Is the declined access to funds in the British entertainment industry a result of Brexit?
Exiting from the European Union (EU) has left Britain facing myriads of issues encompassing strained funding especially in the media production industry (Follows 1). Historically, studios within the entertainment industry relied on the UK for funding, but due to a challenging economy, the EU came in to sponsor the production through different initiatives. However, with Britain exiting the EU, entertainment industries are assured of neither accessing the European regional development funds nor the European Union Funded Media Programs. Also, the UK entertainment industry no longer benefits from film subsidies as mandated in the Creative European Program requirement.
In essence, the money put aside for the sole purpose of encouraging the active spread of some European films and other entertainment industries is not guaranteed anymore for studios in the UK (Follows 1). Due to inadequate funding, smaller production companies are near closure as lack of subsidies and capital reimbursement is leading to their bankruptcy. Also, current productions are slowly dying away as the British pound is devaluating thus leading to production financing shortcomings. Moreover, with an increased tax credit for 25% production companies in the UK are facing more money issues a big drawback for the entertainment industry in Britain. Nonetheless, the UK intends to introduce its subsidy programs, but with a weak pound, this help is not considered fully adequate to resolve all the funding issues encompassing the entertainment industry.
What are the short-term and long-term effects of Brexit in the British entertainment industry?
Within the short period that Britain has exited the EU it has become harder for co-production between British European entertainment industries. Under the EU it was easier for official co-production of international films (Follows 1). However, with Britain no longer under the European umbrella, it is clear that working with other nations is hard as there is no guarantee that the produced films will gain state protection or tax benefits from countries of origin and other countries within the EU. The UK entertainment industry is facing some long-term effects that will eventually lead to the death of the media production industry.
Mainly, Britain is experiencing setbacks in rights and content distribution in the EU. For instance, this disintegration has declined revenue output in the UK’s bilateral industry of content production with other countries in Europe. The reason being, a ceased free flow and distribution of entertainment materials as the produced products in British no longer have the registered mark of legible EU content which guarantees them the quota system leading to increased sales and higher profit margins. On the other hand, the need to exit requires the UK to sign out of individual biding trade agreements that it is no longer part of the larger EU a process that can lead to dire long-term consequences on Britain’s entertainment industry (Follows 1). By signing out of these treaties, the UK is experiencing a strained flow in producing content as myriads of barriers and substantial tariff impositions are acquitted on non-members of the EU.
What complexities are facing content production fraternity?
By exiting the European Union, Britain has provoked restrained movement issues from one country to another to shoot a film is now becoming more sophisticated. In the past, Britain was guaranteed of free movement of goods, people, and services as this is one key feature ascertained to all EU members (Follows 1). However, now European executives, crew, and cast are faced with the problem of acquiring work permits and visas to work in other EU nations an issue that is facing British staff too. On the other hand, moving goods from Britain to another country and vice versa has become a lengthy process as special custom permits are required to transport movie cameras, vehicles, costumes, and other things.
As a result, of stringent movement regulations, fewer distributions of films outside Britain are now becoming a frustrating reality while other European countries are continually restraining from distributing their contents in the UK (Follows 1). In the past years, funding from the EU contributed to the massive exportation of UK films to other nations purposefully for enhanced content development in this region and exposing Britain’s entertainment platform to the larger European audiences. Consequently, due to a weakened pound, international films are slowly retrogressing as UK content distributors find it difficult to acquire materials that are too expensive while they sell it at slight profit margins due to a poor exchange rate. Nonetheless, the greatest challenge for content producers remains to be declined subsidy provision.
What are the advantages of Brexit?
The most significant merit associated with the British exit is the cheap production of films in the UK due to a devalued Britain pound. Also, Britain is now free to change its taxation regulations on the Film Tax Regulation scheme which is generous and advantageous for content producers in the UK.
How is uncertainty affecting the entertainment industry due to Brexit?
Mostly, the issue of uncertainty has continued to affect the Britain content production market. For that reason, the stable growth that was previously experienced by this industry is no longer guaranteed as a large part of film incentives have been scraped away a process that has slowly scared off investors (Follows 1).
Has Brexit led to unattractive British content among the European broadcasters?
Disintegrating from the EU has led Britain into facing a scraped quota system. Therefore, the compulsory airing of UK content is no longer essential with British films being acquitted lesser transmission periods (Follows 1). As a result, broadcasting stations are now occupying UK airing hours to other attractive programs from other EU countries.
What extent are UK independent entertainment organizations going to suffer?
In essence, adverse impacts of underfunding will eventually lead to the bankruptcy of independently existing content production organizations in Britain (Follows 1). With the end of the Europa cinema scheme, small companies are now ailing and almost succumbing to the pressure of delivering and growing in uncertain entertainment market environments.
Is the UK entertainment industry affected in the policy making platform?
Since its departure, Britain’s opinion is no longer considered on the right to influence policy formation of any legality associated with film and television production procedures (Follows 1). The policymaking process that will affect the UK the most is the Single Digital Market, which intends to neutralize all content distributors.
How has Brexit changed company strategic planning?
In the past companies operated on easily outlined strategic procedures, but now UK organizations are using sophisticated frameworks to navigate an already unstable British economy (Follows 1). Currently, companies are now applying professional expertise in a bid to navigate the risk assessment, plan for exposure, assess all valuable options, and implement progressive initiatives.
Follows, S. How Will Brexit Affect the UK Film Industry? Stephen Follows Film Data and
Education. 2016, latest Ed., Pp1.