Location: Fordham Law School Building, Skadden Conference Center, 150 W 62nd Street, New York, NY 10023
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Tuesday, May 3 • 10:30am - 10:50am
Influencers of public and private film financing decisions

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So far, researchers have paid little attention to the influencing factors in film financing and the allocation of private investments and public subsidies. This article conceptualizes and examines non-content drivers of film financing in highly subsidized motion picture markets. In addition to that, the authors address substitutional effects between public funding and private investment. In doing so, they contribute to organizational and administrative theory regarding the analysis of subsidy allocation. Structural equation modeling is applied to test the model, using market data from Germany, a country with a complex and extensive film funding system. The data set consists of 2,010 locally produced or co-produced motion pictures, which were released between 2005 and 2014. The authors show that, apart from movie scripts, the non-content factors star power, producer power, and reputation potential predict the financing decisions of public funders acceptably but not those of private investors. Furthermore, the amount of private investment does not affect public funding bodies’ decisions. The anticipated public subsidization level, however, does not influence private investment substantially. The findings demonstrate that the government needs mechanisms that are more effective and that research results can help to improve current funding schemes. This article contributes theoretical insights into the decision-making rationale of public and private film financiers and advances measurement capabilities of film investment efficiency.

avatar for Florian Kumb

Florian Kumb

University of Bayreuth / University of Zurich
Film financing, Public Funding, Influencing Factors of Supply and Demand in the Motion Picture Industry

Reinhard Kunz

Unversity of Bayreuth

Joschka Mütterlein

University of Bayreuth

avatar for Michael O. Wirth

Michael O. Wirth

Professor and Dean Emeritus, University of Tennessee, Knoxville
Mike Wirth is Professor of Journalism and Electronic Media and Dean Emeritus of the UT Knoxville College of Communication & Information (CCI). He served as CCI Dean from 2006-2021. Prior to Tennessee, he was Director of the School of Communication (1994-2006) and Chair of the Department... Read More →

Tuesday May 3, 2016 10:30am - 10:50am EDT
Room 409 Fordham Law School Building
  Financing Media Business
  • Manuscript # 1063
  • Session # A16