiming to be Indian Foreign Minister Pranab Mukherjee spoke to the Pakistani leader in a threatening manner on 28 November, Dawn reported.
The newspaper said Mr Zardari's staff had bypassed usual verification checks for a call to the president.
But Pakistan's Information Minister Sherry Rehman later denied it could have been a hoax.
"It is not possible for any call to come through to the president without multiple caller identity verifications," he said in a statement.
"In fact the identity of this particular call, as evident from the CLI (caller's line identification) device, showed that the call was placed from a verified official Phone Number of the Indian Ministry of External Affairs."
In another development, Indian police have arrested two men in the eastern city of Calcutta suspected of handling mobile phone cards later used by the Mumbai attackers.
Nine of the 10 militants believed to have mounted the attack on 26 November died.
Indian media have named the surviving gunman as Azam Amir Qasab, a Pakistani, and say he has links to a Pakistan-based Kashmiri militant group, Lashkar-e-Taiba. The group denies involvement.
Pakistan feared India was planning to launch a military strike at the height of tensions over the Mumbai attacks, a senior Pakistani diplomat has said.
Pakistan's High Commissioner to London said there was evidence that India wanted "to teach Pakistan a lesson".
Islamabad denies involvement in the attacks which left at least 170 dead, but some of the gunmen are said to have had links to Pakistani militants.
Both sides have taken care not to openly inflame the situation.
High Commissioner Wajid Shamsul Hassan told the BBC that he had received the information in the wake of the three-day siege of key sites in Mumbai.
How would we have reacted? That could be anybody's guess
Wajid Shamsul HassanHigh Commissioner
"This is what we were told by our friends that there could possibly be a quick strike at some of the areas they suspect to be the training camps, an air raid or something of that sort," he said.
Mr Hassan said he alerted his president, Asif Ali Zardari, to the danger and Pakistan urgently passed on its concerns to high level US and British officials, who intervened to calm the situation.
"There was circumstantial evidence that India was going to make a quick strike against Pakistan to teach her a lesson," he said.
Mr Hassan said that in his opinion it was unlikely the two countries, which both possess nuclear weapons and have fought several wars since partition in 1947, would have ended up in all-out conflict.
"We wouldn't have gone, and I'm sure India wouldn't have gone for full-scale war," he said. "But then, on the other side, how would we have reacted? That could be anybody's guess. We are a smaller country, we have to defend ourselves."
India has so far made no comment on Mr Hassan's comments.
US Secretary of State Condoleezza Rice embarked on a diplomatic mission to ease tensions - flying to Dehli and Islamabad for talks this week.
She also called on both countries to show moderation in their response to the Mumbai attacks.
Analysts say that despite both sides' rhetoric, there has been no concrete signs by either side of heightened military activity, such as troop movements to border areas.
Hoax call denied
In an earlier indication of how strained relations had become during the attacks, the Pakistani Dawn newspaper reported that the country had been put on high alert during the crisis after what the paper called a hoax call was made to President Zardari.
India says the surviving gunman, Azam Amir Qasab, is Pakistani
A caller claiming to be Indian Foreign Minister Pranab Mukherjee spoke to the Pakistani leader in a threatening manner on 28 November, Dawn reported.
The newspaper said Mr Zardari's staff had bypassed usual verification checks for a call to the president.
But Pakistan's Information Minister Sherry Rehman later denied it could have been a hoax.
"It is not possible for any call to come through to the president without multiple caller identity verifications," he said in a statement.
"In fact the identity of this particular call, as evident from the CLI (caller's line identification) device, showed that the call was placed from a verified official Phone Number of the Indian Ministry of External Affairs."
In another development, Indian police have arrested two men in the eastern city of Calcutta suspected of handling mobile phone cards later used by the Mumbai attackers.
Nine of the 10 militants believed to have mounted the attack on 26 November died.
Indian media have named the surviving gunman as Azam Amir Qasab, a Pakistani, and say he has links to a Pakistan-based Kashmiri militant group, Lashkar-e-Taiba. The group denies involvement.
Wednesday, December 3, 2008
Somalia
Hey everyone it's Sarah. I found this story on the CNN website. Somalia has been in the news a lot because of the recent pirate attacks. I just thought it was interesting because it really forces you to think about what life as an international journalists is like and the potential problems that exist.
(CNN) -- Four journalists have been kidnapped in the Somali port city of Bosasso, officials and an international press freedom group say.
One journalist is British, said Bile Qabow Sade, an adviser to the president of Puntland, a semi-autonomous region of northern Somalia.
Another is a Spanish freelance photographer, a Spanish Foreign Ministry spokesman said. The two others are local Somali journalists, the New York-based Committee to Protect Journalists said.
