Data and context: 3 videos to explain subsidies for Spanish Cinema

As every year, when the Goya Awards arrive, the recurring controversy surrounding subsidies for Spanish cinema returns. Or more than controversy, it’s an accusation against a group of professionals in the industry who hold certain political opinions of being «subsidized.» A somewhat haphazard internet search is enough to find various articles on the subject, with a range of perspectives criticizing the entire industry. Sometimes, or almost always, these criticisms resurface in conjunction with speeches like Almodóvar’s at the Feroz Awards.

Last week, a segment on Spanish cinema in the show Salvados (La Sexta), included an explanation by Professor Francesc Vilallonga from Ramon Llull University, in which he broke down certain aspects of subsidies for Spanish cinema. The segment quickly went viral on social media, with the calmness that usually characterizes them, especially when it comes to topics perceived as «political» or, at the very least, partisan, i.e., topics that hypothetically impact someone’s voting intention.

In Cine con Ñ, we have selected three videos on the subject to extract three sets of data along with their conclusions regarding what constitutes «subsidies» for Spanish cinema. The numbers and contexts have been reiterated ad nauseam, but perhaps it’s necessary to review and update them again this year, given the new and also controversial General Audiovisual Law and Cinema Law that change some aspects and increase the amounts in question.

The public numbers for Spanish Cinema

Professor Vilallonga effectively utilizes his two minutes to contextualize public investment in Spanish cinema, whether through grants or other forms of support, and its weight in the national economy. The audiovisual sector accounts for 0.72% of Spain’s GDP, approximately 8.4 billion euros, and supports 72,000 direct jobs through the 6,700 companies of various types within the industry. This includes «specific» professions within the sector, such as technicians, performers, directors, producers, etc., and it also indirectly provides employment to carpenters, drivers, and more.

The Communication Ph.D. also clarifies that a subsidy can only cover between 50% and 80% of a film’s budget. An essential point is implied, which is further detailed in another subsequent video: the amount of direct aid depends on the money that the film project already has secured. It’s not added that many subsidies have limits. For instance, the selective grants from the ICAA (Spanish Film and Audiovisual Arts Institute), which prioritize more artistic criteria, cannot exceed one million euros, and that maximum threshold is rarely reached. Carla Simón’s Alcarràs received only 450,000 euros.

Then, the comparison. Spain is far from investing as much in its cinema as stronger film industries do. As the video points out, even with the boost from the Cinema Law, which sets direct subsidies at over 100 million euros for the first time in history, we’re still far behind France (700), the United Kingdom (500), Italy (400), and Germany (200). In the United States, it’s estimated that just the state of California provides over 330 million dollars in subsidies to its film industry through tax incentives, although this is a different type of aid that needs separate clarification.

Not counting distribution support or protection for theaters, which are also much higher in France, Italy, or the US, it’s clear that Spain lags behind in terms of investing in its own audiovisual sector. It could even be criticized that the measures the Government is implementing for the future «Audiovisual Hub of Spain» seek to transform our country into a cheap platform for foreign shoots rather than a producing nation. It’s somewhat analogous to filling the city center with tourist rentals, which are highly beneficial for a few local landlords and enjoyed by foreigners but make life unbearable for long-time residents.

Conditions to Receive Subsidies

Javier P. Martín, then a journalist at eCartelera, engaged in a more extensive discussion in 2020 with a video lasting over 10 minutes, attempting to dispel clichés and respond to opinions from individuals in other fields — such as writer Pérez-Reverte or the musical group Taburete — who seemed to suggest that their sectors or they themselves, either directly or indirectly, also received government assistance. Some figures are outdated due to recent legislative changes, but Vilallonga’s explanation covers them.

From Martín’s video, we extract a necessary clarification: the criteria for granting direct production subsidies. The ICAA, as can be easily found on its website, has two types: general and selective. Both are project-based and are based on something fundamental: that the project’s existence is viable, first and foremost due to having secured part of the financing and distribution, and then due to the previous track record of those involved (directors and producers, hence the importance of awards and festival participation). Selective grants also factor in social relevance criteria (minority quotas, co-official languages, debut works), but both require the film to be released in theaters within nine months.

Martín also reminds us why post-release box office isn’t used as a reference: fraud. Courts have convicted producers and distributors for «phantom sessions,» self-purchasing tickets, and other tricks to inflate numbers and, in this case, make films profitable that wouldn’t be otherwise. With the current model, a film can still flop and lead its creators to ruin, just like any other business. The government believes that the return comes in the form of job creation, economic impact from investment, and cultural impact.

The other «subsidies»

In this excerpt from an interview with David Trueba, the veteran screenwriter and director hits the nail on the head, although he makes the mistake of only mentioning right-wing parties, the PP and Vox. Political parties, the automotive sector, mining projects in Extremadura and Castilla y León, tourism, and agriculture are all subsidized to a much greater extent, proportionally, than any cultural sector. And many times, these subsidies come from the state as non-repayable grants, often out of necessity.

Like all the others, the audiovisual sector receives a series of indirect aids, somewhat similar, although much smaller, to those in the US, in the form of tax breaks or direct exemptions to incentivize filming in one location or another —a crucial point that wasn’t addressed in «Salvados.» This is the case with international platforms, which is why productions by Netflix are filmed at the studios in Tres Cantos, and the HBO Max western «The English» has only the director and cast from the UK, while the entire technical team and landscapes are more Spanish than paella.

Continuing from the previous points, a couple of examples carefully chosen by Javier P. Martín: the umpteenth Transformers sequel or a random Marvel release received 20 million dollars in indirect subsidies alone. That’s more than twice the combined budget, public or private, of As bestas, the Rodrigo Sorogoyen’s last hit, and Alcarràs, the awarded Carla Simón’s movie.

There’s little doubt about the economic profitability, or the various [Insert Name of Spanish Region Here] Film Offices wouldn’t be competing to attract shoots with the support of their chambers of commerce and local business associations. But the cultural aspect is also noteworthy: Alcarràs is a town of 9,600 inhabitants in the province of Lleida, whose name is now well-known in Berlin and Los Angeles. And that local pride has turned the film into a box office success for an independent production.

Returning to an argument by Martín, a stronger Spanish industry, capable of offering more substantial support to larger budgets for homegrown stories, results in a greater variety of films. If the series Sin límites («Limitless») has been criticized for its limited resources —a production where Amazon used RTVE for financing— and it holds the record for the highest budget per episode in the history of Spain, how can we hope for epic patriotic films like those from France or the United States? In an effort to appeal to a broad audience, we’ll conclude this analysis by suggesting that those who want a trilogy about the exploits of Blas de Lezo in cinemas should ask for more subsidies for Spanish cinema.

Cover: Screenshot from the explanatory video on the «Salvados» program about subsidies for Spanish cinema.