Guidelines for the promotion of Mexican cinema | Holland & Knight LLP

[co-author: Renata Paez]

The purpose of this alert is to inform our customers of the new guidelines for the promotion of Mexican cinema published on March 12, 2021 in the Federal Official Gazette of Mexico (Diario Oficial de la Federación).

Mexico has a significant creative production capacity in the film industry and is one of the most important markets in the world for the projection of audiovisual projects. Although the pandemic containment measures taken in the country have significantly boosted Mexican consumption of streaming platforms, which have seen massive growth in subscriber numbers, the National Chamber of the Film Industry (La Cámara Nacional de la Industria Cinematográfica or CANACINE) estimates that from March 2020 to February 2021, the Mexican film industry accumulated losses of approximately MX $ 18.407 million (US $ 925,832).

As a result of the above, the Mexican government has decided to change the financial incentives offered to the industry through the guidelines and the new Mexican film development.

Objective of the program

In accordance with the guidelines, the program will contribute to the establishment of a system of financial support and investment for creators, producers, distributors, traders and exhibitors of Mexican films and institutions interested in the preservation of important film collections. It is a system that will also stimulate the participation of the public, social and private sectors in the full reactivation of the national film industry and aims to replace the function that, until last year, the federal government was accustomed to to fulfill through the following actions: trusts:

  • Film investment and incentive fund (Fondo de Inversión y Estímulos al Cine or FIDECINE), a federal trust fund for the production, post-production, distribution and screening of fictional and / or animated feature films (75 minutes or more) through venture capital investment and / or granting loans. Individuals and businesses could access the fund through national public tenders.
  • Quality film production fund (Fondo para la Producción Cinematográfica de Calidad or FOPROCINE), a trust fund that offered support for the production or post-production of feature films and documentaries (over 60 minutes).

The Guidelines provide that the aim of the program is to allocate resources for the promotion of cinematographic projects in order to a) encourage and promote cinematographic quality, diversity, plurality, inclusion, gender equality and accessibility to the entire Mexican film population through economic incentives; b) preserve cultural expressions of the country’s intangible heritage; c) encourage the development and conservation of collections through the restoration, creation of catalogs, databases and guides, among others, for the reconstruction and reappropriation of our identities or visual stories; d) create and take advantage of cultural infrastructure; and e) promote the development, access and artistic and cultural integration of indigenous peoples and communities, through art and cinematography in general.

Program coverage and support

The program will cover all 32 states and provide for different types of support; in all cases, the economic incentive will be delivered in pesos by electronic transfer to the recipient individual or company. The different types of media are as follows:

  • Help with the financial consolidation of feature films: The economic incentive will amount to MX $ 250,000 (approximately US $ 12,000).
  • Support for the production of feature films, documentaries and children’s films: The amount of aid will be allocated and differentiated according to the experience of the project manager, and the latter may request between MX $ 5 million (US $ 245,228) and up to MX $ 8 million (392 $ 365 US).
  • Assistance in the pre-production and production of short and feature-length animated films: Feature film projects can request up to MX $ 10 million (US $ 490,456), and short films can request up to MX $ 700,000 (US $ 34,331).
  • Support for the production of first feature films from film schools or with a film specialty: Fiction projects can charge up to MX $ 3 million (US $ 147,136) and documentaries can charge up to MX $ 1 million (US $ 49,045).
  • Support for the production of short films by region and with a trajectory: The economic incentive will amount to MX $ 550,000 (US $ 26,975), or up to 80 percent of the total project cost, including other federal aid in the percentage.
  • Support for the post-production of feature and short films: For feature films, the amount of the incentive will be MX $ 2 million (US $ 98,091). For short films, the amount of the incentive will be MX $ 200,000 (US $ 9,809).
  • Support for the production of feature films in collaboration with the State: The amount to be granted for feature films up to the final cut of the image will be MX $ 1 million (US $ 49,045). The percentage of support will represent up to 80% of the total cost of the project, including other financial support. At least 10 percent of the total cost of the project must be provided in cash and / or in kind by a state and / or municipal cultural institution in the state where the application was made.
  • Support for the equipment and / or conditioning of film exhibition spaces and projects, public education, Mexican cinema exhibition projects / audience training and Mexican cinema exhibition projects of Mexican cinema The amount of aid cannot exceed 80 percent of the total cost of the project, nor exceed the amount of MX $ 1.5 million (US $ 73,568).
  • Support for the creation and conservation of film collections: The amount of the incentive cannot exceed 80 percent of the total cost of the project or more than MX $ 500,000 (US $ 24,523).

Calls for applications and general conditions of eligibility to receive assistance under the program

The projects are registered within 30 calendar days of the publication of the call for financial support. Calls for candidates will be made annually. The conditions of participation will be published on the institutional website and on the social networks of the Mexican Film Institute.

The conditions of access to the medium described in the preceding paragraphs will depend on the type of medium requested.

Natural and legal persons must prove their Mexican identity and nationality. Educational institutions must submit a curriculum vitae from the institution indicating the study plan. Anyone applying must have a tax compliance control no more than three months.

In addition, they must comply with the general conditions of the corresponding call and the specific requirements of each financial support, which may include the possession of a copy of the certificate of registration of the scenario before the National Institute of Law of author; submit a letter indicating that they have no previous support from FIDECINE and / or FOPROCINE; present a synopsis of the project; presenting a budget summary and preparing a financial plan for the project, among other things.

The results will be published on the institutional web page and on the Institut du Cinéma’s social networks, no later than 90 calendar days after the closing date for project registration.

Migration of FIDECINE and FOPROCINE support

On the other hand, the transitional articles of the Program Guidelines establish that the financial support that FIDECINE had granted to the entities will be borne by the Program according to its operating rules, its evaluation and management indicators, from its date of termination. Coming into force. The Program must respect the commitments, rights and obligations acquired by the parties.

Whereas, in the case of the winning projects of the Official FIDECINE Call published on September 19, 2020, and the winning projects of the FOPROCINE Official Call published on December 22, 2019, the conditions under which they competed will remain in force, until ‘that they are filled.

Finally, FIDECINE administrators who have been approved or who have obtained authorized funding can migrate to the program to ensure its completion.

Final thoughts

We believe that access to the various supports proposed in the guidelines will be seen as an incentive for major and minor producers in the creation of audiovisual projects and will promote the recovery of the industry despite the adversity resulting from the pandemic.

In an article by Forbes, Netflix has confirmed its intention to invest and allocate more than US $ 300 million in 2021 to local Mexican productions, increasing the quota allocated in 2020 by 50% (US $ 200 million).

Likewise, during the Prime Video Presents Mexico event, Amazon announced that it will invest US $ 2.65 million in the film and television industry in Mexico and Latin America to support projects that have been affected and stopped by the pandemic.

With the publication of the guidelines and the creation of the program, and the good news of investment from the main film production companies in the country, we hope that the Mexican film industry will continue to develop and position itself as one of the main content creators. countries.

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