Posts Tagged 'dcms'

More creative industries jobs in Scotland than we thought but most sectors declining

The DCMS have just released their nations/regions breakdowns of creative industries employment in the UK and the Scottish picture is, relatively speaking, somewhat disappointing even if the figures show the number of creative industries and creative economy jobs (more on that distinction later) in Scotland to be more than most recent Scottish estimates calculate.

Across the UK creative industries jobs (creative and support) grew 10% between 2011 and 2013, while in Scotland there was a slight drop from 103,000 to 102,000 according to the DCMS count.  In the wider ‘Creative Economy’ (which includes creative jobs in non-creative industries) every sub-sector bar two (Architecture and IT) recorded falls in employment with the total dropping from 166,000 in 2011 to 163,000 in 2013. The sectors recording the highest falls were Advertising and Marketing ( -2000 jobs) Crafts (-2000) and Design (-2000) with the highest riser being IT, software and computing services (+8000).  The presence of the latter in Creative Industries statistics is a continuing issues as many of these jobs are not in fact creative industries related at all and as this sector accounts for one third of the total jobs its increase of 7000 jobs over the two years masks the falls elsewhere.

Whereas every other area in the UK shows an increase in creative industries employment as a proportion of total employment between 2011 and 2013 averaging 0.5% and up to 1.2% in the East of England, only Northern Ireland and Scotland record a drop, albeit a statistically insignificant 0.1%.

Scotland’s 102,000 creative industries jobs (NB jobs in the creative industries only, the creative ‘economy – see below) account for 6.3% Scottish employment total compared to the 8.5% UK average (a total of 1.7m jobs).  However setting aside London (16.2%) and the South East (10.1%) that’s on a par with most of the rest of the UK barring the East of England (8.3%) and the South West (7.6%).

With 163,000 of the 2.6m UK Creative Economy jobs (NB ‘Creative Economy’ counts creative jobs in non-creative Industries) Scotland’s share has fallen more (-0.6%) than anywhere other than the East of England (-0.8%).

That these figures are very different from those used in recent discussion of Scotland’s creative industries comes as no surprise to those of us with an unhealthy interest in comparative methodologies but is a real problem in trying to get to any sort of coherent policy discussion about what needs to be done to support both overall growth and the specific needs of individual sectors.

BFI and Government get ‘could do better’ progress report from Smith film policy review team

Follow up reports to Government commissioned reviews can often be rather bland and self-congratulatory but Chris Smith’s Film Policy  Review two year update has rather more teeth and doesn’t hold back from expressing frustration with the BFI, Government and industry’s lack of progress in a number of areas. (The original report can be found here and our 2012 post on it here)

Careful to acknowledge the funding cuts imposed on it by the UK Government and broadly positive about overall progress to date, Smith’s report nonetheless takes the BFI to task on the central plank of its BFI’s ‘Film Forever’ strategy, developing the audience for film and in particular for ‘specialized’ (i.e. UK independent and foreign language) cinema.  Its criticism is directed in part at the rather ‘top down’ way the BFI is working with partners in exhibition and lack of engagement with commercial distributors. The review expresses this is diplomatic terms ‘recognizing’ “the importance for the BFI of capturing and building on the experience and local knowledge in the regions and nations, as well as that of established organisations like the Independent Cinema Office, both in terms of avoiding duplication and spreading best practice” which is code for ‘consult more, command less’.

In relation to Film Education, another key aim of the Film Policy Review and the BFI’s strategy, the review update notes that, compared to England, the other nations and regions seem to have a more-joined up approach and that the designated delivery body, In To Film (until recently known as Film Nation UK or FNUK) on the one hands needs more room (from the BFI) to get on with the job but on the other recommends it “urgently engages with  schools and teachers to achieve capacity and scale for film education  interventions. The Panel stresses the related need for FNUK to engage more  fully with the government, and the Department for Education in particular, in  order to enable this

Although a seemingly arcane subject to most people outside film distribution the mechanics of the Virtual Print Fee mechanism, used to recover the cost of digitalising Britain’s cinemas, are of great significance for low budget filmmakers, distributors and smaller exhibitors.  The review update endorses a proposed alteration to the system which amongst other things would introduce a fee waiver for films released on 99 ‘prints’ or fewer, a considerable saving for distributors and thus venues and thus a help to the indie film-maker in getting their work to audiences.

