UK Film Council - Digital Innovation

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UK Film:Digital innovation

and creativeexcellencePolicy and unding priorities

April 2010 to March 2013


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November 2009

Our role

The UK Film Council is the Government-backed lead agency or flm in the UK,ensuring that the economic, cultural andeducational aspects o flm are eectively

represented at home and abroad.

The Board o Directors, appointed by theSecretary o State or Culture, Media andSport, oversees the work o the UK FilmCouncil and provides advice to Governmenton flm.

We want to ensure that there are no barriersto accessing our publications. I you, or

someone you know, would like a large printBraille disc or audiotape version o UK Film:Digital innovation and creative excellence,please contact:

Communications DepartmentUK Film Council10 Little Portland StreetLondonW1W 7JG

Email: [email protected]: +44 (0) 20 7861 7884Fax: +44 (0) 20 7861 7863

Contents

01 Chie Executive Ofcers oreword

04 Executive summary

05 Where we are now

06 The last three years

11 The next three years

18 Funding our uture priorities

20 The risks we ace

21 How we work

23 Your views

24 Glossary


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Audiences Talent Industry Culture 01

Our mission

To ensure that UK audiences can enjoy greatlms. We do this by:

Celebrating and safeguarding our

lm culture Assisting our lm industry

Nurturing our lm talent

Our strategic objective or thenext three years

To help ensure a successful transition into thedigital age for UK lm.

Our six core activities

Supporting British lms and lmmakers

Nurturing skills and creative talent

Encouraging innovation for the digital age

Improving access to lms for UK audiences

Conserving and making accessible the UKsarchival heritage

Providing opportunities to learn about lm

The UK Film Council will be ten in 2010.No doubt about it since our creation,the landscape or flm in the UK haschanged or the better.

Gone are the hotchpotch of lm funding

organisations, the dearth of specialised lmsshown outside London, and the lack of arobust champion for the whole sector.

And although much has been achieved, it ismore important in this period of enormouschange to ensure we are doing everythingwe can to help the lm sector to meet thechallenges ahead.

Culturally and commercially, British lmis riding high at the moment. Rapidtechnological advances, a richer variety oflms and a massive increase in the number ofopportunities for people to get involved arebringing about the welcome democratisationof both lmmaking and lm culture.

The UK also has a very successful lmindustry, which in 2008 turned over in

excess of 6 billion, contributed more than4 billion to UK GDP, supported over 35,000jobs, and scooped 32 major lm awards.Cinema audiences in the UK climbed to 164million in 2008, while in 2009 inwardinvestment in the UK is at an all-time high,testament to the underlying quality of theUK lm industry and the skills of those whowork in it.

But as we look to set our priorities for thenext three years, we can see huge challengesahead, particularly for independent lmmakersand companies so the need for an effectivevoice for lm has never been stronger. Digitaltechnology is opening up massive newpossibilities, yet the existing business modelsfor lm nancing and distribution are nowundergoing radical change.

Chief Executive Ofcers

foreword

UK Film: Digital innovation and creative excellence


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Chie Executive Ofcers orewordcontinued

At a time when many traditional sources ofprivate sector nance are diminishing andpublic funding is reducing, rst and foremostwe believe that we have an overriding dutyto continue to support creative excellenceand to protect investment in new British

lmmaking talent. The commercial environmentis becoming ever more risk-averse, so thereality is that we will need to take more risks.But in doing so, we need to maintain distinctpoints of decision-making for funding whererst- and second-time lmmakers inparticular can receive support.

Alongside supporting creative excellence wealso need to help drive innovation in the art

and business of lm, to take full advantageof the emerging benets of the digital age.

But we must do all this against the backdropof a fragmented UK lm sector, comprisedmainly of small companies, and at a momentwhen the UK Film Council is facing signicantbudget cuts. The UK Film Council must ndsavings of 25 million over the next threeyears. Which means that tough decisionshave to be made from the outset.

At a time of falling public spending it mustbe right to ensure that investment in newlm activity is protected as much as possible.Administrative and bureaucratic costs aretherefore the rst place we must look forsavings. So we are already taking steps toreduce our overheads and administrationcosts by 20%, or 2.2 million a year. TheUK Film Council has already run on a cappedoverhead for ve years but we must nowcut deeper again in order to push as muchmoney as we can into front-line activity.

In addition, we are proposing to make twosignicant changes in our activity.

First, a single unied lm production fundwith multiple points of entry, focused on

the pursuit of creative excellence and with adistinct emphasis on rst- and second-timelmmakers. We also expect this new fund tohave a strong set of working relationships

with other UK national and regional publiclm funds and to be active in supportingfeature lms, lm talent, short lms andscript development.

Not withstanding the success of the lm tax

relief, what cannot be put at risk is targetedsupport for the development and productionof high-quality, distinctive and originalBritish lms. By creating a well-fundeddevelopment and production departmentto support lmmakers, were underliningour commitment to protect independentproduction in these tough times and topromote emerging British voices as well asthe very best of our established lm talent.

Second, we also want to create a newbroad-based innovation fund, tasked withhelping UK lm companies across the valuechain make the successful transition intothe digital age. The proposed innovationfund will identify new business opportunitieswhere technology and innovation can helpprovide nancial support for innovative lmorganisations looking to develop newbusiness models.

Together, these two funds characteriseour approach for the next three years: tosupport the move into the digital age andto champion the very best of UK lm talent.

Central to this mission is our undiminishedpassion for ensuring audiences across theUK have access to a wide range of lms.

Although much work remains, here too thestory in recent years is one of real progress.

