IBEC Audiovisual Federation Report 2009 - Irish Film Board

Film & TelevisionProduction in IrelandAudiovisual Federation ReviewOndineAn affiliate association within IBEC | the Irish Business and Employers Confederationwww.ibec.ie

AUDIOVISUAL FEDERATION REVIEWGeorge GentlyGarth & BevRoyCman CamanDragons Den

IBEC Audiovisual FederationAUDIOVISUAL FEDERATION REVIEWAFThe Audiovisual Federation consists of IBEC member companies involved in Ireland’s audiovisual industry. These include broadcasters,producers, animators, studios, facilities and other organisations supporting the sector.The Federation has a number of objectives designed to support Ireland’s audiovisual production and distribution industry. These includepromotion of the sector, representing the views of members to relevant bodies and submitting the industry view on relevant policy.The Audiovisual Federation maintains an economic database for the Irish audiovisual production sector and publishes the results in anannual report with an economic analysis on the benefits of the audiovisual sector to the Irish economy. In order to sustain the growthand development within the sector during the last number of years the Federation has sought internationally competitive financialincentives and international co-production treaties. Together with Enterprise Ireland, the Federation organises conferences, seminars andworkshops on relevant audiovisual issues.The Audiovisual Federation is a member of the Irish Business and Employers Confederation (IBEC).Chair:Andrew Lowe, Element PicturesVice Chair:Anne O’Connor, RTÉSecretariat:Tommy McCabe, DirectorEmer Condon, ExecutiveCarolyn Doumeni, Personal AssistantTel: 01-605 1528 Fax: 01-638 1528email: audiovisual.fed@ibec.ieWeb: www.ibec.ie/avfIBEC MissionIBEC promotes the interests of business and employers in Ireland by working to foster thecontinuing development of a competitive environment that encourages sustainable growth, andwithin which both enterprise and people can flourish- 1 -

AUDIOVISUAL FEDERATION REVIEWRawOlivia- 2 -

Audiovisual FederationAUDIOVISUAL FEDERATION REVIEWReview 2009The data in this report relates to feature films, independent TV productions (including major TV dramas) and animation projects wherethe majority of the work was carried out in 2008. It also gives an overview of productions to date in 2009. It does not include otherproductions in this sector, e.g. commercials, promotional videos, games, etc. This report is based on productions where completed formshave been returned to the Audiovisual Federation.This is the seventeenth report on the audiovisual sector, which was drawn up under the auspices of the following organisations –members of the Audiovisual Federation Database Steering Committee:● Chairman AF Database Steering Committee● Bord Scannán na hÉireann/Irish Film Board● Radio Telefís Éireann● TG4● An Roinn Ealaíon, Spóirt agus Turasóireachta/The Department of Arts, Sports and Tourism● Screen Producers Ireland● Facilities● Animation Sector● Broadcasting Commission of Ireland/Broadcasting Authority of Ireland● Audiovisual Federation of IBECKevin Moriarty, Ardmore StudiosTeresa McGranePatrick O’NeillMichael HylandJohn DunnePádhraic Ó CiardhaMáire Uí ChadhainSile BhreathnachDeclan BrennanSean StokesLorraine MorganKevin Moriarty, Ardmore StudiosCathal Gaffney, Brown Bag FilmsStephanie ComeyTommy McCabe (Director)Emer Condon (Executive)Eoin Keogh, (IBEC Research Unit)Carolyn Doumeni (Personal Assistant)This data for this report was compiled by the Research Unit of IBEC.Acknowledgements:The Audiovisual Federation is very much indebted to the members of the Steering Committee for their commitmentand guidance in producing this report.The Audiovisual Federation Review 2009© 2009 IBECPrepared by the Audiovisual Federation of IBECAffiliated to ICT IrelandIBEC Audiovisual FederationConfederation House84/86 Lower Baggot StreetDublin 2E-mail: audiovisual.fed@ibec.ieWebsite: www.ibec.ie/avf- 3 -

International Awards for the SectorAUDIOVISUAL FEDERATION REVIEWAwards 2009International Awards for the SectorGolden Globe Awards – Colin Farrell, In Bruges – Best Actor, Musical or ComedyGolden Globe Awards – Gabriel Byrne, In Treatment – Best Actor, DramaEmmy Awards - Brendan Gleeson, Into The Storm - Outstanding Lead Actor in a Mini-Series or a MovieEmmy Awards - Dearbhla Walsh, Little Dorrit - Outstanding Directing for a Miniseries, Movie or a Dramatic Special categorySundance Film Festival – Oliver Hirschbiegel, Five Minutes of Heaven – World Cinema Directing Award: DramaticSundance Film Festival – Guy Hibbert, Five Minutes of Heaven – World Cinema Screenwriting AwardCartoon Movie Tributes 2008 – Tomm Moore, The Secret of Kells – Director of the YearCartoon Tributes 2009 - Brown Bag Films - European Producer of the YearCartoon d’Or Award 2009 - David O'Reilly - Please Say SomethingTribeca Film Festival Awards 2009 - Ciarán Hinds - The Eclipse - Best Actor - a Narrative Feature FilmLocarno International Film Festival - Lotte Verbeek - Nothing Personal - Leopard Award for Best First Feature; the LeopardAward for Best Actress (Verbeek); the First Prize Youth Jury Award; Ecumenical Jury Prize Special Mention; CICAE Prize andthe FIPRESCI PrizeAnnecy Animation Festival - The Secret of Kells – Audience AwardEdinburgh Film Festival - The Secret of Kells – Audience AwardKarlovy-Vary International Film Festival - Eamon – Independent Camera AwardIn Bruges- 4 -

International Awards for the SectorAUDIOVISUAL FEDERATION REVIEWAwards 2009International Awards for the SectorThe Secret of KellsFive Minutes of HeavenIn TreatmentEamonThe Eclipse- 5 -

International Awards for the SectorAUDIOVISUAL FEDERATION REVIEWAwards 2009RTÉ AwardsMonte-Carlo Television Festival - Charlene McKenna, Whistleblower – Outstanding actress in a Mini-SeriesCeltic Media Festival - Whistleblower - Drama awardCeltic Media Festival - Patrick McCabe - Blood Relations - Documentary Arts awardCeltic Media Festival - In The Name Of The Fada - Factual Entertainment awardLondon Independent Film Festival - Out Of The Blue - Best International Short FilmRhode Island International Film Festival - Out Of The Blue - Grand Prix for Best CinematographyIn the Name of the Fada Blood Relations WhistleblowerSignificant NominationsAcademy Awards Nomination – Martin McDonagh - In Bruges – Best Original ScreenplayAcademy Awards Nomination - New Boy – Best Short FilmEmmy Awards Nominations●●●●Director Thaddeus O’Sullivan nominated for his work on Into The StormIrish actor star Gabriel Byrne nominated for his performance in In TreatmentCostume Designer Consolata Boyle, Into The Storm - Outstanding Costumes for a Mini-Series, Movie or a Special ProductionDesigner Tom Conroy, Costume Designer Joan Bergin and Wardrobe Supervisor Susan O'Connor Cave,Casting Directors Frank and Nuala Moiselle and Head Hairstylist Dee Corcoranwere all nominated for their work on The Tudors seriesEuropean Film Academy 2009 Nominations●●Niko and the Way to the Stars - Animated Feature FilmThe Secret of Kells - Animated Feature Film- 6 -

International Awards for the SectorAUDIOVISUAL FEDERATION REVIEWAwards 2009TG4 AwardsCeltic Media Festival - Ceolchuairt – EntertainmentCeltic Media Festival - Seacht – Young PeopleCircom - Seán Mac an tSíthigh – Silver medal Visual JournalismWorld Fest Houston - Ernie O’Malley – Remi AwardWorld Fest Houston - Kennedy’s Cadets – Remi AwardWorld Fest Houston - Mobs Mheiriceá – Remi AwardWorld Fest Houston - Críostaíocht – Remi AwardO’MalleyCeolchuairtCríostaíochtKennedy’s Cadets- 7 -

AUDIOVISUAL FEDERATION REVIEWIreland In Their Own WordsNeil Jordan - Ondine- 8 -

AUDIOVISUAL FEDERATION REVIEWIreland In Their Own WordsIf you combine the first-class crews, wonderful locations, enhanced tax incentive and IFB'sproduction and regional support, Ireland has a viable product to sell abroad andattract international film-making activity hereNeil Jordan, Director OndineIreland's physical and cultural landscape inspired me to become a filmmaker.I am grateful to work here as a collaborative storyteller, perpetuallyfascinated by this country and the people who live hereSteph Green, Director New BoyThe combination of a focused, professional and first class crew combined with anenhanced and highly competitive tax incentive has made Ireland a highly attractive optionJames Flynn, Producer Leap YearThe wealth of talent in the Animation sector both from a production and pre-production perspective makeIreland a wonderful place in which to produce and foster creative ventures. Furthermore, this yearfor the first time, JAM have been contacted by numerous international rights holders wishing to co-produce.With the support of the Irish Film Board and Section 481 coupled with the talent, Ireland can competeinternationally and negotiate IP that will add long term value to companies and as a result the economy.John Rice, CEO, JAM MediaThe recently enhanced tax breaks along with the availability of highly skilled professional crew combined withfirst class production and post production facilities makes Ireland an attractive location for filmingSuzanne McAuley, Producer Raw- 9 -

AUDIOVISUAL FEDERATION REVIEWContentsForeword 11Achoimre Feidhme 12Executive Summary 13Chapter 1: Audiovisual Production in Ireland – 2008/2009 14Chapter 2: Economic Analysis 2008 25Chapter 3: The Irish Audiovisual Sector – 2008/2009 Review International Context 28Case Study 1: The Clinic Series 6 30Case Study 2: Noddy in Toyland 31Case Study 3: Ros Na Rún 32Case Study 4: Ondine 33Appendices: 34Appendix I: Economic Analysis 2008 35Appendix II: Production Details – Summary 2004 - 2008 Comparison 39Appendix III: Production Details – By Type of Production – 2008 40Appendix IV: Funding Details – By Type of Production - 2008 41Appendix V: Contribution of the Irish Film Sector to the Irish Economy 2008 43Appendix VI: Clarification Notes 44Appendix VII: Section 481 Investment 45Appendix VIII: Agencies Involved with the Audiovisual Production Industry in Ireland 46Appendix IX: List of Productions included in the Report 2008 and 2009 50Ballet Chancers- 10 -

