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AV industry holds great potential but needs more investments

Ljubljana, 19 November - A study on the audiovisual (AV) industry in Slovenia showed that the sector has positive effects on the economy and creates new jobs, while incentives from the state are far from sufficient.

Carried out by Deloitte, the study shows that a number of other industries is involved in the AV sector, whose multiplication effect is estimated at 1.8. This means 80 jobs in various sectors for every 100 people working in AV.

Moreover, the presence of foreign film production companies creates new jobs, increases investments and contributes to tourism.

Luka Vesnaver of Deloitte moreover said that the industry has a nearly 40% fiscal effect, as for every EUR 100 invested in the sector, EUR 40 return into the national budget.

Despite rapid global development of the AV industry, the sector is stagnating in Slovenia. Moreover, a system of incentive encouragement has not been developed.

Vesnaver believes that the situation could improve with the support of SPIRIT agency, encouragement of private investments and a systemic approach to attract projects to undeveloped regions.

Nataša Bučar of the Slovenian Film Centre (SFC), one of the stakeholders who commissioned the study, said that the centre had been trying to persuade the government for years that state funds for film are too low.

She believes that 80% of government departments should be involved in AV development, especially the ministries in charge of transport and environment.

This year, just over EUR 5 million has been earmarked by the state budget for film and additional EUR 1 million for incentives to foreign productions shot in Slovenia. However, at least EUR 11 million a year is needed for the most basic development of the industry, said Bučar.

Representatives of the ministries of culture and economy were present at the event today, both acknowledging that the AV industry had great potential.

© STA, 2019