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PURPOSE of REPORT to Update Members on Current Developments in the Broadcast Media Sector, to Highlight the Scope and Economic I

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SUSTAINABLE DEVELOPMENT COMMITTEE 6 DECEMBER 2017 BROADCAST MEDIA ACTIVITY UPDATE Report by Director of Development PURPOSE OF REPORT To update Members on current developments in the broadcast media sector, to highlight the scope and economic impact of the sector and to consider opportunities for further development activity. COMPETENCE 1.1 There are no legal, financial, equalities other constraints or risk implications to the recommendation being implemented. SUMMARY 2.1 The broadcast media sector is a key contributor to the local economy in terms of jobs and economic impact. The Comhairle has led a number of major infrastructure investments over the years and provided direct officer support to a range of related activities. 2.2 The Scottish Parliament’s Culture, Tourism, Europe and External Relations (CTEER) Committee have recently sought stakeholder responses on implementing measures aimed at strengthening and developing the screen sector over the next five years. A draft response has been prepared on behalf of Comhairle nan Eilean Siar and agreement has been sought to submit the response following consideration by the Committee. 2.3 This Report provides an overview of the local broadcast media industry and its important contribution in terms of employment, population retention and inward investment. It reviews the main challenges and areas for growth and development in the future. 2.4 The current co-location of MG Alba, Creative Industries and Media Centre, BBC Radio nan Gaidheal, the An Tosgan offices for Gaelic organisations and Isles FM, has contributed considerably to fulfilling the vision for a creative media cluster. 2.5 Discussions are on-going with regard to the future use of the main studio facility at Studio Alba, as part of the next phase of delivery of the Creative and Cultural Industries Strategy 2017-2020. A further Report on the outcome of discussions will be provided to the Sustainable Development Committee in April 2018. RECOMMENDATIONS 3.1 It is recommended that the Comhairle: a) note the importance of broadcast media activity to the Outer Hebrides economy and endorse ongoing efforts to maximise the economic potential of the sector; b) authorise the Director of Development, in consultation with the Chair of Sustainable Development Committee, to submit the response to the Culture, Tourism, Europe and External Relations Committee; and b) agree to consider a further Report in April 2018 on the future use of the main studio facility at Studio Alba Contact Officer: Sarah Maclean Economic Development Officer 211205 Appendices: 1. CnES draft submission to CTEER inquiry 2. Summary of recent locations activity 2015-17 Background Papers: None BACKGROUND 4.1 The Creative Industries are growing internationally and are a particular success story for the UK economy being worth over £90bn. 4.2 The sector is growing faster in Scotland than in the rest of the UK, with the screen and media broadcast sector a significant contributor to this. In September 2017, Creative Scotland released figures demonstrating production spend growth of 30% from 2015 to 2016. £69.4 million was spent nationally in 2016 in making broadcast content, a 200% increase since 2007. Growing awareness internationally of Scotland’s indigenous production expertise, outstanding locations and the success of national incentive funding has, coupled with an explosion in on-demand and multi-platform news, social-media and entertainment consumption, fuelled this rapid and remarkable sectoral growth. 4.2 The Scottish Parliament’s Culture, Tourism, Europe and External Relations (CTEER) Committee are currently considering how best to support and develop the screen sector further. In 2015, following economic analysis CTEER established the Scottish Screen Leadership Group (SSLG), an independent group of senior industry representatives that aims to facilitate engagement with stakeholders and enable public bodies to better understand and respond to the screen sector’s needs. In January 2017 the SSLG prepared an overview report of the key issues facing the industry in Scotland and recommendations on addressing these. In response CTEER are now gathering wider responses on how best to implement these recommendations. 4.3 A daft response has been prepared to the CTEER inquiry on behalf of Comhairle nan Eilean Siar, in recognition of the economic and cultural importance of the sector, particularly Gaelic broadcasting, to the islands. A copy is attached at Appendix 1. 4.4 This Report sets out the context of the local broadcast media industry and outlines the main points made within the inquiry response. It also highlights opportunities for harnessing the potential of the sector as a driver for economic growth and population retention and considers how this may be achieved. 