AUDIOVISUAL FEDERATION REVIEWForewordThe annual Audiovisual Federation Review of Film and Television Production in Ireland is an important resource for monitoring the growth andtrends within the industry over the years.The economic analysis for 2008 shows a production value of €246.8 million, an increase on 2007 (€195.7 million). This growth had beenpredicted for 2008 but production value is still below that of 2006 (€279.9 million). While the funding and commissioning input by the Irish FilmBoard, the Broadcasting Commission of Ireland and the broadcasters was maintained over this period, the difficulty in achieving the growth of2006 was inevitable because of the non competitiveness of the financial incentive Section 481, resulting from improvements in correspondingincentives in other jurisdictions.The decision by the Government to provide the necessary enhancements to the Section 481 tax incentive in the Finance Act 2009 in order torestore competitiveness indicates the Government’s commitment to this sector. The effectiveness of the enhanced Section 481 is dependent onthe complementary role of the Irish Film Board’s funding policy. The combination will enable a return to growth for the Irish Film and Televisionindustry with the effect of increased economic activity, an injection of foreign investment into the economy, creation of employment and significanttourism profile.This analysis is divided under three headings and the trends shown therein highlight the challenges to be addressed if the potential for continuousgrowth is to be achieved.Feature FilmProduction activity in 2008 increased to €71.9 million (2007: €19.3 million) but this is still significantly below levels achieved in earlier yearsand confirms the overall loss of growth in feature activity which had achieved a level of €244.3 million in 2003. It is estimated that the level ofproduction activity for feature films will reduce to €65 million in 2009. However, the Government amendments to the Section 481 film tax reliefscheme only became effective in March 2009 and it is predicted that these, combined with the Irish Film Board support, will facilitate a returnto growth.Indigenous production activity has maintained continuous growth over this period as a result of funding made available through the Irish FilmBoard. The profile and success of Irish indigenous production is currently very high (see awards on pages 4-7) but Ireland has not been sufficientlycompetitive to attract international feature film production as a result of enhanced incentives in competing jurisdictions. Continuation of thisdramatic reduction in inward production activity would have had a serious negative impact on the level of experienced personnel andinfrastructure which in turn would have been a significant restriction on indigenous development.The Government has been very supportive of maintaining competitiveness in the past. The current amendments contained in the Finance Bill2009 in restoring competitiveness, not only continues this support but demonstrates the Government’s willingness to respond to the changinginternational competitive landscape.Independent TV including Major TV DramaProduction in this sector had shown a consistent upward trend in recent years. While total production in 2008 was €136 million compared to€154 million in 2007, it is estimated that total production for 2009 will reduce to €109 million. Domestically, RTÉ continued its policy of stronginvestment in the independent television sector, TG4 maintained its position as an important source of television commissions, TV3 providedcommissions and the BCI’s Sound and Vision broadcast funding scheme provided a significant allocation to film and television production.Unlike incentives in other jurisdictions Section 481 is applicable to television as well as film. This fact, coupled with the Irish Film Board’sInternational Production Fund, has enabled Ireland to attract many international television productions which has had an important positiveimpact on this sector.AnimationAnimation in Ireland has shown consistent growth in recent years and the sector is now the largest provider of full time and permanentemployment in the Film and Television independent sector. Total output in 2008 was €38.9 million (2007: €22.4 million). The estimate for 2009is €43.0 million. The adequacy of tax incentives, funding opportunities and commissions will all play an essential role if the growth in this sectoris to be continued.OverviewThis report concentrates on measuring and analysing Film and Television production output in the independent sector which is one aspect of theindustry as a whole. The audiovisual industry content production sector is worth over €550 million, employs over 6,000 with an SME profile ofover 560 companies (PwC, 2008). In 2008 18% of tourists cited film as a reason for visiting Ireland. This resulted in tourist expenditure of €369million which can be directly attributed.The Film and Television industry continues to have great potential, economically and culturally, and the Government is to be congratulated ontaking measures to restore competitiveness and enable Ireland to continue to participate in the huge growth internationally of the industry.Kevin MoriartyChairman, Audiovisual Federation Database Steering Committee, November 2009- 11 -

AUDIOVISUAL FEDERATION REVIEWAchoimre FeidhmeDéanann an tuarascáil seo anáil is ar thionchar eacnamúil266 léiriú closamhairc, ar leiríodh a bhformhór in Éirinn i2008, ag a raibh luach iomlán léiricúcháin €246.8 milliún.Léiríonn an tuarascáil go raibh méadú ar léiriú scannán agusanamúlachta, rud a bhfuil fáilte roimhe ach gur tháinig laghdúar léirithe teilifíse agus ar mhórthograí drámaíochta teilifíse. Táméadú 26% ar na figiúirí iomlána sa tuarascáil do 2008 achtá laghdú beag atá á thuar againn arís sna meastacháin do2009.Caiteachas na hÉireannAschur ClosamhaircMórscannáinTeilifís Neamhspleách(Mórdhrámaí san áireamh)BeochanAschur Iomlán2005 2006 2007 2008 2009*G milliún33.574.144.8152.484.8 19.3143.751.4154.022.4279.9 195.771.9 65136.0 10938.9 43246.8 217*Measta€167.8 milliún de chaiteachas iomlán ar earraí agus arsheirbhísí Éireannacha atá tuairiscithe do 2008, ardú €24.6milliún (17%) don earnáil. Is de thoradh an mhéadú 43% archaiteachas Éireannach i 2008 san earnáil Anamúlachta agusan méadú 190% san earn áil Mhórscannáin (le hais 2007) atharla cuid mhaith de seo. (Feic Appendix I).FostaíochtTháinig laghdú de bheagán, ar an fhostaíocht iomlánÉireannach i ndáil le socrúcháin i 2008 go 12,660 in 2008(le hais 12,727 i 2007). Laghdaigh an líon postanna coibhéislánaimseartha freisin ó 1,735 i 2007 go 1,631 i 2008.Cuidiú FioscachAr bhonn tairbhe costais, lean Earnáil Chlosamharc nahÉireann de bheith ag cur go suntasach le heacnamaíocht nahÉireann i 2008. Mar a tharla i mblianta eile, bhí na haischurchuig an Státchiste i 2008 ó ioncaim agus caiteachais níosmó ná an cháin nár gearradh trí Alt 481. Thug seoglanghnóthachán €25.7 milliún d’Eacnamaíocht nahéireann i 2008, an gnóthachan is airde ó 2003Foinsí MaoinitheTháinig €188.8 milliún den mhaoiniú as Éirinn. Chuir Alt 481ollmhaoiniú €101.2 milliún ar fáil. Ar na foinsí tábhachtachaeile bhí RTÉ, TG4, Bord Scannán na hÉireann agus Fuaim agusFís Choimisiún Craolacháin na hÉireann302520151050Caiteachas ÉireannachMórscannáinTeilifís Neamhspleách(Mórdhrámaí san áireamh)BeochanCaiteachas Éireannach Iomlán200517.566.313.196.92006 2007 2008 2009*G milliún29.8113.817.6161.212.2118.612.4143.235.4114.617.8167.8Sochar Glan don Eacnamaíocht Éireannach (€ Milliún)*Measta2004 2005 2006 2007 200829*Cúlra na Tuarascála:Tiomsaíodh an tuarascáil seo agus tuarascálacha afoilsíodh roimhe seo 1993-2008 ó staitisticí a fuairCónaidhm Chlosamhairc IBEC. Ag tráth a scríofa, ní raibhfáil ar fhigiúirí iniúchta do léiriúcháin iomlána 2009. Dáthoradh sin tagraíonn an phríomhanailís eacnamaíoch do2008. Léiríonn na figiúirí do 2009 tuairisceáin neamhiniúchtanach raibh dian go leor le go bhféadfaí anailísmhionshonraithe a dhéanamh orthu.9019138- 12 -

