Small European Film Markets: Portraits and Comparisons

Portugal

The Portuguese film market is one of the smallest in Southern Europe. To some extent, the industry can be seen as a milieu: it is a tapestry of SMEs, cultural associations, institutions, and a few international players. The industry has been historically characterized by precariousness, rudimentary conditions, strangled circulation, and underdeveloped marketing. Apart from a few exceptions, film activity (especially feature films) relies almost entirely on state support (along all the steps of the value chain) provided by the Instituto do Cinema e Audiovisual (Portuguese Film Institute) (see: Public Funding). In general, Portugal records low levels of attendance for domestic productions (among the lowest in Europe). The audio-visual sector has seen continuous growth since the 1990s and has been key to co-productions and the professionalization of actors, technicians and other staff.

The most prominent output of the Portuguese film industry is arthouse cinema. Some films and filmmakers have attained a moderate level of international recognition over the years. There is a cash rebate system and incentives for co-productions and shooting of international projects in the country. Policies also include the funding of audience development initiatives, distribution, promotion and exhibition of Portuguese cinema.

  • Lack of engagement from domestic audiences: Portuguese films record low levels of attendance. Turning this situation around and increasing the relevance of Portuguese cinema for audiences are the main challenges for local industry. 

  • Distribution, exhibition and availability are strongly tied to the previous point. The circulation of Portuguese cinema (both within the country and abroad) is difficult and happens usually in narrow exhibition windows and specialized venues/platforms. 

  • Reliance on State funding shapes the modes of production and thus the aesthetics and a great deal of the creative output of Portuguese cinema. Finding alternatives would help the industry stay afloat and provide an attempt for it to become prosperous. 

  • Maximizing co-production potential – capitalizing on the change of production paradigm brought about by SVoD, new business models and the digital revolution are the main challenges and opportunities that Portuguese cinema faces in the upcoming years.

The contemporary Portuguese film industry has been shaped by institutional and legislative developments since 1971 (when Law /71 was published), stemming from deep changes in aesthetics and modes of production brought about by the Portuguese New Cinema movement in the 1960s. Arguably, the most visible facet of Portuguese cinema is its arthouse films and filmmakers (including Pedro Costa, Paulo Branco, Manoel de Oliveira, João César Monteiro, João Canijo, and Miguel Gomes). In parallel, there are also some producers and directors who have resorted to more formulaic approaches to filmmaking in attempts to create films with what they believe to be more popular appeal (including António-Pedro Vasconcelos, Tino Navarro, and Leonel Vieira).

The main challenge has always been finding ways to make film production more systematic, regular and financially autonomous from state support. The legislator expressed this wish as early as the 1980s, but so far it has been neither achieved nor wanted by some filmmakers who wish to operate without the pressure of the market. Another important challenge concerns distribution. The consequences of funding films without the support of proper distribution channels have already been seen, meaning that one-third of the total production from the 1980s never saw the light of a projector. The fact that funding is awarded through public tenders that abide by certain criteria also puts restraints on creativity and has possible implications for the choices and aesthetics of Portuguese cinema. 

Historically there has been a strong relationship between the film and television industries. The public-funded television company RTP is required to produce or co-produce films every year. Private networks, such as SIC and TVI, have been involved since their inception in the early 1990s in film production and co-production, although not to the same extent as RTP. Furthermore, the audiovisual sector (including advertising) is responsible for employing hundreds of actors, filmmakers and technicians, allowing them to continue working and specializing when they are not engaged in film production.

The volume of film production in Portugal has been inconsistent over the years (see Production Volume). During the ‘troika’ intervention, there was a decrease in film production. A similar phenomenon happened during the pandemic years. However, 2022 had an output that surpassed the pre-Covid-19 era, totalling 101 films, according to ICA, of which 47 were feature films. This is a testament to the thriving creativity of the Portuguese film sector. 

There is an old and clear-cut separation in Portugal between arthouse and popular films. Although this has been challenged recently by a handful of directors, this dichotomy still characterizes much of the film production in the country. 

Film production in Portugal is highly dependent on state support, with very few films (especially feature films) being made without funding provided by ICA or RTP. ICA is indeed the national film fund. When looking at an 8-year timespan, the number of public tenders has increased as well as the overall amount of public money distributed by ICA (from €14.7 million in 2014 to €22.9 million in 2022).

