Feature Film Funding Between National and International Priorities: How Does New Zealand Bridge the Gap?

Chapter
First Online:
Part of the Media Business and Innovation book series (MEDIA)

Abstract

This chapter explores the current public subsidy schemes available for both domestic and international feature films in New Zealand (NZ). It applies an institutional political economy perspective to explain the priorities, rationales and motives of relevant ministries and agencies in New Zealand to support certain parts of the public funding scheme for feature film-making. I analyse the public funding schemes for domestic feature films offered by the New Zealand Film Commission (NZFC) and the ministerial funding schemes. I evaluate the economic argumentation used by the NZ government and some ministries to support public funding schemes for international productions. Research findings indicate that New Zealand’s film industry and institutions are affected by the particular priorities of changing governments. Importantly, I discuss how public spending and priorities shape the financial fitness of the New Zealand feature film industry and the kinds of benefits and unfavourable consequences that international productions can bring for such a small host country.

Keywords

Feature film industry Funding structures and processes Subsidy effects Public governance theory Institutional political economy New Zealand Film subsidies Feature film-making 
This is a preview of subscription content, log in to check access.

References

  1. 3 Foot 7 Limited. (2010). Annual financial report for the year ended 31 March 2010. Auckland, New Zealand.Google Scholar
  2. 3 Foot 7 Limited. (2011). Annual financial report for the year ended 31 March 2011. Auckland, New Zealand.Google Scholar
  3. 3 Foot 7 Limited. (2012). Annual financial report for the year ended 31 March 2012. Auckland, New Zealand.Google Scholar
  4. 3 Foot 7 Limited. (2013). Annual financial report for the year ended 31 March 2013. Auckland, New Zealand.Google Scholar
  5. Babe, R. (1995). On political economy. In R. Babe (Ed.), Communication and the transformation of economics: Essays in information, public policy and political economy (pp. 69–85). Boulder, CO: Westview Press.Google Scholar
  6. Babington, B. (2007). A history of the New Zealand fiction feature film. Manchester: Manchester University.Google Scholar
  7. Balio, T. (2013). Hollywood in the new millennium. London: Palgrave Macmillan.CrossRefGoogle Scholar
  8. Block, F. (1999). Deconstructing capitalism as a system. Rethinking Marxism: A Journal of Economics, Culture & Society, 12(3), 83–98.  https://doi.org/10.1080/08935690009359013 CrossRefGoogle Scholar
  9. Bloore, P. (2009). Re-defining the independent film value chain. British Film Institute (BFI). http://www.bfi.org.uk/sites/bfi.org.uk/files/downloads/redefining-the-independent-film-value-chain.pdf
  10. Campbell, G. (2003). The Lion, the Witch and the Wardrobe Department. OnFilm, August 22–24, Mediaweb, New Zealand.Google Scholar
  11. Caves, R. (2000). Creative industries: Contracts between art and commerce. Cambridge: Harvard University.Google Scholar
  12. Chang, H.-J. (2001). An institutionalist political economy alternative to the neoliberal theory of the market and the state (Social Policy and Development Programme – Paper Number 6). United Nations Research Institute for Social Development.Google Scholar
  13. Chang, H.-J., & Evans, P. (2000). The role of institutions in economic change. Paper Presented at the Workshop on The Other Canon in Economics, August 15–16, Oslo, Norway.Google Scholar
  14. Cohen, D. S. (2014, March 2). Oscar protest: Visual effects protestors take to streets. Variety. http://variety.com/2014/more/news/oscar-protest-visual-effects-protestors-take-to-streets-1201123929/
  15. Conrich, I., & Murray, S. (2008). Contemporary New Zealand cinema: From new wave to blockbuster. New York: Palgrave Macmillan.Google Scholar
  16. Cunningham, S., & Flew, T. (2015). Reconsidering media economics: From orthodoxies to heterodoxies. Media Industries Journal, 2(1), 1–18.CrossRefGoogle Scholar