AUDIOVISUAL FEDERATION REVIEWExecutive SummaryThis report analyses the economic impact of a total of 266audiovisual productions, the majority of which were producedin Ireland in 2008, comprising a total production value of€246.8 million. The report shows a welcomed increase inthe production of feature films and animation buta drop in independent TV including major TV dramaproductions. Overall figures for 2008 show a 26% increaseon the previous year, but our estimates for 2009 are showinga slight fall again.Irish ExpenditureAudiovisual OutputFeature filmIndependent TVIncl. major TV DramaAnimationTotal Overall Output2005 2006 2007 2008 2009*G million33.574.144.8152.484.6 19.3143.851.4154.022.4279.9 195.771.9 65136.0 10938.9 43246.8 217*estimateThe total expenditure on Irish goods and services arising fromthe audiovisual productions for 2008 was €167.8 millionwhich shows an increase of €24.6 million (17%) for the sector.This increase is largely due to a 43% increase in the Irishexpenditure within the Animation sector and a 190% increasein the Feature Film sector on the previous year, 2007 (seeAppendix I).Irish ExpenditureFeature filmIndependent TVIncl. major TV DramaAnimation200517.566.313.12006 2007 2008 2009*G million29.8 12.2 35.4 29113.8 118.6 114.6 9017.6 12.4 17.8 19EmploymentTotal Irish Expenditure96.9161.2143.2167.8 138*estimateTotal Irish employment in terms of placement fell slightly from12,727 in 2007 to 12,660 in 2008. The number of full-timeequivalent jobs also decreased from 1,735 in 2007 to 1,631in 2008.Fiscal ContributionOn a cost benefit basis the Irish Audiovisual Sector continuedto make a significant contribution to the Irish economy. Thereturns to the exchequer in 2008 derived from incomes andexpenditure generated again exceeded tax forgone throughSection 481. This yielded a €25.7 million net gain to the IrishEconomy in 2008, the highest return since 2003.Sources of FundingThe proportion of funding originating in Ireland was €188.8million. Section 481 contributed gross funding of €101.2million. Important sources of Irish funds were RTÉ, TG4, IrishFilm Board and the BCI Sound & Vision.302520151050Net Benefit to the Irish Economy (€ Millions)2004 2005 2006 2007 2008*Background to Report:This report and previous reports published in 1993-2008have been compiled from statistics obtained by the IBECAudiovisual Federation. At the time of writing, auditedfigures for all 2009 productions were not available. As aresult the main economic analysis refers to 2008.Figures for 2009 represent non-audited returns that werenot sufficiently rigorous to allow detailed analysis.- 13 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWChapter OneMartin Cullen TD, Minister for Arts, Sport and TourismAt the outset I believe it is important that I should comment about the proposals in the Report of the SpecialGroup on Public Sector Numbers and Expenditure Programmes (McCarthy Report), insofar as they relate to filmmaking in Ireland. The proposals in the Report have not been adopted by the Government as policy but will beconsidered in the context of the 2010 estimates process. As part of that process I will be articulating the benefitsto Ireland of having a vibrant film industry that can create employment and attract inward investment.Film and filmmaking is of great value to Ireland, both financially and as a cultural asset for the country. A surveypublished last year by the Irish Film Board showed that the value of the Irish audiovisual content sector at overhalf a billion Euro with direct employment at 6,000. An earlier survey in 1992 identified that at that time direct employment was 1,000.There is now more than ever greater global competition in securing film and television productions. In fairness, Ireland continues to holdits own thanks to the work of the Irish Film Board, our impressive talent pool of directors, writers, actors and technical crews and the varioussupports that are on offer. This support manifests itself through various mechanisms including the Section 481 tax incentive for film andtelevision production in Ireland, which was extended until the end of 2012 earlier this year with significant enhancements. This gives agreat boost not only to the Irish audiovisual industry but also to the Irish economy in general. A number of significant productions wereattracted to Ireland during 2009 because of these changes and further productions are in the pipeline for next year and beyond.Quantifying the impact of the audiovisual sector on the broader economy, including its impact on tourism, digital media and broaderindustrial productivity is challenging given the intangible nature of these impacts. More importantly, how can anyone quantify the impactof a film in communicating messages about Ireland to Irish and international audiences such as – reminding people of the cultural richnessof Ireland, promoting Ireland as a tourist location, promoting the multi-cultural aspects of modern Ireland and reminding artists in Irelandof the potential for success on a world stage.It was pleasing for me as the Minister with responsibility for the film industry to see further achievements for Irish film talent in 2009 -with Golden Globe awards for Colin Farrell and Gabriel Byrne, Emmys for Brendan Gleeson and Dearbhla Walsh, ongoing successes at filmfestivals such as Edinburgh, Sundance and Tribeca and two Oscar nominations.It is obvious that there is huge talent in the film making industry in Ireland, both in front and behind the camera. The challenge now is toensure that we build on that talent during this very difficult economic period and that the hard fought advantages we have won are notlost. I am committed to doing what I can to ensure that happens.Eamon Ryan TD, Minister for Communications, Energy and Natural ResourcesIn the last year, significant advances have been made in Ireland’s broadcasting sector, most notably in theenactment last July of the Broadcasting Act 2009. The most comprehensive legislation governing Irishbroadcasting in almost 50 years, this Act provides a modern and up to date framework for the broadcasting sector,both public and private.The Act replaces all previous broadcasting content legislation. It introduces many new concepts, creates a newrange of functions for broadcasters and the regulator. It also provides for new activities and services, particularlyin light of the latest technological developments.The Act aims to protect, not only the interests of the industry, but crucially those of the audience. Thus, it introduces new standards inrelation to broadcast content and to advertising. It also provides for a right of reply, whereby those impugned can have their concernsaddressed in the same manner as they were broadcast.This legislation changes and improves the nature of broadcast regulation in Ireland. It allows for the establishment of a new singlebroadcasting regulator, the Broadcasting Authority of Ireland (BAI), for both RTÉ and the independent broadcasting sector. The BAI’sprimary focus is to support and grow the diverse variety of services and information, entertainment and enjoyment currently available tothe Irish listener and viewer. As well as Ministerial input, the Oireachtas Committee on Broadcasting proposes nominees for membershipof the board of the Authority – a significant advance in creating a more democratic process of board appointments in IrelandFrom Analogue to DigitalProgress is also being made in the deployment of Digital Terrestrial Television (DTT) which was provided for under the Broadcasting(Amendment) Act, 2007 and now under the Broadcasting Act 2009. Since 2007, RTÉ has been awarded a national licence to provide anational free to air DTT service offering access to RTÉ, TV3, TG4, at minimum. RTÉ has started to build the network to provide this serviceand to date, thirteen sites have been DTT enabled.- 14 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWIn addition, OneVision – a consortium comprising eircom, Arqiva, TV3 and Setanta Ltd. - has been offered a contract by the BroadcastingCommission of Ireland (BCI) to provide commercial DTT services. The offer to OneVision was made after the original Boxer consortiumannounced its intention to withdraw from the Irish market. While this withdrawal has resulted in some delay in the introduction of DTTservices in Ireland, the European Commission analogue switch-off deadline of 2012 will be reached.Sound and VisionThe funding of innovative broadcasting projects remains a priority and accordingly, the Broadcasting Act 2009 provides for an increase inthe monies available under the Sound and Vision scheme. The Sound and Vision scheme, administered by the Broadcasting Authority ofIreland, is a valuable support to broadcasters and independent producers in the production of programme material on Irish culture,heritage and experience, as well as programmes in the Irish language for broadcast on Irish television and radio. A key objective of thescheme is to increase public access at national, local and community level to high-quality radio and television programmes. To date, asum in excess of €40 million has been disbursed under the Scheme by the Broadcasting Commission of Ireland in the development ofsuch programming.European DevelopmentsFollowing on from the adoption of the Audiovisual Media Services Directive, new regulatory frameworks for audiovisual services will bedeveloped in Europe, which take into account advances in technology and market developments over recent years. In practical terms,almost half of television services watched by Irish audiences are provided by broadcasters based in other member states. The Directiveprovides the guarantee that such services will be subject to a certain minimum degree of harmonised measures, and will be transposedacross all Member States by the end of this year.With these developments and those due in the years ahead, both audience and industry can be sure of a vibrant, effective and successfulbroadcasting sector in Ireland.The future is promising.Simon Perry, Chief Executive, Bord Scannán na hÉireann/the Irish Film Board2008 finished on a high for the Irish film industry. It was a record year for production with 25 films having goneinto production, Section 481, the Irish tax incentive for film and television production improved in order to restorethe competitiveness of Ireland as an international film and television location and a survey completed byPricewaterhouseCoopers valued the Irish audiovisual sector at over €500 million, employing over 6,000individuals.The improvements to Section 481 which became legislation in April 2009 had the knock on effect of a quietbeginning to the year on the production front, whilst the new legislation was being processed. However, productionsoon got going with the major US feature film Leap Year starring Amy Adams filming on location in Ireland. Indigenous projects green litfor production included The Runway, Snap and The Guard all of which filmed on location outside of the Dublin area, providing much neededlocal spend and jobs in regional areas.Throughout 2009, the Irish film industry has received major international recognition and acclaim, representing Ireland on the world stageat the highest levels, emphasising Ireland’s reputation as a centre of cultural excellence. Irish stories and images of Ireland were seen byaudiences all over the world and the industry scooped over 45 international awards to date in 2009. Highlights included the A-list TorontoInternational Film Festival, where a record eight Irish films were selected, two Emmy awards and two Golden Globes for Irish talent, anAcademy Award nomination for an IFB short film, two awards at the Sundance Film Festival, a Best Actor award at the Tribeca Film Festivaland audience awards at Edinburgh, Oberhausen and Annecy.2010 promises to be a difficult year in terms of public funding cutbacks, however Bord Scannán na hÉireann/the Irish Film Board (IFB)remains ambitious in its goals for the industry. Following from the results of the PwC report which recognised significant economic growthpotential for the industry, the Department of Arts, Sport and Tourism has engaged with the IFB in a strategic plan to enable the domesticaudiovisual content production sector to develop into an internationally traded sector for products and services, over a five year period2010 – 2015.The growth potential of the audiovisual content industry, as an essential component of the Smart Economy strategy, represents strongprospects of employment for young people seeking jobs in the future.- 15 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWSteve Carson, Director of Programmes Television, RTÉ2008 saw RTÉ Television reaping the benefits of continued investment in original Irish programming.In commercial terms, it was a year of two parts: buoyant growth in the first three quarters of the year and sharpdecline in the last. This has tested the mettle of RTÉ, as a public service broadcaster, but also as the largestcreative organisation in this country: to continue to deliver to our viewers a schedule with the quality, range andambition that they associate with RTÉ, and which they have a right to expect. It has taken creativity and hard workto deliver this under mounting financial pressure.And we have delivered: all ten of the Top 10 most-watched programmes on any television channel available in Ireland were home-producedand broadcast by RTÉ. RTÉ last enjoyed monopolising all top 10 slots in 2003. Indeed, 19 out of the Top 20 were broadcast by RTÉ and48 out of the Top 50 were broadcast by RTÉ television: A significant achievement.These programmes, marking and covering key national sporting events like The All Ireland Finals and Munster v the All Blacks; keyentertainment high points like The Late Late Toy Show, The Rose of Tralee, Tubridy Tonight; key appointment-to-view dramas like Fair Cityand Whistleblower; events of national importance in cutting-edge news and current affairs from Six One to Prime Time Investigates; bitingconsumer issues in Buyer Beware; alongside the highest quality television service for young people’s programming on this island, includinginnovations such as Aisling’s Diary and Red, with a life online as well as on television, contributed to the 3050 hours of young people’sprogramming in 2008 on RTÉ Two, 26% of which was indigenous. These encapsulate what RTÉ does so well – make relevant, engagingprogramming that informs, entertains and fuels the national conversation.RTÉ programmes compete in a very crowded market. In September 2008, digital penetration had increased to 52% of the 1.5 million TVhouseholds (Source: AGB Nielsen Media Research, Establishment Survey). This represents an increase of 5-points year-on-year and 11-points compared with September 2006. In real terms, the number of digital households has increased by 36% over the past two years,to stand at 803,000 households in September 2008. Digital homes can access from around 60 to 500 television channels. RTÉ hasperformed well to retain audience in the context of this increase in competition for viewers. RTÉ increased its peak-time national individualsaudience by 0.1 TVRs during 2008 when compared with 2007. RTÉ’s peak-time increase in audience was driven by RTÉ Two, whichincreased its audience from 3.7 TVRs to 3.8 TVRs, while RTÉ One maintained 9.7 TVRs.Despite the financial difficulties that became apparent in the latter part of the year, RTÉ Television broadcast 5,231 hours of indigenousprogramming in 2008, an increase of 72 hours (1%) on 2007. Of those hours 2076 (40%) were broadcast in peak-time, an increase of43 hours (2%) on 2007. These hours included our ongoing commitment to high quality factual programming in prime time, such asCromwell in Ireland, which achieved an average audience of 365,000 and Death or Canada, which won an audience of 332,000 onaverage, while the four-part Bertie, a combined biography and analysis of the longest-serving politician of modern times in Ireland,attracted an average 558,000 viewers across all four episodes. Again, the focus was on home-production rather than acquisitions, with€199.6million spent on home-produced programming contrasting with €24.7million on acquired programming. Between 2003 and 2008indeed, the spend on acquisitions has increased by 7%, whereas the spend on indigenous programming has increased by 60% in thesame period.Again this year, RTÉ Television’s commitment to the Independent Sector was far in excess of our statutory obligation. The actual expenditureincurred on commissioned programmes during 2008 was €75million (including RTÉ attributable organisational overhead)***, which wasmore than twice our €32.8million statutory requirement. We remain committed to the sector and our expenditure in 2009 will again exceedthe new statutory obligation set by the Broadcasting Bill 2008, of €40million. We have also changed the way we work with the sector,instigating a new rolling commissioning system in 2009, to foster creativity, timeliness and ensure a steadier stream of potentialcommissions, and therefore income, for independent programme makers.RTÉ won a record 182 awards at home and abroad in 2008, across radio and television, proving yet again that the quality of RTÉprogrammes is world class. Television fared particularly well with a prestigious Prix Italia (At Home with the Clearys) award this year, fourHugo Awards in Chicago, in Drama (Prosperity), Arts (Being John Banville), History (Killings at Coolacrease) and Documentary categories(The Catalpa Rescue). As well as ten IFTAs; Celtic Media Awards, etc. This international recognition of quality is particularly gratifying aswe manage our way through an unprecedented drop in our commercial income. In the context of the national recession that is hitting allsectors of society, RTÉ is far from alone in facing the challenges that this economic climate brings. Despite the shortfall we’re seeking toaddress in the 2009 balance sheet, our focus is very firmly on maximising home-production. We launched over 100 new and returninghome-produced series/documentaries in autumn 2009 and look forward to maintaining the depth and breadth of such programming intothe future.*source: ComReg** please note figures for 2008 are calculated on a cost of transmission basis under IFRS.*** source: RTÉ Annual Report 2008- 16 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWMichael Cantwell, Manager, Telecoms, Internet, Media & Entertainment, Enterprise IrelandWhile the economic climate is demanding for business overall, Telecoms, Internet, Media & Entertainment hasnot been as unfavourably affected as other industries. Despite the general downturn, industry forecasts arepositive with the digital reality impact resulting in both opportunities and challenges for Irish business.The industry must position itself on the international stage where multiple opportunities abound. Irish industryhas the creative capability but must further develop its business and sales development skills to competeinternationally and gain market share. This industry can potentially deliver real added value for Ireland. Theopportunity for the Irish Media & Entertainment industry to serve global markets remains significant.Enterprise Ireland (EI) assists Media & Entertainment key clients in their endeavours to scale their business globally through customiseddevelopment plans with targeted ongoing financial support including initial R&D funding for start ups, ongoing R&D funding support andbusiness expansion for established SMEs. EI supports a range of management development, business acceleration programs andidentification of new business opportunities with client /buyer introductions on a global level through our network of international offices.High level contacts, including telcos, broadcasters, production studios and key industry people visited Ireland to meet our leadingcompanies. In 2009, as a direct result of these initiatives, a number of significant deals were signed by EI client companies.For Media & Entertainment overall, Enterprise Ireland provides the sector various knowledge sharing events with leading internationalindustry experts. Additionally, Enterprise Ireland supports and leads Media & Entertainment client delegations to international events andexhibitions where companies meet key global players. EI’s support of participation at these events enables Ireland to showcase its best ofbreed companies on an international stage.With the evolution of the digital landscape, the opportunity for the Irish Media & Entertainment industry to serve global markets remainssignificant. In 2010, Enterprise Ireland is committed to promote and assist key Media & Entertainment companies to internationally scaletheir business.Sarah Glennie, Director, Irish Film InstituteThe IFI is Ireland’s national cultural institution for film and as such is the only organisation to exhibit, preserveand educate. Our exhibition programmes bring our audiences the best of new Irish and international nonmainstreamcinema, through new releases, curated seasons and festivals, talks and special events.In addition the IFI’s Education and audience development programmes actively introduce new audiences to arthouse and alternative film. This is achieved through an extensive schools programme and a number of innovativeprogrammes aimed at family, youth and life-long learning audiences. The IFI schools programme is a significantnational resource that alone provides school children throughout Ireland (17,000 in 2008) access to challengingand inspiring cinema. It is currently undertaking a national research project, Film Focus, in collaboration with the Irish Film Board whichwill initiate a co-ordinated nationwide approach to film education.The Irish Film Archive collection is unique within the state, representing all aspects of indigenous film production, amateur andprofessional, from 1897 to the present day and through on going partnership agreements is the home of the IFB, BCI and Arts Councilarchives. It has recently acquired several important collections including the Concern film collection, the Radharc paper collection and thecollection of Dublin Zoo. Providing the public with access to this rich resource is central to the IFI’s activities and monthly archivescreenings bring our Dublin audience with unique access to Irish filmmaking and our national programme of curated projects from theArchive connects audiences nationally with their film heritage.IFI Reel Ireland, our international touring programme of Irish film funded by Culture Ireland, is now in its fifth year and to date we havefacilitated events in more than 40 countries around the world. Already in 2009 IFI Reel Ireland programmes have been screened in 23venues in 16 different countries including Mexico, Egypt, Iceland, Canada, and Russia.2009 sees the IFI heading into an exciting redevelopment which will be complete before the end of the year and comprises an additionalcinema of 60 seats, new public facilities and significant development to the Irish Film Archive research facilities.The redevelopment will allow the IFI continue to grow in strength and help off-set the impact of the economic downturn on our commercialincome streams. However the IFI is vulnerable to cuts in funding from its three main public partners – Arts Council, Irish Film Board, CultureIreland – all of which are currently under threat. Our Arts Council funding represents 20% of our annual turnover with the remaining 80%is generated by the IFI. This strong track record of income generation places the IFI in a strong position in comparison to other artsorganisations that are more reliant on public subsidy. The challenge facing the IFI is to protect our ability to invest in diverse programming,the Irish Film Archive and Education all of which are central to our remit as a publicly funded cultural institution committed to providingaccess to film culture to a wide-range of audiences.- 21 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWHelen McMahon, Project Advisor, FÁS Screen Training Ireland2009 has presented significant challenges to the audiovisual industry, in terms of budgets, funding, andemployment. In times of economic uncertainty, training continues to play a crucial role in several ways.Firstly, and most crucially, re-skilling and cross-skilling is hugely important to professionals seeking to enhancetheir skillset, and is the cornerstone of professional survival in chastened times. Re-skilling is not only aboutlearning new skills; re-skilling requires a significant and complete understanding of this industry’s role in the widerlabour market, and the very real part we, as professionals in a creative and progressive industry, play in Ireland’sknowledge economy. The expertise and the talent of this industry is now the currency of an economy that can onlysurvive by nurturing and promoting it indigenous products; our content creators are the intellectual property owners that will emerge fromthis downturn as leaders on an international stage.How can training play a role in developing the key players in the knowledge economy? One vital step has already been taken. ScreenLeaders, Ireland’s first MEDIA-supported training programme, is currently cultivating the business leaders of the new economic reality. Intraining Irish and European producers to develop their companies to face dramatic changes in the industry, Screen Leaders is focusing oncreating businesses that are not dependent on inward investment, but rather significant exporters of intellectual property.At a national level, FÁS Screen Training Ireland with funding support from the Bord Scannán na hÉireann/the Irish Film Board continuesto provide a range of training for industry practitioners, but now faces the challenge of ensuring that these practitioners are prepared fora contracting industry, and have other areas of business interest to pursue. As this industry contracts, so training must open new doors topractitioners, providing them with the tools and expertise to explore new creative and professional avenues.To build on the work already done and to assist in the future development of the industry, training is required to focus on skills across allaspects of the content creation process, intellectual property development, creative entrepreneurship and management expertise. Trainingwill play a key role in preparing creative professionals for the transformation of the marketplace. Another key element will be up-skillingand re-skilling the industry for new production, sales and distribution models in an internet age. The entertainment industry, as one of theworld’s fastest-growing industries, is in a unique position to spearhead technological convergence and promote Ireland’s smart economy.One Hundred Mornings- 22 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWBunny MaloneyNiko & The Way to the Stars- 23 -

