BUENOS AIRES — Argentina’s government has hiked film subsidies by up to 25% to reflect higher production costs as inflation surges at an annual rate of 10% for a third year.
Incaa, the state film board, upped the maximum amount of subsidies to between 525,000 pesos and 2.5 million pesos ($169,000 to $805,000), depending on the project, in the first rise since August 2004.
“It was needed,” said Diego Dubcovsky, a partner with Daniel Burman in Buenos Aires production house BD Cine.
Salaries of film technicians went up 20% last month, and the actors union is seeking a 100% increase, he said.
“Production costs have gone up 25% over the past two years,” said Dubcovsky, who is in post-production on “Encarnacion,” a $900,000 tale of an aging sex symbol directed by Anahi Berneri (“A Year Without Love”).
Incaa provides some $26 million in credits and subsidies to 60 or so features a year. With the average budget at $1 million-$1.5 million, producers must come up with the rest of the coin elsewhere, often tapping foreign co-producers — a process that can be costly, difficult and time-consuming.