The French film industry is experiencing a significant downturn, impacting specialized cinema banks that provide financing for productions. According to reports from the Banque de France and industry sources, the number of film productions has dropped by 15% in the first quarter of 2026 compared to the same period in 2025, while cinema attendance fell by 12% over the same timeframe.
This decline has led to an increase in non-performing loans for institutions like Coficiné and Sofica, which are heavily exposed to the sector. The Banque de France noted that the share of bad loans in the cinema financing portfolio rose to 8.5% in early 2026, up from 6.2% a year earlier. Several smaller regional banks have also tightened lending criteria for new film projects.
Industry analysts attribute the slump to changing consumer habits, with streaming services capturing a larger audience share, and to rising production costs. The CNC (Centre national du cinéma) reported that average production costs for French films increased by 8% in 2025, squeezing profit margins.
In response, the French government is considering a support package for the sector, including tax incentives for cinema investments and a fund to guarantee loans for independent productions. However, no final decision has been announced as of May 15, 2026.