Audiovisual Production in Ireland 2008 – 2009AUDIOVISUAL FEDERATION REVIEWHappy Ever AftersNothing PersonalHeatAll Ireland Talent Show- 24 -

Economic AnalysisAUDIOVISUAL FEDERATION REVIEWExpenditure 2008 (see appendix I)Overall Irish expenditure in the economy, the key driver fordomestic employment and income, amounted to €167.8 millionfor the 266 productions analysed. As part of this figure,expenditure from independent TV production including major TVdrama stood at €114.6 million representing 68% of Irishexpenditure.Feature Films 2008In 2008, the production of feature film accounted for 29% of thetotal cost of productions within the State. Of the €71.9 millionspent on productions, €35.4 million (49%) was spent on Irishgoods and services. These productions generally draw on Irishand non-Irish funding. The main sources for Irish funding wereSection 481 (€31.9 million), the Irish Film Board (€9.9 million),BCI and RTÉ (€0.9 million) combined.200180160140120100806040200Independent TV Productionsincluding Major TV Drama68%Animation11%Feature Film21%Irish Expenditure (G167.8 million)Irish Expenditure (G167.8million)2004 2005 2006 20072008 *2009(*Estimate)4035302520151050Feature Film (Irish Expenditure G35.4million)2004 2005 2006 2007 2008 *2009(*Estimate)The analysis examines the performance of Feature Films,Independent TV Productions including Major TV Drama andAnimation over the last five years, excluding 2009.The ClinicHugh Leonard - Odd Man In- 26 -

Economic AnalysisAUDIOVISUAL FEDERATION REVIEWIndependent TV Production(including Major TV Drama) 2008Animation 2008The output for independent TV productions in 2008 was €136million a 12% decrease on 2007. Of that €114.6 million wasspent within the Irish economy. The main sources of TVcommissions continue to be RTÉ and TG4.The growth in the Irish animation industry, which is almostentirely export sales, shows a significant increase on last yearyielding a total output of €38.9 million, of which Irishexpenditure amounted to €17.8 million.140Independent TV Productions including Major TV Drama(Irish Expenditure G114.6 millions)2018Animation (Irish Expenditure G17.8 millions)1201008016141210604020864202004 2005 2006 2007 2008 *200902004 2005 2006 2007 2008 *2009(*Estimate)(*Estimate)Employment (see Appendix I)Employment in 2008 showed a slight decrease, with job placements down from 12,727 to 12,660. The number of full time equivalentjobs totalled 1,608 in 2008.MarconiPerrier’s Bounty- 27 -

International ContextAUDIOVISUAL FEDERATION REVIEWChapter ThreeThe international filmed entertainment sector is expected toexperience strong growth over the coming years withPriceWaterhouseCoopers Global Entertainment and Media Outlookestimating the compound annual growth rate at 4%, with theworldwide industry reaching $102 billion in 2013. While adownturn is expected for 2009, and the industry remaining weak in2010, it is due to recover with low growth in 2011.Cinema admission figures across Europe have risen slightly from920 million in 2007 to 924 million in 2008. It is difficult to predictan overall trend for 2009 as while some territories such as Franceare experiencing a decrease in attendances, other territories suchas the UK are experience strong increases. A positive trend to notefrom a European perspective is the fact that there seems to be asteady demand for European cinema. European films market sharein the EU for 2008 has remained similar to 2007, at 28%.European film production levels continue to show growth year onyear with the European Audiovisual Observatory estimating a totalof 1,145 films that were produced in the EU in 2008, representingan 11% increase on the previous year’s total of 1,033. This growthhas many factors, the primary being the reduced barriers of entryof film production due to new digital technologies, which arecontinuing to lower the costs of production. Co-productions are alsoat a healthy level with Ireland involved in 11 official film and TV coproductionsin 2008, through the European Convention onCinematographic co-production and the Canada and Ireland coproductiontreaty.The International industry, while on the surface is performing well interms of production levels and box office revenues, is in a period offlux. There is a converging of content and an increase in the blurringof lines between TV, Internet, Mobile applications, Games etc.Formats have increased their share on TV screens, with the globalproduction volume of traded TV formats reaching €9.3 billionbetween 2006 and 2008. The introduction of product placementand branded content will take on increased importance, given thedecrease in the value of traditional television advertising and theinability to incorporate ad breaks for on-line content. There will bean increase in the level of clustering and companies creatingalliances with “Innovation Partners”, digital projection is opening uptheatres to alternative content like opera and gaming, and theincreasing worry for producers on how to “monetize” their contentgiven the levels of piracy through bit torrent and file sharingwebsites.With recent improvements to the Irish tax incentive, Section 481,the Government hopes to have improved Ireland’s competitivenessas a location for mobile film, TV and animation production. Whileincoming productions in 2009 have dipped slightly, despite thenotable exceptions of The Tudors Season 4 and the Hollywood filmLeap Year starring Amy Adams, there is a strong slate of productionsscheduled for 2010 including the ITV drama Primeval, which hasdecided to re-locate to Ireland from the UK for Season 4 & 5. Therewere numerous factors for the decline for incoming productions in2009, primarily the further strengthening of the Euro against thedollar and the British Pound, and the delay in the approval from theEuropean Commission on the changes to Section 481 – thiseffectively halted International production for the first quarter of theyear.Irish film, TV and animation is currently selling well worldwide,despite difficult market conditions brought on by a decline in DVDsales, piracy and uncertainty in the financial world. The feature filmThe Eclipse has recently been picked up for international and USdistribution by Magnolia Pictures, one of the leading indiedistributors, and Neil Jordan’s Ondine has sold to numerousterritories to date by Paramount Vantage. Indigenous independenttelevision drama, factual and lifestyle production has alsoperformed well internationally over the last year with RTÉcommissioned programmes such as Single Handed (which wasbroadcast on ITV Primetime), Prosperity, Customs, Traffic Blues,Showhouse, Designs for Life and Room to Improve being amongthose that have been successfully exported abroad.Irish animation continues to perform well internationally with two ofthe three films nominated by the European Film Academy in 2009for best animated feature being Irish and for the second yearrunning, an Irish studio won the prestigious ‘European Producer ofthe Year’ award at Cartoon Forum. Within international children’sbroadcasting and animation circles, Ireland is widely regarded as acreative hub producing some of the most popular and innovativeprogrammes for children today. The animation sector is almostentirely export focused and excluding Section 481 funds, almost80% of its income is generated from international sources.Irish Pavilion in Cannes 2008- 28 -

AUDIOVISUAL FEDERATION REVIEWDaithi ar Highway 61Mobs MheiriceaHis & Hers- 29 -

Case Study OneAUDIOVISUAL FEDERATION REVIEWCASE STUDY: THE CLINIC SERIES 6BackgroundIn late 2007, Parallel Film Productions was commissioned by RTÉ toproduce the sixth series of ten one hour episodes of the highlysuccessful prime-time television drama series The Clinic. Productioncommenced in Spring 2008 and the series was broadcast as part ofRTÉ’s prime time Autumn schedule in the same year.Set in Dublin and shot on location and in studio, in and around thegreater Dublin area, The Clinic is an entirely indigenous production.The series was financed through a combination of development andproduction funding from RTÉ and S481 investment.Just as the first five years of The Clinic tapped into the zeitgeist of theCeltic Tiger, series 6 and beyond had to tap into the Post Tiger eraand reflect an Ireland beginning to come to terms with the boom tobust phenomenon after more than a decade of unprecedentedeconomic growth. This new reality would be explored throughcompulsive drama taking an uncompromising and realistic approachto contemporary topics and issues that would strike a chord with abroad spectrum of the large and loyal Clinic audience. And just asIreland had moved on over the first five years of the series so too hadTV generally and TV drama in particular. The storytelling and filmingstyle for series 6 would have to be reinvigorated to reflect thechanging tastes and audience expectation.So the particular creative challenge for series 6 was to give it thebenefit of a vibrant and sassy makeover whilst still maintaining theheart and ethos of the original idea. This was the starting point forthe team as they started to map out and eventually write the series– a process which takes place over several months and moves fromseries outline to episodic outlines to scene by scene breakdownsand eventually draft scripts – each stage being refined and reviseduntil the scripts are ready for production.Production/Post ProductionThe production was based at a dedicated facility in Dublin 12 whichprovided office, storage, construction, production and studio floorspace at one location. This was a new base for series 6 and someimprovements to the existing facility (previously a distribution andtelesales base for an international beverage company) were requiredto get it to an acceptable standard for production. This includedsome minor structural alternations and additions to the existingbuildings.From the commencement of early script development until finaldelivery of the last episodes to RTÉ, it took approximately ten monthsto develop and produce 10 x 52’ episodes of The Clinic Series 6.Formal pre-production and production accounted for five months.For the purposes of production the ten episodes were grouped as fiveblocks of two episodes, each block having a 15 day shooting periodcomprising of approximately ten days shooting on the sound stageand five days on location. This equates to 7.5 days shooting for each52’ episode.The Clinic 6 had a large cast and crew – a total of 883 people wereemployed on the series. This figure includes all core cast, guest cast,day players and extras, all production, design, scripting, locations,make up, costume and shooting crew, all construction, catering,security and all others associated with the provision of services andfacilities directly to the production. 871 of these were Irish nationals,ten were EU citizens and two were non EU citizens.In addition, eight trainees were employed on the production underthe supervision of the Production Manager together with the head ofeach specific department concerned. The trainees deployed acrossthe production, camera, sound, wardrobe, hair and assistant directordepartments, varied in experience, ranging from starting their firsttelevision series to more experienced crew who would soon beupgrading to the level of Assistant. All Trainees worked for theduration of the 15 week shoot and for a variety of prep and wrapweeks, depending on department requirements. The training for alltrainees was balanced between the specific requirements of the joband the scope for improving individual and technical skills.All of the post production services were provided in Ireland by Irishcompanies. These services included online and off line editing,grading, sound mixing and editing, foley and ADR, music scoring andrecording.Approximately 25 people were involved in the provision of a range ofpost production services.AppealThe ClinicSince its debut on RTÉ One in September 2003, The Clinic hasbecome a highly successful original indigenous drama receivingcritical and popular success in Ireland. Each year has seen theaudience grow from a series average of 362,000 adults 15+ in series1 to 533,000 for series 6.The series had a very broad appeal across all demographics withseries 6 engaging particularly well with young women and men agedbetween 15-25.The Irish audience respond particularly well to what they regard as“their stories” and particular attention and effort has always beenmade to ensure that the stories reflect contemporary issues ofinterest to the local audience but with wider resonance for the largeinternational following now enjoyed by The Clinic as the seriescontinues to sell particularly well to a wide variety of territoriesincluding Latin America, Scandinavia, Europe, the Middle East, Asiaand the Caribbean.- 30 -