4.5 The broadcast media sector is a key component of the Outer Hebrides Creative and Cultural Industries Strategy 2017-2020 which was approved by the Comhairle in December 2016. SUPPORTING THE LOCAL BROADCAST MEDIA SECTOR 5.1 The Comhairle has made a significant investment over the last thirty years to support the local broadcast media sector. The Comhairle led the development of both the former Grampian Television studio at 54 Seaforth Road and Studio Alba at 56 Seaforth Road. The investment in facilities and training at that time laid the foundation for today’s local media sector. 5.2 More recently the Comhairle led the development of the new £2.6m Creative Industries and Media Centre (CIMC) and the re-modelling of the adjacent Studio Alba facility. A critical driver for the overall project was new Gaelic channel BBC Alba and to create the potential for BBC Radio nan Gaidheal to relocate to new, modern, enhanced facilities. 5.3 The CIMC, which was formally opened in 2012, provides bespoke office and production facilities for MG ALBA as well as modern, flexible spaces for a range of independent media businesses and visiting productions. Both the facilities at 54 Seaforth Road and the CIMC are leased to MG Alba. 5.4 The Studio Alba building was re-modelled in 2013 to create the new An Tosgan facility which co-locates a number of Gaelic related businesses and organisations on the upper floor. The main studio has been retained and future potential uses are currently under consideration. 5.5 The overall vison and ambition was to deliver new economic activity and jobs through the development of a creative media cluster. The current co-location of MG Alba, CIMC, BBC Radio nan Gaidheal, Studio Alba, the An Tosgan offices for Gaelic organisations and Isles FM, has contributed considerably to fulfilling this original ambition and created the largest Gaelic speaking work-place in the world. ECONOMIC IMPACT 6.1 Key points from an economic impact study carried out independently for MG ALBA and HIE in 2016 is included in the table below: 2016 data Outer Hebrides & Skye Estimated impact in (Olsberg.SPI Report Outer Hebrides 2016) MG ALBA: Direct Employment 26 FTE 20 FTE MG ALBA: Indirect Employment 18.2 FTE 14 FTE Independent production 65.3 FTE 50 FTE company job creation supported by MG ALBA investments (including freelancers) MG ALBA outlay on direct operations £1.3m Income generated to the independent production sector from MG ALBA spending £1.77m GVA generated by MG ALBA £845,465 Equating to an average spending income per FTE of £27 - 30K per year – comparing favourably to the median wage in OH of £24,600. 6.2 As a television commissioning body 97% of the £8.6m contracts MG ALBA awarded in 2016/17 went to twenty independent production companies, 30% of whom were based in the Outer Hebrides. These independent companies shared £1.7m from MG ALBA which then levers in significant further investment. The creative, production and technical expertise held within these independent businesses is one of the greatest resources of the local industry and is sought-after nationally. 6.3 The study shows that overall employment activity is equivalent to approximately 11,000 FTE’s in the central belt. 6.4 BBC Radio nan Gaidheal currently employs approximately 30 staff and draw on a number of freelancers to support programme activity. 6.5 It is estimated that the total employment in the sector is approximately 114. STUDIO ALBA AND FUTURE OPPORTUNITIES 7.1 Following the conclusion of Machair in 1998 use of the Studio declined sharply save for occasional Gaelic productions, community performances and ad hoc activity. Lack of an integrated succession plan, coinciding with significant shifts in programme trends (away from studio to location formats) led to the eventual cessation of Studio Alba Ltd in 2012. At that time the Comhairle took over the facility and delivered the An Tosgan project, in partnership with Bord na Gaidhlig; redeveloping the non-studio wing of the building to create a suite of offices for Gaelic led organisations. 7.2 In 2013 and 2014 the production company Move on Up leased the Studio for production of the BAFTA award winning children’s programme Katie Morag, which over the two years brought a local economic benefit estimated to be over £1m . Since that time the Studio has seen a steady level of use as rehearsal and community arts space and accommodated three further individual short-term productions. It continues to attract a range of interest including for international film usage however this has yet to translate to regular filming activity. 7.3 There is currently one active enquiry for use of the facility on a long lease and the outcome of those discussions will be known by the end of 2017. 7.4 A proportion of the recent national and international interest in Studio Alba has come on the back of location enquiries from producers who wish to capture the outstanding and varied natural environment the islands offer. Locations activity, whereby production companies travel in to the area to shoot footage, is an important source of external investment to the islands and also for the marketing potential this content has.
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