Post Production and Visual FX The UK. Supporting Your Growth CREATIVITY IS
2 Post Production and Visual FX Overview ■ Companies in the UK facilities * ■ The UK facilities sector is a key sector provide the global audiovisual enabler for the creation and industries with a broad range of distribution of audiovisual content creative and technical talent, and, as such, is a small but crucial support services, rental equipment part in the UK’s creative economy. and amenities. ■ As a technology-driven sector the ■ The facilities sector covers a facilities industry is also an important diverse set of businesses, from post innovation driver, it contains some of production and visual effects to the most advanced technology and outside broadcast and equipment skills in the UK media landscape. The hire. In 2008, the sector consisted of Foundry, for instance, has developed over 1,300 independent companies Nuke, the industry standard for employing over 25,000 people and compositing (seamlessly layering with a combined turnover of £2.2bn. pictures & effects). ■ The sector is world-class. It is highly creative, vibrant and multi award winning, and as such enjoys a strong international reputation. Sector exports are increasing, year on year, and direct relationships with the US fjlm industry are particularly strong. In 2011, three of the fjve fjlms nominated for the Oscar for Achievement in Visual Effects were entirely or signifjcantly created by Soho-based facilities companies. * Post production and visual effects (VFX) businesses are sometimes described as ‘facilities’. This term encompasses all of the service industries, both technical and physical, supporting the production of content for screen (fjlm, TV, advertising), generally in the capture and processing of moving images.
3 Post Production and Visual FX The UK Facilities Sector Much of the UK’s reputation in fjlm, TV The opportunities of digital distribution and commercials in particular is built began a wave of inward investment on technical strengths and successful by US corporates, looking to create creative innovation – this is derived in effjciencies through scale in a low margin no small part from activities in post business and offer global services to an “ Batman Begins, The Dark Knight, production and visual effects. increasingly internationalised client base. Bourne Ultimatum, Prince More recently investment has tended Caspian, The Voyage of the to come from India, albeit following Post production is the less glamorous Dawn Treader, Avatar, Clash of the same model of purchase / equity and less visible end of the media the Titans, Prince of Persia, The position rather than expansion. industries but is a vital element, which Sorcerer’s Apprentice, The Da adds massive value during the process. Vinci Code and many more. It The skills in putting together the look, A requirement to generate competitive is hard to think of a Hollywood feel, sound, pace and picture quality, advantage or diversify revenue streams blockbuster over the last fjve whilst sometimes ‘invisible’, are the has increasingly seen post production years which has not benefjted difference between amateur and facilities move earlier into the creative from the creative expertise of award-winning. ‘supply chain’, sometimes setting up talent working in Soho’s visual their own production arms or investing effects hub. Double Negative, The post production industry has services as equity into major projects Framestore, MPC and Cinesite – (e.g. Molinare’s investment in The King’s undergone a major shift over the past four of the largest visual effects 20 years. Developments in digital Speech), but more regularly providing companies in the world – have all creative agency services at pre- technology have forced an ever greater been involved in these fjlms.” speed of change in what has always been production stage. a capital intensive and highly competitive VFX Hope/Livingstone Review industry. The ability to manage these transitions and retain market position has driven a professionalisation (from owner managers to more corporate structures) and, at the upper end, rationalisation through consolidation.
4 Post Production and Visual FX The UK Proposition 1 3 World class, multi award-winning industry An inward attractor of work and investment with a globally recognised talent base. - internationally active industry in a leading Competitive and international market- global marketplace. leading companies. Reputation of sector quality attracts high- International profjle built on high quality budget international clients into UK to talent base, being refreshed by self-training build on existing scale local marketplace and specialist academic excellence – – therefore potential reach and attainable therefore FDI able to recruit fjrst target market extends beyond UK to US class workforce. in particular. 2 4 Facilities are a key enabler of the UK Highly innovative and technology driven, strengths in TV, fjlm, advertising, constantly developing and employing new animation, corporate etc – the power behind techniques (e.g. time-slice cameras, CGI the pictures. effects, stereoscopic 3D). Critical industry supply sector at the heart Constant technology advance mitigates of a globally signifjcant media marketplace against an enduring status quo and drives – therefore tangible pipeline of quality new opportunity – therefore chance to clients and projects. create competitive difference advantage for FDI based on technology spec or new service delivery.
5 Post Production and Visual FX Market Highlights In 2008, the sector consisted of over 1,300 independent companies providing services to the fjlm, television, commercials and other production sectors. These 1,300 25,000 £2.2bn companies employed over 25,000 people and had a combined turnover of £2.2bn. The sector is geographically There are a large number of companies within the UK concentrated in London facilities sector but only a very few have achieved scale with creative clusters in in their operations. The sector is dominated by small and Bristol, Cardiff, Glasgow and medium-sized enterprises, with 99% of fjrms employing Manchester. fewer than 250 people, and 78% employing fewer than ten. 78% <250 <10 99% 52% 18% 18% Work in the sector is split across three main markets. In 2008 television was the largest market accounting for £1.14bn £403m £401m £1.14bn of sector turnover (or 52%); with fjlm and commercials contributing £403m and £401m respectively (or 18% each). Television Film Commercials
6 Post Production and Visual FX Market Highlights The combined revenue from exports £293m Exports was approximately £293m in 2008. Over the entire period surveyed (2006-2008), the main service growth areas, within companies, have been: visual effects & graphics; audio post-production; transmission; network & support services; equipment hire and access services. In 2011 three of the fjve fjlms nominated for the Oscar for Achievement in Visual Effects were entirely, or signifjcantly, created by Soho VFX companies. The UK also 3/5 boasts some of the world-leading companies producing technology and tools for the visual effects industry. The Foundry, for instance, has developed Nuke, the industry standard for compositing. 16.8% 2006 2008
7 Post Production and Visual FX A Springboard for Growth In recent years, we have seen an increase in Indian companies using the UK as a platform for growth, predominantly through local purchase or investment stake rather than new openings. Recent examples of companies coming to the UK include: ■ Digital Domain (a major US studio) and Reliance Media (India) - planning to open a UK offshoot in Soho ■ Prime Focus (India) - purchase of the VTR group fjve years ago
8 Post Production and Visual FX Strengths and Opportunities UK Strengths UK Opportunities ■ UK fjlm & TV market ■ Generate new renowned for creativity - opportunities for post production skills are innovative service delivery at the core of this through technology leaps (i.e. HD, Stereoscopic 3D, ■ Award-winning and digital image capture and distribution) internationally recognised strengths ■ Leverage the UK as a ■ Highly innovative and production centre of excellence and EMEA base technologically complex business - the UK is a for many corporates to access international clients centre of excellence (i.e. fjlm studios, wad agencies) – service ■ Educational excellence industry reinforcing a feeds talented graduates global position of the into industry creative sector ■ Whilst dominated by ■ Increased opportunities micros, the UK industry has as partners or investors, signifjcant scale businesses as UK facilities move with international earlier into the creative reputation and reach supply chain
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