Tuesday, August 25, 2009

Film company insolvencies rise

A report by Pricewaterhouse Coopers has revealed that 59 film companies in the UK have become insolvent since January 2008.
Despite the fact that UK filmed entertainment raked $6.6bn in 2009 remains the largest market in EMEA (Europe, Middle East and Africa), film finance has become increasingly scarce particularly for independents.

Nick George, media partner, PricewaterhouseCoopers LLP, said:

"The recession has sent hoards of consumers to the cinema and therefore large scale, expensive films, such as Harry Potter, remain in production and eagerly awaited. However, due to the credit crunch, sources of financing for smaller indie films have dried up - meaning many plots remain on the story board."
However, with digital technology bringing the costs of film-making down all the time, Nick George says that things should improve.
"The credit crunch has clearly made fundraising tougher for independent film makers but things tend to move in cycles, and the distribution of films like Colin and success of non-mainstream films like Juno and Slumdog Millionaire demonstrate a strong appetite for original, creative work, so in time we ought to see investors returning to the market."
Story via Arifa Akbar in The Independent.

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