RESEARCH: BUSINESS OF FILM

In the UK, the BFI and its predessesscor the UK Film Council and, have published a number of reports on the economic and cultural value of film. An example of this is the most recent report on economic impact found that film contributed £3.67 billion to the UK economy. Studies have shown that the cultural impact of films have shown how films, apart from being a popular activity of enjoyment, carry powerful personal and politcal messages for viewers, give new views and insights into other cultures, and help reflect peoples cultural identity back to ourselves.



http://www.bfi.org.uk/education-research/film-industry-statistics-reports/reports/uk-film-economy/economic-contribution-uks-film-sectors


Why film is important to the economy

The UK makes many independent films that are British, such as Pride, Paddington, The Inbetweeners, and the Imotation game.
Many of these films perform well at award shows such as the BAFTAs, and even US Academy awards. This is a source for the UK, this is one of the reasons why there are so many Hollywood stars that are British born.
Another source of income from film and television is from tourism. Tourists go and look around the film sets, for example Harry Potter world near Watford. Around £840 million of tourism spending is by visitors can be added to film-induced tourism.

The benefits of inward investment

The benefits of inward investment is for companies like the BFI, is to deliver economic growth through investment in the UK. The International Strategy has committed £200k to support attracting film inward investment from the US. This is also been in addition to £400k grant for funding the BFI.  This and another £200k to help UK Trade and Investment attract Tv inward investment and film inward investment from emerging markets.

Thinking about the value chain

In the film industry 'value chain' is the series of steps that go from the first thought about the film right to the end of the commercial life of the completed film. The chain includes these seven steps:
Distribution, Concept origination, Development, Finance, Creative packaging, Production, Exploitation. The producer would be the only filmmaker that is with the film on its entire journey through the value chain.
The order of the value chain is:
Concept origination, Finance, development, production, distribution, creative packaging, exploitation.

 Concept origination-find ideas
Creative packaging- hire casting director, secure development finance, secure key cast, hire writer.
Development- secure rights, hire director, secure pre-sales, option agreement.
Finance- preliminary budget, prepare estimate.
Production- pre-production, principle photography, post production
Distribution- marketing campaign, secure rights, broadcast license, certify as British, video/DVD/VOD licensing
Exploitation: Download to own, cinema exhibition, DVD rental and sales.