Case Study TwoAUDIOVISUAL FEDERATION REVIEWCASE STUDY: NODDY IN TOYLANDBrown Bag Films secured the contract to produce the remake of EnidBlyton’s Noddy in Toyland for Chorion and FIVE(UK), TF1(FRA) in timefor its 60th Anniversary. This was a 52 x 11 minute episode series ofhigh definition computer animation. Over 40 people were involved inits production over 76 weeks and it had an Irish spend of more than€3 million. Noddy in Toyland went straight to the number one spot forfour to six-year old viewers on FIVE in its first month of broadcast.With the exception of scripts, every senior position was filled by anIrish person. The series was directed by David McCamley (who hadpreviously worked in Walt Disney Feature Animation on hit films TheLion King and Tarzan). “It has been a great honour for us to work onsuch a classic property. Everyone at Brown Bag Films has enjoyedbringing Noddy back to the look of the original Enid Blyton books. Wegave the series the look and feel of the old stop motion shows thatwe all grew up with as we wanted it to look warm and appealing tothe young viewers which is lacking in a lot of pre-school animationthese days” said McCamley.The show was produced by Gillian Higgins “The first part of theanimation process is to record voices. From here, we preparestoryboard animatics which is the Storyboards edited to synch withthe final voice track. Animation works on a 1:1 ratio so we only evertrim a few frames in edit, we know exactly what a finished episode isgoing to look like before we even begin to animate” said Higgins.“When the animatics are completed with the pre production packs,it is ready to be sent overseas via the internet”All the key creative decisions are made during an extensive preproductionstage which involves the building of the 3D charactersand 3D sets, rigging and texturing of characters, key animation,lighting, camera moves. The production pipeline necessitatessending a portion of the animation overseas to studios and everymonth terabytes of HD files were uploaded and downloaded.“The series was post-produced in Brown Bag Films and mastered tothe US high definition specification. The series was broken up into sixdelivery blocks of eight episodes which overlapped, so the editorswould find themselves having multiple episodes in any given a day.FIVE had started to broadcast the first batch of episodes before wehad delivered the final two batches” said Higgins.Noddy in ToylandNoddy in Toyland- 31 -

Case Study ThreeAUDIOVISUAL FEDERATION REVIEWCASE STUDY: ROS NA RÚNDevelopment:Ros na Rún receives no development funding. All development is partof the pre-production process.Production:Now in its 14th year of production, Ros na Rún’s production base isa studio complex in An Spideal, Galway. The fictitious village housesstudios, production and post-production facilities. Locations arewithin a 15 mile radius.€1,426,377 was spent on Irish goods and services, and with theexception of stunts, legal and insurance, all services were sourcedlocally. Ros na Rún was shot over 25 weeks, shooting primarily inautumn/winter, producing 36 hours of broadcast drama.Direct employment and contracted personnel amount to 189, with acost of €2,998,662; 86 in Production, 89 Cast, and 14 Writing.Ros na Rún is a significant driver of the development of a viableproduction sector outside Dublin. Because of the linguistic andgeographic challenges it faces, Ros na Rún has developed an inhousescript to screen policy to ensure that all the skills andproduction expertise can be locally sourced.The production has made a substantial investment in on-goingpersonnel development and embedding training in the productionprocess. We have developed a number of on-the-floor training andupskilling processes for both crew and cast. All Heads ofdepartments have a clause in their contracts giving them activeresponsibility for upskilling trainees in their departments.Three in four Directors are locally based and with one exception havebeen trained by the production. Virtually all the production personnelare local and have been trained by us.and mobile phone content as part of a strategy to engage with a new,younger and more technologically literate Irish-speaking audience.We embarked on a project to digitize are archives in order to makematerial available for multiplicity of cultural uses including studentsof the language. The development of such initiatives has resulted inthe retention of trained and well-motivated technicians in the region.Successfully identifying new modes of storytelling through digitalplatforms offers prospect of further jobs in the local economy andcould be a significant contribution to the development of the Irishlanguage for the digital future.Other:● Cultural Tourism – the series is shot in the costal village of AnSpidéal, County Galway. Because of the nature of the drama, 80% isshot in a studio environment and the remainder on locations in thelocal area, which gives a feel for its geographical location, using thecoastline, natural beauty spots, local traditions and culture.● While the series is owned by the broadcaster, there is opencollaboration between the broadcaster and the producers on anysales potential. Derry O’Brien is the International sales agent. Theproduction has been successful in getting sales to Scotland, Walesand PBS Channel in the United States and we are hopeful that thiswill continue. However, sales of Ros na Rún are unlikely to returnrevenues at levels achievable for English drama/soaps as subtitlingexpenditure adds to the cost.● The production is a co-production between two Irish basedproduction companies, EO Teilifis in An Spidéal and TyroneProductions in Dublin. The co-production partnership is in existencefor 14 years, it has been successful in partnering with Sterling Film,and TV Production in Belfast is setting up the drama series Seacht inBelfast, which is broadcast by TG4 and BBCNI.Storytelling and scriptwriting in the Irish language are critical area forRos na Rún. The production has by necessity developed writing talentboth in-house and freelance.With regard to actors, as Ros na Rún casts quite a number ofrelatively inexperienced young actors on a regular basis we have atraining & coaching process for them. For more experienced actorswe have Stunt training and performance coaching workshops.Innovation:By facilitating greater job mobility than is usual in the productionsector, Ros na Rún has a very high number of multi-skilled personnel,which has resulted in very streamlined production processes.Only 2% of the budget is spent on postproduction facilities. This isdue in part to the fact that Ros na Rún recorded over 80% of itsmaterial direct to hard-drive for rough assemble during production.We continue to innovate both in conventional TV production andincreasingly in the multi-platform digital domain. In the past year, wemoved from Avid to final Cut in order to facilitate the transition to HDacquisition and multi-platform production. We developed a mediumterm plan to extend the brand into other media such as webisodesRos Na Rún- 32 -

Case Study FourAUDIOVISUAL FEDERATION REVIEWCASE STUDY: ONDINENeil Jordan’s sixteenth feature film Ondine starring Colin Farrell(Minority Report), Stephen Rea (Breakfast on Pluto) and newcomerAlicja Bachleda-Curus (Trade) filmed in summer 2008 in Cork. Thefilm was produced by James Flynn of Octagon Films (Inside I'mDancing, H3, Nora), Neil Jordan, and Ben Browning of WayfareEntertainment.Ondine tells the story of Syracuse (Farrell), a local fisherman whoseeveryday life is transformed by a beautiful and mysterious womanwhom he fishes from the sea and who his young daughter believes isa mermaid. But like all fairytales, enchantment and darkness gohand in hand.The film had a total budget of almost €8m, the majority of which wasspent on Irish labour, goods and services. Ondine received Irishfunding from the Irish Film Board, Section 481, RTÉ and theBroadcasting Commission of Ireland, 65% (over €5 million) wasraised from International sources.The film has provided a great opportunity for established cast suchas Farrell and Rea to work at home as well as providing a platformfor up and coming talent such as newcomer Irish actress Alison Barry.Irish creative personnel were employed across the filmmakingprocess including production designer Anna Rackard and costumedesigner Eimer Ni Mhaoldomhnaigh. Their work will now beshowcased to a significant audience on the International stage.In total, there were 615 cast, crew and crowd extras employedthroughout the production and post-production period, 575 wereIrish. There were also a large number of trainee positions on theproduction, with many of whom were sourced locally for positionsacross production, costume and camera.The film availed of the IFB's Regional Support Fund in order to helpoffset some of the costs incurred with filming regionally in Ireland.Ondine has led to substantial inward investment in Castletownberewhere the film received huge community support throughout filminglast summer. Ondine filmed for 42 days in Ireland, 41 of which wereon location with a substantial local regional budget spend of over€1.7 million on cast, crew and services in the area. The postproductionwork was carried out in Windmill Lane in Dublin.This film has the potential to provide great tourism opportunities forthe area of west Co. Cork, given that 18% of all tourists coming toIreland quote “Film” as a reason for their visit. This translates to €369million in overall Irish expenditure in 2008.Ondine was one of eight Irish films that recently premiered at theToronto International Film Festival, where it was being represented byParamount Vantage, who are selling the film internationally. It hasalready sold to many major territories and will be distributed shortlyin France, Germany and Spain amongst others. It has garnered greatreviews to date, with Screen describing it as “……a modern love storyinfused with strong flavours of Celtic myth.”Ondine- 33 -

AUDIOVISUAL FEDERATION REVIEWAppendicesAppendix I: Economic Analysis 2008Appendix II:Production Details – Summary 2004 - 2008 ComparisonAppendix III: Production Details – By Type of Production – 2008Appendix IV: Funding Details – By Type of Production - 2008Appendix V: Contribution of the Irish Film Sector to the Irish Economy 2008Appendix VI:Appendix VII:Appendix VIII:Clarification NotesSection 481 InvestmentAgencies Involved with the Audiovisual Production Industry in IrelandAppendix IX: List of Productions included in the Report 2008 and 2009Arbharrnadtonn- 34 -

Appendix I:Economic Analysis 2008AUDIOVISUAL FEDERATION REVIEWFundingIn 2008, the 266 productions had combined budgets totalling €246.8 million. Funding from Irish sources amounted to€188.8 million, 77% of the total funding.Funding by Type of ProductionIrish Funding of which:2006Feature FilmsGm2007Independent TV Productionsincluding Major TV Drama GmAnimationGmTotalGm2008 2006 2007 2008 2006 2007 20082006 2007 2008• Section 481 Raised21.18.731.950.862.252.916.410.716.488.381.6101.2• Irish Film Board6.03.99.93.33.03.01.00.90.910.37.813.8*• BCI1.60.90.74.13.12.80.70.40.46.44.43.9^• RTÉ0.20.20.253.548.250.81.00.30.354.7*48.7*51.3*• TG40.3--11.613.612.20.10.2-12.0*13.8*12.2*• Other4.40.81.21.32.21.96.63.43.312.36.46.4Total Irish Funding33.614.543.9124.6132.3123.625.815.921.3184.0162.7188.8Non-Irish Funding51.24.828.019.121.721.425.66.517.695.933.0 +58.0 +TOTAL84.819.371.9143.7154.0136.051.422.438.9279.4195.7246.8* Excludes RTÉ/TG4’s spend in respect of projects receiving S481 funding+ Excludes non-Irish funding in Section 481 Raised^The BCI figures above relate only to report forms received by IBEC and do not account for the total BCI Sound & Vision allocation in the periodTriage- 35 -

