ITO news – [Haber] New support for the culture industry

Published on: Monday, May 16, 2022

Article: BARIS CABACI

Increasing competition and the process of transformation in the global market caused countries to diversify their economies. By deploying its power in its creative industries, Turkey also aims to become competitive in this transformation process. In this context, the Ministry of Commerce has put new support centers for the cultural and creative industries on the agenda. The supports will be implemented from the third week of May.

ANNOUNCEMENTED ON ITO

ITO organized a meeting to inform its members about the new support and export incentives for the cultural industry. Speaking at the opening of the meeting, ITO Vice-President Dr. Emphasizing that the cultural and creative industries are important to the Turkish economy, İsrafil Kuralay said: “As ITO, we are working on new projects in the areas of film, television and the creative industries. We are pleased that the Ministry of Commerce has opened a new General Directorate in this area and has supported our industry.”

TARGET $100 BILLION

Orhan Emre Öztelli, General Director of International Service Trade at the Ministry of Commerce, who stated that 9 different sectors were supported as of April, said they renewed their support for Turquality, logistics centers and the culture industry. Öztelli said: “We attach importance to the service sector by the ministry. Through the import of raw materials, the export is realized by giving a certain current account deficit of the product export. Our goal is to achieve this balance with the service sector in the short term. Our new targets in the services sector, where we have a $25 billion surplus by 2021, are a $70 billion surplus by 2022 and $100 billion by 2023.”

According to Duygu Yaygır, Head of Cultural Services and Creative Industries, Duygu Yaygır has provided TL 110 million in support to the content industry since 2012: “We have redefined the formats of series, documentaries, programs and documentaries as films. To benefit from new support film companies must be based in Turkey, on the other hand, companies with foreign partners will be able to benefit from new support and their partnerships.”

DIGITAL ART COMPANIES

Yaygir said that for the first time, Internet content platform companies will be supported: “While we support Internet content platforms based in Turkey, we will also support domestic producers of foreign companies. With the new decision, we have now included digital art in the support. Only digital art companies will be able to take advantage of the Service Sector Competitiveness Enhancement Project (HİSER) in the first place. We will be expanding the scope of HISER in the near future,” he said.

WHO CAN BENEFIT?

Direct Beneficiaries:

* Companies founded at least two years ago

* Those who have a producer certificate from the Ministry of Culture and Tourism

* Those who have a contract stating that they are the distributor of the supported movie

Beneficiaries through collaborative organizations:

* Those on the organisation’s approved list of members

* Those who have the certificate of the cooperation organization

DENSITY IN TARGET MARKETS IN ASIAT

USA, UAE, Thailand, Brazil, China, Indonesia, South Korea, GAC, Russia, Portugal, Japan, Malaysia, Mexico. In the studies that will be carried out in the target countries, the support will be 10 points more.

The main target country in the new period will be India.

3 MINISTRY IN ACTION FOR PIRATED PUBLICATIONS

Speaking at the meeting, Cultural Services and Creative Industries Director Duygu Yaygır said that in addition to financial support, bureaucratic power should be needed to prevent illegal publications. He also stated that a common platform will be established by the Ministry of Culture and Tourism, the Ministry of Foreign Affairs and the Ministry of Commerce, and within this framework, a common fight against piracy will be established in the new period.

INCENTIVES TO INCREASE EXPORTS

Registration and protection abroad:
The costs for the registration and protection of trademarks abroad are 50 percent, with a maximum of 600 thousand TL per year.

Market entry documents:
The cost of the companies associated with the documents established by the Ministry is 50 percent, a maximum of 600 thousand TL per year.

Agency committee:
Cost of agency commissions related to the sale and distribution of productions abroad, at a rate of 50 percent per year.
720 thousand TL / 5 years.

Overseas Unit:
Gross rent and commission expenses of units opened by companies directly or through their foreign companies or branches; 600 thousand TL per unit per year, at a rate of 50 percent for a maximum of 5 units/5 years.

Costs against piracy:
Up to 5 years 50 percent for up to 3 movies (60 percent for animated movies), up to 240 thousand TL per movie.

Dubbing or Subtitle:
2 films per year, maximum 8 foreign languages ​​for the same film, 50 percent (60 percent for animation films), maximum 240 thousand TL per foreign language/5 years.

Advertising, promotion and marketing:
At a rate of 50 percent, the annual maximum is 4.8 million TL/5 years.

Participation in international events:
At a rate of 50 percent, 180 thousand TL/event, 360 thousand TL/prestige event (3 times a year).

Product Placement:
It must be pre-approved at a rate of 50 percent, 1 million 200 thousand TL / year / a month ago. The aid is given to the advertising company, not to the producers.

Film set usage costs:
Pre-approval at the rate of 20 percent, 2 million 400 thousand TL/year, after the rent payment.
30 episodes = 1 movie for series, documentaries and TV shows.

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