It was in 1999 that digital cinema was introduced in the Philippines but by then, the film industry was already dwindling in numbers. According to the records of the
UP Film Institute, 122 films were produced in the year 1999 and 83 in 2000. In 2002, the number went even lower with having only 92 films then further went down to 80 in 2003. This decline in film production was attributed to the country's economic movement wherein the Philippine Film industry was considered one of the heavily taxed industries in terms of equipment, materials and film stock and the imposition of a 30 percent amusement tax to be paid to the local government and a 12 percent value added tax to the central government. Consequently, the high production costs brought about by the high taxes caused ticket admission to also go up. Thus leading to people opting for a different and cheaper form of entertainment particularly in television. Signs of rebirth of the Philippine cinema arose by way of movies with inspirational themes. In 2002,
Gil Portes released
Mga Munting Tinig (Small Voices
), a subdued movie about a teacher who inspired her students to follow their dreams; the movie also implied improving the country's education system. A year later,
Mark Meily's comedy
Crying Ladies, about three Filipinas working as professional mourners in Manila's
Chinatown but looking for other ways to earn a living, became a huge hit. Also that same year,
Maryo J. de los Reyes made a buzz at various film festivals with
Magnifico, a simple film with universal appeal about a boy trying to help his family survive their hardships. In 2005, the film industry saw the lowest number of films produced with only 50 films that were commercially released. However, the establishment of film festivals
Cinemalaya and
Cinema One Originals which are dedicated to digital films, the addition of
Digital Lokal, a digital section, at the
Cinemanila International Film Festival, and the second offering of the .
.MOV International Digital Film Festival helped save the Philippine Film industry. In 2006 and 2007, Filipino filmmakers started making movies using digital media.
Duda (Doubt) is an example of how a man driven by an idea for a film, against all odds, can succeed in creating a significant statement. Writer/Director Crisaldo Pablo used a cast of friends and some professional actors, and with the use of a
Sony VX-1, a
Hi-8 camcorder, made the first full-length digital movie ever shot in the Philippines. Comments by Cris Pablo and casts in the 'making of' featurette on the DVD demonstrated how much dedication to vision played in this movie.
Donsol, by director
Adolfo Alix, made waves with his debut digital movie about
Donsol, a fishing town and in the opposite, a sanctuary to endangered whale sharks. Other filmmakers of note include
Jeffrey Jeturian and
Auraeus Solito. In 2008, the Philippine movie industry took centerstage at the 6th Edition of the Festival Paris Cinema 2008 in France. About forty Filipino films were shown at the film festival, with Star Cinema's
Caregiver (starring
Sharon Cuneta) and
Ploning (
Judy Ann Santos) as opening films. Filipino actor
Piolo Pascual was invited by Paris Mayor
Delanoe and actress
Charlotte Rampling to grace the occasion. Although Filipino digital films are made in almost no time and with meager budget, they are strongly represented in international film festivals. Numerous works of a new breed of filmmakers had their films seen at the prestigious film festivals around the world like in
Berlin, Cannes, Venice, Vienna and
Rotterdam. with several winning prizes and awards. Among the works included are
Ang Pagdadalaga ni Maximo Oliveros (2005) by
Auraeus Solito,
Kubrador (2006) by
Jeffrey Jeturian,
Todo Todo Teros (2006) by
John Torres,
Endo (2007) by
Jade Castro,
Tribu (2007) by Jim Libiran. In 2007, a Filipino short film entitled
Napapanggap (Pretend) by Debbie Formoso, a recent graduate of MFA Master of Film Art at LMU Loyola Marymount University in Los Angeles, had a successful run in a number of US film festivals. Several other short films, including Pedro "Joaquin" Valdes's
Bulong (Whisper), as well as documentaries, garnered international attention and honors. In order to build up and stimulate the film industry, some Congressmen and Senators recently have authored a number of proposals and legislations pending ratification by the
Philippine Congress. Many of the bills seek to ease the multiple taxes on producers, theater operators and patrons. One of the bills, for instance, proposes to exempt from the 30-percent amusement tax on all locally produced movies classified by regulators as for "general patronage" or "parental guidance-13". Another bill seeks to exempt local producers from the 12-percent value-added tax (VAT) on imported filmmaking raw materials and equipment. In 2010, an eponymous documentary film,
Philippine New Wave: This Is Not a Film Movement, about the most prominent internationally-acclaimed and wildly divergent digital filmmakers from the Philippines answer questions on filmmaking and beyond. == Notable filmmakers and actors ==