“Poland needs a cinema recovery plan to compensate for box-office losses”
Industry Report: Distribution, Exhibition and Streaming
Marek Bień • Distributor, Gutek Film
Marek Bień, distributor at Gutek Film, tells us about the situation of the Polish distribution market during the Covid challenge
Gutek Film’s Marek Bień tells us about the situation of the Polish market for independent film distribution, which has seen a very impressive growth the past ten years. After the lockdown, the market showed its strength by getting back on his feet, but Poland now faces the second wave of the pandemic, and no one knows what will come next. Gutek Film is hoping to be able to count on the very close relationship it has with its audience.
Cineuropa: Can you tell us about Gutek Film’s line up and financial strategy?
Marek Bień: Gutek Film is mainly focused on European arthouse director driven films. Since 1994, we've introduced Polish audience to works made by many prominent directors. We attach great importance to the quality of the films: they must have a very high artistic attractiveness, and/or deal with important and current social issues. It’s necessary for us to be in line with current reality and to present important voices.
We also want to maintain our financial sustainability through conscious risk management; therefore, we share with our audience films with different box-office potential. First, we buy big titles such as Pedro Almodóvar's Pain and Glory [+see also:
interview: Antonio Banderas
Q&A: Pedro Almodóvar
film profile], or Serial Bad Weddings 2 [+see also:
film profile] by Philippe de Chauveron. The second category would be medium films, such as Portrait of a Lady on Fire [+see also:
interview: Céline Sciamma
film profile] by Céline Sciamma, The Traitor [+see also:
Q&A: Marco Bellocchio
film profile] by Marco Bellocchio, or The House that Jack Built [+see also:
interview: Lars von Trier
film profile] by Lars von Trier. And the last category is that of the smaller films, new discoveries: unknown directors but with something intriguing, some potential that we know how to put out so we can push the film forward. The strategy is to release 14-16 films per year, with this mix of categories.
What is the market like in Poland when it comes to independent distribution?
The Polish film market has been growing and developing very fast in the last few years. It has almost doubled in ten years. That’s in line with the general process in Poland. The economic situation of Polish society has been improving and people want to go to the cinema. The market is growing in terms of admission, in the number of arthouse screens or multiplex cinemas, and in the number of Polish films produced every year, with the support of the Polish Film Institute. This positive process has been visible in every corner of the market for the last ten years. It still has one weakness: it’s quite a big market with no major famous international or regional festival. At the moment, we do have a large number of small festivals, which are crowded, but with limited international impact.
What is the main challenge in this situation?
Before the pandemic outbreak, the market was oversupplied with titles and we had some difficulty getting our films to reach their audience. It also was difficult to book enough screens and good showtimes in cinemas, or to find an appropriate day of release. There were up to 10 premieres every week, sometimes even more! But now, this has totally changed with Covid, and it’s impossible to know what the future will bring.
What was the re-opening of cinemas after lockdown like?
I checked the figures in terms of box-office every week and compared them with the same week a year ago, which was the best year in Polish film industry history, in terms of box-office revenues and admission. Since the re-opening, there has been a steady growth, a positive tendency. We started with -95% in late June / early July (compared to the same week the year before). Week by week, it then got better: -80% in July, -70% in August, -55% early September and -45% the last week of September. Compared to the best year in Poland!
…One of the major Polish distributors decided to release two Polish blockbusters, which significantly helped push the market forward. This trend was moderately optimistic and showed the strength of the market, in a situation where American studios had decided to delay some films and local distributors also postponed the premieres of films with greater potential. Campaigns were limited, the number of seats in cinemas was reduced, and many cinemagoers, especially the elderly, were still afraid to visit cinemas… If there hadn’t be a second wave, we could have expected a further expansion of the market.
Did you release any film during this time?
We were amongst the first distributors to decide to release films when theatres reopened. It was partly as an act of solidarity with the market and partly because we just wanted to start working with new films. We started working on them during the lockdown: the date of release was set and the promotional campaign was ready for launch. We released five films in June, July, August and September (such as The Traitor by Marco Bellocchio, Arab Blues [+see also:
interview: Manele Labidi
film profile] by Manele Labidi, the Islandic film The County [+see also:
interview: Grímur Hákonarson
film profile], by Grímur Hákonarson or the Czech film Charlatan [+see also:
interview: Agnieszka Holland
film profile] by Agnieszka Holland).
