An Economic Review of UK Independent Film — BFI

In light of the significant challenges facing independent film in the UK, the British Film Institute commissioned Alma Economics to conduct an economic review of the value chain for UK independent film.

To build on the existing evidence base, we collected and analysed data from multiple sources to illustrate historical and projected trends in key economic performance measures for independent film, including revenue, costs, and level of investment. The review also analysed the evolution of business models for independent film, including the shift from more traditional routes to market to more varied and flexible approaches (including exclusive streamer deals).

To supplement the analytical findings, we engaged extensively with senior stakeholders from across the value chain for independent film to address evidence gaps and validate our findings. The review concludes with a set of ambitious recommendations, including both new measures and adapting existing approaches.

➥ The full report can be found here.

➥ BFI press release can be found here.

➥ For more details and press coverage, visit our blog post.

BBC online local news analysis — Department for Culture, Media & Sport

In its six-year blueprint published in 2021, the BBC laid out ambitious objectives to transform the future portfolio of BBC local services, aiming to cover the stories that matter most to local audiences. However, this strategy has come under criticism from news media industry stakeholders, who have expressed concern about local news providers being unable to compete with the BBC. By collecting and analysing the text of over 140,000 local news articles, we sought to better understand differences in local news coverage provided by the BBC and the commercial sector.

Our analysis provided evidence supporting the view that content duplication between the BBC and commercial providers in online local news exists in a way that is consistent with multiple providers covering some of the same news events. The BBC rarely covers local news events not also reported on by commercial providers, but commercial providers report on a much larger number of local events than the BBC across a broad range of topics.

Our research contributes to the broader discussion around the role of the BBC in commercial markets and the long-term sustainability of local news outlets in an increasingly digital, post-COVID-19 world.

➥ Find our full report, part of the BBC Mid-Term Review 2024 here.

An Alternative Heritage Sector Statistics Methodology — Department for Culture, Media & Sport

Beyond historic monuments, sites and buildings, the heritage sector includes a wide range of assets and landscapes that are connected to history and valued by communities. Currently, no formal definition exists for the sector, and heritage’s fragmented market structure spanning multiple industries makes it challenging to quantify its impact on the UK economy.

To address this gap, Alma Economics was commissioned by the Department for Culture, Media and Sport (DCMS) to assess available methodologies and offer insights into the best way to develop reliable estimates of the economic contribution of the heritage sector. These methodologies included dynamic mapping, SIC-SOC mapping, international satellite account approaches, and approaches that work with ‘big data’. Each methodology was assessed against six criteria: coverage, disaggregation, robustness, feasibility, replicability, and comparability.

Our final report included a set of recommendations on combining the SIC-SOC mapping approach with additional research. This would expand the list of heritage industries/occupations and incorporate additional data on heritage activities and outputs to develop more precise estimates for the sector.

These recommendations will help DCMS develop a set of experimental statistics aligning with the UK national accounts methodology to estimate the scope and scale of the heritage sector.

The report and recommendations can be found here.

Review of the Culture Sector Evidence Base in Wales — Welsh Government

Alma Economics conducted a comprehensive review of the evidence base with regard to the Welsh culture sector on behalf of the Welsh Government. The aim of this work was to assist the government in the development of its Culture Strategy by providing a comprehensive, up-to-date view of research and evidence across key areas of interest: museums, the arts, libraries, archives, and heritage.

During the first phase of the research project, our team carried out a series of interviews with Welsh Government officials and sector stakeholders to understand the availability of data and identify the key topics of interest. These interviews also helped identify policy priorities which informed our analysis in the next phase of the project. We further implemented a systematic search strategy to identify additional evidence sources concerning the five culture sub-sectors in Wales.

During Phase 2, we undertook a meticulous review and mapping of data and evidence against the key topics of interest and policy priorities. The findings from this data mapping exercise were translated into an interactive Evidence Map.

To conclude our study, we produced a comprehensive “state of the nation” report on the Welsh culture sector. This analyses key statistics and trends in relation to the main topics of interest and policy priorities, and identifies relevant gaps and limitations of existing evidence.

➥ Click here for the full report.

Heritage 2022 Evaluation — BFI

Alma Economics was commissioned by the British Film Institute (BFI) to evaluate the design, implementation, outcomes and impact of the Heritage 2022 programme. Heritage 2022 is the BFI’s major preservation-led programme to safeguard high-risk significant collections held by the BFI National Archive and the Regions and Nations Film Archives across the UK. It seeks to ensure that collections are safe for future generations to enjoy and gain knowledge from and to improve public access through digital preservation and infrastructure.

The evaluation of each strand and the programme as a whole used a mixed methods approach, including:

• Scoping: We mapped existing monitoring data from the BFI, conducted interviews with Heritage 2022 staff, and developed logic models for each strand to guide the evaluation.

• Process evaluation: Key processes were assessed, focusing on coordination and workflow, scope and goal setting, and programme governance.

• Impact evaluation: At this stage we assessed the outcomes and impacts of each strand, and whether the programme achieved its objectives. We also looked at its contribution to preservation and access to the UK’s screen heritage, the generation of cultural value, and conducted an economic value assessment of the BFI Replay archive streaming platform for UK libraries.

The findings from each strand’s evaluation aim to support the development of a set of conclusions and actionable recommendations for future programmes run by the BFI, using National Lottery funding, or seeking to preserve the UK’s rich film and video culture.

➥ Find the report here.

