A Competing Industry

The U.S vs. The U.KUK Independent Film Industry.

UK Film Industry

• Less funding, less available capital to invest in projects.

• Smaller companies and ownership• Funded by multiple companies.

Film Production in the UK• In 2008, the UK was the eleventh largest producer of films in

the world in terms of the number of films made, and fifth when looking at production spend (behind the USA, Japan, France and Germany).

• In 2008, 111 films (with budgets of £500k+) were produced in whole or part in the UK with a combined UK production spend of over £578 million.

• Inward investment features, mainly involving US studios, accounted for 58% of the total production spend.

• 66 UK domestic films and twenty UK co-productions were made in 2008.

• The median budget for a domestic UK production was £1.7 million in 2008, compared to £17.2 million for Hollywood

The Current Boom

• UK film production experienced a crisis in 2005 and early 2006

• Investment in making of films dropped.• Late 2006 and since, investment returned

because of a new Government policy of tax relief.

Film Tax Relief

• Previously there had been a tax redemption if films were mainly shot in the UK.

• Now it has been revised to allow more over seas filming – making it attractive to make UK films again.

• Result – U.S and more U.K investment, Hollywood Film companies and U.K TV companies.

Film Tax Relief

• The new film tax relief applies to films which spend at least 25% of their budget in the UK

• The incentive is worth up to 20% of production costs for films with budgets up to £20m and up to 16% of production costs for films with budgets of £20m and over.

• Its estimated to have provided £105 million in tax relief in 2008, 40% of the total.

The UK Industry

• We have production companies who are very small compared to Hollywood.

• Working Title and DNA are very successful but can we count them as independent?

Funding

• The British Film Industry needs to be funded in order for it to continue. Who funds it?– Subsidiaries from Hollywood Film Companies.– Television company co-funding

• Research into:• Working Title films• DNA• Warp films– Who are they?– What British films have they made?– Who funds them?

Subsidiaries from Hollywood Film Companies.

• Universal Pictures (Working Title)• Fox Searchlight (DNA Films)

• Both Working Title and DNA Films are ‘invested in’ by Hollywood to distribute their films.

Working Title

• Appearance of being independent but is owned by Universal Pictures, who distribute their films.

Bridget Jones’ Diary FargoThe Big Lebowski Where Art Thou?Atonement

DNA Films

• Secured a distribution deal with Fox Searchlight in 2001.

• 50/50 ownership between The Film Council and Fox

• Prior to the deal they had some success with 28 Day Later but since have had a run of success with The Last King of Scotland, The History Boys, Notes on a Scandal and Slumdog Millionaire.

Television Company CO-Funding

• British films had a boom year later in 2006, largely due to a TV companies’ involvement in production and distribution.– BBC and Ch.4 invested more than they have since

1980s.– BBC films are co-funded with overseas production

companies, usually American.

Successful BBC Funded films

• The Queen 2006 (produced without major Hollywood finance but follows path of making films about English heritage)

• The History Boys (adapted from English Alan Bennett’s play)

• The Wind that Shakes the Barley (directed by critically acclaimed Brit Ken Loach – the antithesis of Hollywood in every way; theme, style, budget)

• All grossed over £3 million in UK and were very successful with international audiences.

TV Funding

• TV and films’ relationship is always changing but at present is healthy.

• Other films part funded by TV are:– Red Road– The Road to Guantanamo– The Last King of Scotland– This is England– Ghosts

I.S Essay

The British Film Industry remains moderately successful. What strategies have been employed to maintain this.

Co-funding (Hollywood deals, Government policy on tax, TV co-funding.)

Use examplesDue Monday. (1-1.5 side only)