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After Lithuania regained its independence, the structure, financing and distribution of cinema have changed dramatically. A single Lithuanian film studio as a monopoly that used to keep all creative and production resources together has been replaced by a system of private studios. At present financing of the cinema sector depends on the Lithuanian State budget and investments by private foreign, as well as native investors. Before 2004 the possibilities of local distribution were limited by a relatively low number of newly produced films and strict economic conditions established by key demonstrators of films, i.e. cinema theatres in Lithuania. However, opportunities for international distribution have opened forthe Lithuanian cinema, and have now been used successfully by Lithuanian studios, producing films throughout the entire period of independence. Lithuanian movies have been widely screened or rather have been selected for screening in different and the most outstanding international film festivals by professional experts. Geographical borders for Lithuanian film screening areas have expanded and now can reach the most remotely points in the West and East. This has been determined by particularly high quality of Lithuanian feature films and documentaries, including producers’ interests to strive for widest film possible audience.

The State official policy in the area of cinema is implemented and coordinated by the Ministry of Culture. The Ministry is engaged in preparation of drafts of the laws and other legal acts in the cinema ; distribution of subsidies allocated out of the State budget for film production projects, cinema programs and implementation of control over the use of such subsidies; seeking to ensure that at least one full-length feature film is produced annually; taking care of preparation and continuous training of cinema experts; coordination of preparation and realization of film production projects and cinema programs; coordination of participation in international cinema organizations and programs by respective Lithuanian cinema organizations; initiation and coordination of different cinema events in Lithuania, as well as participation by relevant Lithuanian organizations in international cinema events; and initiation and coordination of programs in relation to copyright protection in the area of film distribution and public screening.

On March 5, 2002, the Law on Cinema was passed, providing public management grounds for cinema, concept of a national film, procedure for production, distribution, public screening and financing of national films, as well as procedure for distribution and public screening of foreign films in Lithuania.

Pursuant to the Law, mentioned earlier, the Cinema Council was established in the end of 2002. The Cinema Council is a collegial, consultancy institution functioning under the Ministry of Culture. The Cinema Council is engaged in analyzing the issues of Lithuanian cinema development and dissemination, cinema programming and film production projects that are financed from the state budget. The Council submits its proposals on the issues described above to the Ministry of Culture, which respectively is in charge of the State policy in the area of cinema.

In March 2003 the Ministry of Culture founded the European MEDIA Program Office to coordinate Lithuania’s participation in the European Community’s programs within the audiovisual sector.

Recent two years were successful, as they marked some increase in both the number of Lithuanian films and the interest figures in Lithuanian movies; both nationally and internationally. In the year 2005 the feature film Forest of the Gods (by Director Algimantas Puipa) was at the very top of the domestic box-office and reached a number of approximately 650,000 cinema audience. It is noteworthy mentioning that apart from being successful at home, all movies produced by Lithuanian filmmakers, and also made in co-production with foreign partners, were welcomed by large audiences at international film festivals, retrospective screenings and forums. From the point of view of the national film policy, this fact is, of course, of fundamental importance, as Lithuanian language and culture has been steadily reaching wider audiences, as a result ofthe international cinema screen. DVDs with Forest of the Gods (by Director Algimantas Puipa) and You am I (by Director Kristijonas Vildžiūnas) have recently been launched, and hopefully, will find their way to the World’s audience.

The year 2005-2006 saw 5 feature films, 24 documentaries, 16 animations and nearly 13 short films released in Lithuania. Only one feature film Diring, produced by a young filmmaker Ignas Miškinis, was made as an entirely Lithuanian production, whereas the others, such as You am I, Forest of the Gods, the Ghetto (by Director Audrius Juzėnas), Seven Invisible Men (by Director Šarūnas Bartas), were made in larger or smaller scale co-productions (mainly with France, Germany, the Netherlands, and Portugal), financed by Lithuanian funds and private sponsors.

Despite of the small number of newly issued films in 2005, Lithuanian cinematography is proud of having received several prestigious cinema awards: the Silver Wolf at the greatest and most prestigious documentary film festival in Europe IDFA; the Golden Dove at the International Documentary Film Competition; the 48th DOK Festival in Leipzig; and the best European documentary nomination for Before Flying Back to the Earth, directed by Arūnas Matelis. In addition, in 2005 two Lithuanian films were invited to participate at the 58th Film Festival in Cannes: these were a feature film Seven Invisible Men (by Šarūnas Bartas) and a documentary Ten Minutes before the Flight of Icarus (by Arūnas Matelis). Šarūnas Bartas’ movie was included into the 37th Directors Fortnight Program, while Arūnas Matelis’ documentary was introduced at the International Critics’ Week among the most influential movie produced in Eastern Europe within the last 15 years.

The year 2006 started successfully with You am I presentation at the 59th Cannes Film Festival in the category: Un Certain Regard. The movie continues its travel around the world, and hopefully it will make a good representation of Lithuanian cinematography, diverse in styles, genres and ideas.