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Speculators betting on movie success.

Market traders who usually speculate on the price of oil or the value of the pound have found something new to bet on - movie releases.


Following US regulatory approval, a new exchange is to begin offering traders the chance to bet on the success of the latest cinematic productions.

Investors will enter into contracts betting on how much money a given film will make in its opening weekend.

But film studios and cinema owners have condemned the idea.

They argue that letting investors bet on whether or not their films are successful could be open to manipulation.

Rival studios could even bet against films in an attempt to sabotage them, some industry figures have argued.

'Popcorn predictions'

But the Commodity Futures Trading Commission has rejected those concerns, saying that box office earnings meet the law's definition of a commodity - meaning that futures contracts can be opened on them.

The Trend Exchange, operated by Veriana Networks, plans to start offering box office futures from August, though the industry is lobbying the US Congress to ban them.

"Takers", a film about a bank-robber starring Matt Dillon that opens in the US on 20 August, is due to be the first release to be speculated on.

Democratic commissioner Bart Chilton warned that "popcorn prediction markets would serve no national public interest".

But investors have defended the plans, pointing out that they could give finance companies a way of reducing the risk of investing in films.

Investors will be able to guard against making a big loss at the box office by betting some money against their film.

The move also signals increasing investor interest in the film industry, with global box office receipts reaching a record $30bn (£20bn) last year.

 

London film centre loses £45m of government funding

A new film centre planned for London's South Bank has lost the £45m funding it was promised by the last government.


It is one of a number of projects and schemes to have their funding withdrawn by the Department for Culture, Media and Sport (DCMS).

The British Film Institute said it had anticipated the cut and was committed to taking the project forward.

Other cuts include £17m earmarked for a Stonehenge visitor centre and £2m a year for library modernisation.

The DCMS says the cuts will result in savings of about £73m.

"We have examined a number of schemes to determine whether they remain a government priority, value for money, and affordable in the current economic climate," said Jeremy Hunt, Secretary of State for Culture, Olympics, Media and Sport.

"This has involved some incredibly difficult decisions."

'Disappointing'

The British Film Institute (BFI) announced plans for a £166m National Film Centre last year, to be built on the site of a car park behind the London Eye.

If built, the building will have five cinema screens with additional space for exhibitions, cultural events and research facilities.

Creative Industries minister Ed Vaizey said it was "obviously disappointing" that "the government can't contribute at present to the BFI Film Centre."


The DCMS cuts will also take £2.5m away from a BFI project to improve digital access to its extensive archive.

But the government said it would still fund the building of a new film store to safeguard the National Film Archive.

The BFI said it was "relieved that vital monies to save the BFI National Collections are secure."

Yet it expressed disquiet that film was "bearing the brunt" of the DCMS measures to reduce spending.

Disappointment

"Over 50% of the department's cuts that have been announced are coming from film," it said in a statement.

"As has been said time and time again, film is a critical component of Britain's future cultural and economic prosperity."

Other casualties include the Find Your Talent scheme that seeked to offer children and young people five hours of culture a week both in and out of school.

Paul Collard, chief executive of Creativity, Culture and Education (CCE), expressed disappointment over the scheme's curtailment, which will result in around £2m being saved.

The pilot scheme, he said, had "already benefited hundreds of thousands of children and young people across the country."

"Culture can transform communities, strengthen families, increase community cohesion and play a significant role in social and economic regeneration," he continued.

"In the longer term, this programme would have yielded important learning about how such impacts can be delivered most effectively."

A Night Less Ordinary - an Arts Council England scheme to encourage more young people to visit the theatre - has also lost funding of around £100,000.

The scheme, launched last year, had made half a million free tickets available to people under the age of 26.

The cuts were part of a number announced on Thursday by various government departments.


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