The Russian ministry of culture has changed its mind about 5 mln roubles for permission to show movies on a big screen

Russian ministry of culture (MinCult) initially proposed to require 5 mln roubles for permission to distribute movies in Russian cinemas. Hollywood companies would survive it unlike other independent Russian companies, receiving funds for production from Russian state. “5 mln proposal” would exclude from distribution market many Russian companies and distributors, many premiers would be in internet, and the Hollywood would stay a “favorite of big screen”. That was not the purpose of MinCult.

Therefore MinCult proposed to measure the price for permission in percentage from revenues. “The principle, when rich man pays more than small companies and people, who receive lesser, is fairer than one-lump sum.” Russian minister of culture Medinsky likes French model, “when foreign movies make funds for national cinematograph” and the rate imposed on distributors in 12% is more preferred for Russian minister of culture than 5 mln roubles. If the box office of Hollywood blockbuster is more than 100 mln in Russia, the Russian cinematograph can receive much more than 5 mln roubles.

The percentage from each ticket, sold in Russian cinema, is not yet determined, but could be paid in case of foreign movie as well as Russian movie. But revenues accumulated from distribution of Russian movies will be refund to Russian companies through Russian Movie Fund. How it will work is not clear. There were not expressed any idea how to implement it in practice. It is clear the one thing – the Hollywood must pay for the honor to distribute its movies in Russian cinemas on big screen. Usually it means acknowledgement of a good work. But there is a little difference – most part of Russian movies has been funded by Russian state budget.