UK SCREEN REPORT SAYS MAGIC BEHIND THE CAMERA DELIVERS REAL ECONOMIC VALUE

The extraordinary work that goes on behind the scenes of box-office giants such as Avatar, Sherlock Holmes and The Wolfman, TV programmes like The X Factor and Doctor Who and commercials such as Hovis: Through the Years and Evian's Skating Babies, has been researched in depth for the first time.

A new and comprehensive report launched today helps to identify the incredible value these companies add to the UK economy.

The report, entitled 'The UK Facilities Sector: a key contributor to the film and television industries and to the UK's creative economy', looks at the opportunities and challenges faced by a £2.2 billion facilities sector, and gives an indication of its future prospects, in the light of its distinctive characteristics and the competitive global environment in which it now operates.

"We wanted to be able to use this report to demonstrate the vital importance a robust facilities sector has for the long term health of the UK's creative industries", says UK Screen's CEO, Gaynor Davenport.  "The industry is undergoing rapid change and it is UK Screen's responsibility to make sure that its members continue to engage and collaborate successfully. 

"We want stakeholders to become familiar with our processes and infrastructure and to recognize both the crucial role that the facilities sector plays in making our creative industries world leaders, and the wider, cultural and economic, benefits we provide to the UK.  By doing this we hope to be in a stronger position to influence decision making when the government considers public policy provisions for the creative industries."

Colin Brown, British Film Commissioner, UK Film Council adds - "This report is a unique insight into the scope and breadth of a creative industry in expansion.  Its findings are illuminating and quantified and as such should serve as an authoritative source of information on an area of endeavour where the UK is a world leader."

With the advent of 'Digital Britain', as policy makers and regulators evaluate ways to secure and optimise the UK's digital infrastructure of the future, the report emphasises the value that the UK facilities sector brings to the debate and makes a fresh case for support. 

Key report findings include the following: 

• The industry is currently made up of 1,300 specialised companies, employing more than 25,000 people with an annual turnover of in excess of £2.2 billion. 
  
• The work of the sector is split across three main markets - TV (52%), film (18%) and commercials (18%).  Direct exports into these areas totalled £293 million in 2008
  
• Although there are a large number of companies within the UK facilities sector, only a very few have achieved scale in their operations.  The sector is dominated by small and medium-sized enterprises, with 99% of firms employing fewer than 250 people, and 78% employing fewer than 10
  
• In terms of overall economic impact (including indirect and induced impacts), the report estimates that the facilities sector is responsible for generating 50,850 jobs - in turn generating £1.6bn in GVA. In 2008 the sector contributed £262m (excluding VAT) to the Exchequer

The facilities sector is increasingly influencing decisions across the whole production value chain - with facilities companies becoming more integrally involved at the early stages of a production, rather than merely servicing the end of the process.  But, whereas the independent production sector has negotiated terms of trade with broadcasters, facilities companies do not have the protection of such agreements.  Nor do they generally have the benefit of owning and exploiting intellectual property. In order to continue adding value, the sector needs to strengthen its position in both these areas.

A key area for future development within the sector is the visual effects and graphics business, which is expected to continue to grow as audiences increasingly demand ever more impressive effects. 

"The UK Facilities Sector: a key contributor to the film and television industries and to the UK's creative economy" was commissioned by UK Screen Association in partnership with Ascent Media and the UK Film Council and was carried out by Olsberg|SPI and Trends Business Research.

The report is priced at £250 (+VAT) for non-members. Members of UK Screen will have recieved 1 complimentary copy per company and for additional copies it is £150 (+VAT). To purchase your copy, please email angela@ukscreenassociation.co.uk

Those wishing to join UK Screen will receive a complimentary copy of the report as part of their welcome pack.