ITV, BSkyB told to back U.K. films

LONDON -- Blighty's broadcasters -- specifically satcaster BSkyB and commercial broadcaster ITV -- were called to invest more coin in Brit pics while indie producers should be able to recoup more money if their pic clicks, said the U.K.'s long -awaited Film Policy Review. Former culture secretary Chris Smith, who chaired the independent review, joined current culture minister Ed Vaizey at the Department for Media, Culture and Sport in London on Monday when he unveiled the 108-page report, which contained 56 recommendations on national film policy for the U.K. government to review. Smith, who noted that the long-gestating report comes off of the back of "an exceptionally good year" for independent British film, singled out some of the most significant recommendations in the review, including pointing the finger at ITV and BSkyB, which, he said, "should be doing more both in terms of investing in independent British film production and in their acquisition policies for movies that they buy to show on their channels." In light of the fact that lottery funding for film will increase from the present 27 million ($41.4 million) to $61.3 million by 2014, the review also called for better terms for independent producers in Blighty. Specifically, it recommended that producers must be able to recoup more money to reinvest in future productions and recommended that the U.K. tax credit should be recognized as the producer's equity stake, and should recoup on equal terms with any BFI investment. "We believe there should be a mechanism in the funding system, especially with more lottery money becoming available in the lottery system, for producers to be able to reinvest money from successful movies into further production rather than simply returning it to the lottery pot," said Smith. "Success should be rewarded and re-investment should be encouraged." Additionally, as previously reported in Variety (Daily Variety, Jan. 11, 2012), the review proposed a new joint-venture fund to align producers more closely with U.K. distributors. The proposed fund would allow producers to access lottery funding to share the cost with distribs of pre-buying U.K. rights to their own projects. Not only would this mitigate the risk of the distributor, but it would encourage the producer to have a more direct interest in a film's success at the box office, given he or she would also be a co-owner of U.K. rights. A raft of other recommendations filled the report, including calling for unified film education across the country, an annual British Film Week to put Brit pics "more actively in front of British audiences," making it a criminal offence to record a movie in a cinema, and encouraging more shared rewards between producers, writers and directors, so the creative team can share in the success of a pic. However, given that it's been 14 years since a review of film policy has been offered up to the government, there were some blazing omissions. The report failed to address the notorious low-film rentals that independent distributors receive (around 28%), and suggested nothing about encouraging European co-productions, or putting the U.K. back into the Eurimages co-production fund. Smith remarked that the BFI will be told that the U.K. "should" look toward European co-productions, but given that it charges an upfront fee, re-entering Eurimages "was not the highest or most immediate priority." And while exhibs perhaps weren't being asked to step up on the rental front, they were however being called on to help find a more economical solution to the Virtual Print Fee model "that puts the independent distributor in an economic position which is as good as or better than the 35mm model." They were also encouraged to discuss with indie distribs "changes to current practices and agreements regarding theatrical windows and other exhibition terms." Members of the Film Policy Review panel who helped compose the report included "Gosford Park" and "Downton Abbey" scribe Julian Fellowes, Film4 topper Tessa Ross, Matthew Justice, producer and m.d. of Big Talk, and Will Clarke, founder and former CEO of Optimum Releasing. The U.K. government and the BFI are expected to respond in full to the recommendations in a few months. Contact Diana Lodderhose at diana.lodderhose@variety.com