Appendix I:Economic Analysis 2008ExpenditureExpenditure by Type of ProductionOf the €246.8 million combined budgets, €167.8 million was spent in the Irish economy.Type of ProductionTotal Expenditure Gm(See (1) Below)2006 2007 2008Irish ExpenditureGm2006 2007 2008Feature Films84.819.371.929.812.235.4Independent Productions & Major TV Drama143.7154.0136.0113.8118.6114.6• RTÉ*72.864.570.261.256.364.3• TG4*22.425.922.119.120.719.0• Other TV Productions48.563.643.233.541.631.3Animation51.422.438.917.612.417.8TOTAL279.9195.7246.8161.2143.2167.81. These Independent TV productions are classified by the organisation which was primarily involved with the various productions. Therefore, although forexample TG4 are shown to have a total expenditure of G22.1 million, some of this expenditure arose from other sources of funding for TG4 productions e.g.private finance. Similarly for RTÉ – other sources of funding contributed to this expenditure of G77.1 million.* Includes RTÉ/TG4’s spend in respect of projects receiving S481 funding. The figures for RTÉ and TG4 are based on completed projects for which economicdatabase forms have been received. See clarification notes in appendix VI.The Trial- 36 -

Appendix I:Economic Analysis 2008EmploymentA total of 15,147 people were directly employed in relation to these 266 independent productions, of which 84% wereIrish. This figure excludes direct employment generated through the expenditure of €82.2 million on Irish Goods andServices and indirect employment generated through the multiplier effects of the total Irish expenditure €167.8 millionin the economy. A total of 2,836,029 work hours were generated, which translates to the equivalent of 1,608 full-timejobs (see (2) below).Employment by Type of Production - Direct Employment - Irish/Non IrishType of ProductionTotal EmploymentIrish EmploymentNon-IrishEmploymentFeature Films4,2782,8831,395Independent Productions & Major TV Drama10,3979,440957• RTÉ*5,0474,634413• TG4*2,1131,967146• Other TV Productions3,2372,839398Animation472337135TOTAL15,14712,6602,487Employment by Type of Production - Equivalent Full-time JobsType of ProductionFeature FilmsIndependent Productions & Major TV Drama• RTÉ*• TG4*• Other TV ProductionsAnimationTOTALTotal Irish Work Hours515,2992,020,1871,008,608509,944501,635342,4922,877,978Full-Time Equivalent Jobs2921,1455722892841941,6312. Based on a 38 hour week and a working year of 232 days. The 38 hour average is taken from a 39 hour week average for manual workers and a 37 hourweek for clerical, professional and technical workers. The 232 day working year is derived as follows: 365 minus 104 days weekends minus 9 public holidaysminus 20 days average annual leave days = 232.- 37 -

Appendix I:Economic Analysis 2008AUDIOVISUAL FEDERATION REVIEWExchequerExchequer Returns and Receipts from the Audiovisual SectorThe cost to the Exchequer of Section 481 is the tax foregone on Section 481 investments. The derivation of tax foregoneon Section 481 is discussed in Appendix V. For 2008 Section 481 finance was €101.2 million and the tax foregone onthis was €32.8 million.As mentioned above, returns to the Exchequer are derived from incomes and expenditure generated directly and indirectlyby the audiovisual industry. In 2008 direct tax receipts were €24.7 million, comprising of €11.6 million from PAYE/PRSI,€11.5 million from schedule D and €1.7 million from VAT and Corporation Tax (see Appendix III). Indirect tax receipts areestimated to have amounted to €33.8 million, giving a total of €58.5 million in receipts.The net benefit to the Exchequer in 2008 was receipts of €58.5 million less the tax foregone of €32.8 million yielding anet gain of €25.7 million.Brides of Franc- 38 -

Appendix II:Production Details - Summary 2004 - 2008 ComparisonAUDIOVISUAL FEDERATION REVIEWProductionProduction Details 2004200520062007 2008152.3Total Funding Gm169.8+ Excludes non-Irish funding in Section 481 RaisedIrish Funding GmNon-Irish Funding GmTotal Expenditure GmIrish Expenditure GmNon-Irish Expenditure GmTotal Numbers EmployedTotal Irish EmploymentTotal Non-Irish EmploymentTotal Irish Work HoursEquivalent Full-time jobsTotal Irish Labour Costs GmIrish Labour Costs – Subject to PAYE GmIrish Labour Costs – Other (Schedule D) GmGross Return to the Exchequer GmTax Foregone to the Exchequer via Section 481 GmNet Gain to the Exchequer Gm118.950.9169.8106.763.113,22112,3558861,699,87296340.316.823.534.522.312.2111.840.5152.396.955.49,2998,4688311,863,1311,05839.813.426.431.915.116.81. See appendix V for calculation279.9184.095.9279.9161.2118.717,47615,1432,3333,198,0661,81487.024.562.555.736.219.5195.7162.733.0 +195.7143.252.514,71112,7271,9843,060,7771,73576.224.252.049.131.118.0246.8188.858.0 +246.8167.879.015,14712,6602,4872,877,9781,63185.633.552.158.532.825.7SavageCracks- 39 -

Appendix III:Production Details - by Type of Production - 2008AUDIOVISUAL FEDERATION REVIEWProductionProduction DetailsFeature Films GmIndependent TVProductions GmAnimation GmAll Productions GmTotal Funding Gm71.9136.038.9246.8Irish Funding Gm43.9123.621.3188.8Non-Irish Funding Gm28.012.417.658.0 +Total Expenditure Gm71.9136.038.9246.8Irish Expenditure Gm35.4114.617.8167.8Non-Irish Expenditure Gm36.521.421.179.0Direct Returns to the Exchequer - Net Vat Gm0.40.9-1.3Direct Returns to the Exchequer – PAYE Gm0.83.62.36.7Direct Returns to the Exchequer – PRSI Gm0.72.71.54.9Direct Returns to the Exchequer – Schedule D+Corp Tax Gm3.08.30.511.8Direct Returns to the Exchequer – Total Tax Gm4.915.54.324.7Total Irish Labour Costs Gm18.356.410.985.6Irish Labour Costs – Subject to PAYE Gm4.520.48.633.5Irish Labour Costs – Other (Schedule D) Gm13.836.02.352.1Total Numbers Employed4,27810,39747.215,147Total Irish Employment2,8839,44033712,660Total Irish Work Hours515,2992,020,187342,4922,877,978Equivalent Full-time jobs2921,1451941,631+ Excludes non-Irish funding in Section 481 RaisedSwansong: The Story of Occi Byrne- 40 -

Appendix IV:Production Details - by Type of Production - 2008AUDIOVISUAL FEDERATION REVIEWFundingSource of FundingFeature FilmsGmIndependent TVProductions GmAnimationGmAll ProductionsGmIRISHBord Scannán na hÉireann/Irish Film Board*9.93.00.913.8**Broadcasting Commission of Ireland0.72.80.43.9^Radio Telefís Éireann*0.250.80.351.3**Telefís na Gaeilge (TG4)*-12.2-12.2**Section 481 (total amount raised)31.952.916.4101.2Other(including Art Council, Deferments,Private Equity, Sponsorship etc.)1.21.93.36.4Sub Total Irish43.9123.621.3188.8NON IRISHBroadcasters5.43.20.59.1Other UK Sources5.61.50.37.4Other EU Sources11.3-6.517.8US5.14.45.214.7Other0.63.35.19.0Sub Total Non-Irish28.012.417.658.0 +Total71.9136.038.9246.8* See appendix VI for clarification** Exclude RTÉs and TG4’s, and IFB spend in respect of projects receiving Section 481 funding+ Excludes non-Irish funding in Section 481 Raised^The BCI figures above relate only to report forms received by IBEC and do not account for the total BCI Sound & Vision allocation in the periodThe Tudors- 41 -

Appendix V:Contribution of the Irish Film Sector to the Irish Economy 2008ContributionThis section of the report sets about measuring the contribution of the film production sector to the economy. This contribution ismeasured both in terms of tax revenue generated and the impact on GNP and employment.Returns to the ExchequerAs noted in Appendix III, the total tax revenue directlyattributable to productions is €24.7 million; the bulk of thisrevenue is in the form of payroll taxes. This amount somewhatunderstates the tax return from productions, as it excludesboth the tax revenue generated by the contracting out of goodsand services worth €82.2 million and the tax revenuegenerated through the expenditure of the net income (€85.5million - €23.0 million) of Irish employees in the film industry.Using a tax multiplier of 25% and applying it to the amountspent on goods and services, IBEC calculates the direct andindirect tax revenue generated from this activity to be (0.25 *€82.2 million) = €20.5 million. Using a tax multiplier of 25%and allowing for 15% of an employee’s net income to be saved(a marginal propensity to consume of 0.85), IBEC calculatesthe tax contribution of the spending of Irish employees in thefilm industry to be (€85.5 million - €23.0 million)*0.85*0.25) = €13.3 million. Thus the total indirect tax revenueattributable to productions is €33.8 million, giving a total taxrevenue, direct and indirect, of €58.5 million.It is important to weigh these Exchequer benefits fromaudiovisual production activity against the cost to theExchequer, in terms of tax revenue foregone through Section481 relief.Under Section 481, individuals and companies may write off aportion of their tax liability by investing in a production up tospecified limits. Companies discount their investment against a12.5% (in tax year 2008) rate of corporation tax andindividuals against the 42% rate of income taxation. Accordingto the latest figures from the Revenue Commissioners, theaverage tax rate foregone on investments availing of Section481 went from 38.1% in the tax year 2007 to 32.4% in the taxyear 2008.On balance then, 32.4% of Section 481 funding foraudiovisual production activity is tax foregone by the state.This amounts to €32.8 million in the period covered bythe report.GNP and Employment MultipliersThe data collected is largely based on the production accountsof a ‘standard’ TV, film or animation production. This providesinformation of numbers directly employed on a production, butnot the numbers employed due to the purchase of goods andservices. Thus, for example, the numbers employed in Cateringare known only if provided internally by a production and not ifcontracted out. In order to capture this additional directemployment, and indeed to capture the wider output andemployment activity generated by film production, the conceptof the multiplier is utilised.The multiplier captures the overall impact of what might betermed the ripple effects of an economic activity. For example,a film distributes its budget amongst various suppliers of Irishgoods, services and labour. Each of these individuals will, inturn, spend a proportion of this additional income on suppliersof Irish goods, services and labour in a ripple effect expandingthroughout the economic system, far beyond that of the filmindustry. A GNP and Employment multiplier captures the sum ofall successive ripples, in terms of both output andemployment, respectively. The concept of the multiplier isused by amongst others, IDA Ireland, Teagasc and Bord Fáilte.The multipliers used in the analysis are based on the workcarried out by Professor Eamon Henry at the ESRI, applyingInput-Output analysis to a 41 NACE sector model of theeconomy. The multipliers relate specifically to the Other MarketServices sector of the Irish economy in 1993.Henry divides the multiplier effect of a given level ofexpenditure into a direct, an indirect and an induced effect -see following table. 1 An indirect effect results from thepurchase of ‘upstream’ inputs of goods and services. These aregoods and services that are not directly purchased by anaudiovisual production. The induced effect arises out of theincrease in personal incomes through an injection from outsidethe economy (foreign investment). Expenditure, which isdomestically financed, does not have an induced effect as themoney has already been circulating within the economy. As aresult the multiplier for foreign-funded expenditure in Ireland isgreater than for domestically funded expenditure. Finally, it isimportant to note that by applying the multiplier solely toexpenditure on Irish goods, services and labour, the estimateof the activity generated by film production in Ireland isunderstated by the amount spent by overseas employeeswhilst in Ireland.The Lives of Mike- 42 -

