The Economic Impact of the UK Film Industry - BFI - British Film ...

9.4. Computer/video games
Economic Contribution of the UK Film Industry
July 2007
For ‘blockbuster’ films, in particular, there is a significant overlap between the film market and the games
market. Films are of wider significance to the games industry in developing techniques that are originally
used in film but later transferred to games, and in providing a skilled workforce that can be a source for
games companies to enhance their skills base (see Chapter 5). But they are also important in terms of
direct sales of games
As in the case of books, the direction of influence is not entirely in one direction. The Tomb Raider
franchise, for example, started out as a video game rather than as a film. The other large film-related
franchises in the games market, though - Harry Potter and James Bond - both moved from films to games
rather than vice versa – and both are derived from British-made films.
This is an important market – overall sales of UK leisure software in 2006 reached £1.36 billion, and the
UK video games industry employed, 25,000 people 41 . Data for 2004 suggest films account for 17% of this
market 42 , of which the UK film share is 25%. Applying these market shares to 2006 implies sales of about
£60 million in the UK for leisure software inspired by UK films.
9.5. Toys/models
Some of the more popular children’s films generate large sums from sales of toys and models linked to
the film. Although the bulk of these items are manufactured abroad, particularly in China, this does not
apply to other elements of the value chain, such as design, distribution, etc. Since the actual
manufacturing costs are a relatively small part of the final price – perhaps 20% - the majority of the value
added, employment, tax revenues and so derived from the merchandising of toys and models will benefit
the UK economy.
9.6. Clothing
Commentators have pointed in the past to the links between films and fashion. The popularity of a star’s
‘look’ in a film can lead to increased popularity for clothes that help create a similar look. And UK films
are more likely to help promote a British ‘look’. Chapter 10 comments on the way in which British film can
help stimulate demand for British goods more generally.
Merchandising, though, really refers to a more specific link between a film and clothing than simply a
particular look or style. Rather, it covers the sale of particular items of clothing directly based on those
worn in the film – a Superman cape, for example.
9.7. The overall value of merchandising
Not all aspects of merchandising are easily quantifiable, and in some cases films will stimulate sales of
41 Source: The Entertainment & Leisure Software Publishers Association (ELSPA).
42 Source: ‘Chart Track’ Annual Report of top 100 leisure software (all formats).
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