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Independent producer trade body PACT has unveiled a proposal for the public funding of UK film production, which aims to create a more sustainable film sector without the need for more public money.

Based on the report A New Business Model for UK Film, by Olsberg SPI for Pact, the strategy proposes that content creators retain substantial IP ownership and have greater access to revenues from the films they create. The proposals represent straightforward adjustments which will empower production companies and deliver market-driven growth, claims the trade body.

Explaining the proposal, chief executive for PACT John McVay said: “This is not about seeking more funds. It is about using what is already on the table to create organic growth: growth based upon success rather than subsidy. For too long the sustainability of the film production sector has remained an elusive goal, but it’s a crucial goal and one we believe is achievable if film producers are given the opportunity to share in the success if their film does well.”

PACT estimates that over £100m is invested by public sources into UK film production each year, yet because of the current business model for film, producers of even the most successful films remain reliant on public funding and typically struggle to share in revenues from even hit films. Girl with a Pearl Earring (2004), for example, earned $50m at box offices worldwide yet its producers, Archer Street, earned a zero return, despite its obvious success.

PACT cites a recent UK Film Council report which states that over half of independent production companies are loss making, despite their films being popular with audiences. This, it argues, is because the current model ensures producers cannot retain their IP and thus have little to invest, or leverage in negotiations. Under the new proposals, however, film companies would benefit financially from making successful films. This means they would then be able to invest in future films they make and gradually be able to reduce their reliance on public funds.

For details of PACT’s proposals go to www.pact.co.uk