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. Attached at Appendix 2 is a summary of visiting productions and their estimated financial value. The majority of our visiting productions are one-off factual based pieces that only require a small crew and turn- around quickly; greater income and impact is generated through drama and extended format work – securing a long-term or feature film production could bring a transformational benefit to the area.

7.5 As demonstrated at Appendix 2. inward production location activity is growing, not only benefitting supply-chain businesses and building the islands reputation as a first-class, fully resourced location but also playing an extremely important role in promoting the Outer Hebrides nationally and internationally. Visit Scotland’s 2015/16 Visitor Survey cites that 36% of respondents were influenced by media, film, television, books or travel features in making their decision on where to holiday. How the region is portrayed on screen has a major influence on fuelling people’s desire to visit in person and is especially important to non-UK visitors.

7.6 Recent filming in Skye of high-budget productions such as the BFG, Transformers, King Arthur and the Harry Styles music video have contributed significantly to rapid tourism growth there. The Outer Hebrides can lay claim to the provenance of productions such as Katie Morag, Keepers (based on the Flannen Isles mystery), Whisky Galore, Outlander, Brave and multiple other cultural references which have influenced cinema, television, literature and media. The potential of such activity requires to be fostered and developed in line with wider island marketing campaigns and steps should be taken to attract and secure future production activity.

7.7 There is considerable positivity around the screen sector in Skye at present, much of which has been enabled by effective co-ordination and leadership from Bannan producers Young Films. Studio Fas at Sabhal Mor Ostaig was launched in 2008 as a complimentary facility to the existing media infrastructure in the islands. However despite being smaller in size and having lesser travel links, activity at Studio Fas has outstripped the Stornoway facility, notably due to Gaelic drama Bannan being filmed there. In September 2017 Young Films announced an ambitious residency for writers, directors and producers to encourage talent and develop industry training opportunities in the area stating: “Eventually, I hope we can make Skye as renowned as Sundance, as a place for Film and TV creatives to come and develop their work and to progress their careers”. Given the Outer Hebrides media infrastructure, skills base and close proximity to Skye the opportunities for collaboration are considerable.

7.8 Sectoral training is a key strand of the recommendations put forward by the SSLG and one of the areas that CTEER are looking to see developed. The creativity, technology and flexibility associated with the industry make it a very attractive option for young people considering career choices and the ongoing evolution of the industry means a continual requirement for up-skilling and professional development.

7.9 There is potential to deliver into this training agenda, utilising locally based facilities and experience, including the infrastructure for distance learning established by e.Sgoil. Local multi-media apprenticeships, in partnership with local media businesses, are already in place through the Comhairle’s Apprenticeship Strategy and opportunities for linking to the newly announced National Film and Television School (NFTS) for Scotland in Glasgow are ripe to be explored. Discussions are on-going with the Director of Education and Children’s Services.

7.10 One of the major drivers behind the NFTS is the forthcoming new national channel BBC Scotland, due to launch in 2018 heralding a new era for sister station BBC ALBA. However alongside challenges such as diluted audience numbers there are major opportunities, not least in the ten years’ experience MG ALBA and their supplier companies have established in delivering high quality, locally commissioned and community relevant content. One of the catalysts for the creation of BBC Scotland is the recognition that Scotland lags behind in its offer of quality indigenous programming. Research suggests MG ALBA is currently responsible for over 50% of all current Scottish independent production activity, therefore those companies already supplying BBC ALBA, many of whom are based in the Outer Hebrides, are well placed to meet this brief but may require appropriate growth support in order to benefit from the market expansion.

CONCLUSION

8.1 The broadcasting infrastructure and talent available in the Outer Hebrides continues to be a key contributor to our economy and the role of the media in promoting the area and its culture while retaining a young, dynamic workforce cannot be underestimated.

