Select Committee on Culture, Media and Sport Minutes of Evidence


ANNEX 2

  The last major review of the British film industry, the UK Film Policy Review, reported its findings on March 25, 1998. The following month witnessed a further opportunity to consider film policy at the European level at the EU Audiovisual Conference held in Birmingham. At that time, the MPA noted that:

    "Despite accounting for only 15.7% of the EU's population and 14.1% of the EU's GDP, the UK can claim 28% of EU consumer spending on all audiovisual products and services and more than 26% of the EU consumer spending on films alone. Indeed, as measured against GDP, the UK outperforms the rest of the EU in every audiovisual sector, most strikingly in video rental and video retail, less dramatically in cinema, pay-TV and free-TV.

    "The UK accounts for 35% of all multiplex screens in the EU and 30% of all spending on feature film production. 31% of the EU's movie channel subscribers are to be found in the UK, which also boasts the EU's biggest video market and a very healthy broadcast television sector. In recent years, the UK has experienced exceptionally high rates of growth in cinema admissions, satellite and cable penetration and pay-TV subscriptions. Forecasts show that the UK will be a major European winner in digital television.

    "As the UK market has grown, it has become less, not more, dependent upon imported products. British film investment and output figures are at record levels. While British feature films on average perform poorly at the UK box-office, Britain continues to produce a succession of hit movies, of which The Full Monty, Bean and Mrs Brown are the latest examples. As a result, the UK is second only to the USA as a film exporting country, generating five times the level of exports per unit of investment as France. As for television, the UK is among the European territories that are least reliant on imported programs. Only one show in the top 20 to air on the major UK channels in 1996 was foreign in origin. In a week chosen at random, the TV ratings survey published by Broadcast magazine showed that only eight shows in the top 70 were not British. All eight were daytime shows from Australia.

    "Imports nevertheless continue to play an important role, especially in helping to establish new services, for example in pay-TV.

    "Also of great benefit to the UK are imported capital and expertise, with the USA taking a leading investment role in UK cinema, film and video distribution, merchandising, television channels, cable television and visitor attractions. The Motion Picture Association estimates that the US studios made a contribution to the UK audiovisual economy of more than $5 billion in the period 1990-94, while it is well known in the UK investment community that American telecommunications and cable operators have contributed the largest part of the $10 billion so far invested in UK cable. The US commitment to Britain mostly takes the form of long-term investments—for example, in cable networks and multiplex cinemas—that promise sustainable benefits in terms of employment, skills and competitiveness.

    "As for the quality of the culture that is emerging from the UK's booming film and television industries, one has only to look at the verdicts of the world's leading film and television festivals. UK films and film-makers have captured 21% of all Oscars, 18% of major prizes awarded at the Cannes Film Festival and 15% of the prizes awarded at both Berlin and Venice since 1990. British television programs and program-makers dominate all the international awards, capturing 73% of the International Emmys, 32% of the prizes at Montreux and 31% at Monte Carlo since 1990.

    "It is no exaggeration to say that the quality of UK films and television programs is the envy of Europe."

  At the time, we attributed the UK's success to liberal regulation, inward investment, world class technical and craft skills and a great pool of talent. Nothing that has happened in the last five years would significantly change that analysis.

3 March 2003





 
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