by Split Screen Data Ltd. for German Films November 2013

Market StudyPHILIPPINES

2 GerMaN FILMS – Market Study PHILIPPINES

GENERAL C INEMA STAT IST ICS *

Screens 693 Digital Screens 84 Admissions (millions) 48 Per capita attendance 0.5 Average ticket price (uS$) 3.2 *all figures latest available

RELEASES

2010 2011 2012

Total 149 152 156Filipino 17 24 24US 117 114 114German (100% or majority co-prods) 0 1 2German minority co-prods 1 3 3Other Asian 5 2 4Other European 7 8 8Other 3 3 1Classification is by main producing country. as a result, there is an inevitable overlap between German minority co-productions and other categories.

BOX OFF ICE (in uS$)

Total (millions) 123.9 153.0 158.5Filipino 27.59 35.90 41.04German 100% or majority co-prods - 453,910 3,136,199German 100% or majority co-prods as a % - 0.30 1.98German minority co-productions 22,039,599 585,923 1,460,049German minority co-productions as a % 1.6 0.38 0.92

PHILIPPINES

Language english and Filipino (aka tagalog) are theofficial languages. there are also some 170 local languages, of which Cebuano is the most widely spoken.

Location the republic of the Philippines is made up of7,107 islands in the Western Pacific, divided into three groups: Luzon (on which the capital, Manila, is located), Visayas and Mindanao. the Philippines is separated fromtaiwan by the Luzon Strait to the north; from Vietnam by the South China Sea to the west; from Borneo by the Sulu Sea to the south-west; and from Indonesia by the Celebes Seato the south.

Population 105,720,000Capital Manila (pop 1,660,714)Major cities Quezon City (pop 2,761,171), Caloocan (pop

1,378,856), davao City (pop 1,449,296)Land surface 300,000 square kilometresTime zone PSt (GMt +8)Internet domain .phIDD +63Currency Philippine Peso (PHP)Exchange rate 1PHP = €0.017; €1 = PHP58.63GDP €167.91 billionUnemployment 7.30%

TITLE

2010 TOP 10

tHe tWILIGHt SaGa: eCLIPSe (uS) IrON MaN 2 (uS)CLaSH OF tHe tItaNS (uS)Harry POtter aNd tHe deatHLy HaLLOWS: Part 1 (uk/uS) tOy StOry 3 (uS) tHe karate kId (uS/CHN) PrINCe OF PerSIa: tHe SaNdS OF tIMe (uS)SHrek FOreVer aFter (uS)My aMNeSIa GIrL (PHI)MISS yOu LIke CraZy (PHI)

2010 GERMAN F I LMS (100% or majority co-productions in red)

reSIdeNt eVIL: aFterLIFe (uS/Ger)

2011 TOP 10

traNSFOrMerS: dark OF tHe MOON (uS)tHe uNkaBOGaBLe PrayBeyt BeNJaMIN (PHI)Harry POtter aNd tHe deatHLy HaLLOWS: Part 2 (uk/uS) NO OtHer WOMaN (PHI)tHe tWILIGHt SaGa: BreakING daWN – Part 1 (uS) kuNG Fu PaNda 2 (uS) tHOr (uS) MISSION: IMPOSSIBLe – GHOSt PrOtOCOL (uS) X-MeN: FIrSt CLaSS (uS) PIrateS OF tHe CarIBBeaN: ON StraNGer tIdeS (uS)

2011 GERMAN F I LMS (100% or majority co-productions in red)

uNkNOWN (uS/Ger/uk/Fr) tHe tHree MuSketeerS (Ger/Fr/uk/uS) MÄN SOM Hatar kVINNOr (SWe/Ger/NOr) HaNNa (uS/uk/Ger)

RELEASE DETAILSDISTRIBUTOR

Pioneer Films united International Pictures (Philippines) Warner Bros. Pictures (Philippines) Warner Bros. Pictures (Philippines) Walt disney Studios Motion Pictures PhilippinesSony Pictures releasing PhilippinesWalt disney Studios Motion Pictures Philippines united International Pictures (Philippines)Star CinemaStar Cinema

Pioneer Films

united International Pictures (Philippines) Star Cinema Warner Bros. Pictures (Philippines)Star Cinema Pioneer Films united International Pictures (Philippines) united International Pictures (Philippines) united International Pictures (Philippines) 20th Century Fox (Philippines) Walt disney Studios Motion Pictures Philippines

Warner Bros. Pictures (Philippines)Pioneer FilmsSolar entertainment CorporationSony Pictures releasing Philippines