The review update is pretty positive about the BFI’s roll out of its Development, Production and Distribution responsibilities which it acquired following the demise of the UK Film Council.  However Smith and co. are clearly frustrated at slow progress towards the Joint Venture Initiative between talent, producers and distributors heralded in the original recommendations, implying that PACT, DUK and WGGB are the principal source of the delay.

However the review update reserves its strongest admonition for the Government and its failure to make headway in getting the Broadcasters to do more to support the industry, expressing disappointment that “there has been no progress on the Film Policy Review recommendations concerning Memoranda of Understanding between broadcasters and an investigation into the UK film acquisition market”  and rather archly ‘reminding’ Maria Miller and co “that it accepted and agreed these recommendations, and strongly urges the government to prioritise their implementation as a key strategic component of an effective UK national film policy.”

On Skills and Talent development the update observes that despite considerable new investment and progress on many fronts the BFI isn’t listening to or working in quite as joined up a way as it might with the variety of delivery and strategic bodies across the length and breadth of the UK. Smith recommends that “the BFI, Creative England and Creative Skillset work more collaboratively … and that the BFI facilitates ongoing discussions with leading delivery agencies in UK skills and talent development across the UK’s regions and nations, to enable a more cohesive strategy for the sector. The Panel suggests this could be done most effectively via a steering group,  made up of strategic partners and led by the BFI.”

Summing up the progress of the BFI as Lead Agency for Film the review update reprises its core motif of ‘doing well, could do better, especially by being more collaborative’ and, noting that the BFI is due for a Triennial Review this year concludes:  “As it matures in its role as lead agency for film in the UK, we would encourage it to find an optimum balance between providing strong industry leadership and truly collaborative partnership working that allows partners the necessary licence to deliver against their remit.”

Given the considerable disquiet  in the exhibition and education sector about the BFI’s tendency to be somewhat over-directive in its approach to partnership working one suspects there will be not a few people saying ‘amen’ to that.

A Future for (Scottish) Film?

A Future for British Film’ (Lord), Chris Smith’s Review of UK Film Policy, is packed with recommendations so inevitably commentaries have tended to focus on a selection  – production, exhibition, culture finance etc. and this one is no different.  The significance for filmmakers of suggested changes to the investment environment and recoupment, getting distributors into the financing process earlier etc have been well covered in the trades and elsewhere so let’s take a moment to ask what does it all mean specifically for Scotland?

Firstly this is an independent report setting out to the Westminster Government, the BFI and others recommendations which they may or may not choose to follow.  While the Scottish Government (and key bodies such as Creative Scotland or the NLS where the Scottish Film Archive now sits) have no formal obligation to pay it any heed, it nonetheless has great significance for film in Scotland, from education and training to production, exhibition and archive as it both sets out key issues and challenges and some of the means by which they might be addressed.  In doing so it has the potential to bolster the case made by various interest groups (not always entirely shared) – from educators to exhibitors – for funding and other interventions.

The Review has direct implications for how the BFI may relate in future to Creative Scotland and other Scottish bodies and, in passing, it prompts not a few questions abut how a future Independent, or at least fiscally independent, Scotland would manage some of the matters which are currently reserved to the UK such as tax breaks for film production, the treatment of co-productions and so on.  (Indeed what the role of the BFI might be post independence or devo-max is an interesting but so far entirely unexamined question.)  In its submission to the Review the Scottish Government, amongst other things, called for film lottery funding to be fully delegated to Scotland and suggested that the BFI could also be made accountable to the Scottish Parliament for its activities in Scotland.

Back to the report then and amidst the welter of recommendations on treatment of producer’s equity, piracy, integration of film education and closer working between producers and distributors (now where have we heard that before? Oh yes, in 1997 when the Lottery Film Franchises were established…or even further back in 1980… plus ca change)  there are some which have specific significance for Scotland, vis:

Recommendation 6. (“The Panel recommends that the BFI should co-ordinate a joined-up UK-wide film festival offer, to promote independent British and specialised film and maximise value for money, utilising a mix of public funding and private investment and sponsorship.”) though it doesn’t mention it by name,  implies the continuing  importance of the Edinburgh International Film Festival to the UK film festival ecology but stresses the need for more to be done ‘to understand the role of local festivals and their relationship to international festivals in the UK’.  Growing festivals like Glasgow’s may take heart from that whereas Edinburgh may need to consider what role it wants to play as Scotland‘s centre of excellence in festival programming, curation and so on outside of the few weeks of the Festival itself.

