PINEWOOD THE CASE FOR EXPANSION - Pinewood Studios

46 | PINEWOOD – THE CASE FOR EXPANSION 05 THE CASE IN 3 DIMENSIONS 05 THE CASE IN 3 DIMENSIONSPINEWOOD – THE CASE FOR EXPANSION | 47Fig. 11: UK feature film expenditure (£m). Excludes films with budgets < £500k 9 Number of big budget films produced in UK 1 13 16 13 18 15UK California Louisiana New York BritishColumbiaOntario NewMexico5.16 The UK was the destination for a majority of films with a budget of more thanUS $100m over 2009-2011.Fig. 12: Estimated number of films with budgets over US$100 m accommodated,by region 2009-2011 102822Film performance in the UK5.14 The UK is a significant destination for global film production. The annualexpenditure on major films made in the UK is in the order of £1bn and is on5.15 Pinewood Studios’ contribution to the UK sector is significant at around 35%.a long-term rising trend. Since 2002 the compound annual growth rate has Table 7: Big budget and blockbuster films produced in the UK 94 4 3been c. 9.6%.Studio 2008 2009 2010 2011 Avg.1 11,4001,2001,0008006004002000Source: BFI. Excludes films with budgets less than £500k.1994-2001 CAGR = 6.6%2002-2011 CAGR = 9.6%Domestic Co-production InwardQ1-Q3 only1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 2012Q1-3 Q1-3Big budget film % of UK spend 59% 69% 79% 78% 71%Number of blockbuster films produced at Pinewood 2 5 2 6 8 5Pinewood blockbusters as % of total UK bigbudget films1. Films with budgets > £30 million, 2. Films with budgets > $100 million38% 13% 46% 44% 35%5.17 The value of the film industry to the UK economy as a whole is shown below:Table 8: Value of the UK film industry to the UK economy (Source: The Economic Impact of theUK film industry, Oxford Economics, Sept 2012)IndicatorGDPJobs FTEValue£1.6 billion (direct), £4.6 billion (total)43,900 (direct), 118,000 (total)Exchequer contribution £1.3 billion (2011)Exports £2.1 billion (2010)Net trade surplus £380 million (average size 2000)5.18 With specific reference to GDP and employment the breakdown of direct,indirect and multiplier effects is shown at Fig. 13.This is a significant and material element of the national economy amountingto c. 0.3% of GDP.Fig. 13: Total contribution of the UK film industry to UK GDP and UK employment, 2009 and 2011 10Tital contribution (£bn)54.543.532.521.510.504.6 4.61.71.31.61.61.41.62009 2011Contribution to GDPNumber of jobs (000s)120100With multiplier Direct Indirect8060402001003628361174430442009 2011Contribution to employment9. Market Review – PwC (document no.6) 10. Market Review – PwC (document no.6)