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

10. Promotion and Trade
10.1. Introduction
Economic Contribution of the UK Film Industry
July 2007
The film industry also contributes to the UK economy through its impact on UK overseas trade. We can
distinguish here between two different channels. The first, direct impact occurs because the core UK film
industry earns export royalties and fees for the production of films. But there is also a second, ‘indirect’
effect, because the core UK film industry helps to promote the ‘UK brand’, which in turn helps other UK
exporters to sell their products. The rest of this chapter explores both of these points.
Key Points
• The UK film industry is a significant contributor to the UK net trade position, with export earnings
averaging £750 million a year since 2000.
• The film industries’ share of total export earnings is higher than the industries’ share in UK GDP -
so in this sense it ‘punches above its weight’ in export markets.
• Moreover, UK films help to boost the demand for UK products by promoting the ‘UK-brand’. The
growing market for product placement in UK films also provides an outlet for exporters to
advertise their specific products to a wide audience. These promotional benefits are estimated to
be worth around £20 million to UK GDP.
10.2. Direct UK trade in film
The film industry is a significant contributor to UK export earnings. In 2005 (the most recent data) total
exports of the film industry were £967 million (Chart 10-1). UK film export earnings are comparable to
those from software consultancy and accountancy. And, importantly from an economic point of view, the
value of film imports in 2005 was only £804 million - so UK film made a healthy net contribution of £163
million to the UK trade position. The average net trade contribution since 2000 is similar to the 2005
figure, at £145 million.
The largest contribution to UK film export earnings comes from royalties, which were £660 million in 2005.
Production revenues are also important, however, with exports of over £300 million in 2005 (Chart 10-2).
Looking at the geographical split of film trade, the UK has a large net trade surplus in film with
Australasia/Oceania and with Asia (Chart 10-3).
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