Small European Film Markets: Portraits and Comparisons

Poland

In 2022, cinema admissions in Poland reached 41.8 million, marking an 18.8% rise from 2021 but still showing a 31.4% decrease from 2019. In 2022, domestic films accounted for 20.8% of the market share in Poland. The Polish market is expected to grow more slowly compared to the region and the entire world – CAGR (Compound Annual Growth Rate, average annual growth rate) in 2022-2027 is expected to be 10.8% (for the world and the Central and Eastern Europe (CEE) region it is 13 and 11.7% respectively) (KIPA and PWC, 2023).

The Polish market is appealing for global streamers. Poland became Netflix’s CEE hub in 2022. In 2022, Netflix invested €87 million (PLN 400 million) in Polish films and series. Overall, the infusion of capital by global streaming services into the Polish audiovisual sector has significantly increased its competitiveness internationally.

According to the Central Statistical Office’s data, in 2022 a total of 367 films were produced in Poland, including 112 full-length films (of which 71 were intended for cinema premiere) and 255 medium-length and short films – the highest number in 5 years. The budget for the production of cinema and television films increased significantly – by 70.2% – to €149 million (PLN 682.8 million). In 2022 almost one quarter of all feature-length films were the result of international co-productions. About 63% of all films produced in 2022 were feature films, 28% were documentaries, and 9% were animated films.

For about 85% of producers, the greatest barrier to the development of the industry is access to financing. About 80% of producers surveyed experienced problems with financial liquidity. According to producers, the availability of instruments such as working capital credit would contribute to the professionalization of the audiovisual production market in Poland (KIPA and PWC, 2023).

The Polish audiovisual market is dominated by the production of feature and documentary films. Poland is currently responsible for approximately 3.4% of the revenues of the audiovisual production sector in the EU. There are approximately 300 entities on the Polish market conducting related activities directly with the production of films and series. Banks generally do not lend to film productions, do not grant loans guaranteed by funding from the Polish Film Institute or a regional fund, and very rarely grant working capital loans.

Under the Act on Financial Support of Audiovisual Production, a cash rebate system was launched to encourage Polish and international film productions. The mechanism works by offering an indirect tax benefit, entailing a 30% reimbursement of eligible expenses made in Poland. Funds allocated to support audiovisual production come directly from the state budget and are distributed throughout the year until they are depleted. At least 10% of the annual budget is intended to support animated productions. The system is operated by the Polish Film Institute (PFI). Reimbursement is available for feature films, animations, documentaries and series, animated series and documentary series. The return is available for the production of Polish and international co-productions and services provided for foreign productions (line production). The cultural qualification test and minimum spending thresholds apply. Limits per project and applicant apply. A Polish partner or company registered in Poland is required to apply for support.

Poland’s total box office revenue in 2022 amounted to €157.8 million (PLN 725.5 million), marking a 36.5% decline from 2019 (UNIC, 2023). In fourth place according to box office was the Polish romantic comedy Listy do M. 5 (PL 2022) with over 1.4 million tickets sold.

In 2022, there were 532 cinemas. Indoor cinemas provided a total of 1,500 screens. There were 358 indoor cinemas with one or two screens, 104 cineplexes (with 3 to 7 screens) and 61 multiplexes (with 8 or more screens). The multiplexes displayed 48.2% of the total number of screenings, watched by 47.5% of the total audience (Statistics Poland, 2022).

The reports show that cinemas are facing difficult times. The Vue chain in Great Britain (Vue Entertainment owns Multikino in Poland) was taken over by creditors, and the funds that held shares in it were to withdraw from shareholding. There are reports of a decline in ticket sales for romantic comedies, although they have been popular with Polish viewers for years. Animation as a genre is becoming more popular, according to cinema owners.

The PFI conducts regular studies to understand audiences. In a study on cinema audience preferences, over half of the surveyed viewers acknowledged the qualitative diversity of Polish cinema; however, 30% expressed a preference for foreign films over Polish ones (see PFI, 2023). About three-quarters of those using streaming services do so intensively, with a frequency of 2-3 times a week or more. The advantage of streaming is the flexibility it gives: “I watch as much as I want”. In a situation where streaming offers services in the price range of €6.50 to €30 per month, cinema is beginning to be perceived as entertainment that is too expensive. A 2022 study by the PFI showed that the price barrier related to the cost of cinema tickets is becoming the primary reason for not going to the cinema.

According to Statista, Netflix was the leading VoD service in Poland, with 11.1 million users in June 2023. Disney+ and Player followed. The Polish government has announced intentions to launch a streaming platform, often referred to by media as a ‘Polish Netflix’. This service is expected to enable free streaming of publicly supported films and national sports teams’ matches.

There is scant data on the export of Polish films to other markets. Film festival success is the key metric used to analyse the international acclaim of Polish cinema.

The total public support provided by the Polish Film Institute in 2022 was about €43 million (PLN 183.7 million) (Polish Film Institute). The highest share of support was provided for production (PLN 141.1 million or about €32.6 million in 2022). Poland has signed co-production agreements with several countries, among them France, Canada, Israel, New Zealand, and India.

The PFI collects levies from the industry. Global streamers are also required to pay part of their revenue as a contribution to the Polish Film Institute.

Film funding is also accessible through regional funds. For example, the Łódź Film Fund finances up to 50% of the film’s budget (in case of international co-productions – up to 50% of the Polish budget). Films co-financed by the Fund include Agnieszka Holland’s Oscar-nominated In Darkness (PL, DE, CA 2011), as well as Pawel Pawlikowski’s Ida (PL, DK, FR, UK 2013) and Cold War (PL, UK, FR, BE 2018).