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Northern Alliance - BFI

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feature films. For example, with average revenue per film of less than £160, 63 the<br />

emphasis placed by the UK Film Council on securing a share of revenues, although<br />

not currently great, is disproportionate. The recoupment position it insists on may<br />

actually disincentivise sales; Network Ireland, for instance, expects to generate<br />

€5,000 to €8,000 per short film it represents. Similarly, interviews with filmmakers<br />

indicated that there is significant under-reporting of the true cost of films;<br />

filmmakers top up funding available from the UK Film Council and its strategic<br />

partners, but do not report it for fear of breaching actual or perceived budgetary<br />

limits that are largely unpoliced.<br />

We appreciate the argument that the application of feature film standards of<br />

business affairs can have an educational function, but we believe this hinders the<br />

primary objective of developing directors. The UK Film Council should therefore<br />

simplify its business affairs, ceding the first tranche of recoupment to filmmakers (eg<br />

£5,000 being required to be earned before income is reported or paid to the UK Film<br />

Council), and securing its investment by a very simple, standard short form<br />

assignment. Responsibility for practical matters, such as ensuring a clear chain of title<br />

to the underlying intellectual property, should be delegated to strategic partners.<br />

Any strategic partners lacking the requisite skills to undertake such business duties<br />

should be encouraged to join consortia, or contract with other strategic partners<br />

who can provide such skills.<br />

Recommendation:<br />

The UK Film Council should simplify its business affairs in respect of its short<br />

film activity; it should cap its contribution to the budgets of short films, and<br />

not the budgets themselves.<br />

The UK Film Council should not take final cut rights on any bottom tier (Digital<br />

Shorts) films. It should, however, continue to take final cut rights on all mid and top<br />

tier films, as well as full approval rights over the principal creative, financial and<br />

physical production elements of those top tier films.<br />

In section 4.5, we also found that there is a need to reconsider the efficiency and<br />

effectiveness of employing an intermediary company to manage all of the UK Film<br />

Council‟s short film activity.<br />

We believe that it is the role assigned to Lifesize Pictures, and not its inherent<br />

capability, that is the issue. We therefore recommend that the management and<br />

control functions are brought back in house by the UK Film Council, and that Lifesize<br />

is engaged either by the UK Film Council or directly by strategic partners to provide<br />

support and guidance to the schemes and the filmmakers. This should help to<br />

63 This figure is arrived at by dividing the total revenue by the number of films in Table 14<br />

analysing revenues accruing to Digital Shorts and Digital Shorts Plus/Digital Nation.<br />

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