uk creative media february 2013 1. creativity is a uk strength – we design ideas

UK Creative MediaFebruary 2013

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Creativity is a UK strength – we design ideas

• UK Creative Economy = 6% GDP, equivalent to Financial Services

• Creative Industries employ 2.3M people

Geography

• London as key hubSoho, Studios around M25

• Creative clustersBrighton, Bristol, Cardiff, Dundee, Manchester, Newcastle

Sectors - Film/Post/VFX

• World class talent base, technology driven• Screen services sector c.£2.2Bn, employs 25,000 people across

1,300 companies• VFX Oscar has had UK nominee for 5 of last 6 years

Value of UK spend on UK feature production 1992 – 2012

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20120

200

400

600

800

1000

1200

1400

183 217387

262 214336 337

199 266

733584

307

559 604433

835975 1012

631

6094

172

203175

170 212

180156

228

122

178

157154

232

249

209 200

224

128.2

158.3

169.2

97.3

110.4 78

51

38.6

69.6 60.2

73.2

Inward Domestic Co-production

6Source: BFI Statistical Yearbook

Sectors - Animation

• Traditional UK strength, recognised brands• £300M industry size – small but influential • High value in secondary exploitation• International in reach & production

Sectors - Television

• UK TV revenues £12.3Bn 2011, £5.5Bn content commissioning• 9 terrestrial broadcasters, 300+ cable channels• 850 independent production companies• International sales c. £1.42Bn, global lead in TV Formats

Trends

• 80% UK under 25’s use a “second screen” whilst watching TV as running social/shared commentary

• Highest global use of mobile internet, high penetration of tablets

• Expansion of digital & catch up – BBC iPlayer, YouTube, Netflix, LoveFilm

Key enablers

• Skills base – strong talent pool and highly competitive environment

• Creative excellence – UK as recognised innovative & creative leader

• International reach – cultural and economic hub (US / EMEA)

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STOP PRESS – UK Tax Reliefs

• UK Government consultation on tax incentives for Animation, Gaming, TV (high value production) during 2012

• Modelled on successful Film tax relief

“I want the UK to remain a world leader in the creative industries” - George Osborne, UK Chancellor

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UK Tax Reliefs - update

• Film Tax Relief remains (20% >£20M, 25% <£20M)

• High end TV defined as £1M+ per programme hour

• Animation & Games no budget threshold• Level = 25% (tbc) against applicable spend

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UK Tax Reliefs – cultural test

Points system weighting “cultural benefit”:

• content (setting, language story)

• expenditure hubs (production, post, vfx)

• key talent and crew

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UK Tax Reliefs – implementation

• Envisaged implementation April 2013

• More details:www.hm-treasury.gov.uk/consult_creative_sector_tax_reliefs.htm

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Associations & agencies

• PACT – www.pact.co.uk• British Film Commission –

www.britishfilmcommission.org.uk• Film London – www.filmlondon.org.uk• Creative England – www.creativeengland.co.uk• UK Screen – www.ukscreenassociation.co.uk

Mark LeaverUKTI creative / digital advisermark.leaver@uktispecialist.com+44 7884 490937@mark_leaver

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