Removing obstacles to ensure state-produced films reach the audience.

Previously, it was customary for state-produced films to be screened free of charge on special occasions, anniversaries, or major holidays. The National Film Center was almost the only institution in Hanoi responsible for distributing films during propaganda campaigns, anniversaries, or major holidays, alongside film screenings organized by the Vietnam Film Institute at the Institute's theaters. The National Film Center was also a self-financing entity, meaning it had to simultaneously fulfill both its propaganda and economic responsibilities.

With "Peach, Pho and Piano," as the number of screenings increased, the National Film Center had to reduce the number of screenings of other commercial films and return all ticket sales revenue to the state budget. Meanwhile, the Center still had to pay for electricity, water, theater operation, staff, and many other expenses.

Similarly, both Beta Cinema and Cinestar, when distributing the film "Peach, Pho and Piano," announced that they would screen it on a non-profit basis, with all ticket sales going to the state budget.

The National Film Center is where films produced by the State are screened and promoted.

From a commercial perspective, it's clear that, in order to screen state-funded films, these cinema chains have to bear all the related costs themselves, not to mention the opportunity to screen other popular films. This is perhaps the biggest obstacle for other commercial cinema chains, which currently have the largest and most spacious screening rooms in the country. The business challenge has never been easy in the context of today's fiercely competitive entertainment industry, and cinemas are still recovering from the Covid-19 crisis.

Furthermore, each theatrical film typically has a certain revenue-sharing ratio with the theaters, usually 40-50% or more depending on the film and theater chain, not including distribution costs. Meanwhile, state-funded films have no regulations regarding this ratio, so when state-funded films are released, all parties are quite confused. In addition, state-funded films usually only receive investment for production; there is absolutely no promotion or distribution involved. Once completed, the films are handed over to the Department of Cinema for management. It can be seen that state-funded films have no distribution unit other than the National Film Center, which screens them as assigned.

Ms. Ngo Thi Bich Hanh, General Director of BHD Company, stated that recently the Government has clearly emphasized the development of the cultural industry instead of just developing culture as before. The goal is to transform culture into a sustainable industry, rather than the previous system of granting permits and favors. Therefore, for state-commissioned films, establishing a distribution mechanism that aligns with industry standards is crucial to ensuring these films reach the audience.

It's now too late to address this issue. Very few cinemas in Vietnam operate like the National Film Center, which is a state-owned enterprise where the government provides the land and invests in all construction costs and equipment purchases. Other private cinemas, when showing any film, have to pay very high rent for the current location, electricity and water bills at commercial rates, depreciation costs for machinery and equipment, labor costs, and other marketing and advertising expenses.

Ms. Ngo Thi Bich Hanh also shared that it is very rare for a state-produced film like "Dao Pho and Piano" to sell tickets in theaters. Previously, there was the phenomenon of "Dancing Girls" by the Liberation Film Studio, which was released and became a hit in theaters in 2003. It takes about 20 years for a film like that to happen again, so theaters have no difficulty showing it for free for some screenings, but they can't keep doing it for free forever, as there are many other films to support.

Ms. Ngo Thi Bich Hanh believes this is also a golden opportunity to develop culture and cinema: "We think that taking advantage of this opportunity, it is important to create the right and solid mechanism to lay the groundwork for the long-term distribution of state-commissioned or state-supported films, if any."

Another solution is to participate in the cultural market as an investor and reap profits as an investor, in which case all steps must follow market regulations.

The General Director of BHD also shared that, in addition, some experiences from abroad can be applied in the case of commissioned films. This is when the State commissions a film to promote a certain content or a commercial company commissions it to advertise a product; they will also cover 100% of the distribution costs or provide distribution support. For example, in France, the Government provides non-refundable marketing subsidies and revenue compensation to theater owners when the occupancy rate is not as high as other commercial films for French-made films in certain markets. These are levers of the market mechanism to encourage the screening of less commercially successful films with themes that need to be promoted.

Another solution is to participate in the cultural market as an investor and reap profits as an investor, in which case all steps must follow market regulations. Alternatively, a combination could be non-refundable grants or investments with conditions for eventual return for all economic sectors involved in filmmaking, focusing on topics encouraged by the government, but topics that would attract little investment without government support (as in the case of the Singaporean government).

It is essential to quickly establish appropriate mechanisms to facilitate the release of state-produced films in theaters. This will not only contribute to realizing the State's policies on developing the cultural industry, bringing aesthetically valuable and humanistic films to audiences, especially young audiences, but also encourage filmmakers to explore, innovate, and produce high-quality films that meet audience demands.

Immediately after the film "Peach, Pho and Piano" became an unexpected sensation in theaters, the Ministry of Culture, Sports and Tourism issued a document encouraging film studios to participate in distributing "Peach, Pho and Piano," as well as state-commissioned films and Vietnamese films in general. The document also stated that, based on current regulations and practical requirements, the Ministry of Culture, Sports and Tourism is directing specialized agencies to research and advise on further improving legal regulations to encourage and facilitate film studios in distributing state-commissioned films.

Source: https://baotuyenquang.com.vn/thao-go-kho-khan-de-phim-nha-nuoc-den-duoc-voi-khan-gia-189788.html