Several commentators have highlighted the Review’s veiled criticism of UK Broadcasters for not doing enough to support the film ecology it benefits from to the tune  of £1.2bn in ‘economic value’ and the fact that 80% of UK film’s audience is via television.  While it resists calling outright for the statutory quotas for film investment or output which are common in outher parts of Europe, it does dangle them as a plan B if a voluntary solution isn’t found: “the Government initiates immediate discussions with each of the major broadcasters – the BBC, ITV, Channel 4, Channel 5 and BSkyB – with the aim of agreeing a Memorandum of Understanding with each broadcaster setting out its agreed commitments to support British film. Should this approach prove unproductive, then the Government should look at legislative solutions, including new film-related licence requirements to be implemented in the new Communications Act.

From a Scottish perspective the question is whether such voluntary or statutory arrangements can produce a commitment to diversity of material and/or a specific commitment to film investment/output in Scotland by the terrestrial broadcasters.  Given the current scale of opt-out programme budgets and available slots this might seem implausible but STV’s drive to opt out of the ITV network more and more, the declining ‘entry cost’ of (low budget) feature film production, wider partnership opportunities with domestic and overseas co-producers and the greater flexibility over release ‘windows’ all make it much easier to envisage Scottish broadcasters part-funding festures for theatrical and near to simultaneous TV release.  Indeed without them it is difficult to imagine a sustainable Scottish film ecology.

Alongside finance and distribution, skills and talent development are crucial to the ‘supply side’ of film-making.  Sustaining the critical mass of craft skills in Scotland needed to support incoming and indigenous filmmaking and nurturing new talent to the point where it can attract investment from near or far remain high priorities (or ought to).  The Smith Review Panel “recommends that the BFI, in partnership with Skillset and BIS, continues to deliver and strengthen a strategy for skills which represents a ‘gold standard’. Such a strategy will help ensure that skills across the sector remain one of the UK’s great strengths, that our skills base continues to act as a powerful incentive for inward investment, and that the indigenous film sector is able to maximise benefits to audiences.”

Our own research has recently uncovered a worrying downward trend in film skills investment in Scotland over the past five years both in absolute terms (due to the cuts in funding to UK skills body Skillset) but also in percentage terms as the ‘centre’ of the industry has been, relatively speaking, protected.

Skillset Nations and regions spend

The Smith Review recognizes the ‘National and Regional Challenge’, noting that “Despite support for out-of-London film activities from National and Regional screen agencies, the UK film industry remains a London-centric business [which] presents challenges for the development of talent and on-screen representation of the UK’s Nations and Regions.”

In recommendation 44 Smith “recommends that the BFI works with and supports Creative England, the National Screen Agencies, Skillset and others to create a strategy to ensure diverse talent is found, supported and nurtured, outside of London. Ways should be found to help ensure that talented people can work, in a sustainable way, wherever they may wish to locate themselves in the UK.

Fine words though there is not much flesh on them in the report itself.  That said one of the concrete recommendations with a potential direct impact in Scotland (here I must declare an interest as Director of Screen Academy Scotland) relates to film schools:

“42. The Panel recommends that the BFI, together with Skillset, HEFCE and the Scottish Funding Council, undertakes a review of the three Skillset Film Academies, with the objective of establishing their readiness to be considered for the equivalent of ‘Conservatoire’ status for delivering world-class skills and training – similar to that enjoyed by leading music, drama and dance academies.”

Since we established Screen Academy Scotland in 2005, transforming the opportunities for film talent to pursue postgraduate, practice-based training in a well resourced, creative and risk-taking space, the goal of sustained funding at a per capita level commensurate with e.g, the National Film and Television School, has remain frustratingly close but just out of reach.  This recommendation by the Smith Review, if heeded, may finally help us close the gap and ensure that the nation’s film and television school does not have to live from hand to mouth, chasing funding on an annual basis.