Weve funded over 200 lm societies andindependent cinemas, benetingcommunities from the Isle of Skye toChristchurch; set up the worlds rst DigitalScreen Network, giving UK audiences thechance to enjoy a broad range of lms thatthey would not otherwise have been able to

see; supported lm festivals across the UK;sponsored the pilot and now the currentrollout of FILMCLUB to thousands of schools,introducing new generations of children to


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the best of British and international cinema;encouraged diversity and delivered educationthrough partnerships with the nations andregions; given over 20,000 young people theopportunity to get involved in lmmakingthrough First Light Movies and Mediabox; in

partnership with Skillset invested signicantlyin lm skills to enable nearly 7,000 individualsto benet and further their careers; andhelped launch the careers of some of the bestBritish voices working today, lmmakers whohave gone on to win Oscars, Palmes dOrand BAFTAs.

And of course the UK Film Council fundsthe BFI, to support the conservation of the

UKs lm heritage and to improve access tolm culture in the UK. The announcementin October 2009 of a 45 million grant fora new National Film Centre, alongside25 million for the Screen Heritage strategy,is a prize we have been chasing for ve years.Its a key milestone on the road to securingthe national archive collection, transformingthe cultural offering to UK citizens in the

digital age, and opening up all the lmtreasures the BFI holds for the benet ofeveryone. Clearly the next few years will becrucial as the BFI builds on this big publicsector grant with donations from othersources in order to complete the nancingof the Film Centre project but a good planand the bedrock funding are now in place.

The UK Film Council puts equal emphasis on

its cultural activity and its work at the sharpend of the UK lm industry. Both representthe two sides of the same coin. Thats whyour Board is keen to help deliver the DCMSsproposed UK Film Council/BFI merger.The aim is to create one organisation whichwill deliver even more for UK audiences andfor the industry.

But you wont nd very much about theproposed merger in UK Film: Digitalinnovation and creative excellence. And thatshow it should be. First, the merger talks willtake time yet to reach any conclusion.Second, regardless of whether any merger

goes ahead, as the key public funder of alltypes of lm activity, the UK Film Council hasa responsibility now to balance its books andto ensure its priorities are right for thechallenges ahead.

If, as envisaged by Government, a mergeris nalised, then of course we may need torevisit parts of our plan and aspects of ourfunding, not least to look at further ways

of driving additional savings and freeingup more money for new activities.

But UK Film: Digital innovation and creativeexcellence is not a holding document itcontains a clear and deliverable plan and setsout how the UK Film Council will continue tosupport our lmmakers, celebrate our lmculture and nurture our lm talent at a timewhen public nances are likely to besqueezed as never before.

I have no doubt that UK lm is set to prosperin the digital age and when we look back,Im equally sure that we will be able to saythat the UK Film Council helped make areal difference.

John WoodwardChief Executive Ofcer


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04 UK Film Council


Although many of our proposed prioritiesset out in this document are as importanttoday as they were three years ago, we arenevertheless proposing the most signicantrevision of our activities since we started workin 2000. And for the rst time we are forced

to make cuts in our overall expenditure.

The reasons for this re-think are obvious butare worth rehearsing here:

The economic downturn and its effect onlm nancing and public sector nances;

The reduction of the UK Film Councilsincome due to the 2012 Olympic Games;

The impact of digital on the entire lmsector; and

The turbulence being caused by the gradualcollapse of the traditional business models.

Our nancial resources have always beenlimited, but never more so than now. Takentogether, our policy and funding proposalsset out here have been crafted to help lmride out this tough economic climate andmake a successful transition into thedigital age.

Recognising the nancial uncertainty that theUK Film Council, like all public bodies, nowfaces, together with the particular challengesaffecting lm, UK Film: Digital innovation andcreative excellence sets out our proposedpolicy and funding priorities.

Please note that we are consulting here onactivities, not structures. Under the auspicesof the Department for Culture, Media andSport, discussions regarding a mergerbetween the UK Film Council and the BFI areunderway. Separately, the UK Film Council

is now undergoing a process to shrink itsoverhead and make efciency savings inorder to free up funding across the board.These moves are already afoot and do notform part of this public consultation.

The purpose of UK Film: Digital innovationand creative excellence is to consult and testout our proposed new activities and prioritieswith you. On page 23 you will nd ten

questions to prompt your views andcomments on what we have done to dateand what we propose to do.

The deadline for responses isTuesday 9 February 2010.

Following this consultation, we will review allthe responses we receive and we will publishour nal priorities for 20102013 in 2010.

Executive summary


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Film continues to be perhaps the worldsmost inuential form of entertainment andexpression. Its ability to refect culture andidentity, and increasingly to stand out inthe clutter of the digital world, growsfrom year to year. Film is an art form to be

appreciated, enjoyed and understood anda hugely powerful commercial tool, helpingto power our creative economy and buckingnancial trends.

The UK Film Council has, since its creation,been charged with the twin task of promotinga rich and lively lm culture, and helping tobuild a more successful British lm industryacross production, distribution and exhibition.

It is easy to forget how far the lm sectorhas come in the last decade.

The creation of focused development andproduction funds, which last year madealmost 200 investments; targeted fundsto support the distribution of what mightotherwise remain minority-interest lms;an efcient lm tax relief to promote the

sustainable production of culturally Britishlms; actions to promote diversity, tacklelm theft and deliver a clear skills strategy;funding the BFI as a custodian of the worldsnest lm archive and a centre of excellencefor lm education and culture; securing theUKs place as a production destination forinternationally nanced lms; givinghundreds of thousands of children theopportunity to enjoy and better understand

the world of cinema. Working with theNational and Regional Screen Agencies, theUK Film Council has been able to support thewhole sector throughout the UK. These aresubstantial achievements and this is thecontext within which British lm now operates.

