Nordic CEO Reveals Secrets to Survive Soaring Costs and Protect Producers

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Rikke Ennis, the CEO of REinvent Studios based in Copenhagen, has been chosen twice for the list of the 500 most impactful business leaders globally within the media industry. She stands out as one of the most market-savvy and visionary figures in the Nordic region.

Rikke Ennis, CEO of REinvent Studios located in Copenhagen, has made it onto a list of 500 globally influential business leaders in the media industry for the second time. She is known as one of the most astute and progressive leaders in the Nordic region.

At Gothenburg’s TV Drama Vision and Nordic Film Market, she and her sales team plan to exhibit prestigious series such as “Pressure Point” starring David Dencik, the Erik Poppe-directed “Quisling”, “Heajastallan – A Sámi’s Wedding”, completed features like “Stranger” and “Second Victims”, works still in production like “The Dance Club” by “Love & Anarchy’s” Lisa Langseth, the Danish/Korean project “Hana Korea”, and the offbeat Finnish debut “The Squirrel”.

Evidence of REinvent’s festival appeal is demonstrated by its latest movie deal for “Beginnings” directed by Jeanette Nordahl, who also worked on “Wildland”, featuring stars Dencik and Trine Dyrholm. This film will have its world premiere at Berlin’s Panorama section. Additionally, “Heajastallan-a Sámi Wedding” and “Vigdís” will make their debuts in the Berlinale Series Market Select.

Reinvent’s festival influence is clear with its recent movie contract for “Beginnings”, a film by Jeanette Nordahl, known for her work on “Wildland”. Starring Dencik and Trine Dyrholm, this movie will have its world premiere at Berlin’s Panorama section. Meanwhile, “Heajastallan-a Sámi Wedding” and “Vigdís” are set to debut in the Berlinale Series Market Select.

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The allure of REinvent’s A-festival is highlighted through its recent film agreement for “Beginnings”, a production directed by Jeanette Nordahl, who previously worked on “Wildland”. Featuring Dencik and Trine Dyrholm, this movie will make its world premiere at Berlin’s Panorama section. Furthermore, “Heajastallan-a Sámi Wedding” and “Vigdís” are scheduled to debut in the Berlinale Series Market Select.

Before heading to Göteborg, Ennis discussed her insights on the current status of the Nordic film and television industry with EbMaster, along with her ideas for surviving as a genuine and scarce independent in this field.

After starting REinvent Studios in 2018, we’ve seen our highs and lows in the television industry, while the movie theater market for films is still struggling due to COVID-19. Can you tell us how REinvent has managed to adjust to these significant market shifts?

Initially in 2018, our aspiration was to establish ourselves as an autonomous mini-production house, supported by three pillars: the sales of Nordic movies and TV shows, production, and funding. Things were running smoothly until the COVID-19 pandemic struck, a significant setback. However, we managed to secure some good fortune when we entered into an exclusive representation deal with SF Studios, which expanded our catalog and allowed us to continue working during these challenging times.

Following the COVID period, the market expanded exponentially, making streaming platforms and broadcasters voracious for content, with opportunities abounding in production and acquisition. We found it relatively effortless to sell first-run or second-window deals. We were thriving in this surge of demand. However, the post-peak TV era struck, fortunately for us, we’re agile like a small speedboat navigating turbulent waters. We can swiftly alter our course when necessary.

Currently, our own production has taken a significant blow, leading us to produce less in-house. Instead, we’re expanding our efforts towards collaborations, co-productions, and leveraging our strengths – nurturing innovative concepts, creating financing structures with broadcasters, streamers, and seeking international funding. Our expertise allows us to quickly devise a financing strategy, particularly for projects that are less likely to get approved. After all, time is equivalent to money.

Regarding sales, there’s been a significant shift. Previously, we would allocate substantial budgets for various series productions, which carried a fair amount of risk. Our strategy has evolved, focusing more on crime dramas and thrillers due to their prime-time compatibility. We do still explore other genres, but without the large budgets. As for films, it largely depends on the director and the overall project package.

This is quite a major shift…

Absolutely, but let’s tread carefully. The trend in the market suggests a shortage of financing. Unlike before when projects were fully or almost entirely funded by streamers and broadcasters respectively, this is no longer the case. Now, we have numerous projects on our desk that are only 60-70% financed, and it’s quite challenging to secure the remaining funding on the market.

Do you feel producers aren’t realistic about their titles’ actual value on the global market?

As a film enthusiast, I’ve often found myself grappling with a peculiar predicament in the industry. It seems that sometimes, producers and commissioners have their own set of preferences when it comes to content creation. The challenge lies in the fact that discussions about funding usually don’t start until well into the development process, which is approximately 1-2 years down the line.

At this point, as a producer, I find myself in a committed relationship with my commissioner, effectively limiting my ability to explore other options. It’s only then that we begin to discuss the financial framework, including budget levels and fees. To ensure a healthier and more open collaboration, it would be beneficial if there was greater transparency about these matters from the outset.

