Bullet Point 6. Financing the UK Entertainment Industry

Bullet Point 6. Financing the UK Entertainment Industry

• 1.
  6. FINANCING THE UK ENTERTAINMENT INDUSTRY
• 2.
  There are anumber of sources of funding for the development and production of films in the UK entertainment industry. The leading agency for funding films is the BFI (British Film Institute) which is a charitable organisation that promotes and preserves film making and television in the UK by providing a source of finance. The BFI was established to encourage the development of film and entertainment and an appreciate the range of British cinema, it’s heritage and history. One method the BFI uses is the National Lottery. The money is used to fund new and established filmmakers and creative documentaries across the UK to produce, develop and complete their projects. Recently the BFI has invested over £26m of Lottery funds per year, not just for the development but also the distribution of films in the UK.
• 3.
  ■ BFI FilmFund – Utilises the National Lottery in majority and minority co- productions ■ BBC Films – finding and developing talent by collaborating with writers and directors in the industry (networking) ■ Film4 – Invest £15m annually into developing and financing films for theatrical release in cinemas and works with partners and other funders (e.g. direct line as a sponsorship) ■ Development funding: BFI Network – supports talent development of new filmmakers with annual budget of £3m BFI methods of financing UK entertainment
• 4.
  Government Involvement https://www.gov.uk/government/news/uk-takes-centre-stage-in-immersive- entertainment-revolution
• 5.
  The creative industries- including film,TV, music, fashion and design, arts, architecture, publishing, advertising, video games and crafts - are an undoubted strength of our economy; indeed, they are at the heart of the nation’s competitive advantage.
• 6.
  UK Creative IndustriesSplit 2016 (£m)
• 7.
  Change in GVA*2010 to 2016 This chart shows the GVA (GrossValue Added) of the Contribution made to the creative industries
• 8.
  Creative industries: SectorDeal 2018 The UK government and the creative industries sector agreed to a deal to help the growth of creative businesses.The deal stated an investment of more than £150 million would be made across the lifecycle of these businesses. This funding would go towards technologies and content e.g. virtual reality, creative skills via career programmes to open up more job opportunities for people of every background and funding creative groups to compete globally. Britain’s creative industries are worth £92 billion and employ 2 million people and are continuously growing fast.The new cultural development fund will also mean cities and towns having access to £20 million to invest in their creative industries. Furthermore the sector deal also meant a plan to create a new London Screen Academy.
• 9.
  The UK’s multi-billionentertainment and media industry is set to grow into one of the largest markets in Europe.The E&M sector is said to be worth £76 billion by 2021 according to PwC’s latest Global entertainment & media outlook. This will make the UK the second largest in the market in Europe after Germany. One of the biggest revenue generator is consumer spending on internet access which should bring in the most revenue from £13bn to £16bn by 2022. Advertising revenue accounts for a quarter of total E&M revenue, along with internet advertising spending growing over the years.
• 10.
  EU INVOLVEMENT ■ TheUK film industry has received £298.4m from EU funding in the past 10 years according to the British Film Institute.This funding went to 1,766 UK projects for cultural programmes and social fund support. ■ The UK organisations that benefitted the most were Artificial Eye, Soda Pictures, Curzon FilmWorld and Northern Ireland Screen Commission. ■ The UK and the EU had collaborated on creative projects and research with France, Germany and Spain being the most important partners.These collaborations helped encourage more investments and stimulated job growth for all participating countries.
• 11.
  EU INVOLVMENT EXAMPLES–THE KING’S SPEECH The UK Film Council invested £1 million inThe King’s Speech and is believed to have a net profit position as high as 34% in the film, which won many BAFTA’S that year. The King’s Speech had already made over $235 million at the box office worldwide before the Oscars. The BFI reinvested the recoupment from the King’s Speech into making more British film, creating jobs and supporting UK businesses.
• 12.
  EU INVOLVEMENT -PADDINGTON Paddington was a British and French venture produced by StudioCanal UK,TF1 Films Production and Heyday Films. The film was released in the UK with a £32.65 million budget. Paddington is the most expensive film produced by the French production company StudioCanal. On its opening weekend in the UK it took in £5.1 million. Paddington was part of the EU’s programme for the audio-visual sector.
• 13.
  EU INVOLVEMENT –THEIRON LADY The Iron Lady is a 2011 British-French biographical Drama based on the life of MargaretThatcher. The UK Film Council gave one of its last large-scale donations toThe Iron Lady which was awarded £1m. This donation was given while the culture secretary at the time announced a disbanding of the body that funds UK films. The Iron Lady had a budget of £8.2 million