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UK Film Industry in 2007 - Essay Example

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1. Strengths - Film workers, from the directors, writers, production and camera crew to the actors are all skilled and creative. The studios are well equipped and facilities are up to world standards. Because of this valuable resource, the UK Film Industry in 2004 exported 843 million worth of services, which included 399 million in royalties and 444 million in film production services (The UK Film Economy)…
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UK Film Industry in 2007
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Download file to see previous pages 2. Weaknesses - Funding is the most pressing problem in production. Most companies rely on public funding which is very limited. Distribution as a means to cover costs and acquire profit is not significantly considered. What happens is, initially, rights are often pre-sold in order to get the film made resulting to no proportionate rewards for the producers in the event of a success (Is There a British Film Industry). Thus, UK films may be a success at the box office, but little of the revenue reaches the producer and the net profit is too minimal to re-invest into another production (UK Film Industry Structure). Continuing the cycle is very difficult
3. Opportunities - The opportunity to become the second largest producer of films, after the U.S. is open for the UK Film Industry to take on as a challenge. The chance is there primarily because of the talent pool or the expertise, the technology or the facilities, the English language, the worldwide economic positioning of the country and the inward investment prospects for the Industry.
4. Threats - Film Piracy takes away earnings of producers which hinders production of more movies. Another threat is not keeping up with the Global Market. Policies on Global Distribution to generate funds for production should be highlighted. Otherwise, the Industry will not be able to keep up with other Film Industries.
B. The Exhibition Sector
1. Strengths - Exhibition Facilities are ample and technology used is of high caliber. There are currently over 2,000 cinema screens in the UK as compared with 1,800 in Japan but 4,500 in France (UK Film Industry Structure).
2. Weaknesses - This sector is not getting enough support and encouragement from the government and the public sectors. The role of distribution and exhibition has been given insufficient attention in that there have been times when more interest and a wider availability of British films were more evident in the major cities of other countries, like Paris, than in Britain (Harvey and Dickinson).
3. Opportunities - To gain economic viability, Cinemas need not be biased in favor of foreign films particularly U.S. films, but instead maintain a balance of locally made and foreign films to be shown. This could be realized by more media exposure of locally made films, public education, and government support through incentives.
4. Threats - Film Piracy is again a major threat to the exhibition sector because it lessens theatre or cinema attendance, thus affecting company earnings. Another threat is the total dependence of this sector to foreign movies. If efforts are not made to support the showing of locally made films in cinemas, it could eventually lead to a domination of foreign films and a loss of a national identity in the film industry.


Analysis
There is no doubt that the Film Industry has a great impact on the UK economy. A 2005 Oxford Economic Forecasting Report on the economic contribution of the UK film industry showed that the UK Film Industry in 2004 directly employed 31,000 people and supported a total of 97,500 jobs, contributed 3.1 billion to UK GDP and around 850 million to the Exchequer, put in 800 million to the UK economy via the boost to tourism, and added over 300 million to the turnover of the video/DVD retail and rental ...Download file to see next pagesRead More
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