All in all the Smith Review has much for filmmakers, educators, audiences and policymakers to welcome but of course the real test is what notice the Government(s) and BFI (whose own strategy is due out in a month or so) take of its recommendations and how much pressure is effectively brought to bear on them by the diverse (and largely disparate) interests that make up the audience for this report.

You can count on the creative industries (or what happened to the missing £24bn)

December is the month the busy statisticians in the DCMS release their latest estimates of the size and shape of the UK’s creative industries (CI).  Very useful stuff for policy wonks and arts anoraks like yours truly.  Sadly for those of us doomed to wrestle with SIC and SOC codes, making year-on-year comparisons of  what’s up, what’s down and where is doing better or worse than where else isn’t exactly made easy by the near constant revising of definitions, multipliers, scaling factors and the like.  (To be fair the DCMS do point out that these are experimental stats and they change them in response to feedback from users and in order to make them more fit for purpose, and quite right too).

Less anyone imagines these are just minor technical tweaks  it is worth noting that as a result of the latest changes to the methodology the reported Gross Value Added (GVA) of the UK’s creative industries has plummeted by nearly 50% from £59bn (5.6% of the total) in 2008 to £36bn (2.89%) in 2009!

What this in fact means is that if the current methodology is taken as accurate, the previous statistics were grossly exaggerating the real value of the Creative Industries but we can breathe a sigh of relief as the new figures can be relied on ‘going forwards’.

One of the biggest (and long overdue) revisions concerns the value of software and games which at £26.4bn (46% of the CI total) on the ‘old’ system dwarfed every other sector.  In the new figures, which have stripped out a swathe of ‘non creative’ software consultancy and the like, a more realistic figure of £160m for ‘Digital & entertainment Media’ and £570m for ‘Software and Electronic Publishing’ puts the combined total at 2% of the CI.

So which is UK’s biggest Creative Industry?  Well it may surprise some people to learn that it is Publishing, worth £11.6bn GVA in 2008 and accounting for a third of all CI GVA and almost the same proportion of exports at £2.6bn (in 2009). Advertising comes second at £7bn in 2008 but dropped to £6bn in 2009 as the recession took hold while TV & Radio are in third place at around £5bn.

 

What about Scotland?  Well the full range of data isn’t yet available but a few figures provide some clues as to what may be happening.  Scanning the regional breakdown of registered enterprises (NB this excludes a lot of sole traders) Scotland’s 4,800 creative businesses in 2011, 4.5% of the UK total, have pretty much held steady since 2009.  However there is significant variance by sub-sector with, for example, ‘digital media’ increasing by 100% and advertising by 11% while publishing was down 13% and software down 17%.  However these changes can be misleading: an increase in the number of businesses can mean a lot of new start-ups following the closure of a major employer.  Until we see the Scottish breakdown of turnover and GVA we won’t know.

Closer to home the statistical elves are working away on the past ten years of Lottery and other investment in Scotland’s screen sector and we will be analysing that in the New Year.  Happy Solstice!

Rollover day for Lottery film millions?

The debate over who will inherit the UKFC’s Lottery millions when it finally closes its doors rumbles on.  Possible beneficiaries include the Arts Council of England, the BFI and NESTA but the potential role of regional and national agencies, including our own Creative Scotland, has received rather less media attention. 

In a recent response to the Culture, Media and Sport Select Committee enquiry into the future of Arts and Heritage funding Screen England, representing the nine regional screen agencies, argues:

With the UKFC no longer in existence, and the structure of LEPs [Local Enterprise Partnerships] not yet determined, it is imperative that any future restructuring of funding should incorporate a strong recognition of the creative industries, so that this vital sector can continue to grow, to protect jobs and revenue, and to play its part in helping the UK out of recession. As we move into an increasingly digital future, we believe it is the Screen Agencies, or whatever they evolve into, that are best placed to continue to deliver this support.”            

As if to underline the current precariousness of public support for the screen industries, in an otherwise unrelated development one of the nine regional agencies, Screen East, went bust this week “following reports of financial irregularities and the arrest of one of its managers” according to the Guardian.   However in a show of solidarity the other regional screen agencies have, Broadcast reports, rallied round to help those ‘Eastern’ film projects threatened with collapse.

