StudioCanal UK film biz risks Brexit sinking

This is a great overall look at the operations of StudioCanal, a key player for both Warp and Working Title, and also a producer itself now (notably Paddington and a forthcoming sequel)

StudioCanal UK are already seeing costs up by 15% as sterling (the UK currency) has nosedived in value since the referendum. Their CEO, Danny Perkins, explains that the UK will need a specific treaty (as Switzerland has negotiated) to gain continued open access to EU cinema markets - which could take years, if it ever happens. Euro-financing has also been made more difficult to access. If US studios fill that void, they are MUCH less likely to support ideas which reflect British culture instead of taking a more generic, commercial approach.

Consider the practicalities too of StudioCanal personnel trying to visit other Euro branches, or even just pre-production visits and research if UK citizens require visas to do so.

Why EU law and Brexit could kill UK Indies SUMMARY

Realised I'd blogged a few on the same theme, so I'm gathering them together in this revised post, looking at how influential EU law is - and the possible impact of the UK's surprise Brexit vote. In a nutshell, the EU as an increasingly neo-liberal, free market institution is pushing for reforms that in theory boost competition - but in reality will severely undermine Indies and slash film production while boosting the conglomerates. Brexit poses similar threats, with production, funding and distribution all facing huge cuts at the Indie level, co-productions made difficult and access to EU cinema markets cut, while the huge studio production industry will face issues too.

Rebecca O'Brien is quoted in this nofilmschool feature, a detailed analysis of how the industry works - and will struggle post-Brexit. It argues there are 3 key areas of concern:

1. Fewer European co-productions
2. Decline in British cinema—both in quality and quantity
3. UK may no longer be a top international filming destination

1: Fewer European co-productions

Co-productions are the lifeblood of European cinema. In 1994, Treaty No. 147, or the European Convention on Cinematographic Co-Production, was ratified in order to "safeguard creation and freedom of expression and defend the cultural diversity of the various European countries." It was not only the portal to creative synergy in a continent rich with varied cultures, but it also created the framework for film financing across international borders.

Co-productions significantly reduce risk; where one production company might be unwilling to assume debt on a single film, three companies can share the risk and bring different financial resources to the project, such as country-specific tax incentives and investors. In an industry built upon the assumption of risk, a co-production can mean the difference between development purgatory and getting a film made.
Furthermore, co-productions can receive aid of up to 60% of the production budget.
Rebecca O'Brien, a producer on I, Daniel Blake, said that the success of co-productions is exactly the international cooperation for which Europe at large should strive. 

2: Decline in British cinema—both in quality and quantity