  17. Dunleavy, T., & Joyce, H. (2011). New Zealand Film & Television: Institution, industry and cultural change. Bristol: Intellect.Google Scholar
  18. Easton, P. (2013, July 27). Journey’s end for Hobbit movies. The Dominion Post. http://www.stuff.co.nz/dominion-post/culture/8971392/Journeys-end-for-Hobbit-movies
  19. Evans, P. (1995). Embedded autonomy: States and industrial transformation. Princeton: Princeton University Press.Google Scholar
  20. Ferrer-Roca, N. (2014). Business innovation in the film industry value chain: A New Zealand case study. In R. DeFillippi & P. Wikström (Eds.), International perspectives on business innovation and disruption in the creative industries: Film, video and photography (pp. 18–36). Cheltenham and Northampton, MA: Edward Elgar.Google Scholar
  21. Ferrer-Roca, N. (2015a). Small country, big films: An analysis of the new Zealand feature film industry (2002–2012). PhD Thesis, Victoria University of Wellington, Wellington, New Zealand.Google Scholar
  22. Ferrer-Roca, N. (2015b). Multi-platform funding strategies for bottom-tier films in small domestic media markets: Boy (2010) as a New Zealand case study. Journal of Media Business Studies, 12(4), 224–237.  https://doi.org/10.1080/16522354.2015.1099278 CrossRefGoogle Scholar
  23. Ferrer-Roca, N. (2017). Three-tier of feature film productions: The case of New Zealand. Studies in Australasian Cinema, 11(2), 1–19.  https://doi.org/10.1080/17503175.2017.1385135 CrossRefGoogle Scholar
  24. Film NZ. (2013). About FilmNZ, board of trustees biographies. FilmNZ. http://www.filmnz.com/about-filmnz/board-of-trustees-biographies.html
  25. Giardina, C. (2014, March). Oscars: Visual effects rally attracts over 500 protesters. The Hollywood Reporter. http://www.hollywood reporter.com/behind-screen/oscars-visual-effects-rally-attracts-684493
  27. Grogg, S. (2004). Venture-capital strategy and the Film Dallas Model. In J. E. Squire (Ed.), The movie business book (pp. 128–137). New York: Fireside.Google Scholar
  28. Hickey, B. (2013, December). Treasury opposed bigger movie rebates. HiveNews.co.nz. http://www.hivenews.co.nz/articles/300-treasury-opposed-bigger-movie-rebates
  29. Hodgson, G. (1988). Economics and institution. Cambridge: Polity Press.Google Scholar
  30. Hodgson, G. (1993). Economics and evolution. Cambridge: Polity Press.CrossRefGoogle Scholar
  31. Hodgson, G. (2000). Structures and institutions: Reflections on institutionalism, structuration theory and critical realism. Hertfordshire: The Business School, University of Hertfordshire.Google Scholar
  32. Horrocks, R. (1999). New Zealand cinema: Cultures, policies, films. In D. Verhoeven (Ed.), Twin peeks, Australian and New Zealand feature films (pp. 129–138). Melbourne: Damned.Google Scholar
  33. Hubbard, A. (2013, January). NZ a star paying to act in a supporting role. The Dominion Post. http://www.stuff.co.nz/dominion-post/news/8197506/NZ-a-star-paying-to-act-in-a-supporting-role
  34. Hughes, D. A. (2013). State film tax incentives. Journal of Multistate Taxation and Incentives, 23(3), 7–17.Google Scholar
  35. ICAA – Independent Cinemas Association of Australia. (2014). Independent cinemas virtual print fee program. Independent Cinemas Association of Australia. http://www.independentcinemas.com.au/index.php?option=com_content&view=article&id=405&Itemid=136
  36. Jones, D., & Pringle, J. (2013). Sexism in the film industry (Unpublished Draft Paper).Google Scholar
  37. Jones, D., & Smith, K. (2005). Middle-earth meets New Zealand: Authenticity and location in the making of The Lord of the Rings. Journal of Management Studies, 42(5), 923–945.CrossRefGoogle Scholar
  38. Jones, D., Barlow, J., Finlay, S., & Savage, H. (2003). NZ Film: A case study of the New Zealand film industry. Wellington: Competitive Advantage New Zealand, CANZ.Google Scholar
  39. Karaganis, J. (2012, December). To save regular earth, kill the Hobbit subsidies. The Dominion Post. http://www.stuff.co.nz/business/opinion-analysis/8044191/To-save-regular-earth-kill-Hobbit-subsidies