Unknown assailants seized the four around midday Wednesday after they left their hotel, the CPJ said, citing Abdiqani Hassan, chairman of the Puntland Journalist Club.
"This underscores what an incredibly dangerous place Somalia has become for both local and foreign journalists," said Tom Rhodes, CPJ's Africa Program coordinator.
Spain has no immediate word on the photographer's condition or the circumstances of his kidnapping, the foreign ministry spokesman said.
Two other freelance journalists are still being held captive in Somalia, the CPJ said. Amanda Lindhout and Nigel Brennan were kidnapped in August outside the capital, Mogadishu.
Somalia's coast has been the center of media attention amid an escalation in piracy along key shipping routes close to the region. Earlier this month a super tanker laden with millions of dollars worth of oil was abducted by Somali pirates.Tuesday, December 2, 2008
Warner Bros. in Italy
It's Blake O'Neal, I was just doing some research on Warner Bros. and found this article posted on their website. It just goes to show how pervasive American media actually is in other countries. It also talks a little about foreign film.
Richard Fox has Been Named Commendatore Dell’Ordine al Merito Della Repubblica
November 18, 2008
Richard Fox, Executive Vice President, International, Warner Bros., has received yesterday in Rome the honorary title Commendatore dell’Ordine al Merito della Repubblica Italiana (Commander of the Order of Merit of the Italian Republic). He has been awarded this recognition by Gianni Letta, Undersecretary of State for the Prime Minister at a ceremony in Rome at the historic Palazzo Chigi, the office of the Italian Prime Minister.
The Ordine al Merito della Repubblica Italiana is conferred by the President of the Italian Republic on Italian and foreign citizens who have shown great merit and distinguished themselves through lasting contributions to Italian society in the fields of literature, the economy, public service, and social, philanthropic and humanitarian activities. Among the award’s prior recipients are diplomats, academicians, senior Italian politicians, high ranking officials and religious leaders. Previous honorees include Carlo Verdone, Giuseppe Tornatore, Giorgio Armani, Luciano Benetton, Michael Schumacher, Pedro Almódovar and Luca Cordero di Montezemolo.
Fox is being honored for his lifetime commitment to cultural diversity, exemplified by his achievements in the international film industry, and for his significant contribution to the development of local production in the Italian movie industry.
"Richard's respect for and understanding of the Italian tradition of filmmaking have helped Warner Bros. build an enviable reputation in the world of international film," said Barry Meyer, Chairman & CEO, Warner Bros.
"We are all extremely proud that Italy, with its rich history and love of film, has recognized Richard's contributions to strengthening the country’s film industry and his commitment to cultural diversity in the arts and entertainment by honoring him with this prestigious award," added Alan Horn, President & COO, Warner Bros.
Since 1992, Fox has overseen local language co-production, acquisition, marketing and distribution in more than 20 countries around the world on behalf of Warner Bros. Entertainment. He began his career at Warner Bros. in 1975 and 10 years later was named President, Warner Bros. Pictures International, where he headed the distribution of the Studio's film product in all overseas markets before moving into his present position in 1992.
Under his leadership, Warner Bros. has been involved in such successful film projects as Romanzo Criminale, directed by Michele Placido, Mio Fratello è figlio unico, directed by Daniele Luchetti and Giorni e Nuovole, directed by Silvio Soldini, all critical and box office successes in Italy; Pedro Almodóvar's recent releases Talk to Her, Bad Education and Volver as well as the upcoming Los Abrozos rotos for Spain and Italy; and Jean-Pierre Jeunet's Un Long Dimanche De Fiancailles (A Very Long Engagement), which became the most widely distributed French film in history.
Monday, December 1, 2008
Global Focus: International co-production treaties
Hey guys, I found this article from The Hollywood Reporter about production companies from different companies working together on movies. The article talks about the perks of working with producers from more than one country: you have a bigger budget and it's easier to get a movie published in a different country if one of the production companies is from that country. The article also mentions the treaties that India has made with other countries. I think it will be really interesting to see what kind of movies come out of an Indian and German collaboration. If you want to see who countries have treaties with, follow this link. The list is at the bottom of the page.
http://www.hollywoodreporter.com/hr/content_display/world/news/e3i60b39c4b57a9d7759395c8d055a3b9e6
International co-production has come a long way from the days of Europudding and cobbled-together tax write-offs that no one, anywhere, would pay to see. Recent cross-border efforts, such as Fernando Meirelles' Cannes opener "Blindness," Oscar winner "The Last King of Scotland" or Roger Spottiswoode's "The Children of Huang Shi" show how creative producers can use international treaties to their advantage, delivering high-end features that would be impossible to finance out of a single, non-U.S., territory.
