HONG KONG -- Cross-border movie co-production in Asia has little need for the formality of additional inter-governmental treaties, bizzers were told Monday at a
Variety-backed symposium at Hong Kong's blossoming FilMart. And China's current clampdown on co-production was treated with equanimity by panelists.
Asia's growing internal market and only modest amounts of government coin make private co-ventures more attractive and more flexible than the kind of official treaty co-production that is the mainstay of European and Canadian film production sectors.
"Competing in the Japanese market is difficult without a distribution outlet. So in film we look to co-productions to create something bigger than Japan," said Avex Asia MD Buddy Marini. "The Asian market is not fully integrated, but we treat it as one market." Backed by a Japanese music giant, Avex has recently become one of the largest movie co-producers and co-financiers in the region.
European producer and co-production consultant Jonathan Olsberg said public financial support needs to be present for treaty co-productions to function well. He said that the U.K.-India treaty has been signed off by government, but is not being used as there is so little soft money available at the Indian end.
Even in territories such as Singapore, which have treaties and a financially supportive state, producers feel able to dispense with the treaty set-up. "We are slightly wary of formal co-productions," Singapore-based RGM exec Stephen Clark said and admitted that his company although an active packager and exec producer, has never yet used a treaty structure.
Aud was told that import and distribution quotas such as those in China effectively encourage foreign companies to enter the market through co-productions, rather than license deals.
But in recent weeks China appears to have put several dozen co-productions with foreign countries into suspended animation as regulators refine rules on filmic references to sex, drugs, fantasy, horror and foreign relations. In some cases regulators are re-examining film projects that had previously received censorship approval. The Weinstein Company and Mike Medavoy's "Shanghai" was recently a high profile casualty. Having spent $3 million building sets, it was denied a shooting permit.
Panelists said that situation will likely normalize again. "China is well-positioned to make entertaining, not too culturally challenging pictures," said Ted Perkins, former Universal exec and production exec at U.S.-Chinese fund group IDG. He also sounded off against those who challenge the Chinese system. "Motion pictures shouldn't be at the mercy of cultural renegades," he said.
Hong Kong situation may be different again. Territory already benefits from special film trade relations with China and is focused on radiating into that fast growing marketplace. "Hong Kong will become a hub for co-productions, finance and sales. But Hong Kong is already open, there is no need for quotas or treaties," Wellington Fung, secretary general of the recently launched Film Development Council, said. Its $38 million of government coin is potentially open to co-productions, as long as films seeking FDC cash meet fund's nationality and content criteria. "(The fund) will be of most benefit to small and medium budget films as bigger ones do not need it."
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