Select Committee on Culture, Media and Sport Minutes of Evidence


Memorandum submitted by DNA Films

  The British Film industry has always been something of an anomaly. Britain's excellence in film is generally recognised at the production level through our writers, directors, actors and technicians. Yet with the rare exception of a low budget "hit" movie (Four Weddings and a Funeral, Trainspotting, The Full Monty, Billy Elliot), Britain does not have a large enough domestic market to make British movies commercially viable in the home market alone. Fiscal support in terms of subsidies, tax incentive schemes and broadcaster contributions underpin the industry, especially during difficult times, but in order to be self-sufficient, flourish and grow, our small industry must attract international finance, distribution and box office appeal. This fact was reflected in Sir Alan Parker's key-note speech to the industry on the 5 November 2002. He said: "we have to stop worrying about the nationality of money. We want to encourage investment into our film industry from anywhere in the world, without tearing up the roots of cultural film production." He went on to discuss the importance of "maintaining cultural interest" while achieving the Holy Grail of world-wide distribution.

  Only rarely can a British movie compete head-to-head with a "Hollywood movie": namely a blockbuster, a franchise film or a film which attracts a global audience through its A-list star. Generally a British film will only find an international audience if it is well made, works here first and is carefully and skilfully marketed to its target audience (28 Days Later, Bend it Like Beckham, About a Boy).

  For a British company this can only be achieved by having a relationship with a creatively sympathetic distributor with the expertise and ability to distribute films internationally. At DNA, we feel this is the key to the future of our industry—at least in terms of domestic production. Make UK films, and get them properly distributed globally. Apart from the clear commercial imperative, this would also ensure that the different views of Britain in British films are presented in cinemas around the world. As arguably the most powerful of all modern media Britain should be represented in all its diversity (from Notting Hill, Trainspotting to East is East etc) alongside the US, France and the rest.

  In order to build a film business that has real value and can grow there has to be more ambition than just another production company struggling both financially and creatively from one film to another and hoping that each individual film will be a hit. Too often the UK independent producer stands behind a distributor, sales agent and a bank. Although there are one or two strong independent production companies in the UK, most, invariably do not survive. The major, very notable, exception is Working Title which is of course, ultimately owned by Universal, a Hollywood company, which can provide finance and in our opinion just as crucially, world-wide distribution. But most importantly, Working Title is perceived as being a very successful "independent" British company which finds and nurtures the best of British talent to make British movies for audiences world-wide.

  The international sales business is not in good shape and so the UK film industry needs distributor investment more than ever. Look at the list of top grossing UK films (see below), how many would be possible without that kind of investment?

  At DNA we are building a business which produces, and finances an on-going slate of films for world-wide distribution. It's not easy to find the kind of partner who shares both financial and creative objectives and a willingness and belief that British Film can succeed. British films are expensive. The home market is difficult, and often films don't work internationally. Andrew has produced four British films that have grossed over £5 million in the UK. All those films have opened in the UK first. The films have treated the UK as domestic but make financial sense because of their international success. Although the US has never been a huge market for those films, without it they would be doomed, for that opens up all the other international territories. And this is the main point, if we can retain our independence and form a relationship with a company offering world-wide distribution which invests in DNA alongside the Film Council, we are confident we can build a British company that can continue to produce and finance films which benefit the British production, distribution and exhibition economies. Without our financial support from the Film Council we know that this would be impossible to deliver. It is therefore true to say that lottery funding applied in this way has the potential to "create a sustainable business" which was the Council's original objective for the franchises.

  Recently the UK business has suffered several blows including the closure of FilmFour, Granada Film, Sky Films, Mill Film and Signpost. It's time for some good news. There are few places to raise finance and distribution and our proposed plan will be open to all producers to seek funding on a "one stop" and "world-wide distribution deal" basis.

  DNA is building a British business, with British talent through a company incorporated and controlled in Britain, committed to making British films for British and international audiences that have access to a global distribution company.

  We think that is the way forward for our industry.

2 June 2003





 
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