"We've gotten a lot smarter in doing co-productions," says Christine Ruppert of Germany's Tatfilm, which co-produced "The Last King of Scotland" and is in post on Belgium-Germany-Poland feature "Within the Whirlwind." "Now we realize that films need their own integrity, their own roots. We can't shoehorn in 'alibi' actors from the various countries just to get funding, as used to happen a lot in the 'Europudding' days."
Veteran producers have gotten better at making multinational features that work around the world. A recent study by the European Audiovisual Observatory found that European co-productions get released in more than twice the number of markets that 100% national productions do. A separate study showed African or Asian films have a much easier time securing distribution in Europe if they have a European co-producer on board.
Globally, co-productions are starting to fill the gap between big studio tentpoles and small-budget indies. By spreading risk among several partners and tapping soft money opportunities around the globe, the $10 million-$40 million feature is becoming financially viable again.
A new territory for cross-border co-productions is television. The success of limited series "The Tudors," set up as a co-pro between Canada and Ireland, has gotten producers thinking beyond the big screen. Expect to see more TV series produced and financed outside the U.S., with the domestic sale an add-on.
When it comes to setting up international co-productions, Europe has an obvious advantage. The 1992 European Convention on Cinematographic Co-Production allows cross-border productions within the EU to dip into subsidies from all the participating countries. But several other territories, notably Canada, Australia and South Africa, can also point to attractive production incentives and an impressive track record.
All eyes are now on India, home to a massive local industry and piles of investment capital, which has recently signed treaties with the U.K., Germany, Italy and Brazil. If the power of Bollywood can be harnessed to make sellable international features, a whole new range of opportunities will open up for ambitious indie producers.
Despite the obvious advantage of doing co-productions -- a bigger budget -- veterans of the bilateral game warn of the hidden costs of flying around talent and crews. Not to mention having to give up substantial rights to your French, Japanese or Brazilian co-production partners.
But with private capital running scared during the global credit meltdown, regional subsidies and tax breaks -- the financial backbone of international co-productions -- look a lot more enticing. Producing a film across two or more borders requires doing a lot more homework and often means a few more headaches, but when it works, it can turn you into a truly global player.
http://www.hollywoodreporter.com/hr/content_display/world/news/e3i60b39c4b57a9d7759395c8d055a3b9e6
Global focus: Int'l co-production treaties
Nov 20, 2008, 06:00 PM ET
"We've gotten a lot smarter in doing co-productions," says Christine Ruppert of Germany's Tatfilm, which co-produced "The Last King of Scotland" and is in post on Belgium-Germany-Poland feature "Within the Whirlwind." "Now we realize that films need their own integrity, their own roots. We can't shoehorn in 'alibi' actors from the various countries just to get funding, as used to happen a lot in the 'Europudding' days."
Veteran producers have gotten better at making multinational features that work around the world. A recent study by the European Audiovisual Observatory found that European co-productions get released in more than twice the number of markets that 100% national productions do. A separate study showed African or Asian films have a much easier time securing distribution in Europe if they have a European co-producer on board.
Globally, co-productions are starting to fill the gap between big studio tentpoles and small-budget indies. By spreading risk among several partners and tapping soft money opportunities around the globe, the $10 million-$40 million feature is becoming financially viable again.
A new territory for cross-border co-productions is television. The success of limited series "The Tudors," set up as a co-pro between Canada and Ireland, has gotten producers thinking beyond the big screen. Expect to see more TV series produced and financed outside the U.S., with the domestic sale an add-on.
When it comes to setting up international co-productions, Europe has an obvious advantage. The 1992 European Convention on Cinematographic Co-Production allows cross-border productions within the EU to dip into subsidies from all the participating countries. But several other territories, notably Canada, Australia and South Africa, can also point to attractive production incentives and an impressive track record.
All eyes are now on India, home to a massive local industry and piles of investment capital, which has recently signed treaties with the U.K., Germany, Italy and Brazil. If the power of Bollywood can be harnessed to make sellable international features, a whole new range of opportunities will open up for ambitious indie producers.
Despite the obvious advantage of doing co-productions -- a bigger budget -- veterans of the bilateral game warn of the hidden costs of flying around talent and crews. Not to mention having to give up substantial rights to your French, Japanese or Brazilian co-production partners.
But with private capital running scared during the global credit meltdown, regional subsidies and tax breaks -- the financial backbone of international co-productions -- look a lot more enticing. Producing a film across two or more borders requires doing a lot more homework and often means a few more headaches, but when it works, it can turn you into a truly global player.
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