8.2 Previous investment and established expertise have created what is possibly the best resourced and most professionally skilled media base in Scotland out-with the central-belt. This coupled with outstanding natural locations make for a unique offering to the production sector which is experiencing strong national and international growth.

8.3 However as the sector grows, new initiatives emerge and other areas develop their offering there is potential risk of talent or services being drawn elsewhere. In order to mitigate against these risks and optimise current sectoral opportunities engagement with Creative Scotland, BBC Scotland and MG Alba is critically important. With input from these industry partners and others in the sector it will be possible to devise a locally orientated development framework which attracts national and international investment to the islands.

8.4 A range of options are currently being developed for the future use of Studio Alba and it is anticipated that a further Report will be brought back to the Sustainable Development Committee on the outcome of those discussions in early 2018.

Appendix 1

Draft submission from Comhairle nan Eilean Siar to the Scottish Parliament’s Culture, Tourism, Europe and External Relations Committee inquiry in to how the Screen Sector Leadership Group’s report recommendations on strengthening and developing the Scottish screen sector can be implemented.

1. Context: The Outer Hebrides face a variety of economic and social challenges with the top long-term priority for the region being to find new, innovative and effective ways of addressing population decline. The Creative Industries as a whole are critical to our economy (ONS figure for 2015 show many more people in the Outer Hebrides are employed in ‘Arts, Entertainment, Recreation & other services’ and ‘Information & Communication’ (media) as in ‘Fisheries, Aquaculture and Agriculture’.

Since the early 1990’s the Outer Hebrides have had a significant media industry built around Gaelic broadcasting with both the Comataidh Telebhisein Gàidhlig (Gaelic Television Committee) and latterly MG ALBA established and resourced to oversee the production of Gaelic language programming and headquartered in Stornoway. Development of associated infrastructure has had vitally important impact on the islands economy and there is considerable potential for the sector to act as a further driver for economic growth and population retention in the islands. Providing work which will attract and retaining a young, creative and dynamic workforce and promoting the islands and its culture internationally. However as the sector grows, new initiatives emerge and other areas develop their offering we are very aware that talent and services will be drawn elsewhere if we do not grow our local industry accordingly. We would advocate that any initiatives taken to maximise the current opportunities across the industry seek to build on and bring targeted benefit to areas such as ours, we have an established foundation on which to build a very successful satellite of Scotland’s screen industry but require support to achieve this potential.

1.1 MG ALBA formed the first ever partnership television service agreement to operate under the BBC, creating the dedicated Gaelic TV channel, BBC ALBA which launched in September 2008. The expertise developed in the set-up and operation of the channel is rare and having such experience and insight locally is a valuable asset.

1.2 MG ALBA’s commissions awarded in 2016/17 valued £8.9m, of which 97% went to independent production companies - 30% of whom were based in the Outer Hebrides (= £1.7m direct local investment). The activity generated by the MG ALBA commissions levers in significant further investment and the creative, production and technical expertise held within these independent businesses is sought-after nationally.

1.3 An economic impact study carried out independently for MG ALBA in 2016 showed that they support approx.114 FTE jobs in the Outer Hebrides and Skye (both directly and via supplier companies) this is the equivalent to approximately 11,000 FTE’s in the Central Belt. MG ALBA direct employment in Stornoway currently totals 20 equating to almost 2,000 central belt-posts by the same formula.

1.4 The Gaelic soap opera Machair (1992-98) was shot on location in the Outer Hebrides in a purpose built studio - Studio Alba in Stornoway. Built utilising EU funding the Studio extends to almost 600 sq. m sound stage, has vehicle access and a full DMX lighting rig. It is regarded by industry professionals who have used it as one of the best facilities of its kind in the country.

1.5 In 2008 the Comhairle, in partnership with HIE and ERDF, invested in the refurbishment of property adjacent to Studio Alba, which saw the creation of the Creative Industries Media Centre (CIMC). This provides modern bespoke office and production facilities for MG ALBA who sub-let to a range of independent media businesses, external organisations, visiting companies and productions. The co-location of the CIMC, Studio Alba, BBC Radio nan Gaidheal the An Tosgan offices for Gaelic organisations and Isles FM have created a unique cultural cluster of talent which is the largest Gaelic speaking work-place in the world.

