THE HISTORY OF THE BRITISH FILM INDUSTRY

BY EMMA WAITE

http://www.publications.parliament.uk/pa/ld200910/ldselect/ldcomuni/37/3705.htm Source of information:

In the late nineteenth century cinema entertainment emerged.British films established a substantial share of the market at home and abroad, including 15% of the American market by 1910. The industry's share of its home market fell from half to less than 10 per cent by 1914.The rate, which was initially set at between 25% to 50% of the price of cinema tickets, was reduced in the 1920s and then raised during the Second World War.

By 1925, British film production had declined to a point where fewer than 40 feature films a year were being made, compared with over 150 in 1920.Cinematograph Films Act 1927, this act has a success, in the sense that production of films in the UK more than doubled by the end of the decade, and resulted in the establishment of several new production companies, including British International Pictures at new studios in Elstree, Warner's studios at Teddington and Fox's studios at Wembley.

The 1930• In 1928 the arrival of "talkies” had a

positive effect on British film production. Their films were protected in the home market and, unlike the French and German film industries, able to compete with American sound films without the need for dubbing. The result was that the industry experienced a boom.

• The number of feature film productions peaked in 1936 at just under 200 and fell by two thirds in the next four years

• The Cinematographic Films Act 1938 confirmed the retention of quotas, at 15% for distributors and 12.5% for exhibitors. This was intended to encourage bigger budget films, which could compete internationally.

World War 2 and the Post- War Boom

• The immediate post-war years saw a surge in British film production to more than 120 films in 1950.

• Between 1941 and 1947, The Rank Organisation financed half the films made in the UK, controlled over 600 cinemas and was the largest film distributor. Rank ensured American distribution for their productions and a supply of American films for their cinemas, by securing a 25 per cent stake in Universal film studios through the General Cinema Finance Corporation.

In the 1940s the Government became concerned about Hollywood dominating the film industry and the lack of finance for British film production. In 1950, the Government introduced the Eady Levy, which was a voluntary levy on a proportion of the price of cinema tickets; half retained by the exhibitors and half going to the makers of films made in the UK, in the expectation that it would be used to fund new British film productions.During the 1950s, despite the support in place, the British film industry came under increasing competition from new technologies. Increasingly, the public turned to home entertainment, as radio listening reached its peak and television developed.The turn of the decade saw the appearance of the Carry On films and Hammer Horror films, which provided low budget work for the British studios for the next 20 years. The James Bond films did the same, but at much higher budgets.

US Withdrawal in the 1970s and 1980s

• Between 1965 and 1971, annual inflows of American capital for filmmaking averaged £19m. Between 1972 and 1979 they averaged £6m.

• The 1980s began with a serious industry slump, fewer films being made in 1980 and 1981 than in any year since 1914. The incoming Government removed the special support for the industry: tax rules were tightened, the quota system was suspended in 1983 and the Eady Levy and the NFFC were abolished in the Film Act 1985. The Rank Organisation also withdrew from films, which further reduced the funding opportunities.

The 1990s: Return of Government SupportIn 1995, it decided to allocate lottery money to film production. At the same time, market conditions improved, with cinema audiences recovering from 98m admissions in 1992 to 164m in 2008[17], following the rise of multiplex cinemas

British film production climbed steadily through the late 1990s to a peak of nearly 180 films in 2002—second only to 1936. This included many accomplished and financially successful films. Working Title, having secured financing and distribution deals with PolyGram and then Universal Pictures, had major international successes, including Bridget Jones's Diary (2001), which earned box office receipts of $254m. While the James Bond franchise continued, a major new series of British-made but American funded films began with Harry Potter and the Philosopher's Stone (2001). In the financial year 2007/08, tax relief granted was worth about £105m, which was about 40 per cent of public funding for film in that year.