The term XR encompasses a wide range of artistic forms, each corresponding to distinct production realities. At the 2026 edition of iMMERSITY<\/a> in Angoul\u00eame, Olivier Fontenay, Head of Digital Creation at the CNC,<\/a> outlined a taxonomy of projects along with the average budgets of those that applied for CNC support in 2024 and 2025: augmented or mixed reality works (average budget around \u20ac800,000), location-based entertainment (LBE) virtual reality (around \u20ac700,000), immersive exhibitions (around \u20ac500,000), full-dome projections (around \u20ac400,000), and standalone VR works (around \u20ac400,000). Installations\u2014based on production and distribution models specific to the digital arts sector\u2014are intentionally excluded from the analysis that follows. These figures immediately raise a key question: who funds these works? A short\u2014and therefore incomplete\u2014answer might fit into three letters: CNC.\u201cIf the CNC were to stop supporting immersive creation, everything would come to a halt overnight,\u201d<\/em>says Mathieu Pradat, producer and founder of La Prairie Productions.<\/a>. Indeed, for several years now, the French institution historically dedicated to cinema has made immersive creation a priority. To understand why, we need to look back. The first support mechanisms for immersive creation date back to 2014, at a time when projects were still funded through so-called \u201cNew Media\u201d channels or through the DICR\u00e9AM<\/a> program, which was more closely aligned with digital arts. Over the years, the \u201cNew Media\u201d framework became \u201cDigital Experiences,\u201d before eventually being renamed the \u201cImmersive Creation Fund.<\/a>\u201d<\/p>\n\n\n\n In budgetary terms, the numbers reflect a clear commitment from the CNC, even if the scale remains modest relative to the CNC as a whole\u2014and to the broader cultural industries. In 2024, the allocated budget was approximately \u20ac3 million. In 2025, the immersive fund increased to \u20ac4.4 million. For 2026, \u20ac4.3 million has already been earmarked. With funding hovering around \u20ac4 million for the past two years, could this represent a plateau for the years ahead? Not necessarily, since these amounts remain tied to the CNC\u2019s overall budget and, indirectly, to cinema attendance levels, which determine the institution\u2019s revenue streams. The CNC is then free to arbitrate how resources are distributed among its various funds. In this regard, current CNC president Ga\u00ebtan Bruel has demonstrated a strong commitment to immersive creation since taking office in 2025<\/a>. That commitment has been visible in his international presence, notably at Venice Immersive<\/a> last year\u2014one of the sector\u2019s flagship events. Concretely, the CNC has structured its support through several production-oriented schemes<\/a>: writing grants (around \u20ac10,000 for authors), pre-production and production funding. These three well-known schemes are complemented by development support and, since January 1st, 2026, by a distribution aid<\/a> scheme\u2014already existing but now open to online immersive works, which in reality concern only a small portion of XR production, as the market remains largely centered on LBE. In pre-production, funding typically ranges between \u20ac30,000 and \u20ac50,000 depending on project scope and ambition. In production, however, the scale shifts: grants can range from \u20ac30,000 to \u20ac120,000. The lower end usually supports experimental artistic proposals led by independent companies often emerging from digital arts and moving into immersive work. At the other end of the spectrum, higher grants support large-scale, multi-user or interactive projects requiring substantial production means (testing, development, production, etc.).<\/p>\n\n\n\n These public subsidies rely on a principle: for every euro granted by the CNC, the producer must secure an equivalent euro from other sources\u2014public funding (local authorities or France T\u00e9l\u00e9visions through its Storylab<\/a>, one of the major producers in France) or private financing. These contributions may come directly from the production company or from third-party partners injecting capital into the project. One example is Vive Arts<\/a>, a division of HTC<\/a>, which in recent years has co-produced experiences such as Playing With Fire<\/a> (Atlas V<\/a>) presented at the Philharmonie, or Versailles: Lost Gardens of the Sun King<\/a> (GEDEON Experiences<\/a>, Small Creative<\/a>). On paper, the model appears virtuous for public authorities: each euro invested mechanically generates an additional euro in the sector. For example, if a work receives \u20ac50,000 in support, the company must secure at least an equivalent amount in private funding. In practice, this rule is more constraining for smaller production companies, which are less able to secure private or self-generated funding. \u201cOne option is to take on debt; another is to move more slowly on a project to allow time for money to come in,\u201d explains Mathieu Pradat. \u201cSome producers have stronger financial resources because they provide paid services for third parties. Conversely, this system disadvantages ambitious independent narrative projects that require time for editorial development. Yet these are arguably the projects most likely to engage audiences in a critical conversation about XR, much like cinema or theatre. The quality of that conversation is one of the conditions for the sector\u2019s economic emancipation.\u201d Producers can nonetheless apply for \u201cfragile work\u201d status, when distribution circuits, shooting conditions, or production constraints create excessive complexity. This exemption then allows the private funding requirement to drop to 20%. <\/p>\n\n\n\n
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<\/figure>\n\n\n\nMultiple Funding Mechanisms <\/strong><\/h2>\n\n\n\n
A reflection is currently underway at the CNC to make access to this exemption easier. A reflection is currently underway at the CNC to make access to this exemption easier. <\/p>\n\n\n\n