1.6 Use of Studio Alba declined sharply after Machair concluded in 1998, a variety of factors can be attributed to the current under-use of the facility but raising awareness of it as an asset to the Scottish screen sector and persuading production professionals that work is feasible and proven in an island context is key. The most significant recent use of the asset was in 2013/14 for production of the BAFTA award winning children’s programme Katie Morag, it is estimated that this created over £1m in economic benefit for the islands over the two years.

2. Response to priorities set out by the SSLG: This response outlines the perspective of Comhairle nan Eilean Siar as a Local Authority seeking to harness the economic potential of the existing screen infrastructure and resource in our islands.

2.1 Previous investment and established expertise have created in the Outer Hebrides what is possibly the best resourced and most professionally skilled media base in Scotland out-with the central-belt. This base, coupled with outstanding natural locations make for a unique offering to the production sector. With a focus on Gaelic broadcasting and its critical cultural value to our area, we promote the facilities, assets, skills and locations to be found in the islands to all domestic and international productions. Nurturing development of existing talent and facilities clusters out-with largest cities is key to maximising benefit to all of Scotland. The Comhairle and partners would welcome the opportunity to work with the forthcoming Screen Unit to achieve maximum benefit to this economically fragile area. The decided approach should ensure ongoing conversation and collaboration with all regions is embedded in the activities of the Screen Unit to ensure it has a truly national impact.

2.2 Most of the regional film offices in Scotland are based within or affiliated to Local Authorities and are often just one individual with a remit to develop film interests as part of a wider job description. In the current public-sector climate of constricting budgets there is a limit to the scope and scale of promotion, engagement and benefits realisation that these regional offices can achieve. It is usually not possible to respond positively to productions requesting even small amounts of funding and referring these enquiries to existing enterprise and business funding sources is often futile as their schemes not easily accessible to the sector. Relatively modest amounts of funding, used innovatively to incentivise regional activity could be channelled through the existing film office network to help it to thrive and to extract the most from the experience and knowledge within it. The SSLG and Screen Unit should support local areas to enhance their film officer posts and resource through regionally targeted production activity budgets; acknowledging that economic benefit in rural areas is relative and a steady amount of medium-scale production work can bring great benefit in terms of jobs and spend. Also work with SE, HIE and all economic development agencies to ensure the resources available are appropriate to the sector’s needs and that a culture of flexibility is fostered to allow creative projects and practitioners to flourish.

2.3 The film and television market is an important platform for promoting our islands as a stunning destination and an attractive way of life, vital in the face of our population challenges. Factual and documentary programming showcases the area and there is also opportunity in claiming our cultural links to stories such as Katie Morag, Keepers (based on the Flannan Isles mystery), Whiskey Galore, Outlander, Brave and many other local references which have influenced cinema, television, literature and media. The potential of such activity requires to be fostered and developed in line with wider marketing campaigns and in order to achieve this links between the screen and visitor sectors should be embedded into any strategic planning. Ensure there is a cross-sector approach taken to developing the economic potential of the industry – e.g. community benefit clauses from productions, further supporting Scotland’s representation at international events and exploring joint promotional initiatives between screen bodies and partners from other sectors.

2.4 Maximising the potential of Studio Alba in Stornoway should be a priority for the proposed Screen Unit given the acknowledged shortage of professional studio space in Scotland. Despite air links to Lewis and the larger size of the facility there the area has lagged behind Skye in recent years both for location and Studio work. The Comhairle would like to work in partnership with Creative Scotland, the wider sector and Skye to maximise the benefit to the islands of all the infrastructure and skills on offer here.