That said, no-one foresaw the global nancialcrisis and its dire economic consequences.Fortunately, effective public investment in UKlm and a robust lm tax relief were alreadyrmly established and, although times aretough for independent lmmakers, the

industry does have access to public funding.This support is more vital than ever in helpingto boost UK lm production and foster newtalent at a time when traditional sources offunding are harder to nd than ever before.

And this downturn has occurred against thebackdrop of rapid transformation drivenby technological innovation in the makingand delivery of lms which is now driving

profound changes in the behaviour oflm audiences.

This is manifested, for example, by thedevelopment of social networks, the advanceof mobile in the form of smartphones andrelated apps, and the widespread adoptionof open-source technologies. The old modelof relatively passive consumption of lms andlm culture is breaking down. People want

to be more active participants in makingand shaping their experience of lm in all itsforms, and digital technologies allow them todo this. The benets for audiences are clearto see but for the industry, however, thechallenge is to ensure that these new formsof access will in future deliver revenues whichare able to sustain the creation anddistribution of new lms.

Such advances have impacted almost everyaspect of lm: from the adoption of Red Oneand HD cameras in production to high levelcomputer visual effects and lm editingsoftware that allows rst-time lmmakersto work from their own bedrooms, throughto the latest developments in 3D cinemaand increasingly the reality of lm any time,any place, whether thats in the home or

on the move.

Where we are now


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06 UK Film Council


The following is a summary of the supportand assistance the UK Film Council hasdelivered over the past three years.

Building a competitive industrywith the creativity and skillsto succeed

Promoting talent, quality,originality and diversity

An artistically and commercially successfullm industry demands lms that arecreatively exciting, tell unique stories andconnect with audiences at home and abroad.

The UK Film Council has run a series of lmdevelopment and production funds, spending17 million a year to develop talent and tofoster quality, originality and diversity. Theyhave supported lmmakers in bringingimaginative, award-winning British lmsto audiences.

The Development Fund was set up as atalent-driven home for writers, directors

and producers to take on new lm projectsand to raise the prole and quality of lmproduction and culture in the UK. Over thelast three years, the fund has given nearly300 awards and this year alone has supporteda number of successful lms, including Bright

Star, In the Loop and Nowhere Boy.

The New Cinema Fund has balanced talentdevelopment with cultural lmmaking,

supporting an acclaimed range of projectssuch as Man on Wire, Fish Tank, Adulthoodand This is England. The fund whose lmsin 2009 won three BAFTAs and an Oscar also helped to set up the Warp X productionhouse, which provides another point ofentry for emerging talent, and initiativessuch as The Magic Hour, which supportsdisabled lmmakers.

The Premiere Fund has invested more inmainstream, commercially-driven lms suchas Dorian Gray, How to Lose Friends and

Alienate People, St Trinians and theforthcoming Nowhere Boy, Brighton Rockand Tamara Drewe. Recoupment from these

lms has provided additional income forfuture investment across the UK FilmCouncils activities.

Alongside the production funds, the UK FilmCouncil has led the lm sector in promotinggreater diversity, resulting in Governmentrecognition of our Equalities Charter for Filmand international recognition of our industry-led Leadership on Diversity programme.

Digital opportunities and threats

With the arrival of new digital technologies,including cheap methods of burning DVDs,improved memory devices and downloads,coupled with the intensication of illegalle sharing, the lm industry has hugeconcerns about the impact of lm theft onlegal sales. The setting up of our Anti-PiracyTask Force, achieving an all-industry approachto tackling the unacceptable cost of lm theftto the lm industry and the UK economy a cost of 404 million in 2007 was a toppriority for the UK Film Council. The TaskForce has called loudly, clearly and urgentlyfor stronger regulatory controls over illegalle sharing and it recently welcomed theGovernments ambition to reduce illicit le

sharing by 70% and introduce legal sanctionsfor persistent offenders.

In parallel, the UK Film Council launchedFindAnyFilm.com in January 2009, a rst-of-its-kind lm search engine, enablingconsumers to nd out where, when and howa lm is legally available in the UK. The site,which contains over 30,000 unique lmrecords, topped 3.7 million visits earlier

this year, and has become a vital tool in thebattle against lm theft, as well as a lminformation service for everyone.

The last three years


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Skills and training

The UK Film Council delegated 6.5 millionof Lottery funding a year to Skillset for thedelivery of training and professionaldevelopment, in order to keep British crew

and talent ahead of the game in the digitalage. In 2008, the Film Industry TrainingBoard (FITB), the rst ITB to be launchedin two decades, was established to overseethe operation of the industry-funded SkillsInvestment Fund (SIF) levy. The fundgenerated 3.6 million from 335 productionsand, together with UK Film Council annualfunding, levered almost 50 million inadditional funding to support training.Since the UK Film Council and SkillsetlaunchedA Bigger Future, the training andeducation strategy for the UK lm industry,more than 16,000 training opportunitieshave been delivered.

Stimulating greater choiceor flm audiences

Distribution and exhibitionThe Digital Screen Network (DSN) of world-class DCI-compliant projectors is now fullyoperational in 240 screens in 213 cinemasUK-wide, ranging from the Glasgow FilmTheatre and the Screen at Winchester toCineworld Llandudno. The DSN the rst ofits kind in the world has brought improvedaccess and a much wider range of lms toaudiences around the UK.

The DSN has underlined the vital role cinemascan play at the heart of local communities.A pilot project is currently running in threeareas, bringing the latest digital cinemaequipment to rural Yorkshire, Wiltshire andShropshire and giving local residents agreater chance to enjoy the communalexperience of cinema.

