Cinecitta cuts loom
Film czar plans a major restructuring
Blandini, director of the Italo cultural ministry's film department, was appointed Cinecitta Holding topper on Tuesday. The state-run outfit's previous topper, Alessandro Battisti, resigned last week in the wake of Silvio Berlusconi's electoral victory in May.
Cinecitta Holding has debt of some e30 million ($46 million). It oversees state film entity Istituto Luce, ailing theater chain Cineplex and film promo body Filmitalia. It also holds a 25% stake in the partly privatized Cinecitta Studios. The studio, once Fellini's second home, more recently housed the eighth season of 'Big Brother,' produced by Berlusconi's Mediaset.
Blandini said Cinecitta's critical financial condition will require hefty cuts in costs and activities in line with the Berlusconi government's drive to shape up public sector finances.
He intends to sell the debt-ridden Cineplex loop, which comprises nine cinemas across Italy, if any buyers can be found.
The cuts are not expected to have a big impact on Cinecitta Studios, which is breaking even despite fierce competition from Eastern European facilities as well as the strong Euro, which makes shooting there more costly for Hollywood.
But hanging in the balance is the future of Istituto Luce, which produces Italian first works and has a vast film archive, and of Cinecitta Holding's promotional and film restoration activities.
