SUBMISSION 37
Memorandum submitted by Screen South
IS THERE A BRITISH FILM INDUSTRY?
BACKGROUND TO
SCREEN SOUTH
Screen South is one of the nine English regional
screen agencies.
Our mission is to develop a dynamic film and
media industry for the region. Our aims are to develop viable
and sustainable film and media businesses, to develop audiences
and cultural partnerships and to develop and discover regional
talent.
Screen South's activities cover archive of film
and moving image, development of skills and talent, production,
exhibition, distribution, education, film commission and inward
investment. The region we cover is the same as Government Office
for the South East.
Screen South was set up in April 2002 and is
a company limited by guarantee. The company came out of the Film
Council's brief to set up regional screen agencies and as such
we distribute lottery funds, Treasury funds and work with the
Film Council on specific initiatives.
Over the last year 93 organisations and film-makers
have received funding, 320 projects have been presented in person
to Screen South's industry-led panel. Screen South has delivered
free, open access, bi-monthly masterclasses and workshops across
the whole of the region.
We believe that our mission is much greater
than distributing the limited funds available. Our role is to
broker relationships between large companies and small, between
educator and people, between producers and the international markets,
between communities and film-makers. Our aim is to support by
giving "hands up" rather than "hand outs".
We believe in "joined up action".
1. What direct and indirect contribution does
the film industry make to the UK economy?
1.1 Last year, the audio-visual sector in
the South East was estimated in David Powell Associates' report
for the regional Cultural Consortium to be worth £38.5 billion
with film and television representing 4% of this sector group.
The Skillset Census of 2001 notes that film and media in the South
East employ 22,000 people (please see Film Council's response
for the figures on the UK as a whole).
1.2 Britain is an active contributor to
the world film industry. British film producers and British craft
and skills both "in front of" and "behind"
the camera contribute substantially to the global film industry.
The Committee can see how effective we are at training and developing
"stars" with Catherine Zeta Jones, Jude Law, Hugh Grant,
Kate Winslet commanding principle roles in Hollywood movies and
providing international sales potential for British movies. The
list of award wining cinematographers is also substantial.
1.3 With 282 independent companies based
in the Pinewood Shepperton Group there can be little doubt that
Britain also has some of the best technical crews in the business.
John Box, for example, with four statues has won more Oscars for
Production Design than anyone else in the world.
1.4 The indirect benefits of the film industry
are considerable. For example:
1.4.1 Film Making
Of the £500 million to £800 million
spent annually on film production in the UK it has been conservatively
estimated that 30% will stay in the area or region where the film
is shot.
1.4.2 Tourism
The exposure of locations and regions to both
the overseas and national audiences provides promotion of the
UK tourist industry. One in five tourists come to the UK because
of something they have seen in the cinema or on television.[4]
1.4.3 Pride
Each British film, whether it be an international
best seller or a local community documentary, gives us a sense
of pride in our country and a chance to express ourselves. The
Irish Government continues to invest in film because of the cultural
and economic impact of films such as Braveheart and Saving
Private Ryan, (they have also taken advantage of Waking
Ned Devine even though that was filmed on the Isle of Man).
1.4.4 Celebration
Film provides an opportunity to celebrate our
rich diverse culture. Film crosses boundaries that many other
art forms fail to reach.
2. Is it important to seek to preserve a capacity
to make British films about Britain the UK?
2.1 Yes. We know that media is an incredibly
powerful tool. Film is how we explore our issues and concerns,
it is how we create our icons and illustrate contemporary values.
If we allow other countries to dominate the big screen it sends
out the message that we do not value our own people, or our own
stories. In fulfilment of Sir Winston Churchill's prophecy, the
agenda of our young people will predominantly be dictated by North
American films.
2.2 British films can be used to celebrate
our rich heritage, our diversity, our culture, and our identity.
Without the capacity to make films in this country, all of this
would be lost.
2.3 Media affects almost every aspect of
our lives. We need to tell our own stories, or explore the truths,
of our own heroes. Film and media that is not accessible is not
acceptable.
3. What is the relationship between the film
industry and the rest of the creative industries including the
broadcasters?
3.1 The film industry is part of the creative
food chain; the theatrical release of a film works as a marketing
campaign for the film itself including future sales to broadcasters,
video, DVD and any other ancillary merchandising.
