FOONG MEI
Economic Sector
(GVA) : Gross value added
In the Film and TV sector provided 12% on the GVA of Creative Industries in year 2013.
As from the report itself, the Film & TV sector employed over 25000 employees and had combined turn over of £2.2bn. The central location of the sectors is mainly in London but also growing in Bristol, Cardiff, Glasgow and Manchester.
UK is a springboard of growing Film & TV industry where it gives the facilities and opportunities to investor and entrepreneur.
According to the report, there are an increase of Indian companies using UK as a platform for growth, predominantly through local purchase and or investment stakes rather than new openings recently.
For example, Prime Focus purchased the VTR group five years ago and later on merged with Double Negative to keep growing. In the latest article, Prime Focus sold its UK broadcast post production business to new company Blue 2.0.
Facilities of starting VFX Industry in UK
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No 1 for Europe headquaters - UK has consistently attracted more HQ operations than any other part of the Europe.
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Easy to set up - 13 days to set up a company, 48 hours to register a company
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Innovation - innovation and entrepreneurship are prized in the UK
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Profession services - home to world class firms specialising in accountancy, audit, legal service, IT and so on.
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Investor confidence - top destination in Europe for inwards investment
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Financial Capital - London is ranked 1st in the Global Financial Centre Index 2013, Z/Yen Group
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Strong and flexible labour market - second largest of labour force in EU, at over 30 million
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Low tax burden - Generous tax allowance. The UK corporate tax rate is lowest in EU
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R&D tax allowance - actively promoting innovation through generous R&D tax allowance
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Patented inventions - UK based companies benefit from reduced 10% corporation text on patented invention
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Fundings opportunities - numerous funds available
Area of growth in VFX Industry?
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Advertising - Nescafe Gold Blend, by MPC
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Music - Taylor Swift, Bad Blood, VFX by Inguinity Studios
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Merchandising - Warner Bros Studio, Harry Potter
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VFX for Broadcast TV
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CGI for workplace interiors
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Architect and property marketing
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Historic City reconstruction - e.g: National Geographic documentary
Bibliography
http://www.thecreativeindustries.co.uk/industries/tv-film
http://www.thecreativeindustries.co.uk/industries/tv-film/post-production-report
https://vfxsoldier.wordpress.com/about/
http://www.fxguide.com/featured/a-way-forward-for-the-vfx-industry/
VFX Breakdown for National Geographic Ident
Business in VFX Industry?
For the VFX Industry to survive, time management, budgeting cost has to be closely supervise.
The VFX cost is usually fix bidng which mean you get paid for the number of shot in certain amount of money.
For example 600shot = $100,000
Why is the VFX cost is so high and took almost 1/5 of the film production?
VFX cost has to cover bills, buildings, electricity, render farm, softwares, technology and the artist wages.
Due to VFX is still considered as facilities based business, there are a quite big range of VFX cost in the competitive environment.
The client usually don't pass a project to a single VFX company as to protect themselves. Hence the competitive price charges begin to bid the client's job.
Although the cost of VFX production is very high but the profit margin in the industry is as low as 3-5% profit.
It is really a though competition in VFX Industry, to break through the problems the growth in VFX Industry has help to bring changes and add profit into the industry to keep going.