Additionally, support from our UK-wideFilm Festivals Fund, launched in 2007, hasenhanced the offer of leading festivals in theUK, including the Edinburgh InternationalFilm Festival, BFI London Film Festival,Shefeld International Documentary Film

Festival, Flatpack Festival Birmingham, BirdsEye View Festival and the CinemagicInternational Film Festival, which is takingthe opportunities it gives young people inNorthern Ireland to other cities across the UK.

A people and skills business

Without a highly skilled workforce, theUK lm industry wont have sufcientdepth and breadth of expertise to meetthe demands of British and internationallmmakers. Since 2004, Skillset has fundedtraining for 6,986 people working in lm.Priorities have included training in newtechnologies and improving business andnance skills.

Over the last ve years Skillset hasdeveloped new models of training fornew entrants, including apprenticeshipsthrough the Ealing Institute of Media,which have secured government fundingfor further education.

Priority skills have included productionaccountants, wardrobe assistants andgrips. Graduates of these schemes arehighly regarded and on average 76%have secured long-term employment.


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08 UK Film Council


Broadcasting digital platorms

The UK Film Council has made submissions toa wide variety of consultations, from OfcomsSecond Public Service Broadcasting Reviewto the Governments Digital Britain report.

These submissions have underlined the keyrole British and specialised lms play in helpingto provide audiences with access toa wide and varied range of content, both viatraditional broadcast channels, especially theBBC and Channel 4, and more broadly. This ispart of our commitment to maintain andimprove public access to British and specialisedlms on broadcast and digital platforms.

New business models

The UK Film Council partnered with NESTA,helping 12 lm companies, including FilmExport UK, Hollywood Classics andonedotzero, reframe their business models tomake the most of digital opportunities and toprovide models for others to follow.

In addition, the UK Film Council has joined

forces with the Technology Strategy Board(TSB) to create a new 5 million programmedesigned to bring lm content to a wideraudience through new technology.

Screen heritage

Complementing the work of the BFI NationalArchive, the Strategy for UK Screen Heritage,launched in 2008 and backed by 25 millionover three years, will give audiences thechance to learn about, discover and enjoythe UKs screen heritage, wherever they liveand wherever the archive materials are held.

In a related initiative, the UK Film Councilestablished the Digital Film Archive Fund in2007, to kick-start initiatives offering widerpublic access to screen heritage. To date, over65,000 people have participated in projectssupported by this fund. Projects range fromcross-generational interactive work andexperimental projects, to the restoration and

touring of an authentic 1960s cinema buswith newly digitised archive footage, and anumber of user-generated participatoryprojects which are engaging new audienceswith archive online.

Many of these projects are still in train,including some longer term, very ambitiousprogrammes, which means that the fullimpact of this activity will not be seenuntil 2011.

Access and diversity

The UK Film Council was the principal funderof YourLocalCinema.com, the online cinema

listings service for people with hearing orsight loss, which was selected as one of thenalists in the Best Arts Project categoryof the 2009 National Lottery Awards.

Promoting UK flm in thewider world

Inward investment

The UK Film Councils Ofce of the BritishFilm Commissioner focuses on attractinginward investment into the UK byencouraging major feature lms to be madehere. We have developed a lm-friendlyinternational prole for the UK, based ontargeted scal incentives and its reputationas the home of one of the most highly-skilledworkforces in the world. Initiatives to

promote and secure inward investmentproduction to the UK have included takingUK line producers to the studios and majorindependent companies in Los Angeles.Assisted by the UK lm relief and a favourableexchange rate, during the rst nine monthsof 2009, the value of inward investment which includes lms attracted to the UK suchas Gullivers Travels, Clash of the Titans andHarry Potter and the Deathly Hallows Part I stood at an all-time high of 686 million, upfrom 432 million in 2006.



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Co-production

The UK Film Council has worked with theGovernment to modernise the UKs co-production agreements, making it easierfor British lmmakers to work with theircounterparts in other countries and helpingto build and sustain mutually-strong lmindustries. Since 2007, new treaties havebeen signed with India, Jamaica, Moroccoand South Africa, and negotiations are takingplace with China, Israel and Palestine.Currently, this is a particularly challengingenvironment where the structure of theUK lm tax relief does little to support

a healthy co-production environment.

Export development

Film exports in 2007 were 50% higher thanin 2001, and British lm generated a tradesurplus of 232 million. The UK Film Councilwas instrumental in establishing Film Export

UK in 2007, a trade association representingthe interests of companies with internationallm sales operations.

We enabled 52 British lm companies toexhibit at the key international lm markets,generating business worth $11 million.Films supported by the UK Film Council atinternational festivals generated deals worthin excess of $6.5 million. The 2009 London

UK Film Focus, organised with Film London,this year attracted 150 international buyers,generating deals valued at $3.7 million.

Widening opportunities tolearn about flm and encourageparticipation

Education, literacy and creativity

The BFI is a cultural and educational bodyof global renown. In order to build upon thisreputation, the UK Film Council worked withthe BFI to develop a robust business case fora new National Film Centre, an internationaldestination for lm which digitally connectsthe worlds nest lm archive with millions ofpeople throughout the UK. In October 2009the Prime Minister Gordon Brown announced

45 million for the project.Access and learning are a key part of theBFIs mission, and Screenonline, a learningresource t for the digital age, now makesavailable over 3,000 hours of lm footageand receives 8 million website hits annually.

Gullivers Travels

Until recently, the perception that the costof producing a major feature lm in theUK was prohibitive and qualication for UK

lm tax relief was impossible to achieve,meant that 20th Century Fox had notbased a lm in the UK for nearly a decade.

