Film and television producers created an anti-crisis association

The largest Russian television producers, including the companies Amedia, Central Partnership, Lean-M and RVS, have created an association that should help them survive the financial crisis. TV channels have lowered purchase prices for TV series by 30-40%, but production costs, half of which are actor fees, have not yet decreased. To prevent the bankruptcy of film companies, producers agreed not to dump and adhere to the recommended level of fees for actors and film crews.

The Association of Film and Television Producers (AKT) will include 18 largest companies producing more than 80% of television content, including Amedia, Lean-M, Central Partnership, RVS, Cinema Directorate (a division of Channel One) ), Star Media, the association said in a statement. Representatives of these companies confirmed to Kommersant that they had become members of the AKT. Association members control more than 80% of the television series market, whose volume in 2007 was estimated at $400-600 million.

ACT members will take measures “to prevent the bankruptcy of film companies in the context of the financial crisis and will coordinate personnel policies in order to preserve qualified personnel and jobs,” the statement said. “TV channels have announced a reduction in purchase prices for products by 30-40% since 2009, and the cost of film production, which grew annually by at least 30%, has not yet fallen,” says Vladislav Ryashin, chairman of the board of directors of Star Media. “Now the association will recommend its members to adhere to the new price level at all stages of production."

It is necessary to unite so that, given the imbalance in prices for the production and purchase of content, individual companies do not die, and most importantly, the industry is preserved, explains Ruben Dishdishyan, general director of the Central Partnership company. According to market participants, the production cost of TV series was $100-600 thousand per episode, and the pre-crisis purchase prices of TV channels ranged from $150-700 thousand. “One of the goals of the association will be to create information openness among players to each other, in particular in relations with TV channels , determining the recommended price range for projects, acting fees, studio rentals, etc.,” says Timur Weinstein, general producer of the Lean-M company. Implementation of the ACT recommendations will lead to a reduction in production costs by 30-50%, believes Alexander Akopov, Chairman of the Board of Directors of Amedia.

50-60% of the series’ budget today goes to the salaries of the actors and crew; technical services (rental of equipment, scenery) cost another 30%, says Yuri Sapronov, general director of the RVS film company. The cost of one day's work for an actor was estimated at $1.5-10 thousand, the fees of screenwriters and directors - at the level of $5-15 thousand.

Producers expect that ACT will help them eliminate dumping in the market. “Sometimes film companies sell content to channels at cost,” says a top manager at a large film company. He notes that Star Media, having entered the market two years ago, offered TV channels prices 30% lower than the market average.

The association will not affect the relationship between producers and television channels, says Anton Nazarov, director of public relations at REN TV. “We worked separately with each producer, so we will work,” he points out. CTC Media President Alexander Rodnyansky, on the contrary, notes that advertising revenues are falling and TV channels are interested in reducing production costs without losing quality.

Producer Igor Mishin, whose company has not joined the association, also believes that ACT will not be able to influence relations with TV channels. “Film companies will be able to approve recommendations on the amount of fees and prices for production services, but no one will cancel competition between producers at TV channel tenders,” he notes. Actor Daniil Strakhov says that competition between producers will soon resume and actor's fees will creep up. Actor Marat Basharov “feels sorry for the producers” who “will make even lower-quality soap than they are doing now.”

Olga Kommersant-Goncharova

TV series will have their budgets reduced