  40. Lawn, J., & Beatty, B. (2006). “On the brink of a new threshold of opportunity”: The Lord of the Rings and New Zealand Cultural Policy. In E. Mathijs (Ed.), The Lord of the Rings: Popular culture in global context (pp. 43–60). London: Wallflower.Google Scholar
  41. Lazonick, W. (1991). Business organisation and the myth of the market economy. New York: Cambridge University Press.Google Scholar
  42. Lealand, G. (2011). The “Jackson effect”: The late 1990s to 2005. In D. Pivac, F. Stark, & L. McDonald (Eds.), New Zealand film: An illustrated history in association with the film archive (pp. 259–281). Wellington: Te Papa.Google Scholar
  43. MACCS. (2011). Virtual print fee user guide. Movie Accounting Systems.Google Scholar
  44. Mason, G. (2012). Thoughts on the screen industry. OnFilm, May 10–11, Mediaweb, New Zealand.Google Scholar
  45. MBIE. (n.d.). Screen industry. Med.govt.nz. http://www.med.govt.nz/sectors-industries/screen-industry. Accessed 9 May 2013.
  46. MBIE-Ministry of Business, Innovation and Employment. (2011). Film New Zealand. Med.govt.nz. http://www.eat.med.govt.nz/sectorsindustries/screen-industry/film-new-zealand
  47. MBIE – Ministry of Business, Innovation and Employment. (2014). Large budget screen production grant. Med.govt.nz. http://www.eat.med.govt.nz/sectors-industries/screen-industry/large-budget
  48. MCH – Ministry for Culture and Heritage. (2013). New Zealand Film Commission. Mch.govt.nz. http://www.mch.govt.nz/funding-nz-culture/agencies-we-fund/art-music-film/new-zealand-film-commission
  49. MED – Ministry of Economic Development. (2012, April). Economic study of the NZ Film industry. New Zealand: MED.Google Scholar
  50. MED – Ministry of Economic Development. (2013, October). Large budget screen production grant (incorporating the Post, digital and visual effects grant) (CRITERIA). NZfilm.co.nz. http://www.nzfilm.co.nz/sites/nzfc/files/LBSPG_Criteria_October_2013_FINAL.pdf
  51. Melody, W.-H. (1987). Information: An emerging dimension of institutional analysis. Journal of Economic Issues, 21(3), 1313–1339.CrossRefGoogle Scholar
  52. MFAT – Ministry of Foreign Affairs and Trade. (2012). MFAT New Zealand film and Tv festival celebrates Treaty of Friendship between New Zealand and Samoa. Ministry of Foreign Affairs & Trade. http://www.mfat.govt.nz/Media-and-publications/Features/440-NZ-Films-Samoa.php
  53. Muñoz Larroa, A., & Ferrer-Roca, N. (2017). Film distribution in New Zealand: Industrial organisation, power relations and market failure. Media Industries, 4(2).  https://doi.org/10.3998/mij.15031809.0004.201
  54. NZ Immigration. (2012). Taxes, a system designed for simplicity and fairness. New Zealand Now. http://www.newzealandnow.govt.nz/investing-in-nz/rules-law/taxes
  55. NZFC – New Zealand Film Commission. (1978). New Zealand Film Commission Act 1978. New Zealand Film Commission. http://www.legislation.govt.nz/act/public/1978/0061/latest/DLM23018.html?search=ts_act_New+Zealand+Film+Commission+Act+(1978)_resel
  56. NZFC – New Zealand Film Commission. (2012). 50 years of friendship with Samoa. NZ Film. http://www.nzfilm.co.nz/news/50-years-of-friendship-with-samoa
  57. NZFC – New Zealand Film Commission. (2013). NZFC statement of intent 2013–2016. New Zealand Film Commission.Google Scholar
  58. NZFC – New Zealand Film Commission. (2015a). New Zealand content – Information sheet. New Zealand Film Commission. http://www.nzfilm.co.nz/sites/nzfc/files/field/resources/New%20Zealand%20Content%20info%20sheet%20April%202015.pdf
  59. NZFC – New Zealand Film Commission. (2015b). Feature film development financing – Guidelines for applicants. New Zealand Film Commission.Google Scholar
  60. NZFC – New Zealand Film Commission. (2015c). Feature film production financing – Guidelines for applicants. New Zealand Film Commission. http://www.nzfilm.co.nz/sites/nzfc/files/field/resources/feature%20film%20production%20guidelines%20Final%20Oct%207.pdf
  61. NZFC – New Zealand Film Commission. (2015d). Post-production financing – Guidelines for applicants. New Zealand Film Commission. http://www.nzfilm.co.nz/sites/nzfc/files/field/resources/Post%20production%20guidelines%20FINAL%20Sep%2015.pdf