Appendix V:Contribution of the Irish Film Sector to the Irish Economy 2008In order to allow for the impact of both domestically funded and foreign-funded expenditure, a composite multiplier isgenerated comprising the Direct + Indirect multiplier and the Direct + Indirect + Induced multiplier weighted by the proportionof domestic and foreign-funded expenditures respectively. For example, the GNP multiplier is calculated as follows:(0.7354 * 0.77) + (0.9284 * 0.23) = 0.8798By applying the composite GNP multiplier of 0.8798 to the Irish expenditure of €167.8 million, we estimate the finalcontribution of this expenditure to the Irish economy to be €147.6 million. Similarly, by applying a weighted employmentmultiplier of 37.05 to the expenditure of €167.8 million in Ireland, we estimate the final contribution of this expenditure toIrish employment to be 6,216 full-time jobs.MethodologyThe multiplier estimates are taken from a report for Bord Fáilte by Professor Eamon Henry “Estimated Irish 1993 GNP andEmployment Multipliers by Input-Output Modelling”, tables 6 and 8. The multiplier impact of audiovisual production activity onthe economy was calculated, using the Henry multiplier for the NACE sector Other Market Services and allowing for theproportion of domestic and foreign-funded expenditure. The multiplier data for this sector are shown in the table below.GNP and Employment Multipliers for the Other Market Services Sector, 1993MultiplierDirectDirect + IndirectDirect + Indirect+ InducedDirect + Indirect+ Induced +GovernmentGNP0.50640.73540.92841.2558Employment24.0135.6041.9656.91Source ESRI/Bord Fáilte1 The effect of ‘Government’ on the multiplier may be added if it is assumed that Government respends fully all income received, with fullinteraction between Government current outgoings and all economic activities. If this assumption is invalid and the Government decides itsexpenditure before its revenue is clearly known, the additional Government effect on the multiplier becomes less certain. As a result, theGovernment effect on the multiplier has been omitted with the result that the multiplier effects shown are, if anything, understated.The Race- 43 -

Appendix VIClarificationAUDIOVISUAL FEDERATION REVIEWClarification NotesN1CertificationA significant number of the feature films and major television dramas in this report were subject to the certification terms ofSection 481 of the Taxes Consolidation Act, 1997 (as amended). Certification ensures that each proposed qualifying film projectis analysed by the Department of Arts, Sport and Tourism to meet three of the following cultural test criteria:• The project is an effective stimulus to film making in Ireland, and is of importance to the promotion, development andenhancement of creativity and the national culture – through the medium of film, including, where applicable, thedialogue/narration is wholly or partly in the Irish language or the production of a full Irish-language version of the film isincluded as part of the total budget for the film.• The screenplay (or, in the case of a documentary film, the textual basis) from which the film is derived is mainly set inIreland or elsewhere in the EEA.• At least one of the principal characters (or documentary subjects) is connected with Irish or European culture.• The storyline or underlying material of the film is a part of, or derived from, Irish or European culture and/or heritage; or,in the case of an animation film, the storyline clearly connects with the sensibilities of children in Ireland or elsewherein the EEA.• The screenplay (or textual basis) from which the film is derived is an adaptation of an original literary work.• The storyline or underlying material of the film concerns art and/or an artist/artists.• The storyline or underlying material of the film concerns historical figures or events.• The storyline or underlying material of the film addresses actual, cultural, social or political issues relevant to the people ofIreland or elsewhere in the EEA; or, in the case of an animation film, addresses educational or social issues relevant tochildren in Ireland or elsewhere in the EEA.N2Bord Scannán na hÉireann/Irish Film BoardThe Board’s budget is voted annually by Dail Eireann and in 2008 the Board received Capital Grant-in-Aid of €20 million. The IrishFilm Board was also allocated an administration grant of €3.197 million. The figures in Appendix I represent the full amount of theIFB’s commitment to a project and do not take into account timing differences and closing balances at the year end on projects.The figure for TV includes schemes and documentaries.N3 Radio Telefís ÉireannA total of 134 RTÉ Independent Television Productions are analysed in this report reflecting an RTE investment of just over €50million in 2008. As pointed out in previous reports, RTÉ expenditure is confined to productions for which Economic Database InputForms were provided by independent producers.N4 TG4A total of 78 productions in this report fall under the umbrella of TG4. For those productions TG4 contributed just over €12 millionof the €22.1 million total budget in 2008.N5 Exchequer CostsIt should be noted that in addition to tax foregone, Exchequer support flows to the audiovisual industry through a number ofstructures including the Irish Film Board, TG4 and Screen Training Ireland. The Irish Film Board and TG4 have extensive publicservice as well as commercial objectives. Outlays by Screen Training Ireland, which receives some Exchequer support, arespecifically aimed at the industry, but all other industries also benefit from Exchequer support for training programmes (e.g. throughFÁS), so that the audiovisual industry is not uniquely favoured in this respect. In the light of these considerations, it was decided tocontinue the practice of confining the comparison to taxes foregone on Section 481 (previously Section 35) investments and taxesgenerated by film industry activity.- 44 -

Appendix VIISection 481 InvestmentAUDIOVISUAL FEDERATION REVIEWSection 481 InvestmentIntroductionThe scheme of tax relief was introduced in 1987 (Section 35), topromote the Irish film industry, by encouraging investment in Irishmade films, which make a significant contribution to the nationaleconomy and Exchequer and/or act as an effective stimulus tothe creation of an indigenous film industry in the State. Thescheme was broadened in 1993 to include individual investors.The details of the scheme are contained in Section 481 of theTaxes Consolidation Act, 1997 (as amended). Amendments in theFinance Acts in 2008 extended the scheme for a further four yearsuntil the end of 2012, increased the overall ceiling on qualifyingexpenditure from €35m to €50m, increased the individual investorcap for those wishing to invest finance in film in Ireland to€50,000 per annum from the previous limit of €31,750 andincreased the relief on that investment to 100% from 80%.Since 1 January 2005, the Revenue Commissioners is responsiblefor the certification process of projects, having obtained anauthorisation from the Minister validating the project of its culturalcontent.Summary of the SchemeThe scheme provides tax relief towards the cost ofproduction of certain films. The maximum amount whichcan be raised under the scheme is 80% of the productionbudget.Tax relief on 100% of their investments is available toindividual investors and to corporate investors on amountsinvested.Tax relief on amounts invested is not allowed untilprincipal photography of the film project has commenced.If an application is made after principal photography hascommenced, then the application is void.The production company must be an Irish incorporatedand resident company, or a company incorporated orresident outside the State but which is carrying on a tradein the State through a branch or agency.The production company must be established for theproduction and distribution of only one qualifying film.Qualifying FilmA qualifying film is a film in respect of which The RevenueCommissioners has given a certificate.Qualifying CompanyA qualifying company for the purposes of the scheme is anIrish incorporated and resident company or a company, whichis carrying on a trade in the State through a branch or agency.The company must exist solely for the production anddistribution of one and only one qualifying film.Under Revenue Rules, to qualify for the tax relief, a riskrequirement must attach to the investment, i.e. a return cannotbe guaranteed to the investor.Love and Savagery- 45 -

Appendix VIIIAgencies Involved with the Audiovisual Production Industry in IrelandAgenciesSteering Committee Organisations/AgenciesAn Roinn Ealaíon, Spóirt agusTurasóireachta/Department of Arts, Sportand TourismThe Department of Arts, Sport and Tourism, has, since June 2002,overall Government policy responsibility for the futuredevelopment of both the film and television production industryin the State. Since the Finance Act of 1994, the Department (andits predecessors) has had an active role in the Section 35 (nowSection 481 of the Taxes Consolidation Act 1997) investmentincentive scheme, through the certification process.Since 1 January 2005 the Revenue Commissioners is responsiblefor the certification process, having obtained an authorisationfrom the Minister validating the project in terms of its culturalcontent and ensuring that the main aim of the Section 481 reliefremains focused on promoting the growth of the indigenous filmindustry.The Department provides Bord Scannán na hÉireann/the IrishFilm Board with grants-in-aid for its current and capitaloperations. Since 2007, the Board’s capital operations are beingfunded by the Exchequer, under the National Development Plan2007 - 2013.IBEC Audiovisual Federation (AF)The IBEC Audiovisual Federation was established in September1992 to promote the development of Ireland’s audiovisualproduction and distribution industry. Its membership comprisesfirms ranging from broadcasters RTÉ, TG4, UTV and independentproducers to corporate video producers, animation studios,facilities, legal and financial firms involved in the audiovisualsector and video rental companies. Affiliated memberorganisations include Screen Producers Ireland, Bord Scannán nahÉireann, Film Base, The Film Institute of Ireland, EnterpriseIreland, Udaras na Gaeltachta and BCI.Radio Telefís Éireann (RTÉ)RTÉ Independent Productions is RTÉ’s interface with theindependent sector. RTÉ’s primary responsibility is to itsaudience, and the quality and range of commissionedprogrammes plays a key role in helping RTÉ to deliver the mostsuccessful schedules in Ireland. RTÉ achieved this with 77.2%home production on its peak-time schedule on RTÉ One and38.6% on RTÉ Two during 2008. RTÉ Television’s total nationalshare in peak time (18.00 to 23.30) in 2008 remained steadyat 43.1%, despite intense competition, reflecting the strengthof home production. The key driver in this success is homeproduction, with Irish news, stories, entertainment and dramafor the Irish audience. RTÉ’s independent commissions(alongside its in-house production) are what deliver this strongperformance. Commissioned Irish content satisfies viewers,underpins RTÉ’s Public Service remit, and meets thecommercial and creative aspirations of the Irish independentsector. The volume of hours and the actual spend onindependent production have increased enormously since thefirst year of operation of the IPU in 1993. RTÉ’s increasedexpenditure incurred on commissioning activities inclusive ofattributable organisational overhead (€75 million. in 2008 inrespect of 833 hours of commissioned programming)continues to underpin the growth of the Irish independentsector, and assisted in job creation, economic growth andcreative expression in this dynamic sector.BCI/BAIThe BCI/BAI Sound & Vision broadcasting funding schemecontinued its strong allocation to film and TV production inIreland during this period. €62.6 million was requested fromthe Scheme for 331 different television and film projects. 111were awarded funding to a total value of €16.3million. Thiswould indicate a success rate of approx 33%. Programmegenres included documentary, animation, Irish language,education, children’s, feature film, and drama series.Bord Scannán na hÉireann/IrishFilm BoardBord Scannán na hÉireann/the Irish Film Board was reconstitutedin April 1993 by the Department of Arts, Heritage, Gaeltacht andthe Island under the Film Board Act, 1980. The Irish Film Boardpromotes the creative and commercial development of Irishfilmmaking and promotes Ireland as a location. Bord Scannán nahÉireann provides loans and equity investment to independentIrish filmmakers to assist in the development and production ofIrish films. The Board also acts in co-operation with other Irishsemi State agencies to improve the marketing, sales anddistribution of Irish films and to promote training anddevelopment in all areas of filmmaking. Employment of Irish crewand the use of ancillary Irish services is a vital factor in theBoard’s consideration of applications.St. Patrick’s Festival- 46 -

