UK independent film industry at risk of ‘market failure’, says new BFI report

Film and television production in the UK is currently on the rise, reaching $7.6 billion last year.

But the current boom, fueled by streamers and studios, doesn’t mean it’s all good news for local independent films. Indeed, according to a new report, the explosive growth of the UK film industry is having a detrimental effect on the independent film sector, whose viability, he says, is “atrophied to the point of failing in the market”.

The Economic Review of UK Independent Film, conducted by independent research firm Alma Economics and published by the British Film Institute, reflects the harsh realities of the industry.

The analysis argues that the speed and scale of production growth “exacerbated the pressure” on the independent sector, which now simply cannot compete with larger-budget international productions on issues such as dealing with rising costs, production, safety of actors and crew. (an issue highlighted in the recent BFI Skills Review) and even reaching the public.

As well as struggling with rising production costs, the pandemic has also taken a toll on British independent cinema, he said, also seeing a drop in revenue as studios dominate the box office and a decline in home entertainment sales holding back investment. in new features.

In response, the report recommended four potential actions that could help resolve the situation. These include an increase in the film tax exemption, which limits the exemption to films qualifying as “independent”, as well as an extension of the film tax exemption on P&A costs to smaller films and/or UK independent films to make them “more marketable”. The review also proposes introducing a new zero rate of value added tax to “encourage” cinemas to show UK independent films.

Finally, and a proposal that could attract the interest of major players, it suggests increasing the financial contribution of major streaming services to UK independent cinema, asking for a voluntary commitment or a modest contribution to possible funding. They can claim UK film production.

“As a public funder, distributor and exhibitor of UK independent films, we are seeing increasing pressure from all sectors, creating a perfect storm for the industry,” said BFI Chief Executive Ben Roberts. “This review provides important economic evidence and sets out measures as preliminary recommendations that can be defined and modeled with the industry to allow it to thrive and continue.”

Eva Yates, director of BBC Film, added: “As one of the leading funders of British independent films, we are unfortunately not surprised by the findings of this report after so many challenges our industry has faced in recent years. But there is no doubt that talent, skills and ideas are here in the UK and they need protection and support to thrive. We will continue to work hard with partners and producers across the industry to create the best conditions for creativity and sustainability in the independent film industry.”

Faye Ward, producer of Fable Pictures (stones, Stan and Ollie, heavenly rose), said: “I’m not sure we can stones Today or many of our other films and it will be a profound loss. stones It showed an authentic slice of UK life, rarely seen on screen, and was received glowingly at home and abroad. It’s almost impossible to get funding for these independent films, even with a star.”

Mike Elliott, producer at EMU Films (blessing, a small ax, dirty god) said: “Shortage of staff, spiraling salaries, location and supplier costs caused by the rise of broadcasters, combined with agents, funders and government bodies not distinguishing between independent and broadcast projects, are all problems.”