By producing research comparing thecost of shooting a big budget lm in theUK with competitor territories, workingwith a top line producer to re-budgetthe lm for the UK, and demystifyingthe tax qualifcation process, the UK

Film Council was able to convince Fox toconsider making the lm in Britain. Add tothat a favourable $/ exchange rate andthe reputation of British cast, crew andfacilities, and the decision to shoot in theUK became, in the words of the lms USproducer, a no-brainer.

20th Century Foxs Gullivers Travels started

shooting at Pinewood Studios and onlocation around the UK in April 2009.


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10 UK Film Council


The rst ever UK-wide lm education strategy,Film: 21st Century Literacy, was launchedin 2008. This was accompanied by theestablishment of the Film Education Fund,which was awarded to a consortium led bythe BFI, FILMCLUB, First Light Movies, Film

Education and Skillset, who were taskedwith giving young people aged 319 theopportunity to learn about lm.

With the launch of Mediabox, overseenby First Light Movies, in December 2006,additional creative opportunities have beengenerated for disadvantaged 1319 year oldsin England. In 2008, the Department forChildren, Schools and Families announced

further funding for Mediabox, to helpimprove the diversity and quality oflms made.

Following a highly successful pilot in 2006/07,co-funded by the UK Film Council and thelm industry, FILMCLUB is rolling out itsprogramme of after-school lm clubs morewidely, bringing the best of world cinemato a broad spectrum of children and young

people. To date 2,597 lm clubs have beenset up and the aim is to reach 7,000 schoolsby 2011.

Moreover, when the Government announcedin 2008 its plans to make the UK a worldleader in digital innovation, the UK FilmCouncil called for a national media literacyplan, an initiative that found expression in theGovernments nal Digital Britain report.

Cultural Olympiad

Announced in 2009, Film Nation, run by theUK Film Council in partnership with nationaland regional agencies, successfully bid for3 million from the Olympic Lottery Distributorto support lm activities which will giveyoung people the chance to make lms in therun-up to the 2012 Olympic Games. Digitaltechnology will make these activitiesaccessible across the UK.

How our unding worked

To do all of this we have invested the incomefrom the National Lottery, grant-in-aid andrecoupment from our investments totallingan annual average of 60.1 million. We

received additional funding from the DCMSspecically to support cross art-form venues.

Film at school

The UK Film Council supported theestablishment of FILMCLUB and co-nanced its pilot stage. Core fundingwas then supplied by the Department for

Children, Schools and Families (DCSF) andwithin 18 months of its launch, FILMCLUBhad 2,597 clubs in schools across the UK,introducing over 80,500 young peopleto the best of British and internationalcinema.

FILMCLUB has given children and youngadults a better appreciation of a widerrange of lms and is building a lm-going

habit in children across the UK.



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The next three years

Here we set out our proposed fundingand policy priorities across our six coreactivity areas:

1 Supporting British lms and lmmakers

2 Nurturing skills and creative talent

3 Encouraging innovation for the digital age

4 Improving access to lms for UK audiences

5 Conserving and making accessible the UKsarchival heritage

6 Providing opportunities to learn about lm

1st core activity:Supporting British flmsand flmmakers

The Film Production Fund

Objective: to provide one clear unit inside theUK Film Council which has four distinct pointsof entry, is focused on creative excellenceand supporting lmmakers aspiring tomake quality British lms and, where themarketplace is unwilling or unable, will takesome or all of the associated risk.

Principal activities

To put a distinct emphasis on rst- andsecond-time lmmakers as well as world-class established lmmakers

To adopt a much more exible approach,providing the right type of support requiredby lmmakers

To support research, development andpre-production

To support feature and short lms To provide a new space and funding stream

to support experimental lmmaking

To have a 25% minimum target fornon-London originated production

To allocate lm recoupment to top up theFilm Production Funds annual budget

To provide a producer equity position in allfeature lm investments

Proposed funding: 15,000,000 annually (andrecoupment)

One flmmakers journey

The New Cinema Fund rst supportedlmmaker Andrea Arnold with her shortlm Wasp. This incredible short won morethan 30 international awards before layingclaim to an Oscar in 2005.

The fund then ensured Andrea couldmake the jump from shorts to features byfunding her rst feature, Red Road, whichsecured her international attention by

winning the Jury Prize at the Cannes FilmFestival in 2006. With continuing supportfrom the New Cinema and Developmentfunds, Andreas second feature, Fish Tank,once again won the coveted Cannes JuryPrize in 2009.

A prolic talent, underpinned by aremarkable work ethic and backed everystep of the way by the UK Film Council,

Andrea sets a shining example to allemerging lmmakers in the UK.


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12 UK Film Council


International

Objective: to promote UK lm internationally.


To promote the UK as an inward investment

destination through the Ofce of the BritishFilm Commissioner

To assist the UK industry to benet fullyfrom the UKs co-production treaties

To work with the UK Government and theEU to contribute to the development of astrong European audiovisual policy whichbenets the UK

Proposed funding:

Ofce of the British Film Commissioner:800,000 annually

MEDIA Desk UK and other activities: 358,000annually

Co-production: 83,000 annually

Film Exports

Objective: to help maintain and increase theinternational market share and value of UKlm product, talent, skills and services byfacilitating a conducive international tradingsales environment.


To support culturally signicant British lmsat key international festivals and markets

Proposed funding: 500,000 for 2010/2011

Fiscal measures

Objective: to work with the UK Governmentand the EU to ensure effective long-termscal measures are in place to support UKlms, and to work with public and privatesector partners to provide lm companies

with better access to corporate nance.


