The largest Ukrainian TV and film production companies have founded an initiative group #KinoKrayina (#КіноКраїна, translated as ‘Film Country’) in an effort to develop working, sustainable, competitive industry of mainstream cinema and TV series in Ukraine.
On July, 9th the Film.ua studio hosted the #KinoKrayina members as well as Ukrainian MPs, representatives of state authorities, film community and introduced them a financial model for film and series production. It requires changes in existing law to create economically favorable conditions both for local and foreign producers.
Two main tools for this are direct state investments and tax rebates. #KinoKrayina proposed such formula for direct investments of the state into productions: 80% – state equity, 20% – private equity for features, and 50% – state equity, 50% – private equity for TV series. Also they proposed 25% rebates for the cost of shooting in Ukraine and 10% rebate for the spendings in the territory of Ukraine and foreign workers fees qualified as labour payment. To participate in the program producers must be qualified and pass a so called ‘Ukrainian test’ similar to ‘culture test’ existing in European film industry.
The proposed reforms should result in minimum 5000 hours of a high-quality Ukrainian TV series and 75 Ukrainian feature films in the 5 years span.
In year 2014 the share of Ukrainian movies within the national box-office used to be 2,5% (or less than 7% in the title quantities). Only 8% out of the whole feature content of Ukrainian top-6 broadcasters were produced by Ukrainian studious.
#KinoKrayina experts think that $250 million for 5 years will be enough to give momentum to Ukrainian local films and series, that will be loved by audience. They also say that new financial model is able to bring to Ukraine up to $100 million investments during 5 years (and then – $100 million every year), create thousands of jobs and introduce Ukraine to the world. Also millions of Ukrainians will get stories about them, and it will be simple and emotional way to spread new social values and new social optimism.
Volodymyr Borodyansky, CEO of StarLightMedia Group, unveiled a financial model proposed by the #KinoKrayina. Vice-PM and the Minister of Culture of Ukraine Vyacheslav Kyrylenko and the Head of the State Film Agency Pylyp Illyenko talked about state position on the topic. Volodymyr Kotenko, Head of the Tax and Legal practice at Ernst & Young in Ukraine reported on foreign rebate practices.
#KinoKrayina is an initiative group that unites the largest Ukrainian TV and film productions. Its members have proven successful experience of shooting for wide audience. The members of #KinoKrayina are: StarLightMedia (TV channels STB, ICTV, Novy, М1, М2, QTV), Inter Media Group (TV channels Inter, NTN, Mega, K1, K2, Zoom, Pixel, Enter-film), Media Group Ukraine (TV channels Ukraine, NLO TV, Football 1, Football 2, Indigo TV and regional channels), film studious Film.ua Group, Star Media and Pro TV.