RELEASE DATE

30.06.10 30.04.10 03.04.1018.11.1017.06.10 11.06.1027.05.10 20.05.1024.11.10 24.02.10

10.09.10

29.06.1126.10.1114.07.11 28.09.11 18.11.1126.05.11 29.04.1115.12.11 02.06.1120.05.11

18.02.1119.10.1130.03.11 28.09.11

BOX OFFICE(US$)

6,317,8826,252,1024,736,0744,688,6203,435,5883,369,4733,357,0133,310,9043,288,3303,183,529

2,039,599

9,770,8187,654,8556,955,6286,522,7015,719,1624,597,6194,027,4053,970,3693,609,4963,584,927

567,820453,910

25,66318,103

GerMaN FILMS – Market Study PHILIPPINES 3

2012 TOP 10

tHe aVeNGerS (uS) tHe tWILIGHt SaGa: BreakING daWN – Part 2 (uS) tHe aMaZING SPIder-MaN (uS) tHe MIStreSS (PHI) tHIS Guy’S IN LOVe WItH u Mare! (PHI) tHe dark kNIGHt rISeS (uS/uk) tHe BOurNe LeGaCy (uS) ÜNOFFICIaLLy yOurS (PHI) SkyFaLL (uS/uk) WratH OF tHe tItaNS (uS)

2012 GERMAN F I LMS (100% or majority co-productions in red)

reSIdeNt eVIL: retrIButION (Ger/CaN) tHe VOW (uS/BrZ/Fr/auS/uk/Ger) CLOud atLaS (Ger/uS) StreetdaNCe 2 (uk/Ger/It) aNONyMOuS (uk/Ger)

SALES AGENTS FOR GERMAN FILMS DISTRIBUTED THEATRICALLY IN THE PHILIPPINES

CLOud atLaS Focus Features InternationalreSIdeNt eVIL: retrIButION Sony Pictures GlobaltHe tHree MuSketeerS Summit entertainment

TELEV IS ION AND V IDEO

the introduction of television into the Philippines occurred gradually between 1955 and 1961, hampered by a lack of locally manufactured tV sets, patchy electricity supplies, limited programming(series were imported from the uS; local stage plays were filmed with a static camera) and, as a result, lack of advertising support. It was entirely private until the launch of a government-ownedchannel, dWGt-tV4, in 1974. during the Marcos martial law era, all stations were placed under army control, and private ownership was only gradually restored between the 1986 revolution andthe mid-1990s, with the government retaining control of one channel and the remainder largely unregulated.

Foreign media ownership is banned by the Filipino constitution, but the model for Philippines tV is undoubtedly american (the country was a colony of the uS until 1946). Cable, digital cable andsatellite services followed the re-privatisation, with most suppliers settling for ‘lifestyle’ programming. Current surveys suggest a total of around 7.2 million tV homes, with 63% of the populationhaving access to tV, placing the Philippines 117th in the world. Cable hook-ups are estimated at about 1 million in the Metro Manila area, but cable is a popular delivery method in the outlyingprovinces such as Mindanao and Visayas, where broadcast signals are weaker.

Walt disney Studios Motion Pictures Philippines Pioneer Films Sony Pictures releasing Philippines Star Cinema Star Cinema Warner Bros. Pictures (Philippines) united International Pictures (Philippines)Star Cinema Sony Pictures releasing PhilippinesWarner Bros. Pictures (Philippines)

Sony Pictures releasing PhilippinesSony Pictures releasing PhilippinesPioneer Films Viva Films Sony Pictures releasing Philippines

25.04.1215.11.1229.06.1212.09.1210.10.1019.07.1208.08.1215.02.1231.10.1229.03.12

12.09.1210.02.12 05.12.1223.05.1226.09.12

14,382,992 8,266,5048,222,817 6,362,1146,082,709 5,309,0124,849,7593,704,457 3,665,7053,394,375

2,991,9451,392,308

144,254 54,59913,142

4 GerMaN FILMS – Market Study PHILIPPINES

GerMaN FILMS – Market Study PHILIPPINES 5

Further generalisation is dangerous, since there is an enormous difference in economic wealth and thus levels of electronic consumption between Metro Manila – the corridor consisting of 12cities and five municipalities situated between the capital and the country’s largest population centre, Quezon City – and the rest of the country. a 2006 survey by Isis International suggestedLatin american telenovelas and Japanese anime to be among the most popular programmes. a survey of the schedules of market leader aBS/CBN (Channel 2) revealed uS style strip programming,with no movies showing. a spot check of several other broadcast channels revealed much the same.

