Impact analysis of fiscal incentive schemes supporting film and audiovisual production in Europe

This study has been written by Olsberg•SPI (SPI) for the European Audiovisual Observatory. It
measures the impact of fiscal incentives on investments in the production of film and audiovisual
works in Europe.
The use of fiscal incentives – i.e. tax shelters, tax credits or rebates - to stimulate greater levels of
production in the film and audiovisual industries has become a popular policy tool in Europe and
around the World in recent years. On the one hand this report identifies all existing fiscal incentive
schemes in Europe and summarises those evaluations carried out at national levels up until 2014.
On the other hand it provides an overall view of the impact of fiscal incentive schemes from a panEuropean perspective by means of a quantitative as well as qualitative comparative analysis.
Key questions addressed by this report
This report addresses the issues surrounding the impact of fiscal incentives currently operating in
Europe, taking a comparative approach, analysing schemes from the individual perspectives of the
national markets in which they operate, and evaluating their impact at a pan-European level. In doing
this, we consider:
 The landscape for fiscal incentives targeting film, television, and video game production,
including where they operate and what structures they use (Chapters 5 and 6);2

 What trends exist within the European fiscal incentive system (Chapter 7);
 The impact, in particular the economic impact, of fiscal incentive schemes (Chapter 8), including
questions such as
– Have incentives influenced the production levels, employment prospects, and direct funding
systems within their own countries?
– What is the impact of fiscal incentive structures on neighbouring countries through production
flows and movement of employment?
– Have incentives altered the business model for European independent production
companies?
– What is the fiscal impact for the States offering such incentives?
 How such incentives have been evaluated by the countries in which they operate, and how the
conclusions of these evaluations compare with one another (Chapter 9);
 Recommendations on future assessment of fiscal incentive schemes in Europe (Chapter 10).
As part of this analysis, SPI have looked in greater detail at eight selected schemes presently
operating in Europe where the most substantial amount of comparative data is available; these
schemes are more fully described in an Annex, chapters 11 to 18.
As well as the direct impact of the film and audiovisual industries, it is possible to look at the indirect
impacts on output and employment – arising from the industries' supply chain – and the induced
impacts – arising from those directly and indirectly employed in these industries using their earnings
to buy other goods and services. The indirect and induced impacts comprise the film industry
multiplier – the ratio of the total economic impact of the film industry to the direct impact.