Conservative MP Caroline Dinenage at the launch of a recent inquiry into the UK film and high-end television industry. This inquiry has seen incredible reactions from industry leaders such as Netflix, the British Film Institute (BFI) and ScreenSkills. The Senate’s inquiry is the first comprehensive report on the sector in more than 20 years. Those goals include addressing crucial challenges such as workforce sustainability and skills training and the role of artificial intelligence on creative industries.
The inquiry attracted written submissions from 130 firms and representative organizations. They communicated an imperative fear of the industry’s future and a critical need for clear, supported investment in skills and training. We are proposing here that production companies are required to annually report their skills spend. This needs to be a statutory requirement, determined as a percentage of their annual budgets. This proposal is meant to ensure that the film and high-end television sectors remain competitive. Simultaneously, it supports a much more diverse workforce.
Recommendations for Change
BFI CEO Ben Roberts pictured below, was unequivocally in favor of the inquiry’s recommendations. In particular, he focuses on the need for a more sustainable and inclusive workforce in the industry. For example, he said the BFI has established specific, quantifiable goals for every single year. These targets should be used to monitor their progress and impact as they seek to improve the effectiveness of skills development.
“This is the first report in over 20 years focusing on our sector and is timely in looking at how we can best support and drive continued cultural and economic prosperity for the UK’s world-class film and high-end television sector,” – Ben Roberts, BFI CEO
Disappointingly, the inquiry’s recommendations went further to include a government-mandated 5% tax on streaming services to fund local production. It’s a complement that would strengthen the local talent and resource base to better compete in the global race. Additionally, the report emphasized the importance of licensing creative works used in training artificial intelligence models, a move echoing calls from various industry stakeholders.
“The government should heed the culture, media and sport committee’s call today for the licensing of creative works in all cases where they are used to train artificial intelligence models.” – Equity
Addressing Industry Concerns
Concerns regarding the commitment of streaming services and studios to invest in skills training were central to the inquiry’s findings. Many industry voices questioned whether these entities were genuinely contributing to workforce development or whether they were underreporting their investments.
Wootton, the CEO of the British Film Commission, no-nonsense tackled each concern right here. He further emphasized the critical role that streaming platforms have played in financially supporting skills training in every corner of the UK. This viewpoint underscores a larger potential gap between what the industry believes and what the marshalling yards’ biggest operators, like BNSF, are doing in practice.
“We question the report’s tone regarding streamers’ and studios’ investment into skills training throughout the UK. Far from ‘hiding’ or shirking the need to invest in UK skills, they have been proactive and willing partners in skills training.” – Wootton, BFC CEO
Since ScreenSkills recently launched a five-year plan to build a more sustainable workforce, ScreenSkills has already begun to prepare and would remain on course. They did this by surveying more than 1,600 executives and independent workers. This strategy is accompanied by specific, measurable targets aimed at holding states accountable and tracking progress.
“Since giving evidence last year, ScreenSkills has published a five-year strategy… It set out a clear plan for a more sustainable and inclusive workforce, and ScreenSkills has since developed measurable year-on-year targets to track progress and impact.” – ScreenSkills
The Impact of Artificial Intelligence
Second, and perhaps the most contentious concern raised during the inquiry, is the effect of AI on the creative industries. Patrick Holland, executive chairman of Banijay UK, expressed his dismay over the illicit use of AI. He highlighted how these practices infringe on creators’ works, without compensating them fairly.
“AI is being built illegally by stealing Equity members’ life’s works. These big tech firms must be brought to the table and made to pay creators what they owe.” – Equity
The inquiry’s report underscored the need for regulatory measures to protect creators’ rights in an evolving technological landscape. Building robust legal frameworks are imperative as generative AI technology rapidly permeates pipelines of production and distribution. Without them, the stakes and challenges will continue to increase.
They also back a 25% tax relief on exhibition and marketing expenses for films eligible under the Independent Film Tax Credit (IFTC). This sensible recommendation would help direct investment toward independent films and promote growth throughout the industry.
“The committee’s report makes clear what we’ve been saying: our world-class content industries face a systemic crisis. For animation, the warning lights have been flashing for some time. We fully endorse the committee’s calls for stronger support but urge them to build on their recommendations by ensuring the distinctive needs of the UK animation sector are embedded into future evidence, analysis and policy.” – Kate O’Connor, Animation UK executive chair