BRUSSELS — Rules allowing certain state subsidies for film production in Europe will be extended for a further three years, the European Commission announced Thursday. The current rules will now apply until the end of 2012, instead of lapsing in 2009.
The commission had wanted to reform the rules, but a study intended to point the way failed to come up with clear recommendations.
"The final report of the study does not seem to be conclusive about the economic or cultural impact of territorial conditions in film support schemes, one way or the other," said the commissioners responsible, Viviane Reding and Neelie Kroes, in a statement.
They now want more time to reflect on the issue and look at new trends in the sector. These include support for other aspects of the industry, such as digital technology and film distribution, and competition among some European countries to attract inward investment from large, mainly U.S., production companies.
But the principle of cultural subsidy is not in question. "We firmly believe that whatever state aid there is for film should have the cultural aim of ensuring that Europe's national and regional cultures, and creative potential are expressed in the audiovisual media of film and television," the commissioners said. "At the same time, though, it should also aim to lead to a sustainable European film sector."
One reason to sell off part or all of Digital Plus would be to reduce Prisa's debt mountain estimated at Euros 3 billion ($4.8 billion).
In one move, earning Prisa more cash, on Friday the company announced that Portugal's Media Capital, in which Prisa has a controlling stake, had purchased Prisa's film and TV production unit Plural Entertainment for $79.9 million.
John Hopewell contributed to this report.
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