The CNC fund (EUR 449 mln budget in 2003) is financed in three parts :

- EUR 322 mln (72 %) come from a tax levied on French TV broadcasters, based on a percentage of their revenues;
- EUR 107 mln (24 %) come from an 11% tax levied on all movie tickets for films released in France (Special Additive Tax or 'TSA');
- EUR 20 mln (4 %) come from a tax levied on video and DVD sales.

All the films released in France, regardless of their nationality, contribute to the Fund and consequently to the financing of French films : with 20 mln tickets sold, “Titanic” contributed EUR 12 mln to the Fund in 1998. In summary, the French film industry operates in a free market economy, in which the French State has an influence on the supply without regulating the demand : all films have unhindered access to the French market.

The Fund managed by the Centre National du Cinéma (600 employees, EUR 20 mln operating costs), is dedicated to different forms of cinematographic activity financing.

- "Fonds de soutien automatique" / automatic subsidy (EUR 146 mln) to the benefit of :
- Feature film production companies : producers are automatically entitled to this subsidy, whose amount is linked to (i) the TSA collected from their last films’ theatrical performance (box-office) and to (ii) the price paid by TV broadcasters for their last films. As with TV film production companies, this subsidy can only be drawn to be invested in the financing of another film. However, the drawing rights may be used in specific circumstances to pay privileged receivables, post-production expenses or other debts.
- Movie theatres companies and Distribution companies.

- "Aides sélectives" (EUR 83 mln)
- Advance on future revenues ("avance sur recettes") is a special Fund, managed by a specific committee consisting of renowned professionals and granted on a project-by-project basis. It is refundable only if the film generates further profit and can also be repaid through the “fonds de soutien” automatically generated. This fund, EUR 22 mln, is divided between several selected projects, each one receiving from EUR 305 thd to EUR 762 thd. The main purpose of this subsidy is to contribute to the financing of less commercially-driven movies (first features, “art et essai” movies… ). This fund can be compared with R&D budgets of industrial firms.
- Other selective subsidies are granted either to production, distribution or movie theatre companies, also on a case-by-case basis and by special committees.

Independent producers are the main beneficiaries of CNC Funds. Only French films and French coproductions (France has signed co-production agreements with most countries except the USA and Japan) can benefit from the system; a US film will contribute to the Fund but a French-American co-production will not benefit from its subsidies.

CNC subsidies   [49.0 Ko]