We show that photovoltaic fields generated internally in LiNbO3:Fe substrates are capable of efficiently reorienting liquid crystal molecules leading to new concepts of optically addressable light modulators. Using an arrangement consisting of a liquid crystal layer in contact with one or more LiNbO3:Fe photovoltaic substrates, we observe spatial filtering due to self-phase modulation in a planar oriented cell. The LiNbO3:Fe substrates are arranged such that light propagates along the + c axis, allowing a secondary process of power transfer to occur through photorefractive contra-directional two-beam coupling.