Appendix VIIIAgencies Involved with the Audiovisual Production Industry in IrelandAgenciesTG4TG4 is the national Irish language television service andbroadcasts on its own terrestrial channel. It is also carried on allcable services in the country and by subscription satellite in theRepublic and in Northern Ireland. It broadcasts 24 hours a daywith an average of six hours of Irish language programming.The channel came on air in late 1996 and operated under theaegis of the RTÉ Authority for the opening decade of itsexistence, including the opening quarter period under review inthis publication. It was established as a separate statutory entityon 1 April 2007.The core remit is to broadcast a comprehensive range of highquality, relevant, Irish language programming to the nationalaudience as a public service. TG4 is funded by the Exchequer.During 2008, TG4 received €35.47million Grant-in-Aid of currentfunding from the Department of Communications, Marine andNatural Resources.TG4 functions primarily as a publisher broadcaster, sourcingmost of its original Irish language content from the independentproduction sector. It is also in receipt of the equivalent of onehour a day of programming from RTÉ, at no cost to TG4, as laiddown in Section VI of the Broadcasting Act 2001.Screen Producers Ireland (SPI)Screen Producers Ireland (SPI) is the representative body forover 170 independent film, television and animationproduction companies in Ireland. On behalf of its members theorganisation seeks to create an improved environment forproducers, which will assist growth in the industry. SPI reflectsmembers’ concerns on a variety of issues affecting the currentand future working environment of the independent film,television and animation sector. It represents these views tothe appropriate state, semistate and international bodies.for Gaeltacht companies across all sectors in 2009 and theaudiovisual sector wasn’t immune to these difficulties.However despite the unprecedented changes in the economicclimate the audiovisual companies have largely managed tosustain their employment figures but they are acutely aware ofthe necessity to reduce the dependency on the home marketto remain viable. Údarás na Gaeltachta will endeavour tosupport these companies in whatever way it can in their effortsto diversify into new areas and new markets.The BCI’s Funding Scheme ‘Sound & Vision’ continued to be animportant source of funding for Gaeltacht companies in 2009,bringing increased activity to the Gaeltacht throughout the yearand allowing production companies undertake larger and morechallenging productions.The second year of the development initiative organised inconjunction with TG4 came to a close in 2009, whereby tendevelopment executives were employed in ten productioncompanies for one year’s duration, focusing on developingcontent. Unfortunately this scheme is not planned for a thirdyear due to limited resources in both organisations at this time.Employment in this sector in the Gaeltacht is very importantand there is no doubt that 2010 will be a challenging year butthe organisation is confident that companies will use theirinnovativeness and creativity to adapt to the new economicenvironment.EurimagesEurimages, founded by the Council of Europe, providesproduction finance for European coproductions. The IrishGovernment has participated in the scheme since 1992. In2008, Bord Scannán na hÉireann/the Irish Film Board paidIreland’s contribution of €278,346. Brendan McCarthy was theIrish representative, and Irish projects received €1,120,000 inproduction funding from the fund in this year.Other AgenciesÚdarás na GaeltachtaEstablished in 1980, Údarás na Gaeltachta is the regionaldevelopment authority funded by the Government to promotethe economic, social and cultural development of the Gaeltachtwith the overall objective of maintaining Irish as the maincommunal language of the region.The organisation took proactive steps at the beginning of the90’s to encourage growth and development of the audiovisualsector in the Gaeltacht. Údarás na Gaeltachta’s continuingcommitment to this sector is evident through its support ofindependent production companies, production and postproduction facilities, training initiatives and a willingness tocooperate/liaise with organisations that are responsible for thepromotion of the sector both nationally and internationally.National and global economic conditions created challenges- 47 -

Appendix VIIIAgencies Involved with the Audiovisual Production Industry in IrelandAgenciesMedia Desk Ireland/Media AntennaGalwayMEDIA Desk Ireland (supported by the European Commission’sMEDIA Programme, the Film Institute of Ireland, Film MakersIreland, Dublin City University, Film Base, Bord Scannán nahÉireann and RTÉ) and MEDIA Antenna Galway (supported by theEuropean Commission’s MEDIA Programme, Údarás naGaeltachta, Bord Scannán na hÉireann, TG4 and the Galway FilmCentre) are information offices for the MEDIA Programme of theEuropean Union. The MEDIA Desk and Antenna provide advice,technical assistance and consultancy for audiovisualprofessionals in international and national markets and festivals,as well as facilitating the integration of the Irish audiovisualindustry within Europe. Along with providing information on theMEDIA Programme, the MEDIA Desk and Antenna also provideinformation on Eurimages and on EU Audiovisual Policy ingeneral.The fourth edition of the MEDIA Programme – MEDIA 2007-commenced in January 2007 and will continue until December2013. The budget for the 7-year programme is €755 million.During 2008, the second year of the programme, it is estimatedthat the Irish audiovisual industry received €1.93 million for thedevelopment of projects, distribution, exhibition, and festivalsupport.A Shine of Rainbows- 48 -

AUDIOVISUAL FEDERATION REVIEWCharlie Bird’s Artic Adventure- 49 -

Appendix IXList of Productions Included in the Report 2008 and 2009AUDIOVISUAL FEDERATION REVIEWProductions2009FilmA Kiss for Jed WoodAll Good ChildrenAs if I am Not ThereBetween the CanalsCircus FantastasticusLa MulaLeap YearMy BrothersOutcastRewindSeaside StoriesSensationShelterSnapSome Other StoriesThe Fading LightThe GuardThe Last WordThe Looking GlassThe RunwayIndependent TVincluding Major TV DramaJack TaylorLove Hate (RTÉ)Pure Mule Special (RTÉ)Raw Series 2 (RTÉ)Ros na RúnSilenceThe Clinic Series 7 (RTÉ)The Tudors 4RTÉ (not available at time of printing)TG4 (not available at time of printing)AnimationChloe’s ClosetDive, Olly, Dive! Series 2Fluffy Gardens 2GumballMaryoku YummyOctonautsThor2008FilmA Film With Me in itA Shine of RainbowsCherryBombCracksEamon*Five Minutes of Heaven*Happy Ever AftersHis & HersInvestigatorKill Daddy, GoodnightLove and Savagery*OndineOne Hundred MorningsOur Wonderful HomePerrier's BountyPrincessSwansong*The EclipseThe EscapistThe Hanged ManThe RaceTriageVasha*Wide Open spacesZonadIndependent TVincluding Major TV DramaA Heart's DesireFather and SonGeorge Gently 3The TakeThe Tudors 3RTÉ21st Century Child Series 25 Women go back to WorkA Christmas Celebration With EimearQuinnAfrica A ListAfternoon ShowAingeal san Chistin - Series 2Aisling's DiaryAislings Holiday DiaryAn Bhfuil Cead AgamAnonymous Series 4At Your Service - Series 1Baby On Board - Series 2Ballet ChancersBaz Culture ClashBeing John BanvilleBertieBeyond The Berlin WallBrainy Bunch, History of the Video game,Chip Shop LunchBrides of Franc - The AnniversariesBrides of Franc 3Bronx DreamBuyer BewareC'mon CamanCelebrity BannisteoirCharlie Birds Arctic JourneyChristmas Links YYP 08/09Class ActCrime Call 5CustomsDead Cat BounceDealersDesperate Houses 4Desperate Houses RevisitedDragons DenEar to the GroundFace OffFáilte TowersFar Away Up Close Series 4Festival of World Cultures 2008Fleadh Cheoil 2008FuedGlas Vegas Year 2Go Go Stop Series 2Hall of LangersHands On 13Hanging With Hector - Aidan O'BrienHeatHeat 2HeistHome RunHow Long Can You Go - Reality CheckHow Long Will You LiveHugh Leonard: Odd Man InI See a DarknessIn the BloodIn the Blood (History of the Irish Horse)Irish Women in PrisonIs It Just MeIt's My Show 2J1 Summer in the SunJam - The MusicalJohn Connolly - Of Blood and Lost ThingsJunior Ryder Cup DreamsKillers - The SistersKillinaskully series 5Liam Clancy & Friends: Live at the Bitter EndLivin' With Lucy - Series 2- 50 -

AUDIOVISUAL FEDERATION REVIEWLiving the Dream 1 ReversionsLiving the Dream Series 2Living the Wild LifeMasses/Services 2007/2008Meet the Neighbours / As Others See Us..Messenger BoyMo Ghrá fo DaingeanMuintir Na Mara 3Music MasterNo Frontiers 11 / 3 Good Reasons 2009No Laughing MatterOperation Transformation 2Operation Transformation RevisitedOther VoicesOut of the MarvellousPatrick Collins - Through Sligo EyesPrank it up Series 2Pride of the ParishQuizoneRawRoad to Croker Christmas Special 2008Road to Croker with Des CahillRonnie Drew TributeRTE Horseracing 2008Ryan ConfidentialRyan Confidential Joe Dolan TributeSarah and SteveScor 08Sex & SensibilityShowhouse Series 5Smokes & MirrorsSnap - PilotSpacemen ThreeSt. Patrick Festival & SkyfestSuper GardenSweded TVTraffic BluesTeens in the WildThe All Ireland Talent ShowThe ClinicThe Drowning ManThe EnforcersThe Full SetThe Great Escape 2The Last DropThe Many Lives of MikeThe Model AgentThe OZ FactorThe PanelThe Restaurant Series 6The RutlandThe Seoige ShowThe World According to Chuck FeeneyThe Yellow Bittern - The Life and Times ofLiam ClancyThis is MeTua Nua VIIITV Moments 08Welcome to my WorldWhat Makes Us LaughWhen the Party's OverWhere Was Your Family During The FamineWho do you think you are? Series 2Wild DecembersWritten Off Series 2Young Scientist Inserts 2009Young, Irish & WealthyTG 4Ag Bogadh go hInis MeáinAmhrán na bhFiannAn FathachAn Mhuc Dubh: Traen Bhaile na FinneAn RangerAn Táilliúir GormAon ScéalAr Bharr na dTonnAr OscailtBibeanna MheiriceáCártaí Poist 3Cladaigh ChonamaraCogar "Néilidh Mulligan"Coimhthíoch Gan CuireadhCupid ar CuairtDé Domhnaigh ag a 5Dorn Lán DúilFaoi Lán CheoilFeirm FactorFéith - Fly on the WallGaelic GamesGeantraíGradam Pobal na GaeltachtaIdir MnáKennedy's CadetsLeanann Trioblóid LeabharLoch DeargLucht na NaomhógMarconí i gConamaraMarú - Series 3Mí na MealaMná gan NáireMo Chuisle, Scéal Frank RyanMobs Mheiriceá 2Na Bailitheoirí CeoilNa Molly MaguiresNíor Chéasta go PóstaOllsoláthar 2008Ollsoláthar 2008. 11 Obair bhreisena Nollag 2008Paisean Faisean 5Patrick MacGill: Tachrán Gan TodhchaíPeadairín na StoirmePop 4Ros na RúnSa mBaile San IndScéalta ón RíochtSeacht - Series 2Seó Spóirt 2Siar san 90'sSilverminesSoiscéal PháraicTairngreacht AclaTate nó TatTeamhairUnderdogs 08TV OtherA Subtle Movement of AirAtlanticDambé - The Mali ProjectDavid Farrell - A Short Story of LookingFairycatcherGoing the DistanceIdentitiesShapesTailwind*The Bass Player/ A Song for DadThe GermanThe TrialUncle Bill's BarrelWaiting for the LightAnimation*Arty Farty*BallybraddanBunny Maloney*Garth and Bev Series 1*Granny O'Grimm's Sleeping Beauty*Guns Bees and TadpolesHero 108Niko and The Way To The StarsNoddy in ToylandOliviaPullin the Devil by the TailThose productions marked with *have also been supported by RTÉ- 51 -

AUDIOVISUAL FEDERATION REVIEWFive Minutes of Heaven- 52 -

AUDIOVISUAL FEDERATION REVIEWAn Paiste Beo Bocht- 53 -

AUDIOVISUAL FEDERATION REVIEWBallybraddanIBEC AUDIOVISUAL FEDERATIONAn affiliate association within IBEC | the Irish Business and Employers ConfederationConfederation House, 84/86 Lower Baggot Street, Dublin 2Tel: + 353 - 1 - 6051528, Fax: + 353 - 1 - 6381528Email: audiovisual.fed@ibec.ieWebsite: www.ibec.ie/avfCORKKnockrea HouseDouglas RoadCorkSOUTH EASTConfederation HouseWaterford Business ParkCork Road WaterfordMID WESTGardner House Bank PlaceCharlotte QuayLimerickWESTRoss HouseVictoria PlaceGalwayNORTH WEST3rd Floor Pier OneQuay StreetCo. DonegalEUROPEIBEC Europe89 Avenue de CortenbergBoite 2 1000 Bruxelles BelgiumTELEPHONE (0214) 295 511E-MAIL cork@ibec.ieTELEPHONE (051) 331 260E-MAIL southeast@ibec.ieTELEPHONE (061) 410 411E-MAIL midwest@ibec.ieTELEPHONE (091) 561 109E-MAIL WEst@ibec.ieTELEPHONE (074) 972 2474E-MAIL northwest@ibec.ieTELEPHONE (00-32-2) 512 333E-MAIL ibb@ibec.iewww.ibb.ie/ibb