High film production costs are increasingly forcing production abroad, warns high-profile producer

Denmark’s best known film production company, Zentropa, is facing financial difficulties that have become prevalent in the industry and plans to layoff half its workforce next year.

One of its founders and co-owner, Peter Aalbæk Jensen, has also announced his decision to step aside for the benefit of encouraging new blood in the company.

Zentropa will cut 40 of the 80 workers employed in Denmark in a restructuring move following rising costs of film production in Denmark.

‘I feel like it’s come full circle and Danish film is just as rubbish as when we started Zentropa 17 years ago. Out stories are too complacent and bad and Zentropa will get the best boost of energy if I leave,’ Jensen said.

A Zentropa spokeswoman said Jensen would not be stepping down from his post as chief executive but was planning to focus on Zentropa’s international projects.

The producer said he had stood by passively while production costs rose and was not an effective manager.

‘We can’t afford to be romantic. In Poland I can get a talented videographer for 20,000 kroner a month and he’ll work 10 hours a day. In Denmark, a videographer walked out of a meeting with me because I wouldn’t pay him 32,000 kroner a week.’

Henrik Bo Nielsen, head of the Danish Film Institute (DFI), recognised Jensen’s frustration with rising costs.

‘With falling DVD sales and theft in the form of piracy, it’s difficult to find business models that come together. DFI can’t get involved in employment contract agreements, but it’s clear that with poor earnings, you have to look at the overhead levels,’ he said.