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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