Overview:

In the 1980s, the Serbian film production industry hit its peak, ranking as second to the United Kingdom in number of overseas productions hosted. This international success fostered an industry with a strong infrastructure of studio stages and laboratories, as well as a highly professional and experienced film artists and crews.  In the past several years, the motion picture industry has increasingly looked to Eastern Europe as a destination for film production. The Czech Republic and Romania have secured positions as competitive filming locations, with Hungary as the prime destination for post-production in the region.   

The European Union (EU) accession of competitor countries in the region has increased labor and other costs, providing Serbia an immediate opportunity to position itself as a unique and comparable location with capable talent and comprehensive film service resources at significantly lower cost. Production skills are strong and inexpensive in Serbia. Sufficient equipment exists and editing of local films, which is currently done principally in Hungary or Austria, can shift to Serbia as well.

Despite this potential, Serbia still faces very stiff regional competition. Currently, the Serbian government does not offer a film incentive program to encourage foreign film makers to shoot in the country. This creates a disadvantage as several neighboring countries and other EU states offer a variety of incentives and promote them effectively to production companies.

Strategic Approach and Objectives:

Recognizing this opportunity, the Project has worked with the industry to develop a well-planned strategy that promotes the country’s key advantages: cost competitiveness, natural beauty, diversity of locations, talented technical and professional staff, and equipment and facilities.  The Project worked with the industry to develop and implement this strategy, which has produced the FilminSerbia website and brand (www.filminserbia.com), participation in major trade shows, and establishment of the Serbia Film Commission to represent the industry at key events.   

In 2010, the Project aims to build capacity of the newly established Serbia Film Commission, identify and advocate for government policy interventions such as a film incentive program, develop a film friendly environment, and continue to participate and promote the “Film in Serbia” brand at international events, including the AFCI Location Market and Cannes Film Market. The strategic approach addresses these objectives:

• Promote international awareness of the film outsourcing capacities of Serbia through international trade show participation and direct support for location scouting visits 
• Support the sustainability and capacity building of the Serbia Film Commission and industry actors
• Improve the enabling environment for local or foreign film productions with the key objective of introducing a film incentive program

Key Activities:

SerbiaFilm Commission Capacity Building and Outsourcing Promotion— Despite Serbia’s competitive advantages, there has not been a professional organization to support the industry and take the lead in advocacy and promotion strategies. In 2009, the Project, in partnership with 16 industry leaders, established the Serbia Film Commission (SFC) and launched the “Film in Serbia” brand, including a website that provides information on production services, facilities and locations in Serbia and was promoted both locally and internationally. In February 2010, the Serbia Film Commission was accepted as a member into the AFCI only 7 months after its inception. AFCI membership demonstrates the quality and commitment Serbia’s film industry professionals, and offers greater opportunities to promote the SFC to international production companies.

The Project increased the profile of the brand and Serbia’s capabilities through four major trade events including the Association of Film Commissions International(AFCI) Locations market in Santa Monica, CA, and the Cannes Film Market, and has received media coverage in key industry publications such as Variety, Screen International, and the Locations Magazine. The Project will continue to support and facilitate critical operations of the Serbia Film Commission, such as the development of an effective operations and business plan. To learn more about our work with the Serbia Film Commission, click here.

Film Incentive Advocacy— The Project’s effort to promote Serbia as a filming location to international producers has generated significant interest, resulting in scouting visits and direct inquiries from major Hollywood and European producers. However, our discussions with international producers demonstrated the importance of an incentive program in Serbia to attract a significant number of larger productions. Currently, 24 countries around the world - including Australia, New Zealand, and Malta as well as Hungary, offer film incentives to film producers. Governments support these programs as an economic development tool, as research demonstrates that film productions have significant economic multiplier impacts on a local economy.  Furthermore, this economy activity increases tax flows to the Government and are often revenue neutral.  First, in terms of jobs, 30% of any film project budget is typically spent on cast and crew, with 100-500 cast and crew on medium-sized productions. Additionally, many indirect jobs are created in construction, textiles, wood and hospitality industries to support these productions. In terms of foreign investment, If a film is shot entirely in Serbia, 40% of the overall budget will typically be spent in the country. Thus, a $50 million production would spend $20 million total in Serbia, with $10 million going directly to job creation. In this example and considering Serbia’s tax rates, this project would result in a net positive flow back to the Government of  $1.26 million.

Therefore, the Project is working with SFC, industry actors, SIEPA, and Ministry of Economy, to support introduction of a Serbian Government film incentive program that would make Serbia a more attractive and “film friendly” location. Competition for film incentives in the region is very real and Serbia has already missed several opportunities, including a $50 million production opportunity that went to  Hungary due to a lack of film incentives. As another example, the Czech Republic lost the opportunity to host George Lucas’ 100 episode Star Wars television series to Hungary for lack of an incentive. For more information about the Project’s Film Industry policy work, please click here.

Global Digital Animation Market Development Support— The visual effects services offered in Serbia are a significant selling point for the entire film industry in the outsourcing market. Over the past year, the Project as worked with three leading Serbian studios for visual effects that formed a consortium called Digital Umbrella Studios (DUS), and supported key sub-sectors of commercials and post production. The Project facilitated their participation in the Santa Monica Locations and Siggraph trade shows, which led to work on several commercials and international feature films. The project also supported membership of the Serbian Advertising Producers Association in the European Federation of Advertising Producers, and to host their annual assembly in Belgrade in early 2010. Membership in the Federation will help promote Serbia as a commercial production location and facilitate B2B linkages in Europe.

Film Lab Certification Support—The Project has been working with the only film laboratory in Serbia, Cinelab, to support their effort in obtaining a Kodak "Image Care" lab certification—the most recognizable film lab quality certificate in the world. The certification would demonstrate that services and management practices are based on Kodak standards. Obtaining this certification would support the growth of Serbia’s film outsourcing services as it will reduce the risk and cost of foreign producers incur in shipping film to other countries, which is current standard practice.