Israel's Film Industry- A Sector Report

Introduction

Israel's film industry provides a solid, busy, vibrant and creative film community which is committed to further developing and encouraging the cooperation with filmmakers from all over the world. The worldwide success of Israeli films is reflected in the increase in co-productions and foreign investments in Israeli films.  Foreign investment in Israeli films increased to $7.5 million in 2008 and made up 40% of the total amount invested in Israeli films.

Israeli films have won international acclaim including 9 Oscar nominations for the best Foreign Language Film category. The esteem in which Israel’s actors, directors, and production crews are held by the global film industry, manifests itself in the host of internationally celebrated feature films made in Israel.

Experienced Producers, Variety of genres

Israel offers foreign filmmakers a full array of production services, including equipment, studios & equipment package deals and boasts some 120 production companies, 10 production studios, and 30 post production facilities.

Israeli production companies have years of experience and are highly proficient at providing both complete and partial production services, including location scouting, production management, equipment, costume design, props, special effects, etc.

Israel's highly trained, multi-lingual technicians & crews have vast experience on international productions shot in Israel and abroad.

Technologically Israel is on par with international film centers globally, with a strong background in computer-generated imagery (CGI), sound post production, special effects, animation, music- mix, and sound design and more. All laboratory work necessary in the filming process can be handled locally, and for CGI through Israel's very own computer graphics imaging studio.

Ideal Location for Filming

Given the country's diverse yet compact geography and clear-blue skies for most of the year it is an ideal location for filming.  From sandy beaches along the verdant coastal plain, to the rolling hills of the Galilee, the snow-capped peak of Mount Hermon, the desolate wasteland of the Dead Sea, and the desert plains and rocky hills of the Negev Israel has it all within a few hours drive. This variety is also reflected in the country’s urban settings and architecture, which reflect a seemingly endless mix of styles and influences from every stage of recorded history, and in its abundantly diverse population with roots in over 100 countries covering Europe, Africa, the Americas, and Asia.

Innovation, Creative breakthroughs

Israel's long-term experience in the software market gives it an edge when it comes to the innovative use of animation techniques. Building on this advantage has boosted the film industry’s pioneering skills in visual effects and mastery in entertainment software resulting in the regular creation of new techniques. In addition, it has also allowed for the creative use of more established technologies, such as the use of Flash technology in the 2009 documentary "Waltz with Bashir."

Supportive Environment

Israeli talent is carefully cultivated through outstanding local cinema and art schools. The department of Visual Communication at Bezalel Academy of Arts and Design has played an important role in nurturing the talent of Israeli animation studios, and alumni from the Sam Spiegel Film & Television School have garnered 220 prizes in international festivals in the 20 years the school has been operating. “Spiegel” has so far been recognized 14 times as the world’s best film school by peer group competition.

A strong public film support system for a wide variety of genres ensures the constant generation of new ideas. The industry is supported by 4 big funds, namely the Israel Film Fund, the Rabinowitz Fund, the New Fund for Cinema and TV and Gesher. These publicly financed organizations help talented Israeli filmmakers bring their vision and creativity to the screen, encourage co-productions with international partners to help promote international cooperation, boost a creative atmosphere, and create better production conditions. Whereas some facilitate in the production of full-length Israeli feature films, others are specifically geared to stimulating the production of documentaries and television productions.

Reduced Production Costs

The Law for the Encouragement of the Production of Films also supports film production in Israel through a framework that offers tax benefits for both Foreign Productions (of films and TV series) as well as Co-Productions (of films only).

In both cases the benefits by law accrue to an Israeli production company that is expected to pass on these benefits to the foreign production company. To qualify for the benefit, the foreign production company needs to have an Israeli company purchase goods and services on its behalf.

For foreign productions: this benefit pertains to films and TV series in which expenditure on goods and services in Israel costs exceed 8 million shekels (approximately $2 million).

For co-productions: between an Israeli production company and a foreign production company, the total production expense in Israel less 85% of the amount of the investment made by the Israeli residents in the film’s budget must be at least 4 million shekels (approximately $1.0 million).

Awards

Recent Israeli feature films include award-winners such as "Lebanon," "Ajami," "Jelly Fish," "The Band’s Visit," "Beaufort," "Lemon Tree," "My Father My Lord" and "Waltz With Bashir."

Over the past few years, Israeli films were selected and screened in more than 200 International Film Festivals and won more than 80 prizes, including: The Golden Globe Award in Hollywood, two times Camera d’Or in the Cannes International Film Festival, and the Best European Actor at the European Film Academy Awards.

For further details please contact: investinisrael@moital.gov.il

December 2009