While Soho is abuzz with speculation about how many and whose hands will be signing the cheques on their next project, North of the Border (and indeed South of it) one of the many little known facts about the UKFC is how much it regularly spent in Scotland, supporting not just film production but distribution, the Edinburgh International Film Festival, training (Interest to declare: Screen Academy Scotland has received  more than £1m of UKFC Lottery funding via Skillset since 2005) and much else besides.  A quick inspection of the extremely useful DCMS national lottery grant database reveals that in excess of £1m a year has been coming to Scotland since 1999 and more detailed analyses taking into account funding awarded in the first instance to bodies with English postcodes suggest something approaching £1.5m a year.  Adding that to the two to three million of Lottery funding that Scottish Screen historically received would be a fifty percent increase in the resources available to the making, showing and understanding of the moving image. That could make a profound contribution to achieving the step change in Scottish cinema that future generations richly deserve. 

At this year’s TV Festival, when I asked James Hunt ( having declared himself a firm supporting of devolving money and decision making), whether he would support devolution of Broadcasting powers to the Scottish Parliament he ruled that out.  Well now he has a chance to redeem his devolutionary credentials…

Number crunchers at (the) stake

One of the many good things at risk if the UKFC does get sacrificed on the Coalition Government’s QUANGO bonfire is its Research and Statistics Unit (RSU). They have done all of us with a professional interest in film a huge service over the past few years by producing a steady stream of  research both wide and deep.  One of the many questions to be answered by the DCMS and Jeremy Hunt is whether, and if so by whom, this vital if unglamorous part of the UKFC’s work will be carried on.

Delving into the RSU’s latest annual yearbook of film facts, as always there is a wealth of important and revealing data to be found, albeit too little of it disaggregated to provide the Scottish dimension.  Amongst the sections which are, we find that Scots in the central belt continue to go to the cinema more than anywhere else in the UK with 3.5 admissions annually per person compared to the UK average of 2.8 per year which happens to be exactly the frequency at which Northern Scots take in a movie.

Scottish movie taste appears to be more diverse than most of the UK apart with over 5 ‘specialised’ screens per million of population compared to the UK average of 4.  Only London, perhaps not that surprisingly, has more at 10 per million.

One of the more obscure facts buried in the yearbook but none the less still interesting is a comparison of the top movies on free-to-air and subscription channels.  ITV2 clocked up 5.8m viewers for Ice Age 2 while Sky Movies scored 5.3m for National Treasure: Book of Secrets.  The interesting bit is that whereas Ice Age was screened just 5 times on the free channel, garnering an average audience of just over a million, Sky had to press the playout button on National Treasure no less than 184 times for an average audience per transmission of around 30,000.  Two very different patterns of viewing it would seem to get roughly the same number of eyeballs.

A related but much less obscure fact is that contrary to expectations UK pay-movie channels have experienced a decline in audience over the past nine years from 647 million views in 2000 to 559 million last year.  Though over that period the total audience for movies on TV rose above then fell below its 2000 level of 3.5million viewers, it has more or less recovered, mainly thanks to Freeview (with the help of those Artic critters and their friends) to stand at 3.4 million.

What matters most about these numbers is that movies generate a substantial part of the broadcasters’ audience and thus revenue, which the UKFC estimate at around £1.1 billion a year of which around 20% – £200m – are UK films.  Although the majority of these are US backed UK films such as Charlie and the Chocolate Factory or Love Actually, there remains an important argument that whether free-to-air public service, licence fee based, advertising or subscription-based, UK broadcasters should be investing more of their revenue in UK production, both on cultural grounds for those with serious ‘public value’ intent (i.e. the BBC) and/or as part of their self-interest in ensuring the continued existence of a UK film industry that can continue to supply film content for their audiences i.e. us.  UK Broadcasters currently invest only about £25m in film production, low compared to other European countries.

These are just a few, almost random, bits of data from the over 200 pages of the 2010 yearbook, a taste of the crucial research that the RSU undertake, collate and analyse so that serious discussion of the film industry is possible and we are not reduced to exchanging anecdotes and guess-work about what’s really going on.  Or as one sage put it:

“Where facts are few, experts are many.”


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