Measuring the spillover benefits of UK independent films — Pact

Alma Economics was commissioned by Pact, the trade body for UK independent film, to analyse the extent to which market failures affecting UK independent films are larger than those affecting other UK-based screen activity. The analysis focused on market failures that fall under the category of positive externalities. Also known as positive spillover effects, these occur when an activity produces benefits for economic agents not directly involved. They can lead to underinvestment as benefits accrue to those who do not pay for them.

One important such spillover effect takes the form of talent incubation: low-budget films have historically been known as a catalyst for launching emerging on- and off-screen filmmaking talent. Our research supports this assertion, indicating that low-budget films are substantially more effective at launching emerging artists than large-budget films. We also found considerable evidence that film can generate wellbeing effects beyond direct entertainment value, for example, in the form of capturing lived experiences of people in the UK.

To illustrate the identified impacts, we developed several case studies of specific films and filmmakers, such as The Imitation Game (2014) and Bend It Like Beckham (2002).

➥ Read the full report here.

The heritage sector’s contribution to the UK economy

The heritage sector is critically important to the UK economy. The country’s natural, historic, and cultural assets draw millions of tourists each year, while thousands are employed to study, protect, and share these assets.

In addition to generating significant economic activity that spills over to the rest of the UK economy, the heritage sector also provides important benefits to individuals and local communities through recreational opportunities, health benefits, and neighbourhood revitalisation.

To better understand the benefits provided by the heritage sector, Alma Economics was commissioned to capture its full impact. We examined the effects of direct spending by heritage industries as well as the impacts through industries that supply heritage businesses, and wages earned by heritage employees.

As part of our economic analysis, we used several key performance indicators including gross value added, employment, purchase of goods and services, number of tourists, and related expenditure.

The evidence base provided by our team helped quantify the intangible benefits provided by the UK’s rich heritage to help inform policies concerning support of the sector.

Evaluating the UK Global Screen Fund

The British Film Institute (BFI) asked us to conduct an evaluation scoping study for the newly launched UK Global Screen Fund (UKGSF) – a series of funds which seek to increase international revenue, audiences and partnerships for independent film and other creative sectors in the UK.

Our team developed a bespoke set of indicators and methodologies for measuring the performance of funds in relation to process, impact, and value-for-money - with impact found to go well beyond economic value to include significant cultural value and generation of international economic and cultural influence (“soft power”) for the UK.

We proposed appropriate methodologies for measuring the fund’s impact, with thorough consideration of how data analysis, cost-benefit analysis, and stakeholder engagement techniques could be applied to the unique circumstances of UKGSF. Critically, we suggested a variety of methods for measuring the counterfactual (“business as usual”) scenario, in order to determine the impact of UKGSF whilst controlling for other confounding factors which might otherwise influence measures of performance.

For this study we delivered a report to the BFI outlining the monitoring and evaluation frameworks developed, as well as providing a monitoring tool to support the seamless collection and analysis of key monitoring data for the funds.

Total Economic Value of a unified digital collection

Alma Economics was commissioned by Towards a National Collection (TaNC) to estimate the Total Economic Value (TEV) of a future unified digital collection of cultural heritage assets in the UK. This project aimed to provide robust evidence to support the business case for funding a UK digital collections infrastructure. We employed contingent valuation surveys to determine respondents' willingness to pay for a hypothetical unified digital collection. The surveys targeted three distinct groups to assess varying valuations:

• General Population: Individuals with varying levels of interest in cultural heritage.

• Academics and Researchers: Professionals who might utilise the collection for research, including those in cultural heritage and related fields.

• Special Interest Individuals: People with a keen interest in cultural heritage, identified through cultural heritage organisations.

These valuations provide critical evidence to support the business case for a UK digital collections infrastructure. The project highlights the value placed on cultural heritage by different societal groups and underscores the importance of preserving and providing access to these assets.

➥ Read the report here.

Evaluation of the BFI National Lottery Film Fund

We were commissioned by the British Film Institute (BFI) to conduct an independent evaluation of the BFI National Lottery Film Fund (“the Film Fund”) covering the period 2012-2022.

Our findings informed the new five-year strategic plan of the BFI, and our report will be used as a reference for future evaluations.

The evaluation assessed the extent to which the Film Fund achieved its objectives, and how it has contributed to the independent film sector. Its role in the value chain and in the wider UK screen sector ecosystem was also examined. To this end, we designed an evaluation to assess the effectiveness of key processes and measured the costs and benefits generated by the Film Fund in key areas of impact – including industry and cultural and economic outcomes.

We used a mixed-methods approach, allowing us to generate qualitative and quantitative insights. The key stages in our approach included: (i) collecting and analysing Film Fund monitoring data, (ii) desk-based research, (iii) interviews with Film Fund personnel and key stakeholders, (iv) development of a logic model for the Film Fund, (v) an online survey of past applicants, and (vi) economic impact modelling.

➥ Find out more about our research here.

The cultural value of film, television and video games

The British Film Institute (BFI) tasked Alma Economics with conducting a literature review on the cultural value and impact of the UK’s film, television and video game sectors.

Our review, which assessed over 500 studies, brings together the findings of relevant UK and international research. We critically analysed the research design and methodology of papers seeking to quantify the cultural value and impact of the sector.  We explored how these concepts are defined and measured in the literature, clearly setting out areas where there are ongoing debates among researchers as well as gaps in the literature.

Our team further identified key areas in which the screen sector appears to have a substantial impact. For instance, cultural production in the film, television and video game sectors can contribute substantially to place-branding and thus tourism, the development of diverse identities, and the projection of soft power. At the individual level, engagement with such content can yield benefits such as promoting problem-solving, learning, and visual skills among children as well as older audiences.

Our literature review yielded key recommendations about the direction and scope of further primary research to be undertaken by the BFI.