In an ever-tougher film world, Central and Eastern Europe rep a splash of blue sky.

Total B.O. takings for E.U. territories there near doubled this decade from Euros 116.4 million ($172.4 million) in 2000 to Euros226.1 million ($334.8 million ) in 2007, per Media Salles stats.

Estonia and Lithuania have the same value as France or Italy in triggering Media Program distribution aid.

“Eastern Europe’s one of the only regions putting up its prices,” said one sales agent in San Sebastian:

“There a new generation of dynamic independent distributors,” echoed Funny Balloons’ Peter Danner.

So shouldn’t the region’s distributors be happy?

Not quite.

10 of them are happy to be in San Sebastian.

This morning, they’ll chew over their markets at a Kursaal panel “European Film Promotion: Up Next!” - a European Film Promotion/San Sebastian Sales Office initiative, sponsored by Variety.

The market cuts multiple ways. There are huge variations in size, and maturity: Poland has 41 multiplexes, and Euros133.7 million (189.6 million) in B.O. last year, Romania two multis, Euros 8.4 million ($12.4 million) B.O., though, says Transilvania Film’s Stefan Bradea, the market should grow slightly this year.

Lithuania sports just one arthouse: the 60-seat Skalvijos Kino Centras, co­run by Greta Akcijonaite.

In Hungary, Cirko Film, co-managed by Linda Potyondi, did very well through August averaging 6,000 admissions on artpics such “4 Months, 3 Weeks, 2 Days” and “Persepolis".

Growth could go several ways, distributors said. One is multiplexing. Michel Drobny’s Continental Film in Slovakia has 30% in Cinemax, with eight multiplexes.

Another growth tactic: regional alliances, building buying muscle, working economies of scale - Katrin Rajasaare at Estonia’s Tallinfilm plans shared distribution with Lithuania and Latvia.

There’s diversification. Bulgaria’s Stefan Kitanov day-jobs as Sofia Festival director; Bradea’s a key player at the Transilvania Festival.

Many distributors look to local cinema: Premysl Martinek, at Czech Republic’s Artcam, will release “Blind Loves;” Drobny has three part-Slovak productions on next year’s slate, including Czech-helmed “Tobruk”; Oskars Killo at Latvia’s SIA Acme Film holds out hope for growth of Latvian film-making.

Ever more, companies are developing event marketing: Artcam connects film­makers and viewers, Cinemax runs niche­film Artmax Days, Kitanov’s Sofia fest is one long marketing event. As is the Ljubljana Festival in Slovenia, programed by distrib Cankarjev Dom’s Natasa Bucar

Kitanov, Drobny, Killo, Bucar, Bradea, Akcijonaite, Duszynski, Martinek and Rajasaare will attend the panel.

If you’re interested in growth markets, however checkered - and who isn’t? - be there.
John HOPEWELL