The audiovisual industry is under pressure and appeals to politics (cross-border guide)

A scene from the Locarno Film Festival

The representatives of the Swiss audiovisual sector defended their priorities before the political leaders gathered at the Locarno Film Festival.

Context

Film production is under pressure due to rising costs. Public aid must be adapted to the increase in production costs. The essential role of the Swiss Broadcasting Corporation (SSR) in the financing of cinema must be preserved. This is the message that comes from the Swiss Audiovisual Conference, which met in Lausanne on 10 February.

The increase in production costs is a problem that does not only concern Switzerland. According to research conducted by the European Union, the cost of producing a European film has increased by 25% in the last five years. In Switzerland, the cost of producing a film has increased by 30% in the last three years, according to data from the Swiss Association of Film Producers (SOUR).

The problem is more serious in some cantons than in others. In the Canton of Ticino, for example, the cost of producing a film has increased by 40% in the last three years, according to data from the TART. In the Canton of Vaud, the cost of producing a film has risen by 35% in the last three years, according to data from the HARSH.

To address this issue, the SRG has announced an increase in funding for film financing. According to the federal law of 10 December 2019, the SSR will have to allocate 10 million Swiss francs (CHF) per year for film financing. This amount is up 20% from last year.

However, this increase is not enough to

Operational details

Current public aid is not sufficient to cover the increase in production costs. The SSR (Swiss Radio-TV Service) is an important institution for film financing, but its influence is declining due to rising costs and dwindling resources. 📊

According to a report by the Swiss Confederation, in 2020 the SSR allocated about 150 million francs for film financing, while in 2022 this amount fell to 120 million francs. ⚠️ This means that the SRG had to reduce its investments by about CHF 30 million in just two years.

The decrease in funds is partly due to the failure to review the legislation on the financing of cinema. The federal law on the financing of cinema was passed in 1992 and has not yet been revised, despite the growing demand for public aid to cover production costs. > "The federal law on film financing is too old and does not take into account the new needs of the audiovisual industry," says a representative of the film industry.

The decrease in funding is also due to competition with other sectors of the cultural industry. According to a report by the Swiss Confederation, in 2020 the SSR allocated about 50 million francs for the financing of music and dance, while in 2022 this amount fell to 30 million francs. This means that SRH had to

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Switzerland is a country with a strong tradition of high-quality audiovisual productions, with cities such as Zurich and Lausanne hosting major production and post-production studios. However, the audiovisual industry is currently under pressure due to several factors, including increasing competition from streaming platforms and a lack of funds to support the production of high-quality content.

To explore this further, you can use the exchange comparator to see how salary increases might affect currency exchange. You can also check out our article on how pensions work in Switzerland for more details. 📊

According to a recent study, audiovisual content production in Switzerland has been negatively affected by the global economic crisis. 30% of Swiss audiovisual productions suffered a drop in revenues in 2020, while 20% of productions had to reduce their staff. ⚠️

However, all is not lost. The Swiss audiovisual industry is still one of the strongest in the world, with a market of 2.5 billion Swiss francs (CHF) in 2020. According to a 2020 report, Switzerland is the 14th most important country for audiovisual content production in Europe, contributing 4.5% to national GDP.

To support the Swiss audiovisual industry, the government has launched several support programmes, including the Support Programme

Source: tio.ch

Frequently Asked Questions
What is the current state of film production in Switzerland?
Film production in Switzerland is growing strongly, but industry insiders believe the economic model of independent production is under pressure due to rising costs.
What are the main causes of the problem?
The main causes of the problem are the increase in production costs and the decrease in public aid.
What are the main solutions which have been proposed?
Proposed solutions include adapting public aid to rising production costs and preserving the essential role of SRH in film financing.

Related articles