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CASS CREATIVES

On Film: the Sequel

A likely end to staggered release windows, the boom in home cinema, video on demand over broadband, plus dealing with the likes of BitTorrent and other sources of illegal file sharing – Cass Creatives looked at strategies the film industry should be taking if it is to survive the next ten years.

This lively debate in December 2005 at the Cass Business School, home of the new Film Business Academy, was chaired by Michael Gubbins, Editor of Screen International, and the panellists were Michael Kuhn, Chairman of Qwerty Films; Anthony Lilley, Managing Director of Magic Lantern and Arvind Ethan David, Managing Director of Slingshot.

The UK is in a unique position to steal a march on the US film industry and establish itself as a major global player, but tax incentives must be structured to enable us to be at the forefront. With all the speakers aware of the iconoclastic powers of new digital platforms, the panellists saw a future filled with opportunity, as well as creative, financial and marketing challenges. Click here for the full event report.

Is there a  British film industry?

The Culture, Media and Sport Committee of the House of Commons conducted an enquiry into the British film industry, between November 2002 and September 2003.

It posed the question 'Is there a British film industry?', and the key areas which suggested themselves for examination were:

1. The industry's contribution to the UK economy
2. the importance of a capacity to make British films about Britain, in Britain
3. the relationship between the film industry and the rest of the creative industries, particularly broadcasters
4. the nature of support for the industry from government
5. the structure and performance of the industry
6. the performance and approach of the UK Film Council and the British Film Institute.

Summary of findings

"There is a British film industry. While there is no acute new crisis – and many underlying strengths – there are longstanding chronic difficulties. Public policy has a role to play in strengthening the industry in order to generate substantial economic rewards and important cultural benefits.

The nature of the British film industry is perhaps not what we would wish it to be. Ideally, we would prefer the main activity to be indigenous production of films about Britain, a substantial proportion of which break out to achieve success in the global market.

However, the reality is that the British film industry does three things:

• The most lucrative is the provision of services for the major Hollywood studios – attracted by UK talent facilities and tax regime to make high-budget and technically demanding motion pictures
• secondly there are indigenous, usually distinctively British, films shot in the UK
• thirdly, there are films shot abroad, under co-production treaties.

Indigenous British film production was described to us as an under-capitalised ‘cottage’ industry based around entrepreneurial individuals driving single-project vehicles. The industry has concentrated on production with insufficient emphasis on distribution. In this scenario, rights are often pre-sold in order to get the film made in the first place; therefore any unexpected success does not reap proportionate rewards to fund further production or support less lucrative but worthwhile output. The UK Film Council and others stressed the crucial importance of finding ways to encourage the distribution of British films – including through the tax regime.

The success of the industry in grappling with these changes is largely in the hands of creative, entrepreneurial and business talent in the private sector. However, there is a range of issues – the maintenance of an attractive tax regime; resources assistance and strategic leadership offered by the UK Film Council; and improvements in training and development – where public policy is involved. These issues are the focus of this Report."

Key specific conclusions and recommendations

• In reviewing the tax regime for film production the Government should assess whether there is a case for the introduction of new terminology to assist the classification of films according to the country of origin, distinguishing cultural content and financial provenance

• The British film industry is an important national, cultural and economic asset with significant further potential. We regard the existing level of tax relief for film production as absolutely essential to the health of the industry

• We recommend that the Government commits to an evolution of Section 48 relief, without further sunset provisions, along the lines proposed by the UK Film Council and the British Screen Advisory Council (publishing the BSAC study for consultation on the detail as soon as possible)

• Increased levels of support for production and exhibition of British films are needed from the public service broadcasters

• The BBC should review its approach and level of commitment to feature film production

• We hope and expect that Ofcom will take meaningful action to improve the relationship between the British film industry and the public service broadcasters to the benefit of the British people’s enjoyment of, and access to, film

• The training and development strategy set out by Skillset and the UK Film Council is an impressive wish-list of welcome developments. We believe that it strikes the right notes, particularly on equal access business skills and cooperation with the industry

• The Government’s key priority should be the speedy and positive resolution of debate over the future of Section 48 tax relief

• The UK Film Council has made a very positive start and must be supported by the DCMS and the Government as a whole so that impetus is not lost. This includes adequate funding for the wide range of tasks with which the Council is charged

• A cohesive approach is needed between those parts of Government that have interests in, or responsibilities for, promoting the British film industry in both its impact as a magnet for inward investment and its role as an important window on Britain and British culture, history and society for the British people and the wider world

• The role of the public service broadcasters in relation to investment in British films and their exhibition should be tackled as a priority

• The UK Film Council should engage actively with the British Film institute to clarify the most effective working relationship for meeting their objectives both shared and complementary

• The BFI set out its dual role as guardian of a physical collection of, in our view, unparalleled importance and as a motivator of new and demanding audiences for the films  that the UK Film Council is determined to encourage in the future. These are both crucial tasks which merit adequate resources and commensurate scrutiny to ensure that effective progress is being made

• The BFI should take the lead within the UK film and TV archive community and champion the whole sector, particularly the regional archives, alongside safeguarding its exemplary reputation amongst international peers. An over-arching national strategy promoting both good curatorship and increasing accessibility should be vigorously pursued.