2.5 Training provision is one way in which the sector could contribute significantly to the regional development agenda. Given the experienced skills base and professional standard facilities in the islands there is a real and present opportunity for the Outer Hebrides and Skye to link to the sector training plan as it emerges, especially through collaboration with the newly announced National Film and Television School (NFTS). Again, regional dimensions should be considered as the form of this institution emerges, not least for the benefit of students to ensure they have the opportunity to understand Scotland and its screen industry as a country in total.

2.6 The advent of BBC Scotland will herald a new era for sister station BBC ALBA, however alongside possible challenges around competition for audience numbers there are also major opportunities, not least in the ten years’ experience MG ALBA and their supplier companies have established in delivering high quality, locally commissioned and locally relevant content. Research suggests MG ALBA is currently responsible for over 50% of all current Scottish independent production activity, therefore those companies already supplying BBC ALBA, many of whom are based in the Outer Hebrides, are well placed to meet this brief but may require appropriate support for growth in order to benefit from this market expansion, please see comment at 2.2 regarding tasking and tooling economic support agencies to respond positively to the opportunities arising.

2.7 With regard to more reliable collection of data we would recommend that frameworks are put in place whereby production companies and commissioning bodies are required to estimate the spend impact associated with their activities and share this with the regional film-offices, SSLG and wider industry stakeholders. The current model whereby the onus is on the film offices to track screen spend through liaison with each production is flawed and open to significant omissions and misreporting. A framework which either incentivises or penalises production companies to co- operate in collecting and sharing this information would be mutually beneficial as it would not only make assessment and monitoring of the sector far easier in strategic terms it would also greatly support the case for encouraging more such activity, allowing local and national authorities are able to see the direct benefit the industry brings.

Appendix 2. Visiting Production Activity 2015-17

YEAR PROJECTS (No. of Enquiries) 2015 Hayman’s Way (Travel/ Factual - STV) European Music Archaeology Project (Project Documentary: Royal Conservatoire of Scotland) (13) DNA Nation (Genealogy/ Factual – SBS Television, Australia) Port (Music / Factual - BBC ALBA) Wounded Nations - 'Scotland: The Promised Land - Homes for Highland Heroes' (History/ Factual - BBC Scotland) 2016 Na Saboteurs (Children’s Drama – BBC ALBA) Torcuil Chat Show (Entertainment – BBC ALBA) (35) Grand Tours of the Scottish Islands (Travel/ Factual – STV) Alan Cumming’s Edge of Scotland (Travel/ Factual – STV/NBC – Scotland / USA) Homes by the Sea (Construction/ Factual – Ch. 4) Blue Peter (Children’s Factual – BBC One) Die Inseln der Queen - The Islands of the Queen (Travel/ Factual – Arte - Germany) Tales from the Coast with Robson Green (Travel/ Factual – ITV) Restoration of the Year – Lews Castle (Construction/ Factual – Ch.4) 2017 Songs of Praise (Religious/ Factual – BBC One) The Lantern Man (Short Film / Drama – London College of Communication) (26) Jaguar XF Sportbrake (Commercial) Burdz Eye View with Elaine C. Smith (Travel/ Factual) Wildlife Showreel (Eleanor Hamilton, University of Salford) The One Show (Travel/ Factual – BBC One) House in a Box (Construction/ Factual – Windfall Films) Lift Share (Short Film / Drama – Faction North) The Island Diaries (Documentary/ Factual – DBCom Media - Canada)

 These productions are those known to the Comhairle’s Economic Development section – the list is the most comprehensive available but not necessarily complete as visiting productions are not obliged to notify the Local Authority film office of their presence, although it is considered good practice to do so.

 Information is gathered on the scale, type and duration of each known production and used to calculate the estimated local spend per project. Between 2015 and 2017 the locations activity noted has generated over £200,000 in direct local spend for the islands, representing leverage of 1:40 on Comhairle investment. The vast majority of productions request only advice and no financial support.