BFI Economic Review Of UK Independent Film Sector Finds “High Levels Of Fragility”; Recommends Fresh Tax Relief Measures

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The UK independent film sector is in a fight for its survival amid the streamer-fuelled production boom and a long-term decline in traditional revenues, according to a one-off economic review commissioned by the British Film Institute (BFI).The study, conducted by Alma Economics on behalf of the BFI, found “high levels of fragility” across the sector, from the production stage through to distribution and exhibition, and suggested its “viability is inhibited to the point of market failure”.“This review gives us important economic evidence and pinpoints measures as preliminary recommendations which can be unpacked and modelled with the industry in order to enable it to prosper and continue,” said BFI Chief Executive Ben Roberts.The report found that while the UK production sector has ballooned in size over the last five years to reach record spending levels of $6.7b (£5.64b) in 2021, the benefits of this increased activity had not trickled down to the independent film sector.The production boom had instead priced smaller feature projects out of the market for cast and crew, with other key challenges including a 10-20% hike in production costs due to Covid-19-related measures, and a decline in revenues, linked to the stagnating box office and a sharp drop in global sales of packaged media such as DVD and Blu-ray.The study added that although inflation-adjusted revenues for digital media had increased over the past decade, they were not enough to reverse the wider trend in traditional revenues.The support of key funders BFI, BBC Film and Film4 and initiatives such as Film Tax Relief (FTR) and the new UK Global Screen Fund (UKGSF) was no longer enough to keep the sector afloat, concluded the report.The review set out four