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 investmentsfor example, in cable networks
and multiplex cinemasthat 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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