Motion Picture Production in the UK Industry Market Research Report Now Updated by IBISWorld

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The UK Motion Picture Production industry is the fourth-largest in the world, behind the United States, Japan and France. The industry is dominated by a few large-scale global players and many small producers generating about 60% of annual production expenditure through inward investment between local and international studios. Most international funds are sourced from US companies. Therefore, exchange rates are important to industry growth, as is the availability of government tax incentives, quality film studios and skilled film production staff. Despite continued adverse economic conditions in 2012-13, industry revenue is forecast to grow by 2.6% to £2.15 billion. The success of several major UK films during the year is expected to contribute to greater industry demand and activity. Over the five years through 2012-13, revenue is expected to grow by 13.6% per annum. This strong growth will be due to the robust nature of the UK film industries, strong demand for film production services, high demand from foreign companies to produce films in the United Kingdom, and government film tax incentives. Industry revenue growth is expected to remain high over the five years through 2017-18. This growth will be driven by strong demand for UK films and increased funds available for feature film production. This will flow into increased co-production activity between US and UK film producers. The developing 3-D movie segment will drive growth for film producers, supported by greater availability of 3-D screens in cinemas. For these reasons, industry research firm IBISWorld has updated its report on the Motion Picture Production industry.

IBISWorld Market Research

IBISWorld Market Research

Favourable tax incentives keep film producers rolling

The UK Motion Picture Production industry is the fourth-largest in the world, behind the United States, Japan and France. According to IBISWorld industry analyst Alen Allday, “the industry is dominated by a few large-scale global players and many small producers generating about 60% of annual production expenditure through inward investment between local and international studios”. Most international funds are sourced from US companies. Therefore, exchange rates are important to industry growth, as is the availability of government tax incentives, quality film studios and skilled film production staff. Film and video theft, piracy and copyright infringement are ongoing threats to the industry.

Despite continued adverse economic conditions in 2012-13, industry revenue is forecast to grow by 2.6% to £2.15 billion. The success of several major UK films during the year is expected to contribute to greater industry demand and activity. Over the five years through 2012-13, revenue is expected to grow by 13.6% per annum. This strong growth will be due to the robust nature of the UK film industries, strong demand for film production services, high demand from foreign companies to produce films in the United Kingdom, and government film tax incentives.

Industry revenue growth is expected to remain high over the five years through 2017-18. Allday adds, “this growth will be driven by strong demand for UK films and increased funds available for feature film production”. This will flow into increased co-production activity between US and UK film producers. The developing 3-D movie segment will drive growth for film producers, supported by greater availability of 3-D screens in cinemas.

The Motion Picture Production industry is characterised by having a small number of large, globally linked operators and a large number of one-off and intermittent producers. Many of these companies are made up of self-employed producers that make very few films. The four largest film producers will generate 32.4% of industry revenue in 2012-13, giving the industry a low level of market share concentration. Major companies include Time Warner, The Walt Disney Company, News Corporation and NBC Universal.

For more information on the Motion Picture Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Companies operating in this industry are involved in the production of feature motion pictures for screening in theatres and cinemas. Activities may be carried out solely by a UK studio or producer or in conjunction with international studios as part of a co-production film agreement. This industry excludes film post-production activities, such as editing, music, sound, subtitling, titling and special effects.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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