Economic Contribution of the UK's Film, High-End TV, Video Game
Total Page:16
File Type:pdf, Size:1020Kb
Economic Contribution of the UK’s Film, High-End TV, Video Game, and Animation Programming Sectors Report presented to the BFI, Pinewood Shepperton plc, Ukie, the British Film Commission and Pact by Olsberg•SPI with Nordicity February 2015 Economic Contribution of the UK’s Screen Sectors Contents Foreword from George Osborne, Chancellor of the Exchequer ......................v 1. Key Points ......................................................................................................................................................1 1.1. Film .........................................................................................................................................................1 1.2. High-End TV ........................................................................................................................................2 1.3. Video Games .......................................................................................................................................2 1.4. Animation Programmes .................................................................................................................3 2. Executive Summary ...............................................................................................................................4 2.1. Film .........................................................................................................................................................4 2.2. High-End TV ........................................................................................................................................6 2.3. Video Games .......................................................................................................................................7 2.4. Animation Programmes .................................................................................................................8 How the Screen Sectors Benefit the UK Economy ............................................................. 10 3. Introduction ............................................................................................................................................. 11 3.1. Background ...................................................................................................................................... 11 3.2. Aims of this Report ........................................................................................................................ 11 3.3. Study Scope and Objectives ...................................................................................................... 11 3.4. Definitions of the Core UK Industries ..................................................................................... 12 3.5. UK Tax Reliefs, and the Definition of Qualifying Projects ................................................ 14 3.6. The Channels of Economic Impact .......................................................................................... 14 4. The Film Sector – Economic Impact ......................................................................................... 17 4.1. Overview of the Value Chain...................................................................................................... 17 4.2. Direct Impact ................................................................................................................................... 18 4.3. Multiplier Effects and Total Value Chain Impact ................................................................. 32 4.4. Impact of Tax Relief ....................................................................................................................... 34 4.5. Spillover Effects .............................................................................................................................. 36 4.6. Overall Economic Contribution ................................................................................................ 39 5. The High-End TV Sector – Economic Impact ..................................................................... 41 5.1. Introduction ..................................................................................................................................... 41 5.2. Direct Impact ................................................................................................................................... 42 5.3. Multiplier Effects and Total Value Chain Impact ................................................................. 47 5.4. Impact of Tax Relief ....................................................................................................................... 48 5.5. Spillover Effects .............................................................................................................................. 50 5.6. Overall Economic Contribution ................................................................................................ 51 6. The Video Games Sector – Economic Impact .................................................................... 52 6.1. Introduction and Overview of the Value Chain .................................................................. 52 6.2. Direct Impact – Employment and GVA .................................................................................. 54 6.3. Multiplier Effects and Total Economic Impact ..................................................................... 59 6.4. Spillover Effects – Merchandise Sales ..................................................................................... 60 6.5. Overall Economic Contribution ................................................................................................ 61 © Olsberg•SPI and Nordicity 2015 February 2015 ii Economic Contribution of the UK’s Screen Sectors 7. The Animation Programme Sector – Economic Impact ........................................... 62 7.1. Introduction ..................................................................................................................................... 62 7.2. Direct Impact – Employment and GVA .................................................................................. 63 7.3. Multiplier Effects and Total Value Chain Impact ................................................................. 67 7.4. Impact of Tax Relief ....................................................................................................................... 68 7.5. Spillover Effects .............................................................................................................................. 70 7.6. Overall Economic Contribution ................................................................................................ 71 8. Conclusions ............................................................................................................................................... 72 8.1. Value Chain Impact (Direct Impact and Multiplier Effects) ............................................. 72 8.2. Sectoral Evolution .......................................................................................................................... 73 8.3. Spillover Effects .............................................................................................................................. 73 8.4. Overall Economic Contribution ................................................................................................ 74 9. Bibliography ................................................................................................................................................. I 10. Appendix 1 – Economic Contribution Analysis Methodology ........................III 10.1. Film ........................................................................................................................................................III 10.2. High-End TV ...................................................................................................................................... VI 10.3. Video Games .................................................................................................................................... VII 10.4. Animation ........................................................................................................................................XIII 10.5. Tourism Methodology ..................................................................................................................XV 10.6. Aggregate Statistics .....................................................................................................................XVI 11. Appendix 2 – Lists of Tables and Figures ...........................................................................XVII 11.1. List of Tables ...................................................................................................................................XVII 11.2. List of Figures............................................................................................................................... XVIII 12. Appendix 3 – Glossary ......................................................................................................................XX © Olsberg•SPI and Nordicity 2015 February 2015 iii Economic Contribution of the UK’s Screen Sectors Commissioning Partners The BFI is the lead organisation for film in the UK. Founded in 1933, it is a registered charity governed by Royal Charter. In 2011 it was given additional responsibilities, becoming a Government arm’s-length body and distributor of