Govt should encourage local banks to provide film financing

They were speaking at the “Seminar on Securitisation: Alternative Film Financing” at InterContinental Hotel Bangkok jointly organised by the Department of Intellectual Property of the Commerce Ministry and the National Federation of Thai Film Associations. The event aimed to provide information about sources of financing for the film industry and to promote the protection of intellectual-property rights.
In the morning session, Ross Mrazek, managing director of Media Capital Group, said financial services such as bonds would be suitable for small and medium-sized production houses as well as independent ones, as seen in Canada and some European countries.
However, to make it happen in Thailand, government bodies should begin with a tax incentive for film or television production companies that plan to make dramatic or entertainment films or programmes promoting Thai culture, Mrazek said.
He added that under this approach, the government should also seek to engage local banks and bond companies to provide financing for films.
However, Jeffrey Andrick, founder and owner of XL.Ent Media Group based in the United States, said film producers and directors must focus on a well-developed business plan before approaching a bank for a loan. The plan should include appropriate presales management, distribution agreements, broadcast licences, and soft money commitments such as tax credits and government incentives.
Jean Petit, a French film-financing expert who was also a key speaker, said that even if financing from the financial sector were limited, there were a number of other sources available in Thailand. Tax rebates from the French government are an example if a production house wants to shoot a film there.
Underlining this point, Andrick added that another source was presales to free TV, pay TV or even new media like Internet-protocol television (IPTV) and pay-per-view service providers.