Feasibility Study of a Digital Platform for the delivery of UK ... - BFI

UK FILM COUNCIL
In this section we will assess the underlying demand for UK and specialised film, and attempt to quantify the degree to which this
demand has been left unfulfilled by the limitations on traditional forms of distribution. We are particularly focussed on those factors which
limit the number of films readily available to the film consuming public at any given point in time. These limitations are not only physical
(e.g. shelf space and screens) but commercial.
We will examine the statistical evidence for an increased demand for this type of films in an environment where these constraints have
been minimised, or even removed, and try to quantify the resulting ‘uplift’ in consumption, if any, for the UK and specialised film sector.
In this way, the potential demand for a new distribution platform with a diverse range of UK and specialised films can be assessed.
The best example of this environment is the kind of online DVD rental service that has been launched in the UK by the likes of Video
Island and LoveFilm in recent years. These services offer an extremely diverse range of content (including a wide variety of specialised
films), and moreover deploy a business model which is subscription
based. We believe that the online DVD rental market is an excellent
proxy for a future digital platform, and that an analysis of the patterns
of consumption through this market gives valuable insight into the likely
demand for UK and specialised films on such a platform.
Opening up the market
There were 521 UK and specialised films released theatrically in the UK
during 2003 and 2004. Of these films, just 108 (21 per cent) followed
up with a traditional video rental release 1 , and 352 (68 per cent) were
available through mainstream retail outlets 2 . Neither window offered as
much consumer choice as the online rental platform, which carried 407
of these titles. Although smaller than its bricks and mortar cousin, the
online DVD rental market generated business for almost four times as
many UK and specialised films.
600
500
400
300
200
100
0
Distribution of UK/specialised films released
theatrically in 2003/4
521
108
theatrical traditional
rental
352
407
retail online rental
1 This is the number of UK and specialised films that have generated video rental transactions according to MRIB's Rental Monitor as at the beginning of September 2005.
2 This is the number of UK and specialised films for which retail sales have been tracked by the Official UK Charts Company's (OCC) as at the beginning of September 2005.
We believe that there were additional films sold through via online platforms and/or independent retailers that did not appear in the sales database.
Feasibility Study for a Digital Platform for the delivery of Independent UK films and Specialised films to the Home
UK Film Council © 2006
10