For Metro Manila’s affluent middle class (and to a lesser degree in other areas of the Philippines), part of the basic Sky-tV asia package is available. Of Sky’s movie channels, only Star Moviesand Fox Family Movies are available in the Philippines, while Star Movies Premium is not. On the week surveyed (see below) Star Movies offered a rather lacklustre line-up of four- or five-year-old titles, almost entirely minor Hollywood releases from 2008-2009. another recent addition to the satellite offer, red, shows only asian movies. deutsche Welle is also available, and has aweekly ‘kino’ programme.

Snapsho t : One week’s programming on Star Movies (Philippines) feature films by country of origin*

US 34France 1UK 1

*dates surveyed: 11-17 November 2013

No German film was scheduled.

With VOd still to take off in the Philippines, physical piracy – the counterfeiting and sale of dVds – remains the major threat to intellectual property rights. according to a government report, 8,500‘sacks’ of pirated dVds and Cds with an estimated total value of $37.5 million were seized between January and October 2011. thus, despite strenuous efforts by the Philippines Government todeal with the problem by introducing, since early 2011, very high fines for organised piracy, the country remains on the MPaa ‘Watch’ list. anyone seeking an illegal Philippines download site –usually billed as an ‘exchange’ – will not have far to look.

anyone looking to buy legitimate non-uS, non-tagalog films online, on the other hand, is likely to have a frustrating time. With minimal penetration of the legitimate theatrical market, europeanfilms in general and German ones in particular seem to have little purchase on the Filipino entertainment marketplace.

detailed statistics on the home entertainment market – buying or renting a dVd and/or downloading movies over the country’s limited broadband service – simply do not appear to be available.One trend that suggests itself is that the handheld market may well outstrip the desktop or home-based receiver, with some 98 million mobile phone subscribers (to all intents and purposes,100% of the population), compared with 5.5 million fixed internet subscribers in 2012 (a mere 4.6%).

GENERAL NOTES

the 21st century has not been kind to the Philippines film industry, which has lost over half its market share to Hollywood movies over the past decade, according to a 2012 report by the NationalStatistical Coordination Board. this has, moreover, been a straightforward process of encroachment, with little sense of diversification and a degree of ‘dumbing down’ when it comes to the best-performing movies (episodes of the traNSFOrMerS franchise topped the charts in each of their years of release).

all the same, a casual observer might deduce from the figures – an average of 70-75 Filipino movies produced each year, with 20-25 given a significant theatrical release and an average box-office share of around 22% – that the situation was not too bad for a country with a population of 95 million, many of them living in extreme poverty spread across 7,000 islands linked by notoriously

6 GerMaN FILMS – Market Study PHILIPPINES

dangerous ferry services and speaking a unique language (tagalog). Interestingly, the 20-25 Filipino movies released theatrically each year (mainly comedies, romantic comedies and action films)tend to cluster near the top end of the annual charts, indicating that they still have a degree of audience loyalty – and that they cater for mass, not niche audiences.

Indeed, niche is not really a relevant concept in the Philippines: there appears to be no market for non-mainstream, non-Hollywood and non-tagalog movies, either theatrically, where they accountfor a tiny share of the box office, or (apparently) on tV, dVd and VOd. even Chinese, Indian and Hong kong movies make almost no impact, at any rate on the legitimate market. as for the blackmarket, there are signs that the government has begun to take intellectual property protection seriously, promising stiff penalties for pirate producers and retailers. the campaign was not helpedin January 2012, however, by the arrest of a close aide of President Benigno aquino for buying bootleg dVds.

as it is, only five of the 600 or so films released in the Philippines between 2009 and 2012 were German, and all of those were english-language. the only non-english-language German co-pro-duction released was the first of the MILLeNNIuM movies, which did negligible business. It might, however, be worth noting that the annual Manila International Film Festival, once a heavily sub-sidised bid for international respectability during the Marcos era, is still a significant cultural event in more democratic times. With a potential audience, in Metro Manila, of 11.5 million – over10% of the country and probably 95% of its educated middle class – the festival may well provide Filipino cinephiles with their annual dose of arthouse. Cinemagoing in the Philippines may be indecline, but an arthouse audience of some kind evidently still exists. accessing it is the problem.

Sources: World Bank, tradingeconomics.com, Philippines National Statistical Coordination Board, european audiovisual Observatory, Screen daily, european Film Market, Split Screen data Ltd. Picture credits page 1 and 2: tuBS Philippines on the

globe/wikimedia