To quote Prime Minister Petteri Orpo, we have a good Government Programme. This is because Orpo’s Government Programme recognises the intrinsic value of art and culture. ‘A diverse arts and cultural scene which people hold in high regard is the hallmark of a civilised nation,’ the Programme states. The Government Programme also stresses that growth in the cultural sector supports the whole society, strengthening its well-being, creativity and sustainability.
Indeed, it should be borne in mind that culture is not just an item of expenditure that needs funding, but rather an important economic activity and a source of growth. A study commissioned by KULTA ry in 2021 found that €1.3 billion in Government support for the cultural sector generates a return of €14 billion. And in fact, it is the citizens — the market — where most of the funding for culture comes from: in 2023, households spent as much as €4.5 billion of their own money on culture. Among the various cultural industries, the audiovisual industry is easily accessible nationwide through TV, streaming services and cinemas.
A few weeks ago, Risto Murto’s Room for Growth working group set up by the Prime Minister listed a number of ways to bring growth to Finland, but the report did not take into account the potential of the creative industry. At AVEK, we are now in our 38th year of enabling the growth of audiovisual culture, so I feel that it is important to bring these means into the debate.
AVEK enables new projects, international financing and the employment capacity of domestic production companies
AVEK has always listened closely to the audiovisual industry and its needs, reacting quickly to changing needs. We support creators, new ways of doing things and a diverse audiovisual industry.
In our survey in 2024, production companies that had received support from AVEK stressed the crucial importance of our support for the production of their works and, in some cases, for their entire operations. Around half of the respondents specifically mentioned that our grant was a precondition for the project to happen. Therefore, AVEK is important for the creation of content, but our activities also have an impact in terms of access to other funding, internationalisation and employment capacity.
Below, I will outline how AVEK’s actions are contributing to growth in the audiovisual industry:
- AVEK is a catalyst for contentWe support the development of audiovisual content — the foundation on which audiovisual productions are built. AVEK particularly supports audiovisual productions in their early stages. Early support is important for two reasons. Firstly, it facilitates the development of many new projects: the multitude of works from which the stars emerge. On the other hand, support in the early stages also allows for effective acquisition of further funding and distribution.In the audiovisual industry, the product is financed in advance, meaning that well-developed content has a better chance of being realised. This need is also met by the Kehittämö programme, jointly funded by AVEK and the Finnish Cultural Foundation, which provides new authors and their first feature-length audiovisual works with both financial support and mentoring at an international level.
- AVEK grants enable access to other funding in Finland and internationallyAVEK’s grants help secure other funding. Of the production companies that responded to our survey, 94% had received non-public funding for their productions. The median amount of this funding was €77,500. Almost 90% of the companies said that AVEK’s support had helped them acquire this funding.Our grants allow the recipients to develop their content to the point where it can be presented internationally. Our precisely targeted support for international promotion brings filmmakers to foreign funding platforms, opening up opportunities for international sales and co-productions, for example. Indeed, our support promotes the international financing, visibility and distribution of domestic film productions.
- AVEK grants create jobsAVEK has supported the production of around 140 audiovisual works each year. According to our survey, a single work grant employs 7.7 people and generates a total of 83 working days. Indeed, the total estimated annual employment impact of our grants is 1,077 people and 57 person-years.In addition to this, audiovisual productions also indirectly employ workers in other industries, such as logistics, accommodation and catering, during the filming phase. So as the audiovisual industry grows, it also brings additional income to other industries, often across a wide geographical area. The tourism industry is one of the beneficiaries of the growth of the audiovisual industry.
The employment impact of AVEK’s grants and the private funding obtained for the works are important for society, as the state will receive its share in them through tax withholding, pension and indirect wage costs as well as value-added tax on goods and services purchased by productions. This means that as much as 40% of the grants distributed will return to the state.
An investment in AVEK is an investment in the growth of the domestic audiovisual industry
The film and audiovisual industry accounts for a significant share of the creative economy, around €1.27 billion. The audiovisual industry also has vast potential for growth. My colleague Laura Kuulasmaa from APFI brought this up at Luovat ry’s growth panel in early March.
Between 2016 and 2021, the audiovisual industry grew by more than 40%, largely due to the introduction of the audiovisual production incentive and increased competition. However, this growth was stalled first by the COVID-19 pandemic and then by the changes in the ways of distribution and presentation, which shook the industry worldwide.
Kuulasmaa pointed out that the industry needs financial instruments that take into account the size of the companies in the industry and its natural, networked way of operating. AVEK is precisely such an operator. We may be small, but we are much more significant than our size would suggest.
By halving the source of our grants, the compensation for private copying, in 2025, the Government also slashed the source of growth in the audiovisual industry. This mistake can still be corrected, and the Government’s spending limits session in April is a good place to do just that.
– Ulla Simonen, Director of AVEK