It's one thing to decide to release the films, and another to do everything possible to make the release profitable, or at least not to lose too much. We of course adjusted our box-office estimations and P&A expenses to reduce the risk of operation. In most cases, we decided to release films that were supported by Creative Europe. It was a very important, supportive and stabilising element. It allowed us to invest more in the campaign, make the film more visible and book more cinemas across the country, instead of just a few places in big cities.
What do you think should be done to help the sector in this Covid situation?
Many companies were beneficiary of the financial shield introduced by the Polish government during the first wave of the pandemic, but now that we face the second wave, it is far from sufficient, and exhibitors in particular are in need of urgent help. There is a growing need for a cinema recovery plan to compensate for box-office losses. In France it exists, in Poland there is just a chance for the government to introduce a special aid programme dedicated to cinemas and distributors, but the final decisions are not yet available, and neither are the details of the programme... It is very important, because exhibitors are at a crucial point in the whole chain. Many of those cinemas are reaching the limit of the resources they need to continue operating.
Are you planning any further releases now?
It is hard to make plans, with the second wave of the pandemic. Everything changes so rapidly. We don’t know what to expect in the coming months, if there’s going to be a lockdown or not. Basically, we hope to release our films in the coming months, including works with bigger potential by the end of the year, or at the beginning of next year, but the market situation needs to be monitored and release decisions must be kept up to date. We have our line-up, our specific release dates, and we are working on campaigns, but now we are faced with the possibility that some films may be delayed...
What is the repartition of income between the different releases for your films?
The majority of income comes from theatrical distribution, and the second source of income is Pay-TV. Depending of the success of the film in cinemas, the repartition is usually more than 50% of the revenues for theatrical release, and Pay-TV is right behind it. The third source of revenues is revenues from TVOD, but they constitute a small single-digit share in the overall revenues from the exploitation of the film. SVOD really does not exist, it’s at the end of the whole chain as major Polish VOD platforms offers TVOD, while DVD is going down, it’s really just a symbolic part.
What brought you to film distribution?
The love for cinema, of course. In secondary school, and during my economics studies, I visited arthouse cinemas all the time. I had this intense feeling, watching films made by such extraordinary directors such as Fellini or Antonioni… It grew on me. I thought it would be a good idea to mix my passion with my professional life. In the 1990s, the audiovisual industry in Poland was at a very early stage of development and it wasn’t very typical for a person with an economical background to work in the film sector. But I thought I could add something useful and valuable to the company which distributed the films I liked. So I decided to call the company's headquarters directly (emails were not so common then), and it just so happened that Roman Gutek, the owner and founder of the company, answered the phone. We started talking... and soon after I started working there.
What was your biggest success?
There are many examples! We’ve been 25 years in the market: that’s a very long time. I would mention big titles like Amelie by Jean-Pierre Jeunet, Untouchable [+see also:
film profile] by Olivier Nakache and Éric Toledano, or last year it was Parasite by Bong Joon-ho. These are our successes in terms of box-office revenues. 700,000 admissions for Untouchable, that was an outstanding success. But practice has also taught us how uncertain this market is. You can never be sure what the final result of the film will be.
Is there a secret ingredient in this company’s success?
As I said, distribution is always a risky business, and there is often an unknown. We can only predict how the film will do to some extent, approximately. And there are many ingredients in success. I think they lay in our general approach to each film we acquire for theatrical distribution, which could be described as a careful curation of each separate work, an insistent need to share with our audience these precious gems, which we keep in mind at each step of the campaign: during the first launch on local arthouse film festivals, at preview screenings in selected cinemas across the country, when creating original artwork and main communication, when setting up the media coverage and the campaign, etc.
This secret ingredient is just a close relationship with our devoted audience looking for the same content we are interested in. We keep this close dialogue and cinemagoers are attached to our line-up. It was very visible during lockdown: people were interested in our situation, in how they could support cinemas, etc. I don’t know how we could get that without theatrical releases. It wouldn’t work out. And without the theatrical window, we would lose a lot of people who would never know about our new releases. This is why, in the current situation, exhibitors and cinemas are the most important to save for the future.
Did you enjoy reading this article? Please subscribe to our newsletter to receive more stories like this directly in your inbox.