Presentation ESRC Cultural Industries SeminarMonday 15 December 2003

The Film IndustryData Issues and Challenges

David SteeleResearch and Statistics Unit, UK Film Council

Purposes To inform the industry about itself. To help the industry develop

economically, socially, (environmentally) and culturally.

To inform public sector policy towards film and to equip advocates for film.

To inform the industry about itself

A range of market-oriented film data is

available Box office takings. Information about individual films (talent,

budget, country of origin, language). Distributors Exhibitors Audiences Video/DVD distribution Films shown on television.

Issues related to market data

International coverage patchy Private sector subscription services Scope and boundaries usually clear COO and genre definitions debated COO definition for tax purposes Sampling issues for some datasets

Official Sources Workforce size and regional

location Film exports and imports (+

geography) Workplace numbers and size Firm numbers and size

Problems with official data

SIC boundaries Companies and individuals straddle

industries Sample sizes may be too small Lack of transparency in some cases Shortage of economic data at 4

digit level

Remedies we are pursuing

SIC alignment and data transparency Bespoke studies (labour force, post-

production etc) Tracking surveys (e.g. production) Working with international partner

agencies to improve international data.

To help the industry develop economically,

socially, (environmentally) and

culturally

Development strategies Improve film product

(culture/audience appeal) Link production with distribution Strengthen UK market position New technology Diversity

Methods of analysis: Committee deliberation

Middleton Committee on film finance

Film Policy Review (1997) UK Film Council Board of Directors House of Commons Culture Media

and Sport Committee

Evidence based approach

International production cost comparisons

Advertising and film box office Social impact of high street cinemas Economic multipliers Demographics of film workforce

Data gathering issues Multiple sources to compile sample

frames Variety of access methods Response rates and survey fatigue Extra effort required to contact

sub-contractors and freelancers. Confidence intervals (sample size)

To inform public sector policy towards film and to equip advocates for film

Policy Framework The Treasury Green Book (Appraisal and

Evaluation). Public good arguments for supporting UK film Market failure arguments for intervention in

the film industry Key Performance Indicators – built into DCMS

funding agreement. Chancellor’s letter: the overall government

objectives being pursued by fiscal policy. The ‘public value’ framework being floated

by the Cabinet Office

Green Book/public good/market failure (1) – Justification for

action Film culture as a ‘public good’ Externalities Additionality The non-homogenous nature of film as a

product. Imperfect information Barriers to entry Market domination Equity Regional development

Green Book/public good/market failure (2) – Establishing the

efficacy of particular interventions.

How will the proposed intervention bring about the desired outcome?

Is it better to do this than to do nothing? Is the proposed intervention the best of

the alternatives? Is it cost-effective?

Key Performance Indicators

What can be measured and what is difficult to measure?

How to come up with meaningful indicators for qualitative goals?

How to avoid dreary, bureaucratic indicators? How to come up with exciting indicators that

express the ultimate purpose of the activity? How to deal with confounding or contradictory

variables in situations of multiple causation?

The Chancellor’s Letter (1)

Each proposed intervention is evaluated according to its ability to:

Promote work and opportunity Encourage productivity Ensure fairness Protect the environment

The Chancellor’s Letter (2)Each fiscal proposal is evaluated against

the following criteria: Likely effectiveness and value for money Revenue implications for the exchequer Wider macroeconomic implications Sectoral impact Environmental impact Impacts on equality, health and human rights EU and human rights implications Distributional impact Administrative and compliance costs Legislative requirements

Chancellor’s letter: questions

How to cost a tax incentive when Inland Revenue do not sum the value of a tax incentive based on individual returns?

Are there displacement/substitution effects (offsetting fluctuations in the size of film industry activity)?

What is the environmental impact of the film industry? How does it compare with other industries?

Does government support for film make UK society more equal or more unequal?

Does supporting UK film have an effect on human rights?

Cabinet Office floats the idea of “Creating Public Value”

Legitimises the pursuit of the meta-outcomes of public sector activity in their own right, e.g. consumer satisfaction, trust in government and public service providers.

Prioritises the public’s own definition of what is valuable (to be discovered by surveys and other means of public feedback).

Places value on due process, fair treatment, ethos and organisational values.

Draws attention to “interdependent preferences” (e.g. a solution that works when “everybody does it.”)

Public Value: Questions

Outcomes that reflect process Relationship between public value

and (traditionally-defined) public goods

How to measure outcomes like satisfaction and trust that are qualitative, subjective and somewhat amorphous, though clearly desirable?

The UK Film Council and the academic community Sharing research agendas Networking Joint seminars/conferences Joint or supported funding applications Presentation of research results to

industry audiences Seek advances in fundamental ideas