Nordisk drops Norwegian family production

Danish company exits following film financing changes

COLOGNE, Germany -- Danish production company Nordisk Film has shut down its Norwegian division following changes to the country's film subsidy laws.

Nordisk Norway is going ahead with the premiere early next year of its last production -- the sixth in the Junior Olsen Gang franchise -- but has cancelled plans for a seventh installment. The operation was the largest producer of children's and family fare in the Norwegian market.

Nordisk has benefited from Norway's generous support of family-friendly productions. The Norwegian Film Institute used to provide subsidies equal to 100% of film's boxoffice earnings. But Norway's decision to join Europe's co-production convention will cap this support at $1.5 million.

Nordisk has received some $39 million in state subsidies since 2001, more than any other Norwegian production company.