Streamer & broadcaster budget squeeze to fuel windowing innovation & CEE growth

Dark Hearts (Source: Newen)

Tightening budgets are set to create surging demand for coproductions across Europe, with windowing and opportunities in Central and Eastern Europe (CEE) opening up.

As streamers and broadcasters look for finance models that push their spending further, execs here at NEM Zagreb pointed to an evolving coproduction business that will allow for broader cooperation between parties.

Morad Koufane, deputy director of international series at France Télévisions, pointed to his broadcaster’s embrace of new windowing arrangements with streamers such as Netflix as one example of how the business has shifted.

NEM Zagreb (Source: NEM)

France Télévisions and Prime Video were both behind local drama Dark Hearts, which had a window on the streamer before moving to the broadcaster, with Newen Connect selling globally.

Other companies such as rival TF1 has partnered with Netflix on its series, Women At War, and Koufane said that the Dark Hearts model worked for both parties for differing reasons, but ultimately enabled shows to be produced more cost-effectively for both.

“More and more [the streamers] are letting us be in charge of the editorial side of projects, because they might not be staffed enough, so they rely on us for artistic development.

“And we work with almost all of them. We do very few projects but the ones we do we try to do authentically with big budgets and so we find these partners can work together. We can go second or first, and it could be three months or six months, or even a year, later”

How broadcasters & streamers are dealing on ‘new terms’

Koufane added that the strategy was not appearing to cannibalise audiences, adding: “We have that flexibilty, and a few years ago there is no way we would have been on those terms.”

The CEE region is also well-placed to attract more coproductions, with lower costs and a soft money available, added Krisztina Gallo, head of co-productions at Paprika Studios, which is in the process of being sold by owner Viaplay.

“It’s a nice moment for Western Europe to turn towards us, now the streaming bubble has burst,” she said, adding that “closing the distance” between creators’ ideas and “what commissioners want” was vital.

Lionsgate alum and coproduction expert Marc Lorber, who was moderating, also pointed to the importance of organisations such as Council of Europe as a way to secure funding.

Alex Traila, programme manager at Council of Europe’s Pilot Programme for Series Co-Productions, highlighted that the first round for his fund has around €3m to invest, with between €250,000 ($270,000) and €500,000 available per coproduction.

“A lot of that, around 75%, is paid at the beginning, because we’re also trying to help with cashflow,” he explained, adding that the first TV series to secure financing will emerge in January.

The move also highlights the importance of series for Council of Europe, which has historically focused on feature films via Eurimages but is now launching the Pilot Programme to support tv series co-productions.

“There are limitations of where the story comes from so you need to have member companies existing in participating countries,” added Traila. “There are currently 13 and these include from this region Croatia, Slovenia, Serbia, North Macedonia, Slovak Republic and Hungary. We’re expecting the family to enlarge with several other countries for the upcoming March 2024 call for projects.”

Nebojša Taraba, producer & partner at Croatia’s Drugi Plan, added that the balance of power has also been shifting over recent years as producers increasingly find themselves able to raise financing for projects.

“The situation has changed, the position of indies now is that we can bring a lot of money to the table. We have organisations like Eurimages, there are cash rebates and tax credits, so suddenly we’re not coming with empty pockets – we can bring more than €3m in many cases.”

Taraba added that he also expects streamers to start coproducing more in Croatia in the short-term.

“They are not producing here yet but we have a 4% investment obligation and they will realise they can coproduce with Croatia’s public service broadcaster [HRT]… so sooner or later they will.”