3.2 The post-production, special effects
companies, animators, graphic designers etc all work for film
as well as advertising, television, interactive television, specialist
education companies and so on. It is a limiting image to see film
in a separate silo; it is a high profile but integral part of
the audio-visual sector.
3.3 Screen South believes that our role
is to lead on brokering relationships to encourage more cross-fertilisation
and develop clusters (as outlined by the DTI) encouraging teams
to work together.[5]
The successful games company Rebellion owns the rights to the
Judge Dredd comics and is now making feature films. We have introduced
them to potential producing partners with a view to sharing expertise
and spreading risk.[6]
4. What should the relationship be between
British broadcasters and the film industry?
4.1 In order to establish a sustainable
independent film industry it is vital that the industry can predict
certain income streams; these come from sales or pre-sales to
the national broadcasters and from ongoing income generated from
previous films, which now form part of the production company's
library or assets. Other income streams are harder to predict
and hence are the greater risk elements. Therefore it is very
important that there is a good working relationship between the
producers and the broadcasters.
4.2 It is important that the broadcasters
see the producers as their future talent and nurture that talent.
The Film Council could broker this relationship.
4.3 Broadcasters reap the benefit of a good
theatrical release as it raises the profile of the film and helps
to generate the audiences for the television screening.
4.4 Both the film industry and the broadcasters
should take advantage of their interlinked areas of expertise.
An example where synergies could have increased exposure and revenues
is the very successful television film A Very British Marriage
which could have been exploited theatrically to provide a good
marketing platform for the follow through sales. Bend it Like
Beckham, a good but modest British film, has achieved a high
profile through its theatrical release.
4.5 Following on from the Simon Relph report,
a strand of low budget "movie-of-the-week" films, where
the best get a theatrical release, could be the type of collaborative
mechanism to draw the two sectors together.
4.6 In order to encourage sustainability
and to build up the producers' assets, it is necessary that the
producer recover the rights to the film so that they can continue
to exploit them around the world. If the broadcaster retains all
the rights this works as a disincentive to self-sufficiency. This
is a flaw in the current arrangements.
4.7 With the advent of digital technology
there is no longer such a difference in the mechanism of production
between broadcasters and film-makers. It is time to look to the
future to ensure that film works hand in hand with television.
5. Does the film industry merit support from
the Government. If so, how can existing support be improved?
5.1 Yes. In an era that is driven by the
media it is essential to provide access and training to enable
the next generation to have the self-confidence to participate
in their own culture. If it is on the screen we believe it, if
we are on the screen we are validated. Supporting the film industry
to provide a voice for people in the community is value-for-money.
Supporting the film industry to provide access to an alternative
view of the world is value-for-money.
5.2 If we take a hard-nosed commercial view
it provides very good value-for-money. The industry works as a
marketing initiative for UK Plc with film tourism representing
20% of all visitors, and as an inward investment initiative with
30% of all production spend staying in the location of the production.[7]
5.3 We need "street-wise" support
that positively encourages self-sustainability that provides the
training, the market opportunities, the access to commercial finance,
the tools for the professionals. A carefully targeted small sum
of money that allows a producer to access commercial financing
is of greater long-term benefit than a direct production subsidy.
5.4 We need to view the industry as a whole
and strengthen the component parts.
5.5 We need to provide opportunities to
enjoy film anywhere in the UK, to support communities in their
desire for a choice in the films on offer, whether through film
societies, shared venues or specialised screens in multiplexes.
5.6 Existing support can be improved via:
— Simplifying the tax incentives to
increase their efficiency.
— Providing tax relief for capital
investment programmes for exhibitors in order to encourage the
upgrading of existing facilities and to encourage the development
of new facilities for areas with proven need.
— Providing tax relief for distributors
for prints and advertising of British films.
— Using constant analysis to show the
effectiveness of initiatives. Asking the question are we delivering
a sustainable industry and culture? Even culture can be sustainable—for
example, Screen South is currently examining the commercial viability
of archive material in the South East. If we can create a sustainable
and successful business model, which will help support the management,
educational and public access initiatives of archives, this will
then free up monies to place elsewhere.
— Examination of the commercial potential
of each area of activity.
