Rising costs pose threat to independent film-making in UK, says BFI

theguardian.com:

There are serious questions about the long-term viability of independent film-making in Britain, the British Film Institute (BFI) has said.

Making Oscar-winning films such as The King’s Speech and Slumdog Millionaire has become all the more difficult, with “significant challenges” putting the sector on a downward trend, research shows.

Vibrant independent productions nurture creative risk-taking and emerging talent, but increasing production costs and falling investments are taking their toll, limiting the ability to compete with well-financed, studio-backed productions.

The BFI’s report, An Economic Review of UK Independent Film, says independent film-makers face “significant inflation” in production costs for studio space, as well as for cast and crew, and that they have been disproportionately affected by crew shortages.

Some have experienced disruption caused by specialists departing mid-production for more attractive options, leaving producers to hire individuals who are under-qualified.

The research highlights that while major Hollywood studios are drawn to the UK by generous tax incentives, the UK independent sector is facing “stagnating revenue”, with increased sales from digital media not fully replacing falling revenue from traditional sources such as DVD.

It has become all the more challenging for investors to recoup money and generate returns, therefore making them more risk-averse towards independent films, the report says. It calls for an increase in film tax relief for UK independent films.

Andy Paterson, who produced The Railway Man, the acclaimed second world war film starring Colin Firth and Nicole Kidman, said: “The government needs to see really hard data that takes this away from being anecdotal and reveals