AI, exhibition sector failing amid challenges to be examined by UK Parliamentary Inquiry into high-end TV and film

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The challenges raised by AI and the alarming recent failures of the theatrical distribution system are among the topics to be addressed by a UK parliamentary inquiry.

The Committee on Culture, Media and Sport (CMS) will look into the current challenges faced by the UK’s high-end film and television (HETV) industry. Inland investment in cinema and high-end television (HETV) in the UK during 2022 reached a record high of £6.27bn ($7.72bn), according to BFI statistics revealed earlier this year. This is the highest figure ever reported and is $1.83 billion higher than in pre-pandemic year 2019. About 69% of the $6.27 billion in spending was contributed by HETV production with $4.30 billion, with feature film production contributing $1.97 billion.

However, spending on independent cinema in the UK showed a decline to £174m, a 31% decrease from 2021. The panel will look at what needs to be done to maintain and improve the UK as a global destination for production and how best to support the independent filmmaking sector. It will look at skills and retention issues in the sector and what needs to be done to ensure the sector can adapt to challenges such as the rise of artificial intelligence (AI). It will also examine the challenges for British cinemas following the recent restructuring of Cineworld and the administration of the Empire chain. eOne has recently exited the UK stage performance business.

The inquiry comes 20 years after an earlier report by the British Film Industry Commission, which made recommendations on taxation, training and development and helped shape the modern British film industry.

The Committee invites written comments by 19 September seeking answers to the following questions:

How attractive is the UK as a global destination for high-end film and television production? What are the obstacles to maintaining and increasing foreign investment in the sector? What are the benefits and challenges of foreign investment for UK cinema capacity? What are the current challenges facing the UK independent film production sector? What is the demand and production capacity for films with a clear British identity? Are UK nations and regions adequately represented and supported in the production of British films? What else can be done to boost high-end film and TV production in the UK?

In addition, the committee also asks: Are current funding arrangements, tax credits and governance for industry fit for purpose? What are the problems facing the UK film exhibition sector? What more can be done to protect and promote the UK’s film heritage? What can industry and government do to ensure that British cinema and high-end television can fit into the future? What should be prioritized to ensure a strong skills pipeline and retention in the high-end film and television industry? What are the risks and benefits of AI for the industry? and what needs to change to ensure the industry supports inclusiveness and sustainability?

Caroline Dinenage, chair of the CMS committee, said: “Thousands of moviegoers enjoying the new Barbie film this weekend will see the latest blockbuster story for the high-end British film and television industry, with Barbieland being built from the ground up in a UK studio, demonstrating the industry’s excellent track record of attracting blockbuster films to our shores.

We’ll look at how to maintain the UK’s appeal as a global destination for filmmaking, while ensuring that independent films, similar to recent hits Rye Lane and Aftersun, can be made and seen. Financial woes faced by big-name cinema chains have highlighted the importance of protecting and promoting the UK’s film heritage, while strikes by actors and writers in the US show the importance of being ahead of the game in adapting skills and responding to AI challenges.

The challenge now is to ensure that industry and government think ahead to maintain and improve a sector that is hugely important to both the UK’s economy and culture and its power on the world stage.