  62. NZFC – New Zealand Film Commission. (2015e). Feature film finishing grant – Guidelines for applicants. New Zealand Film Commission. http://www.nzfilm.co.nz/sites/nzfc/files/field/resources/Feature%20Film%20Finishing%20Grant%20Guidelines%20-Oct%202015_0.pdf
  63. NZFC – New Zealand Film Commission. (2015f). Film distribution grants – Guidelines for applicants. New Zealand Film Commission. http://www.nzfilm.co.nz/sites/nzfc/files/field/resources/Distribution%20Grant%20Guidelines%20-%20Oct%202015_2.pdf
  64. NZFC – New Zealand Film Commission. (2015g). New Zealand screen production grant criteria for New Zealand productions. New Zealand Film Commission. http://www.nzfilm.co.nz/sites/nzfc/files/field/resources/NZSPG%20Criteria%20-%20New%20Zealand%20FINAL%20August%202015.pdf
  65. NZFC – New Zealand Film Commission. (2015h). New Zealand screen production grant criteria for international productions. New Zealand Film Commission.Google Scholar
  66. NZFC. (2015i). Large budget screen production grant (LBSPG).Google Scholar
  67. NZFC. (2015j). NZFC key facts. New Zealand Film Commission. http://www.nzfilm.co.nz/about-us/key-facts
  70. NZFC. (2015m). NZWG – Seed development grants. New Zealand Film Commission. http://www.nzfilm.co.nz/funding/feature-films/early-development/seed-development-fund
  71. NZFC. (2015n). Early development fund. New Zealand Film Commission. http://www.nzfilm.co.nz/funding/feature-films/early-development/early-development-fund
  72. NZFC. (2015o). Advanced development fund. New Zealand Film Commission. http://www.nzfilm.co.nz/funding/feature-films/advanced-development-fund
  73. NZFC. (2015p). Lower budget feature films. New Zealand Film Commission. http://www.nzfilm.co.nz/funding/feature-films/production-funding/lower-budget-feature-films
  74. NZWG – New Zealand Writers Guild. (2014). NZWG seed grants – Guide. New Zealand Writers Guild. http://www.nzwg.org.nz/wp-content/uploads/2015/11/2015-NZWG-Seed-Grants-Guide.pdf
  75. Polone, G. (2011, October). Why taxpayers get screwed when every State and Canada fights to lure movie shoots. Vulture.com. http://www.vulture.com/2011/10/runaway_film_production_tax_cr.html
  76. PricewaterhouseCoopers. (2012, August). Economic contribution of the NZ Film and television industry. New Zealand.Google Scholar
  77. Screen International. (2011). Screen International’s global guide to soft money 2011. http://softmoney.screendaily.com
  78. Shelton, L. (2005). The selling of New Zealand movies. Wellington: Awa.Google Scholar
  79. Squire, J. E. (2004). The movie business book. New York: Fireside.Google Scholar
  80. Statistics NZ (2015). Screen industry survey – Information releases. Statistics New Zealand. http://www.stats.govt.nz/browse_for_stats/industry_sectors/film_and_television/screen-industry-survey-info-releases.aspx
  81. Tourism NZ. (2013). 100% Middle-earth, 100% pure New Zealand. Tourism New Zealand. http://www.tourismnewzealand.com/sector-marketing/film-tourism/100percent-middle-earth
  82. Wasko, J., Graham, M., & Sousa, H. (2011). Introduction: The political economy of communication: Core concerns and issues. In J. Wasko, M. Graham, & H. Sousa (Eds.), The handbook of political economy of communications (pp. 1–10). Malden and Oxford: Wiley-Blackwell.CrossRefGoogle Scholar
  83. Weir, J. (2014, March). Union claims NZ “ripped off” by film tax ploys. The Dominion Post. http://www.stuff.co.nz/dominion-post/news/9787129/Union-claims-NZ-ripped-off-by-film-tax-ploys
  84. Weta. (2015). Can I do work experience or an internship at Weta? Weta Workshop Limited. http://www.wetanz.com/can-i-do-work-experience-or-an-internship-at-weta
  85. Winseck, D. (2011). The Political economies of media and the transformation of the global media industries. In D. Winseck & D. Y. Jin (Eds.), The political economies of media: The transformation of the global media industries (pp. 3–48). London: Bloomsbury Publishing.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Victoria University of WellingtonWellingtonNew Zealand

Personalised recommendations