Building sustainable film businesses: the challenges for industry
Yüklə 4,58 Mb. Pdf görüntüsü
|
- Bu səhifədəki naviqasiya:
- Section 3.0 l Success factors for building sustainable film businesses Figure 1
- OBSTACLES Market failure
- Difficult buiness model, i.e
- Public policy support mechanisms
- Section 4.0
Section 3.0 l
film businesses Figure 1 Company strategies - success factors Factors contributing to company growth Ability to make successful films and share in revenues Diversification Talent relationships Leadership International and corporate relationships Public funding environment Luck
• Generically high risk activity • Relatively low rewards • Typically conducted by small companies • Dominance of US majors
• Very few public policies focussed specifically on company growth • Focus on individual project support • And other (‘cultural’) areas not directly contributing to corporate growth Difficult buiness model, i.e: • Access to finance • Limited IP ownership and access to revenues • Producer often has no finances to invest • Complex multi party funding structures • Mismatch of risk and return • No convincing digital business model Building sustainable film businesses: the challenges for industry and government 14
mechanisms Project support Company support dominates Why governments invest in the film sector Section 4.0 Governments around the world have come to understand the full range of benefits of a thriving film sector and the industry has come to accept this as the norm in most mature, and many maturing, film markets. Government support has reached this position because both industry and government have realised the significant benefits to be derived for the agendas of both parties. The cultural and social benefits of a healthy film sector have been recognised for some time. Indeed, early strategies for supporting film emanated largely from ministries of culture or the arts. But perhaps even more important in relation to creating sustainable film companies are the economic benefits of filmmaking. In this report, therefore, it is appropriate to underscore what these benefits are. For the purposes of this analysis they are categorised as: l Production spend; the ‘Multiplier Effect’ l Employment generation l Skills and talent development l Direct investment return l Export earnings l Increased tourism l National brand building l Film as a driver of the creative economy. 4.1 Production spend: the ‘Multiplier Effect’ An Economic Multiplier is used to assess the dynamic impact of an industry 2 . It measures the direct effect of expenditure into the economy by a particular industrial activity, the indirect effect on suppliers of inputs to the industry, and induced effects from incomes that are generated for individuals and further spending as a result. In effect, the multiplier is designed to measure the eventual increase in income resulting from the initial boost to expenditure and is normally used by governments who wish to evaluate the economic impact of a number of competing sectors when deciding where to commit resources. For example, in relation to film production, this would be money spent on all the elements of a film’s production budget (e.g. location hire, transport, accommodation, catering) which in turn ‘trickles down’ into suppliers and services to those recipients, and which eventually spreads through to the wider Gross Domestic Product. Multiplier effects in the worldwide film industry tend to range from between an estimated 2.0 and 3.0, although the latter levels have been generally viewed sceptically when used. The average film industry multiplier effect SPI has found through publicly available research for this study is 2.34. 2. Cambridge Econometrics’ definition. Building sustainable film businesses: the challenges for industry and government 15
Section 4.0 l
However, these multipliers are notoriously difficult to estimate as they include so many hard-to- ascertain costs and other factors. The fragmented nature of the film economy makes its contribution to GDP difficult to quantify. In order to establish a multiplier for the film industry in any given country requires a sophisticated economic analysis. Even in some mature film economies, such as France, multipliers are not taken so seriously because, according to national film commission Film France, the required economic data to prove them does not exist.
Some examples of publicly stated film production multipliers are as follows: l Australia 2.67 l New Zealand 2.55 l South Africa 2.50 l UK 2.0. 4.2 Employment generation An expansion of film production activity in any country or region creates substantial new employment. This will include full time employees although the majority are likely to be freelance workers, which is typical for the film industry worldwide. These jobs are normally captured in statistics by calculating the Full Time Job Equivalents. The standard definition for this is: total hours worked divided by average annual hours worked in full-time jobs. Most jobs created by production require a highly- skilled and well educated workforce and this also stimulates a mobile and flexible labour pool with skills and abilities that are transferable into other screen based industries, at home and abroad. Several mature film markets have created important initiatives aimed at creating this highly skilled work force. This may start with the traditional film school education but is even more potent economically when focussed on vocational training for professionals employed in the sector. A 2007 report on the UK film industry 3 claimed that for every person the sector directly employs, another job was supported by indirect and induced multiplier impacts.
Skills and talent development A key attribute of any nation or region is its human capital and in terms of the film sector this correlates with the talent of the individual practitioners and professionals working in the sector. Film is a modern, adaptable and vivid mode for the expression of individual views, stories and opinions. The talent that works in film has flexible and growing career opportunities, at home and abroad. The talent pool is well-educated, has high level, adaptable and modern skills and this can be seen in many corners of the world. In addition to the traditional above the line ‘auteur’ talent of writing and directing, plus producing, there is an increasing focus on technical talent development (VFX, animation and 3-D) as well as many other vocational skills. Building sustainable film businesses: the challenges for industry and government 16 3. By Oxford Economics Yüklə 4,58 Mb. Dostları ilə paylaş:
|