Regulating the Mandatory Participation of TV Networks in Financing the Movie Industry: The Case of Spain

  • Víctor Fernández-Blanco
  • Ricard Gil
Part of the Media Business and Innovation book series (MEDIA)


In this paper, we present evidence of an indirect government intervention in the Spanish movie industry. In 1999, the Spanish Government mandated that operating TV networks invest 3% of their receipts on the production of movies in Spanish language. Using a data set of Spanish movies produced between 2000 and 2008, we study the empirical relationship between TV network participation on movie production and box office success. We find that private TV network participation (as opposed to public networks) through production (and not distribution) is associated with higher box office revenues and gross profitability rates, even after controlling for movie production budget.


Artsy and cultural criteria Box office Economic performance Econometric model Financing Instrumental variables Production budget Profitability Public regulation Public welfare Public and private investment Returns of investment Spanish movie industry TV network participation 


  1. Boletín Oficial del Estado. (1994). Ley 25/1994.
  2. Boletín Oficial del Estado. (1999). Ley 22/1999.
  3. Boletín Oficial del Estado. (2001). Ley 15/2001.
  4. Boletín Oficial del Estado. (2004). Real Decreto 1652/2004.
  5. Boletín Oficial del Estado. (2007). Ley 55/2007.
  6. Boletín Oficial del Estado. (2015). Real Decreto 988/2015.
  7. Casson, M. (2006). Culture and economic performance. In V. Ginsburgh & D. Throsby (Eds.), Handbook of the economics of art and culture (pp. 359–397). Amsterdam: Elsevier.CrossRefGoogle Scholar
  8. Christopherson, S., & Rightor, N. (2010). The creative economy as big business: Evaluating state strategies to lure film makers. Journal of Planning Education and Research, 29(3), 336–352.CrossRefGoogle Scholar
  9. Chung, C., & Song, M. (2008). Preference for cultural goods: Demand and welfare in the Korea films market. Simon School Working Paper No. FR 08-23.
  10. Comisión Nacional de los Mercados y la Competencia. (2017). Informe sobre el cumplimiento en el ejercicio 2015, por parte de los prestadores del servicio de comunicación audiovisual televisiva, de la obligación de financiación anticipada de la producción europea de películas cinematográficas, películas y series para televisión, documentales y series de animación.
  11. Fernández-Blanco, V., & Gil, R. (2012). Underneath the red carpet: Government intervention in the Spanish movie industry. Journal of Media Economics, 25(1), 54–72.CrossRefGoogle Scholar
  12. Frey, B. (1994). The economic point of view. In A. Peacock & I. Rizzo (Eds.), Cultural economics and cultural policies (pp. 3–16). Dordrecht: Kluwer Academic.CrossRefGoogle Scholar
  13. Gil, R., & Lafontaine, F. (2012). Using revenue-sharing to implement flexible pricing: Evidence from movie exhibition contracts. The Journal of Industrial Economics, 60(2), 187–219.Google Scholar
  14. Hadida, A. (2010). Commercial success and artistic recognition of motion picture projects. Journal of Cultural Economics, 34(1), 45–80.CrossRefGoogle Scholar
  15. Martin, J. (2009). No hay salas para tanto cine (español). El País Digital.

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Universidad de OviedoOviedoSpain
  2. 2.Johns Hopkins UniversityBaltimoreUSA

Personalised recommendations