To ensure that the UK lm tax creditprovides the optimum incentive to supportthe production of culturally British lms

To ensure that independent producers are

able to obtain a fair equity position fromthe revenues generated by their lms

To undertake the certication of culturallyBritish lms

To identify new opportunities for thenancing of feature lm production anddistribution in the digital world

Proposed funding: Certication 159,000

annually

Intellectual property andcombating flm thet

Objective: to assist the industry in combatingcopyright theft and infringement, and to helpthe Government put in place an IP regimethat maximises the access and value of rights

in the digital age.Principal activities

To support the lm industry and adviseGovernment on the most effective ways ofcombating lm theft

To facilitate and stimulate the availability oflms through legitimate sites

To encourage ways in which orphan and

non-managed works can be released toenhance access to the widest possible rangeof content in the UK

Proposed funding: 250,000 annually



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2nd core activity:Nurturing skills and creative talent

Film Skills Fund

Objective: to ensure a strong, consistent

supply of skilled and talented professionalsin line with market demand, delivered bySkillset.


To invest in new entrants schemes

To prioritise training for new technologiesand post-production

To ensure a high-quality productionworkforce

To deliver improved business skills

To focus the Screen Academy network

Proposed funding: 3,250,000 annually

Film Nation

Objective: to deliver and celebrate personalstories through lm. Film Nation will be apowerful expression of the Cultural Olympiadsvalues, inspiring young people to unlock their

creativity and generating a lasting legacy.Principal activities

To deliver a UK-wide shorts lmmakingcompetition for young people

To develop a documentary lm projectfollowing young Olympic and Paralympichopefuls

To develop a schools lm programme forchildren and young people to watchcontemporary and archive cinema fromve continents

To develop London International ScreenTalks, a programme of events with some ofthe worlds leading lmmakers

Proposed funding: 3,500,000 for 20092012provided by OLD and partners via LOCOG

Backing talentAdulthood is an urban drama aboutyouth, making life choices, friendship andmulticulturalism, but it is also about thetoughness of life on the street, resistingcrime and violence, and the chance ofredemption. Written and directed byNoel Clarke, who also starred in the lm,the UK Film Councils New Cinema Fund

encouraged Clarke to make his directorialdebut withAdulthood, having writtenthe prequel Kidulthood. The lm was alsoawarded distribution funding, to ensure itreached a wider audience across the UK.

Adulthood took 3.35 million at the UKbox ofce to become one of the Top 20highest grossing British lms of 2008and earned Clarke the BAFTA Orange

Newcomer Award.


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3rd core activity:Encouraging innovation orthe digital age

The Innovation Fund

Objective: to help ensure that the UK lmsector makes a successful transition to a fullydigital age.


To enhance the diversity of lm in the UK,enabling audiences to discover more content

To encourage the growth of SMEs in a waythat maintains and strengthens value for

rights holders

To encourage knowledge sharing andintegration between technology companies,innovators and lm companies to securethe industrys place in a wider innovationcontext


Environmental sustainabilityObjective: to help make the UK lm sector aworld leader in environmental good practiceand to make the UK Film Council compliantwith best practice in energy use and wastereduction.


To scope a British Standard for lm and

environmental sustainability

A European cinema network

Europa Cinemas is a network of more than700 cinemas in over 400 cities in over 30European countries, screening a rich andvibrant range of European lms.

In the UK, the 45 Europa Cinemas includeLondons Curzon Soho, The Watershed

in Bristol and the Glasgow Film Theatre.Audiences regard these cinemas as placesto see the best European lms such asThe Orphanage, Gomorrah and BrokenEmbraces.

MEDIA Desk UK, co-funded by the UKFilm Council, helps these cinemas securenancial support from the EUs MEDIAProgramme. Over the past three years over

2 million was invested in independentcinemas across the UK.

London Loves

In October 2008, Film London inpartnership with the BFI, the London FilmFestival, Londons Screen Archives andthe Mayor of London supported London

Loves, two nights of spectacular lmarchive screenings in Trafalgar Square. Theproject was made possible by a grant fromthe UK Film Councils Digital Film ArchiveFund. In spite of the cold, wet weathermore than 8,000 people turned up andgave some great feedback, including:Screen heritage is essential delightful,moving, impressive! We need to see

more of it it has made me see Londondifferently. Converted!



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4th core activity:Improving access to flms orUK audiences

Distribution and exhibition

Objective: To enable more people to enjoyand appreciate a wider range of lms acrossthe UK.


To provide Prints and Advertising Fundsupport for British and specialised lms

To provide a platform for the debate on theexibility of lm windows

To assist the UK exhibition sectorstransition to digital cinema

To help develop and enhance key regionalcross art-form venues, with cinema at theirheart, as cultural and creative hubs

To support lm societies through the BritishFederation of Film Societies

To support the cultural programming ofindependent cinemas and festivals throughthe Independent Cinema Ofce

Proposed funding: Prints and Advertising2,000,000 annually

British Federation of Film Societies/Independent Cinema Ofce 130,000annually

Cross art-form venues 300,000for 20102013

Public service broadcasters anddigital platorms

Objective: to work with broadcasters andother platform operators to improve publicaccess to British and specialised lms.


To work with public service broadcastersand other digital platforms to secure aprominent role for British and specialisedlm in new and existing services

To ensure that the regulatory regimewhich governs broadcasting and digitalcommunications provides the optimal

environment for access to British andspecialised lm

www.FindAnyFilm.com

Find Any Film is a truly innovativeconsumer-facing website, an engaging lmplatform that enables consumers to getwhat they want, where they want and how

they want it legally.Audiences increasingly want to know howthey can see lms simply and quickly,and this pioneering website gives vitalinformation on how to get hold of lms onlegitimate download and streaming sites,on TV, DVD Blu-ray or at the cinema.

And its already a massive hit with3.7 million UK visits in its rst eight

months, putting it in the ComscoreTop Ten websites chart earlier this year.


