UK film industry ‘suffering due to rise of rivals’

THE UK’S independent film industry has suffered “unprecedented difficulties” due to increasing competition, the decline in the DVD market and the rise of streaming platforms such as Amazon and Netflix, a new study has found.

While spending on movie production in the UK has rocketed since tax incentives were introduced in 2007, reaching its highest figure in 2016 since measurement began, independent film has suffered.

Now the Producers Alliance for Cinema and Television (Pact) has called for the UK tax credit for British independent films with budgets between £2m and £10m to be increased to 40 per cent.

At present film tax relief (FTR) is available at 25 per cent of qualifying film production expenditure, regardless of budget.

The State of the UK Independent Film Sector study, which was commissioned by Pact and examined the industry between 2007 and 2015, found the international market for UK independent films has plummeted, with an estimated decline of around 50 per cent since 2007, as the home entertainment market has suffered and buyers focus on films they believe will be guaranteed hits.

Blockbusters filmed in the UK, such as Rogue One: A Star Wars Story and Marvel’s Doctor Strange, helped spending on film production in the UK reach £1.6bn in 2016, a 13 per cent increase from £1.4bn in 2015.

However, the report found independent film has not benefited from the boom and warned the current situation could limit the opportunity to develop major new British talent in the future.

The study said: “Since 2007, the independent film business has been buffeted by unprecedented difficulties. Some are permanent structural changes, such as digital disruption and increasing competition for audiences.”