Expected to recover at least 30% of film revenue made with state budget

The new draft from the Ministry of Culture, Sports and Tourism states that if a film is made with 100% state capital and generates revenue, it is expected that at least 30% of the revenue will be recovered to the budget.

Audiences lined up at the National Cinema Center on February 22 to hunt for tickets for "Peach, Pho and Piano." (Photo: Minh Anh/Vietnam+)

According to Draft 4 of "Decree regulating the distribution and dissemination of films serving political tasks" published by the Ministry of Culture, Sports and Tourism, there will be a new mechanism to divide the revenue ratio between the film owner's representative, the distributor and the film dissemination (screening) unit, for films using the State budget (partly or wholly) that generate revenue.

The representative of the film owner is the State agency that uses the budget to order, assign tasks, and bid for film production; the State agency that is transferred the ownership and usage rights of the film, or the agency authorized to represent the owner of the film using part of the State budget.

For films using 100% State capital, the film owner's representative can be divided at least 30% of the revenue (after tax deduction).

"Revenue from film distribution and dissemination activities, including revenue from ticket sales, advertising and other related revenues, shall be divided according to the agreement between the film owner's representative and the organization or individual distributing and disseminating the film on the basis of market mechanisms and relevant legal provisions; the revenue sharing ratio for the film owner's representative shall not be lower than 30% after deducting taxes payable as prescribed.

In case the release and dissemination of films are used in conjunction with other services, the division ratio shall be agreed upon by the parties to ensure harmony of interests and proper use of the films" - this draft states.

This level was set after a survey of cinema complexes in Vietnam. For example, CJ CGV Vietnam Limited Company divides 40-50% for weekly film owners, 8-15% for distributors and 40-50% for distributors. Beta Media Joint Stock Company divides 43-50% for weekly owners, 4-7% for distributors and 43-50% for distributors. Thien Ngan Joint Stock Company (Galaxy) divides 30-50% for weekly owners and 50-60% for distributors. The National Cinema Center divides 35-55% depending on the week for distributors, 45-65% for weekly distributors.

The revenue percentage will be divided between the film's owner, distributor and distributor. (Illustration: Minh Anh/Vietnam+)

In addition, for online platforms, revenue sharing models after deducting copyright purchase costs often divide 40% to 60% for content owners, the rest for operators; or apply the form of purchasing copyright packages.

For example, the VieON platform cooperates on a revenue sharing model that divides 40-60% for content owners. The Vfilms platform applies a form of purchasing copyright in full or sharing revenue at a rate of 50-80% for owners, the rest for the distributor.

For films using part of State capital, profits from film distribution and screening are divided according to the capital contribution ratio or according to the investment and film production cooperation agreement between the co-owners.

The new release mechanism is expected to overcome the situation of state-owned films being released without fanfare or fanfare. (Illustration photo: Minh Anh/Vietnam+)

Previously, on February 6, 2024, the Ministry of Culture, Sports and Tourism issued Decision No. 316/QD-BVHTTDL approving the Plan for pilot distribution and dissemination of a number of films produced using the State budget according to the revenue-generating plan.

These films include “Dao, Pho and Piano,” “Hong Ha Nu Sy” and a series of 6 animated films produced by Vietnam Animation Studio Joint Stock Company, earning a total of more than 23.1 billion VND.

“Peach, Pho and Piano” alone contributed about 20 billion VND due to its unexpected popularity, creating a shortage of tickets. After that, a number of other units, including 16 distributors, cinema complexes and cultural-cinema centers in several localities in many provinces and cities of the country, participated in screening this film.

Along with many works that were quietly released and then "stored away," the unexpected effects and success of "Dao, Pho and Piano" require a more urgent and clear distribution mechanism, allowing many units, especially private units, to participate in widely screening films, both to improve propaganda effectiveness and to help State films escape the label of "worshiping ancestors."./.

(Vietnam+)

Source: https://www.vietnamplus.vn/du-kien-thu-hoi-toi-thieu-30-doanh-thu-phim-lam-bang-ngan-sach-nha-nuoc-post1053622.vnp