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16 UK Film Council


5th core activity:Conserving and making accessiblethe UKs archival heritage

Screen Heritage

Objective: To secure the physical and virtualinfrastructure needed to preserve lms in theUKs publicly owned archives and ensure thepublic have the opportunity to access, learnabout and enjoy their rich screen heritagewherever they live and wherever the materialsare held.


To deliver phase one of the UK ScreenHeritage Strategy

To help maximise online access tolm archives

To secure phase two support to advancethe UK Screen Heritage strategy

Proposed funding: 25,000,000 ring-fencedby the DCMS

6th core activity:Providing opportunities to learnabout flm

First Light Movies

Objective: to offer children and young peoplemore opportunities to participate in and learnabout lmmaking.


To provide creative opportunities for youngpeople from disadvantaged backgrounds


FILMCLUB

Objective: to fund the organisation whichsupports schools lm clubs offering childrenand young people the opportunity to watchand appreciate a broad range of lms.


To establish 7,000 lm clubs across England

Proposed funding: 11,400,000 ring-fencedby the Department for Children, Schoolsand Families

Film education and media literacy

Objective: to maximise the impact of lm andmoving image education and literacyinitiatives across the UK.


To secure increased resources for lmeducation and media literacy

To co-ordinate key education partnersmore effectively


Sharing our heritage

Screenonline is the BFIs online resource,devoted to the history of British lmand television and targeted primarily atUK schools, colleges and universities. Itexplores British screen heritage, presentinga broader picture than would be possible

by any other means. Collections haveincluded Chinese-British lm, pre-WWIspies and TV conspiracy drama.

Particularly successful was Liverpool: aCity on Screen, a 2008 City of Culturecollaboration collecting some 70 seldom-seen titles from 1901 to today. It sparkedan immediate 20% increase in visitors(75% in the North West) and uncovered

the startling, previously unknown citysymphony,A Day in Liverpool(1929).


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Four priorities cut across multipleactivity areas:

British Film Institute

Objective: to champion moving imageculture, education, and cinema heritage inall its richness and diversity for the benetof as wide an audience as possible, and todeepen and encourage public debateabout lm.


To assist the creation of a new NationalFilm Centre, which harnesses digital

media to create a world-class centre ofexcellence for learning and research, andwhich houses the London Film Festival

To preserve, secure and provide greateraccess to the BFI National Archive

To work closely with public and privatepartners across the UK to further developaccess to cultural lm

Proposed funding:16,000,000 annually

Screen Agencies

Objective: To provide funding support forlm across the English regions and toco-ordinate the UK-wide delivery of lmpolicy and activity.


To work with the National and RegionalScreen Agencies to help co-ordinate lmpolicy, strategy and delivery across the UK


Diversity and inclusion

Objective: to help achieve a more diverseand inclusive workforce and lm culture.


To give due regard to race, disability andgender equality

To assess our policies and funds for theirequality impact

To provide practical support and adviceto partners


Research, statistics and marketintelligence

Objective: to gather and publish statisticsand market intelligence and to carry outresearch to benet the industry and otherinterested parties.

To raise the level and quality of debateand new thinking on the evolvingnancing, production, distribution andconsumption models for lm

To enhance understanding of the social,cultural and educational value of lm




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18 UK Film Council


Our income is derived from three mainsources: Government grant-in-aid, NationalLottery funding, and income recouped fromour lm investments. We invest all thisincome in activity that is underpinned by theidentied policy and funding priorities for UK

lm. Operational costs are also covered out ofour income.

Our grant-in-aid funding comes from theDepartment for Culture, Media and Sport andis determined through the GovernmentsComprehensive Spending Review (CSR). Thecurrent CSR covers the period until March2011. For 2010/11 our grant-in-aid incomewill be 25.67 million. The three-year plan as

proposed in this consultation document isbased on this level of funding and upon theassumption that there will be no furtherincrease or reduction for the last two yearsof this plan.

In addition, the DCMS has ring-fencedfunding for specic projects that sit outsidethis proposed plan. These include, for2010/11, support for FILMCLUB and the Irish

Language Fund; from 201013 funding forthe National Film Centre and the ScreenHeritage Strategy; and funding through to2012 for the Film Nation project which will beprovided by the Olympic Lottery Distributor(OLD) via the London Organising Committeefor the Olympic Games (LOCOG).

Projected National Lottery funding projectionsfrom the DCMS are:

Year Projected income

2010/11 31.340 million

2011/12 31.362 million

2012/13 32.736 million

Our recoupment income comes from our lminvestments and interest. In light of our mostrecent investments and forecasts for the yearsahead, it is estimated that we will generate6.2 million in 2010/11, 5 million in 2011/12and 3 million in 2012/13.

Our nancial planning takes on board factorsdirectly related to our investments as well asthe impact of external factors, including:

14.7 million of our projected Lotteryincome being transferred to the 2012London Olympics. This diversion of fundingis in addition to the 7.4 million that willhave been transferred by 31 March 2010,making a total transfer to OLD of 22.1million. The possibility of further incomelosses beyond those announcedto date cannot be excluded.

Projected levels of Lottery recoupmentare dependent upon the commercialexploitation of the feature lms by therights owners and distributors of thoselms in which we invest.

Interest rates currently at a record low,affecting cash balances.

The next CSR which will determine the UKFilm Councils level of grant-in-aid fundingafter April 2011.

All of the gures outlined below are thereforesubject to revision should there be signicantchanges to our sources of income.

Throughout this plan, annual expenditureis anticipated to slightly exceed income.However, based on DCMS re-forecasting oflikely income from the Lottery alongside ourown recoupment, we anticipate havingsufcient cash reserves at April 2010 to meet

the expenditure gap anticipated in thisthree-year plan.

