FERA at the 79th Cannes Film Festival: Film financing, and future of audiovisual sector

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From 14 to 18 May, FERA attended the 79^th edition of the Cannes Film Festival, holding bilateral meetings with members, stakeholders and policymakers, and taking part in a series of high-level discussions on the future of European and international audiovisual creation.

Exchange session with the European Commission

On 15 May, Board Member Martijn Winkler took part in an exclusive exchange session with Executive Vice-President of the European Commission for Technological Sovereignty, Security, and Democracy Henna Virkkunen, where discussions focused on the future of European audiovisual policy and funding. He underlined the need for stronger direct support for writers and directors within European programmes, warning that European cinema risks weakening its creative foundations if funding continues to flow almost exclusively through production structures rather than to the creators themselves.

He also stressed the importance of maintaining clear distinctions between journalism and documentary filmmaking in future funding schemes, arguing that both sectors require tailored approaches. Discussions further addressed the upcoming revision of the Audiovisual Media Services Directive (AVMSD), including concerns over loopholes that allow global streaming platforms to meet European works quotas through subsidiaries without genuinely supporting European authorship.

Filmmakers roundtable: “The 7th Art: Still an Art?”

On Sunday 17, FERA partnered with the Société civile des auteurs, réalisateurs et producteurs (L’ARP), the Société des réalisatrices et réalisateurs de films (SRF) and the Director’s Guild of America (DGA), to organise the panel discussion “The 7th Art: Still an Art?”, a timely and urgent conversation on the future of cinema in Europe and the United States.

The debate highlighted mounting concerns on both sides of the Atlantic. US filmmaker Ira Sachs described an American independent film sector increasingly driven by commercial imperatives, where financing often depends on celebrity attachment and where the collapse of cinema exhibition is severely limiting space for independent works. European speakers warned that ongoing discussions surrounding the future AgoraEU programme and broader audiovisual regulation could weaken support for independent creation and undermine key principles such as cultural diversity, territoriality and artistic independence.

Filmmakers also stressed the importance of strong public support and regulation to preserve Europe’s audiovisual ecosystems. Anna Hints highlighted the essential role of the MEDIA programme for smaller countries such as Estonia, while Francesco Ranieri Martinotti warned about the risks posed by generative AI and the need to protect creators’ rights against global technology companies. Athena Xenidou highlighted how Cyprus’ €25 million tax incentives and cash rebate schemes have strengthened local employment, empowered independent producers and supported the sustainability of the national audiovisual sector. Closing the discussion, Member of the European Parliament Emma Rafowicz called for culture to be defended as a public good rather than treated solely as an industry, insisting that the future AgoraEU programme must embody a genuine cultural vision for Europe.

Defending European cinema against concentration and platform dominance

A recurring theme throughout the festival was the growing pressure on the global film ecosystem. At the CNC roundtable “Hollywood at a Crossroads”, participants discussed the sustainability crisis facing the US industry, marked by declining production levels and exhibition revenues following the pandemic and industry strikes, alongside rising production costs. The discussion also highlighted how this period of transition may create new opportunities for independent cinema. Speakers stressed the importance of theatrical exhibition and audience education, while warning against increasing market concentration and the shrinking number of buyers in the audiovisual sector.

At LUX Audience Award conference “Invest in what matters: Supporting Europe’s film sector in the next EU long-term Budget”, Emma Rafowicz discussed the major European policy debates shaping the future of audiovisual creation. Discussions focused on the future AgoraEU programme: while it aims to place culture at the heart of democratic issues, concerns remain over the future allocation of funding for audiovisual creation and cinema. She outlined proposals to maintain clear distinctions between journalism and artistic creation, reinforce support for independent production and prioritise works created by human authors rather than AI-generated content.

At the SACD/ACID discussion, Emma Rafowicz also warned that current artificial intelligence and copyright debates reflect a broader shift in political priorities increasingly favouring technology companies over creators’ rights. She stressed the need for strong European regulation to protect authors and cultural ecosystems.

On the revision of the Audiovisual Media Services Directive (AVMSD), she defended a cautious approach regarding quotas while supporting stronger investment obligations for platforms and a fairer regulatory balance between video-sharing platforms and traditional broadcasters. Concluding the exchange, she emphasised that cinema and audiovisual creation are central to Europe’s cultural sovereignty, creative diversity and employment ecosystem.