Are production costs still much too high?

Absolutely, let’s break this down:

Firstly, it’s crucial to have a clear direction in the story, or plan, you’re following. However, there are other challenges we face today such as inflation, wars, sustainability, and going green, all of which are important but come at a price. To add to these woes, many people are struggling with bridge financing, which essentially means borrowing money in the short term for a specific project or need. Unfortunately, money is quite costly nowadays, as what used to be 4-5% has risen nearly to 20%. Forgetting this increase in costs when budgeting can lead to significant problems. Lastly, finding financiers who can offer large scale bridge financing is a rare find.

1. Know your plan (story) and where it’s going.
2. Dealing with inflation, wars, sustainability, and environmental issues are all important but costly concerns.
3. Many people are facing difficulties with temporary loans called bridge financing because the interest rates have increased significantly.
4. Neglecting these increased costs when budgeting can lead to trouble.
5. Finding large-scale bridge financiers is challenging.

Is this where producers within integrated groups are in a competitive advantage?

Indeed, it seems that the business trend indicates a process of consolidation, where small-scale production companies may either get acquired or struggle to stay afloat. The issue at hand is the increasing standardization of the market, as larger corporations dominate business activities. This could potentially lead to a reduction in diversity and innovation, since risk-taking might be minimized. In the realm of film, one of the few significant Nordic producers managing to maintain a balance between smaller art films and big commercial productions is Zentropa. However, it’s important to note that they have the backing of Nordisk Film.

The business world is seeing more companies being bought out or struggling, as larger corporations take over. This could mean less diversity and risk-taking in the long run. In movies, Zentropa is one of the few successful Nordic producers that balances small art films with big commercial productions, but they have a bigger company, Nordisk Film, supporting them.

Given your safety net provided by the agreement with the European Investment Fund in 2021, which ensured a €26 million ($26.7 million) guaranteed loan from the E.U., can you share some projects that have been positively impacted and also confirm if this arrangement has been extended or renewed?

We’ve recently rejuvenated ourselves and are thrilled about this development. This has enabled us to back various projects, including NRK’s “Power Play,” TV2 Denmark’s “Oxen,” or C More/TV4’s “Evil.” Currently, we have approximately €27 million ($27.7 million) at our disposal. These funds can compensate for up to 70% of a loss and are crucial for us to venture into new projects. However, they cannot be used for our own productions or co-productions. They serve as a guarantee rather than cash. Consequently, all investments we make come directly from our own resources.

Certainly, having ample funds would be advantageous. In the forthcoming period, it’d be beneficial if the European Union could establish a credit facility for the manufacturing sector. This sector is where many projects are currently faltering.

Do you feel more should be done to protect indie producers?

Absolutely. Top-notch content creators are a precious resource in the industry. They deserve to be valued and treated as valuable assets, just like directors or screenwriters. Compensation during the development phase should be fair, ensuring they can meet their financial obligations too. After all, nobody can thrive if they’re struggling with bills.

Regarding films, you’ve added some art-house productions to enhance your lineup from SF Studios. Is this move partially aimed at counterbalancing SF Studios’ ongoing agreement with Netflix?

Our collaboration with SF Studios is strong and I anticipate its longevity. However, it’s not just about us offering projects; they must align with SF Studios’ interests, specifically their Nordic and local market. Consequently, in addition to licensing some of their films, we’ve expanded our portfolio to appeal more to buyers. Alongside the genre films that are popular, we’ve incorporated festival films and titles from newcomers as well.

For instance, “Stranger” captivated us from the start and we jumped on board early due to its bold narrative set in prehistoric Scandinavia. Another standout example is “Hana Korea”, an exceptional piece of art-house drama about a young North Korean defector navigating life in South Korea while finding love. Reading the script brought tears to my eyes. Similarly, “The Squirrel” offers a unique twist on love stories – imagine a world devoid of real animals, and then a man develops an unlikely friendship with a live squirrel. It’s both charming and innovative. Notably, all three films are backed by leading Nordic production houses.

What is your mid-term strategy? Would you consider expanding into English-language?

Moving forward, our strategy is to maintain a focus on the Nordics while also broadening our scope to include English-speaking regions like Ireland and Scotland. These areas have cultural parallels that we find appealing, such as their distinctive “noir” aesthetic and striking landscapes. We’re currently exploring potential projects in these regions, with exciting developments expected to be revealed soon.

Could you cite some of your flagship series in your 2025 slate?

This year, we’re set to debut five major productions: “Quisling,” a TV2 Norway series that’s been nominated for the Nordic Series Script Award, the drama thriller “Escaping Bolivia,” inspired by real events, and “Reykjavik 112,” an adaptation of Yrsa Sigurdadóttir’s best-selling novel. Filming for both has already been completed. Lastly, let me add that our Danish event series “Oxen Season 2” is currently in the pre-production phase.

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2025-01-28 10:50