大象传媒

Press Releases 大象传媒 Films announces agreement with Pact on changes to deal terms for UK producers

Category: 大象传媒 Films
Date: 13.05.2008
Printable version

The 大象传媒 announced some key changes to the deal terms offered to UK film producers, a move that has been warmly welcomed by Pact.

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The changes are intended to support one of the stated intentions behind the Government's implementation of the UK Tax Credit system - namely to increase UK producers' stakeholding in the films they make and ensure that film revenues in part flow back into supporting a sustainable film industry in the UK.

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When the UK Tax Credit was introduced in 2007, the 大象传媒, the UK Film Council and Film Four signed a joint statement to the effect that, wherever possible, any tax credit that was claimed on a film and used to fund the budget would be treated in the finance plan as if it were equity funding provided directly by the UK producer - it would give the producer a proportionate share of initial receipts alongside the public funders and the other equity financiers.

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As many films do not reach the net profit stage, this was seen as an important way to push the producer's stake-holding in the film higher up the chain and give a financial return on a par with other investors in the film.

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In reality, this has proved hard for the 大象传媒 and producers to achieve in all cases.

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The key change the 大象传媒 is making therefore is to create a corridor for the producer from the 大象传媒's own equity recoupment. This will apply wherever the tax credit has not been treated as producer's equity even though the funding has been used to help finance the film.

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The corridor will be a standard 30% of the actual equity recoupment the 大象传媒 receives on a film and is intended to put the 大象传媒 back into the position it would have been in if the tax credit had been treated as equity funding from the producer.

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The corridor to the producer will be mirrored by a similar corridor to the 大象传媒 of the producer's eventual net profits, if the film is successful.

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The 大象传媒 and Pact have also agreed a number of other changes: The 大象传媒's broadcast licence in the UK will be for a maximum of 15 years. After five years, if the 大象传媒 has no further plans to transmit then either the 大象传媒 or the producer may look to exploit those rights elsewhere in the UK, sharing profits 70/30 if the 大象传媒 is unrecouped, 50/50 if the 大象传媒's equity has been repaid.

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The 大象传媒 is also dropping several of its standard requirements around development, in particular the charge of a 50% premium on development costs incurred to date if the project is turned down by the 大象传媒 and picked up by another financier. The requirements for trust accounts at development stage will also be abolished.

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Claire Evans, the 大象传媒's Head of Operations and Business Affairs for Fiction, said: "A healthy and sustainable UK Film industry is of real value to the licence fee payer and the 大象传媒 therefore has an important role to play in UK film. We believe these changes will deliver tangible benefits to UK producers by helping to significantly recalibrate the producer's place in the value chain of UK film production and by unlocking the residual value of the films we have helped to create".

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Jane Tranter, Controller, 大象传媒 Fiction, said: "Six months ago we created the new Films Board at the 大象传媒 and announced an increase in funding to 拢12m a year. Together with this announcement, these measures demonstrate the 大象传媒's commitment to British Film. The development slate is in rude health and we are feeling ambitious and excited for the future."

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Andrea Calderwood of Slate Films and Vice Chair of Pact, Feature Film, said: "We're delighted that the 大象传媒 has shown the way forward with this initiative, which will make a real difference to British film producers. Independent producers put a lot of investment - of commitment as well as money - into their films to make them happen, and this will give them the chance to make a proper return on their investment.

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"Providing a genuine share of revenues to producers of successful films creates a real partnership between the 大象传媒 and producers to support a sustainable British film industry, and allows us to work together to build up the quality and range of British films."

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Notes to Editors

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• 大象传媒 Films has an annual budget of 拢12m per annum (increased from 拢10m from the previous 大象传媒 Charter period) and is an established and credible force within the UK and international film industries.

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• Recent successes have included Eastern Promises, The Other Boleyn Girl, The History Boys, A Cock & Bull Story, Iris, Billy Elliot, Dirty Pretty Things and Bullet Boy.

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• The remit of 大象传媒 Films includes the active development of a broad range of film projects supporting both new and established talent from the initial scripting stage through to raising finance, resourcing, casting and eventually, production.

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• The day-to-day management of 大象传媒 Films and decision-making is now the responsibility of a recently established 大象传媒 Films Board, comprising Christine Langan (Commissioning Editor, 大象传媒 Films), Jamie Laurenson (Executive Producer, 大象传媒 Films), Joe Oppenheimer (Executive Producer, 大象传媒 Films) and Jane Wright (Commercial Affairs and General Manager, 大象传媒 Films). Christine Langan, Jamie Laurenson and Joe Oppenheimer report to Jane Tranter, Controller 大象传媒 Fiction, with Jane Wright reporting to Claire Evans, Head of Operations and Business Affairs, 大象传媒 Fiction.

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• Pact is the UK trade association that represents the commercial interests of independent feature film, television, children's and animation and interactive media companies. Pact is the largest representative group of screen-based content producers in the UK and the largest trade association in the film, television and interactive media sectors.

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CM3

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