Funding our future priorities


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Our average annual income for 20102013

Source %

Lottery income 31,810,000 55.2

Transfer of Lottery

funds to theOlympics (4,890,000) (8.5)

DCMS grant-in-aid 25,670,000 44.5

Recoupment incomefrom UK Film Councilinvestments 4,870,000 8.5

EC grant, bankinterest and otherincome 170,000 0.3

Total 57,630,000 100.0

Our average annual expenditure by year overthe plan period:

Priority %

BFI 16,000,000 27.0

Production Fund 15,000,000 25.3Operations* 7,127,000 12.0

Screen Agencies 6,300,000 10.6

Innovation Fund 5,000,000 8.5

Film Skills Fund 3,250,000 5.5

Prints andAdvertising Fund 2,000,000 3.4

First Light Movies 1,100,000 1.9Ofce of the BritishFilm Commissioner 800,000 1.4

Film Exports 500,000 0.8

Research, statisticsand marketintelligence 500,000 0.8

Diversity 360,000 0.6

International support(MEDIA Desk UK, andother activities) 358,000 0.6

Sponsorship 300,000 0.5

Intellectual propertyand combating lmtheft 250,000 0.5

Certication 159,000 0.3Cross art-formvenues 100,000 0.2

Co-production 83,000 0.1

Total 59,187,000 100.0

*Operations incorporates the direct costs of grant award

administration, application support, and monitoring and

evaluation (3.1 million), together with organisational

overhead costs including capital spend (4.0 million).

A reduction in administration and overhead costs of

20% from the current year budget is underway and does

not form part of the consultation.


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22 UK Film Council

Independent Cinema Ofce

Independent Film and Television Alliance

Industry Trust for Intellectual Property Awareness

Institute of Cinematography and Audiovisual Arts (Spain)

London Organising Committee of the Olympic Games

March du Film Festival de Cannes

MEDIA Programme

Motion Picture Association

Museums, Libraries and Archives Council

Musicians Union

National Audit OfceNational Endowment for Science, Technology and the Arts

New Producers Alliance

North West Vision

Northern Film and Media

Northern Ireland Screen

Ofcom

Olympic Lottery Distributor

Pact

Patent Ofce

Production Guild of Great Britain

Regional Development Agencies

Scottish Screen

Screen East

Screen South

Screen West Midlands

Screen Yorkshire

Skillset

South West Screen

UK Screen

UK Trade and Investment

Warp X

Women in Film and TV

Writers Guild of Great Britain

104 Films

How we work continued


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Your views

We would like to hear your views on ourproposed policy and unding priorities orApril 2010 March 2013. Please eel reeto respond to all or some o the questions.It would help us i you would give usas ull a response to our questions as

possible.A number of consultation forums will takeplace over the consultation period.

Thank you for your time.

Please tell us

1. Do you agree with our analysis of thechallenges facing lm?

2. Do you agree the UK Film Council has, inthe main, delivered against the prioritiesset out in Film in the Digital Age, ourcurrent three-year plan?

3. Do you agree with our proposed policypriorities for the next period?

4. Do you agree with our proposed fundingpriorities for the next period?

5. Do you agree we have struck a goodbalance between our international workand our work UK-wide?

6. Do you agree our proposals reect theimportance we place on partnerships withthe public, private and voluntary sectors?

7. Do you agree we have struck a goodbalance between prioritising theeconomic and cultural aspects of lm?

8. Do you agree with our identication ofthe risks ahead?

9. Do you believe that the UK Film Councilscurrent remit should be extended to covervideo games?

10. Do you agree UK Film: Digital innovationand creative excellence has covered all thekey areas?

How to respond

UUK Film: Digital Innovation and creativeexcellence is available online in thedownloads section of our website

http://www.uklmcouncil.org.uk/consultation2009

The questionnaire can be completed onlineat http://www.uklmcouncil.org.uk/survey

Please give your full name, position (ifrelevant) and organisation (if any) in yourresponse. We would be grateful if you couldpreface your views with a short statement

about your organisation (if you representone) and how it relates to our role andactivities.

Under the code of practice on opengovernment, any responses may be publishedor made available to third parties on request.

You should therefore indicate clearly if youwish any part (or all) of your response toremain condential.

Please send us your response by:

Tuesday 9 February 2010



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24 UK Film Council

BFIBritish Film Institute

CSRComprehensive Spending Review

DCMSDepartment for Culture, Media and Sport

DSNDigital Screen Network

DVDDigital Versatile Disc

EU

European Union

ECEuropean Commission

FEGFilm Export Group

FITB

Film Industry Training Board

ICOIndependent Cinema Ofce

IPIntellectual Property

LOCOGLondon Organising Committee

for the Olympic Games

OLDOlympic Lottery Distributor

SMESmall and Medium Enterprise

TSB

Technology Strategy Board

Glossary


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Design and production: Radley Yeldar www.ry.com

Want to know more?

Please visit the UK Film Council website atwww.ukflmcouncil.org.uk or inormation onthe organisation and its activities, including:

News and publications

Press releases

Statistical Yearbook

Annual Report and Accounts

How we work

Board of Directors

Funded partners

DiversityOur unding and services

Support for production

Support for young people

British lm and tax relief


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For urther copies o this consultation paperplease contact:

Communications DepartmentUK Film Council10 Little Portland StreetLondonW1W 7JG

Telephone: 44 (0) 20 7861 7861

Fax: 44 (0) 20 7861 7862

TalkByText: 180015 02074908913 Ext: 02

A company limited by guarantee registered in England number 3815052

UK Film Council - Digital Innovation

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