6. How can the production, distribution and
exhibition of British films be improved in the UK? Is the right
balance being struck between these elements of the industry?
6.1 No, the balance has traditionally been
production-led, and not demand-led. We need to provide the right
conditions within which the industry can flourish.
6.2 Demand—Sales and Distribution
We need to:
— Strengthen links with the broadcasters.
To encourage successful companies they need to be able to succeed
in their home market first. Film and television should be working
together for the benefit of Britain.
— Encourage trade missions to our biggest
trading partners, the US and Europe.
— Support distributors in the UK to
raise their game so that they can compete in the UK on an equal
footing with US companies. Provide mentorship, advice training
and access to commercial funds, ie provide the tools.
6.3 Supply—Production
6.3.1 In order to be profitable the product
should be produced at a price that the home market can sustain.
In other words, for the British film industry to be robust, the
average film should be made for a budget that it can recoup in
the UK alone. In this way, the export deals become profit and
the risk is reduced. This does not apply to high end product such
as Bridget Jones' Diary.
6.3.2 There has been a tendency to invest
in production rather than improving the viability of the independent
producer. It is time to focus on the producer by:
— Supporting the capacity of independent
producers to develop a commercial script.
— Supporting the capacity of independent
producers to fully exploit their project.
6.3 Capacity for demand—Exhibition
6.3.1 The exhibitors work on very tight
margins; in order to keep the venues in good condition we need
to encourage and provide investment in upgrading the cinemas and
the equipment.
6.3.2 For the benefit of the community we
need to ensure that there is adequate choice around the whole
country. Screen South is currently piloting a project that may
stimulate a commercial solution. The pilot will work in partnership
with appropriate cinema operators and local communities, use detailed
market intelligence and open avenues to commercial funding in
order to create exhibition facilities.
7. How effectively has the Film Council contributed
to a sustainable film industry since 2000? Does the Council have
the right strategy and approach?
7.1 With the creation of the Film Council
there has emerged a sense of coherence, a national plan. It has
re-focused the agenda and created a debate on "What is the
Film Industry?" as well as providing an ongoing impetus towards
achieving a sustainable, viable film industry.
7.2 The Film Council has begun to look for
real value for money in the cultural sector and to stimulate a
re-evaluation of what we are doing and why.
7.3 The Film Council has begun to focus
on sales and distribution, which is essential for long-term viability.
7.4 It is important that the Film Council
continues to assess the effectiveness of initiatives that it has
launched and continues to develop new initiatives, which feed
into the sustainability of the sector. It is also important that
the Film Council ensures that there is equality of opportunity
throughout the regions—spend per capita figures need to
be examined.
8. What has the Council contributed to education
about and access to the moving image? What should the Council
do with the bfi and the Museum of the Moving Image?
8.1 The bfi is best placed to deliver
national education policy for film and the moving image, with
the point of delivery in the classroom. The Film Council is best
placed to encourage education initiatives, which take place in
the cinema such as National Schools Film Week in collaboration
with Film Education.
8.2 The bfi is best placed to look
after and exploit the National Film Archive, providing a national
strategy on rights and ownership of archive footage. The bfi
needs to continue to develop education packages which enable communities
to learn from their own history by using the power of the images—such
as the sweat of hop-pickers working in the fields, the evacuation
of the children from Guernica to Southampton. These images can
help bring history alive for children throughout the UK.
8.3 The subsidy of the National Film Theatre
should be reviewed; at £12 for each ticket it does not appear
to be value for money. It would be wonderful to share the opportunities
that have traditionally been created by the NFT throughout the
whole of the country.
8.4 The Museum of the Moving Image should
be housed in a central location and funded in line with other
heritage projects. However, if it is developed along the lines
of a more commercial "Universal Studios" rather than
a traditional museum, it could be shown to be an exciting, vibrant
and sustainable asset for Britain.
30 April 2003
4 Observer 27 March 2003. Back
5
Screen South has recently launched the Screen South Studio Cluster
based at Pinewood and Shepperton Studios, supported by SEEDA. Back
6
Screen South took nine film-makers to Los Angeles in February
2003 to present their projects to potential producing partners. Back
7
This therefore equals an inward investment to the value of £150
million to £240 million per year. Back
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