Film Industry Fraud Investigation In Spain
In order for a film production to qualify for public money from the government, among other criteria, the producer must prove that the film will reach a certain audience attendance, namely 60,000 spectators. But with cinema attendance down, some producers are alleged to be buying tickets themselves in order to make the quota, and some exhibitors alleged to be reporting false attendance. At the moment, about a dozen films are under investigation, though the ICAA is looking farther back to see if other films from earlier this decade might also need to be scrutinized.
It's not easy times for Spanish films trying to find an audience in their home country. Overall, funding for films has been severely slashed, almost in half; the current government also raised the VAT on cinema tickets to a whopping 21%, one of the highest in Europe. Spain also has one of the highest rates of film piracy in the world, and a public that would rather see films from Hollywood than their own national cinema (not that this last part is different from many other countries).
There are exceptions, of course. A Spanish Affair (Ocho appellidos vascos), a mid-budget romantic comedy, broke box office records in 2014; Santiago Segura's Torrente film series continues to do well, with the most recent installment, Torrente 5: Operation Eurovegas, earning more than 10 million euros at the Spanish box office, also in 2014. But these films are the exception rather than the rule. As with many countries, the more 'sophisticated' film has trouble finding an audience. Even American and European indie films, ones normally relegated to indie and art house cinemas, that often don't have long theatrical releases, are often in cinemas in Spain for weeks, if not months. Even a film such as Roy Andersson's A Pigeon Sat on a Branch Reflecting on Existence stayed in cinemas for more than two months in Madrid, longer than most national films.
Even films such as A Spanish Affair rely on government funding to be made, and that government funding is at least partially dependent on box office. This might change in the coming months (there is a national election on December 20th), as this system, as is seen by these alleged allegations of fraud, is unsustainable. Government regulation also has television staitons (television being vastly more popular in Spain) giving some of their profits to films in exchange for broadcast rights, but that amount has been reduced. Some cinemas have been offering deep discounts (some daytime screenings are as little as €5), but this is also unsustainable.
Spain is certainly not the only country struggling to secure government funding, or even to find decent tax breaks for filming. This is especially true for mid-budget films, typically thrillers or suspense films that might have a few mid-level stars (or big stars willing to take a pay cut). If you want to make a high-budget film, or a film with a crowd-pleasing concept such as a romantic comedy, money can be found. For many production companies, the only answer is international co-financing, which means getting big enough stars (whether they be from Spain or another Spanish-speaking nation, with Argentinian actos frequently working in Spain) or making films in english, with english-language stars. Spain has a long tradition of making films in english, particularly fantastic genre films, starting in the late sixties with actors such as Peter Cushing and Christopher Lee, to recent years, with Nicole Kidman in The Others, and Elijah Wood in The Oxford Murders and Open Windows.
As stated, the stipulation for box office numbers to receive funding might change, but the underlying problems remain. Spain's film industry produces high quality work, but can't find an audience in its own country without some necessary changes both to government funding and (arguably the harder achievement) attitudes towards Spanish cinema.
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