More Audiences see More Brit Films at the Cinema Whilst Broadcasters Still Fail to Meet Demand for Brit Films on TV

More Audiences see More Brit Films at the Cinema Whilst Broadcasters Still Fail to Meet Demand for Brit Films on TV

LONDON, August 11/PRNewswire/ --

2004 saw the second highest cinema admissions for 32 years with British films accounting for a quarter of the box office (23%), an increase of 49% on 2003, yet terrestrial broadcasters are still failing to show British films on television according to figures published by the UK Film Council today.

The UK Film Council's report - the RSU Statistical Yearbook 2004/5 - gives in-depth analysis of every aspect of the British film industry, from film production and employment to cinema-going.

- The top ten performing UK films worldwide grossed $2,337 million in 2004 compared with $1,167 million in 2003

- UK/US film production collaborations earned over 18% of the box office despite representing only 4% of releases

- The Economic Impact of the UK Screen Industries study found that for every GBP1 invested in film in the English regions, GBP2 was generated

- The film and video industry workforce has risen 46% in the last ten years since 1994 compared with the overall workforce increase of 11% in the UK

- People from minority ethnic groups still made up only 5% of the film production workforce, below the UK all-sectors average of 7% and well below the London workforce average of 24%

- An alarming difference between male and female employees in the industry found that 34% of women earned less than GBP20,000 compared to 18% of men. A similar pattern was evident in the weekly rate paid for feature film work with 41% of women earning less than GBP1000 per week, compared with 30 % of men

- Only 6% of screens were dedicated to 'specialised' (that is non-mainstream) programming, with less than 0.5% showing Asian films. Although, Hindi was the dominant foreign language in terms of the number of releases.

- 169 foreign language films were released in the UK in 2004, 37.5% of total releases - up from 35% 2003.

- Although foreign language films accounted for over one-third of all releases in 2004, they shared under 5% of the total UK box office gross.

- The DVD market also continues to grow apace. The statistics showed that 153 million VHS videos and DVDs rented in 2004.

- 234 million VHS videos and DVDs were sold, with a total market value of GBP2,667 million. 16% were British films.

- DVD sales increased 35% on 2003.

- The total value of the rental and sales market in 2004 was GBP3.1 billion, up 9% on 2003

- Over 60% of households now own a DVD compared to only 45% in 2003.

The report found that not only did British films do well in the UK, the also fared well abroad. They represented almost 11% of releases at the US box office, up from just fewer than 8% in 2003. UK films had a 13.5% share of the French market in 2004 (up from 5% in 2003), rising to a 17% share in Germany (up from 7% in 2003).

But, despite 2237 films receiving more than 2.6 billion viewing instances in 2004, only 5.3% of the total films shown on network television were recent UK films, despite cinema figures showing that people love to see good British films. Foreign language films faired even worse with only 2.7% being shown on terrestrial television. ITV showed no foreign language films the whole year and only 3.3% of the films it screened were recent UK films.

A Culture, Media and Sport Select Committee report published in December 2004 has urged the BBC specifically to improve its involvement in the UK film industry.

The report, entitled A Public BBC, stated, "We recommend the BBC publish a strategy for promoting UK films, and should do so in concert with the UK Film Council. We further believe there is a strong case for a substantial increase in BBC funding for both feature films and short films and in the exhibition of modern UK films."

John Woodward, the UK Film Council's Chief Executive Officer remarking on the latest figures said,

"The demand to see more recent British films at the cinema and on television is clearly stronger than ever. With a large proportion of the British public believing that TV companies should support the British film industry by showing more new UK-made films, it's essential that the BBC should lead the way in giving audiences greater access to new British films on television and invest more heavily in UK film talent."

Alongside statistics showing the current status of British film, a new study analysing the economic impact of the screen industries in the UK has also been conducted by Cambridge Econometrics and Optima on behalf of the UK Film Council and a group of national and regional screen and development agencies. The Economic Impact of the UK Screen Industries study has calculated that the 'economic multiplier' (meaning the amount of money generated from an initial cash injection into a region) is approximately two times the initial spend - i.e. for every GBP1 invested into a region of England, the economic ripple effect through satellite companies and services created GBP2.

Regional screen industries activity with an estimated turnover of close to GBP20 billion in 2002 (GBP3.5 billion of which is directly related to film) is a vital part of the film industry's infrastructure. The report's calculations have been consolidated into a common analytical framework and suitable data for comparing the screen industries with other UK industries. With this data, the film industry is able to place accurate value on the impact of filmmaking and film activity in any given region and truthfully reflect the important value of inward investment.

