Page 88

BFI StatisticalYearBook_2014

Figure 8.2 Share of 19 territory international box office of independent domestic UK films by grouped territories and budget, production years 2003-2011 % share 100 90 80 70 60 50 40 30 20 10 0 <£0.5 million £0.5 - £2 million £2 - £5 million £5+ million UK and Republic of Ireland 53.4 44.4 53.7 24.2 USA and Canada 11.7 16.8 14.8 32.9 Other EU 20.1 24.8 18.4 23.5 Australia/New Zealand 13.5 8.7 8.8 9.7 Japan/South Korea – 1.0 2.2 5.1 Central and South America 1.2 4.3 2.1 4.6 Source: Rentrak, BFI See notes to Table 8.5. 8.7 Profitability It is difficult to measure the overall profitability of UK films. However, a proxy measure such as the ratio of international box office to budget can be a useful indicator. Previous RSU analysis suggested that if a low to medium budget British film generates worldwide box office revenues greater than twice its budget, it is likely to be in profit by the time returns from ancillary revenues (physical video, digital downloads, television, etc) are added to its income stream and all costs deducted (VAT, exhibition, distribution and retail margins, prints and advertising, etc). Below that level it is likely to have made a loss. The box office to budget ratio of 2 is used here for films of all budgets even though it has not been tested on very low budget films (under £500,000). It is possible that a different proxy measure of profitability is more appropriate for these films (a higher percentage of total revenue might come from video and digital sales than from box office, for example). In the present study, the international box office from the 19 Rentrak territories is used as a proxy measure for ‘worldwide’ box office. Table 8.6 shows the numbers of films which had gained a theatrical release within two years of principal photography and the number and percentage of these releases which achieved an international box office to budget ratio of 2 or more. Overall, just under 7% of released films achieved the international box office to budget ratio of 2 (8% for films with budgets of £500,000 or more). The percentage of films achieving this ratio increased with budget, with only 3% of films with budgets of less than £500,000, but nearly 15% of films made for £5 million or more, achieving the ratio. 88 – BFI Statistical Yearbook 2014


BFI StatisticalYearBook_2014
To see the actual publication please follow the link above