Concerning private investment, the numbers and the players are unclear, if and when they exist. However, many Portuguese films have benefitted from co-production schemes and other European incentives, such as EURIMAGES. It should also be mentioned that films with more popular tastes usually incorporate product placement and similar strategies to attract support from private investors. The investment from SVoD providers is still at an early stage so cannot yet be properly assessed.

ICA (the national film fund) has been promoting a tax-rebate initiative to attract film production to Portugal since 2018. Although not traditionally seen as a film-shoot-friendly country, Portugal has managed a turnaround in recent years. This policy was brought about the Portugal Film Commission and several other national film commissions to help prospective producers with logistics, scouting and other tasks throughout the different stages of film production. 

According to an official ICA report, in the first phase of this policy (2018-20209), 48 successful applicants (out of 97) benefitted from a €15.3 million cash rebate; 16 of these projects were Portuguese.

The film distribution and exhibition scene in Portugal has been dominated by international major companies or their local representatives (see Distributor market shares). The largest company is NOS Lusomundo, with a market share of about 60% of admissions (ICA´s Annual Report 2022). Films from the US have historically performed best at the box office. Apart from a few years, films from the US (or other English-speaking countries) have had the predominant market share in distribution and exhibition. In 2022, about 57% of films premiering in Portugal were from the US, accounting for 74.5% of admissions.

Portuguese films have struggled with distribution and circulation for decades. Although the situation has improved in recent years, there is still inconsistency in the number of films made (with ICA support) and the number of films premiered (see: Production volume). There is also a statistical fluctuation, with some years when premieres exceed the number of films produced, probably to compensate and reduce the bottleneck of films waiting for release into the market. This happens with feature films. Additionally, the short film market is almost non-existent and is confined to the film festival milieu.

According to official statistics by ICA and INE, there were 569 screens and 190 cinemas (venues) by the end of 2022. There were 17 multiplexes (venues with 8 screens or more), most in Lisbon and Porto and their outskirts. In total, these 17 multiplexes had 183 screens. In terms of admissions, the market share of those multiplexes was 51.4%. This means that there is a great imbalance between admissions in multiplexes and in other cinemas: around one-third of the number of screens in the country account for more than half of the admissions. 

In terms of SVoD and OTT services, according to the ANACOM annual report, about 42% of Internet users in Portugal used SVoD services, equivalent to 36% of the population. Several platforms from international major providers are available for subscription in the country (Netflix, HBO, Amazon Prime, Disney+, Apple+). There is also FILMIN, a platform that is dedicated to arthouse cinema and platforms from local players, such as OPTO (by broadcasting company SIC) and, notably, RTP Play, a completely free-to-use platform maintained by the national television company. RTP Play does not require registration, subscription or log-in, meaning that it does not profile viewers. The SVoD market has kept expanding since 2015 (ANACOM) and it is fair to say that it is likely to continue to do so. The number of national films and other audiovisual productions on foreign platforms has also increased, meaning that these platforms show promise as displays for domestic creative output. 

In terms of market share, domestic films do not perform well at the box office (see: Admissions and market shares). According to ICA, the market share in terms of the number of films screened reached a five-year peak in 2022, with 13.5%. Concerning admissions, in five years (2018-2022), the best score was 5.6%, in 2022. Apart from a few exceptional years (usually when a single domestic film broke admissions records), low numbers have been consistent since the 1950s (Graça, 2021). 

Recognition (participation, awards and nominations) in film festivals has been key to Portuguese cinema since the 1960s and a major driver that continues to influence aesthetics and thematic choices. Arguably, most productions aspires to be included in the international film festival circuit. In almost 70 years, Portuguese filmmakers have received a handful of major awards at A-list festivals. Moreover, awards attained in high-profile festivals (in tandem with box-office results) are essential to securing ICA funding.

There are several domestic festivals in Portugal. They are small or medium sized; the largest and most important happen in the cities of Lisbon or Porto. There is also considerable diversity among them. While there are generalist festivals (LEFFEST), most adhere to a theme (e.g. Cineeco: ecology), genre (e.g. Fantasporto: fantasy), or strand (e.g. DocLisboa: documentary). Festivals are usually supported by local communities, sometimes with ICA’s help, and are central to the cultural life of the places where they happen. Portuguese film festivals are not particularly relevant to the international film industry, as they do not integrate the industry’s yearly calendar, or attract major attention from foreign press.