Turnover of UK screen industries by sector, 2002

Sector Turnover GBPbillion % of total

Television 13.4 68.0 Film 3.5 17.8 Commercials 1.9 9.6 Corporate 0.9 4.6 Total (4 sectors) 19.7 100.0

Source: Cambridge Econometrics/Optima

The RSU Statistical Yearbook 2004/5 showed that the top ten performing UK films worldwide grossed $2,337 million in 2004 compared with $1,167 million 2003. UK/US film production collaborations earned over 18% of the box office despite representing only 4% of releases. This was due mainly to Harry Potter and the Prisoner of Azkaban and Bridget Jones: the Edge of Reason. The much anticipated Harry Potter and the Goblet of Fire is expected to good exceptional business both across the UK and around the world.

Reported employment figures in the British film industry were down on 2003, reflecting the lower level of production activity due to uncertainties surrounding the availability of tax benefits for film production. Although, the film and video industry workforce has risen 46% in the last ten years since 1994 compared with the overall workforce increase of 11% in the UK.

People from minority ethnic groups still made up only 5% of the film production workforce, below the UK all-sectors average of 7% and well below the London workforce average of 24% which is a relevant comparator for the film industry in view of the industry's concentration in London.

The UK Film Council's Equalities Charter, launched on 4 July, is a pledge made by the UK's top companies and organisations including Channel 4, BBC Films, Equity, and Vue Cinemas amongst others to identify and tackle the barriers that lead to exclusion and under-representation in the industry, and to encourage skilled and talented individuals from all communities to progress their careers and remain involved at all levels of the UK film industry.

The income distribution of film production workforce also shows an alarming difference between male and female employees. 34% of women earned less than GBP20,000 compared to 18% of men. A similar pattern was evident in the weekly rate paid for feature film work with 41% of women earning less than GBP1000 per week, compared with 30 % of men. To tackle this problem by increasing opportunities and improving skills training for new entrants and existing industry workers, Skillset and the UK Film Council are investing GBP50 million into A Bigger Future, the five year, UK Film Skills Strategy launched last year.

A Bigger Future will support a range of initiatives including the creation of centres of academic excellence for film in the form of a national network of Screen Academies, the establishment of a new film business academy to raise the level of business, leadership and management skills in the industry, as well as mentoring programmes, and a new industry approvals scheme for film courses.

In 2004, 72% of the UK population said they went to the cinema at least once a year with one in four people going once a month or more.

Only 6% of screens were dedicated to 'specialised' (that is non-mainstream) programming, with less than 0.5% showing Asian films. 169 foreign language films were released in the UK in 2004, 37.5% of total releases - up from 35% 2003. Although foreign language films accounted for over one-third of all releases in 2004, they shared under 5% of the total UK box office gross. Hindi was the dominant foreign language in terms of the number of releases.

To tackle the problem of access to specialised and foreign language films, the UK Film Council's Digital Screen Network - which will be putting special projection equipment into around 200 screens across the UK - will deliver a much wider range of specialised and foreign language films to audiences used to a limited selection of films at their local cinemas. The UK currently has 18 digital screens, double the number in 2003.

The DVD market also continues to grow apace. The statistics showed:

- 153 million VHS videos and DVDs rented in 2004.

- 234 million VHS videos and DVDs were sold, with a total market value of GBP2,667 million. 16% were British films.

- DVD sales increased 35% on 2003.

- The total value of the rental and sales market in 2004 was GBP3.1 billion, up 9% on 2003

- Over 60% of households now own a DVD compared to only 45% in 2003.

For a complete RSU Statistical Yearbook 2004/5 visit: <http://www.ukfilmcouncil.org.uk/statistics/yearbook>

Notes to editors:

As the lead agency for film, the UK Film Council works to stimulate a competitive, successful and vibrant UK film industry and culture, both now and for the future.

For this reason, we use National Lottery support to develop new filmmakers, fund exciting new British films such as Touching the Void and Vera Drake and give audiences the opportunity to see a wider choice of films such as The Motorcycle Diaries and The House of Flying Daggers.

The UK Film Council also helps to promote Britain as a filmmaking location and to raise the profile of British films abroad.

Source: UK Film Council

For a copy of the Economic Multiplier or any further information contact: Ian Thomson/Caroline Nagle, UK Film Council Communications Department, T: +44-(0)20-7861-7901/7508 E: press@ukfilmcouncil.org.uk

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