Imagine your creative industries business in London

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  • FS stats: TheCityUK1 – 40,000 companies: D&B2 – 70% of fortune 500 have HQ in London: Piers Nickalls in Savills.com “Where does the world want to do business?”
  • UK leader in advertising: IPA, 2009£6.2 bn annually: Creative Skillset as of Sept 201270% based in London source: Creative and Cultural Skills, 20073.8% & 2.6% in 2010-11: KeyNote advertising Agency report, 2012 http://www.keynote.co.uk/market-intelligence/view/product/10556/advertising-agencies/chapter/1/executive-summaryAdvertising agencies number Source: KeynoteKey Note projections: http://www.keynote.co.uk/market-intelligence/view/product/10556/advertising-agencies/chapter/1/executive-summarySource85 of top 100 agencies: top 100 interactive agencies (2009) –checked against locationhttp://top100.nma.co.uk/section.php?section_id=1
  • Source: ONS data as of Q2 2012. http://www.ons.gov.uk/ons/rel/rdit2/internet-access-quarterly-update/2012-q2/stb-internet-access-2012-q2.html Source 875 million e-buyers & 37 million online shoppers: http://www.worldpay.com/globalexports/download/SME_Download.pdf (on spike)12% UK retail trade & £50 bn sale: Source: http://www.retailresearch.org/onlineretailing.phpSource London benchmarking: Startup Genome, April 2012 (www.startupgenome.com)Shutl: http://postandparcel.info/51205/news/companies/usps-to-trial-same-day-ecommerce-package-delivery/ and company website (http://www.shutl.co.uk/)
  • Source: http://www.retailresearch.org/onlineretailing.php
  • Source 59,000 employees: GLA Economics, London Creative Industries 2011 Update, http://www.london.gov.uk/sites/default/files/cin33_0.pdf88% Internet penetration: ONS dataSources 50 firms on LSE:
  • 48 studios: source: UKIE http://ukie.info/the-industry70% UK pop plays games: NextGen. Feb 2011 (http://spike/Document%20Repository/NextGenv32.pdf)19% of computer games workforce: http://ukie.info/content/useful-linksUniversities offering courses with a specific computer game/animation related focus include: City University; University of East London; Greenwich University; Kingston University; London Metropolitan University; Middlesex University; University of the Arts; University of Westminster; Ravensbourne; University of West London
  • FS stats: TheCityUK1 – 40,000 companies: D&B2 – 70% of fortune 500 have HQ in London: Piers Nickalls in Savills.com “Where does the world want to do business?”
  • In 2010, the UK film industry had a total turnover of £7.2 billion, which made it, in real terms, nearly two and a half times its size in 1995.The UK film industry’s direct contribution to UK GrossDomestic Product (GDP) was £3.3 billion, 0.4% of the UK’s total and 8.3% of the contribution from all creative industries. Source: BFI Statistical Yearbook Sept 2012.UK indcontrib, record prod in 2011 & London 3rd for production & 75%: Film London (C:\\Users\\lvenon\\Downloads\\Filming in the UK.pptx)Total funding: BFI Statistical Yearbook, Sept 2012 (Spike)Source Tax relief: http://www.ukfilmcouncil.org.uk/taxrelief & http://www.hmrc.gov.uk/films/ for details of the tax reliefFilm Forever: BFICity agreement: Film London (C:\\Users\\lvenon\\Downloads\\Filming in the UK.pptx)Video on demand: Source is http://www.bfi.org.uk/sites/bfi.org.uk/files/downloads/bfi-economic-impact-of-the-uk-film-industry-2012-09-17.pdf Oxford Economics, The Economic Impact of the UK film industry
  • 5,000 film companies: BFI Statistical Yearbook, Sept 2012 (Spike)Source behind the scenes: Film in the UK: A Briefing Paper, UK Film Council Research and Statistics Unit, August 2009 (http://spike/Document%20Repository/Film_in_the_UK_v3.0_21_Aug_09.pdf)Source UKFC & BFI funding: BFI website
  • Source: London & Partners Ltd
  • Source: The Economic Impact of the UKFilm Industry, September 2012, Oxford Economics, http://www.bfi.org.uk/sites/bfi.org.uk/files/downloads/bfi-economic-impact-of-the-uk-film-industry-2012-09-17.pdf
  • 80,000 people in film, video & broadcasting: GLA London’s Creative Workforce 200960% small companies: UK Film Council43% freelancers: Labour force Survey, ONS / UK Film Council 2009 Statistical Yearbook73% working on feature films, etc: Skillset’s Feature Film Production Workforce Survey (2008)
  • Source: Creative skills, http://www.creativeskillset.org/film/article_8946_1.asp

Transcript

  • 1. IMAGINE YOUR BUSINESS IN LONDON WHY LONDON FOR CREATIVE INDUSTRIES
  • 2. A UNIQUE REPUTATIONTALENT London boasts some of the world‟s most gifted designers, advertisers, film production specialists, games programmers and animators, artists, musicians and writersENVIRONMENT Industry diversity, combined with a rich cultural mix, makes London a unique environment for firms looking to be innovative within their respective fields while drawing on talent from other creative sectors London is strong in all of the sub sectors of the industry including: architecture, computer software, film and video, music, interactive leisure, design and fashion, TV and radio, performing arts, publishing, advertising, broadcasting and animation
  • 3. LONDON‟S CREATIVE INDUSTRY IS THE CAPITAL‟S SECOND LARGEST SECTOR,WORTH $32 BILLION PERYEAR, GENERATING 16% OF THE CITY‟S ANNUAL GROSS VALUE ADDED (GVA)
  • 4. A GLOBAL HUB OFTRAINED CREATIVE MINDS: MORE THAN 429,000 PEOPLE WORK IN LONDON‟S CREATIVE INDUSTRIES
  • 5. A UNIQUE REPUTATIONACCESS London is the perfect base to reach a large customer base: 12 million in the London Metropolitan area, and 500 million in Europe (within 3 hours)INNOVATION London is also at the forefront of hybrid business models, combining elements of telecommunication, mobile, broadcast, social networking, gaming and advertising such as Last.fm, the pioneering online music service sold to CBS Corporation for $280 millionPOSITION London is considered to be one of the top three world leading technology and media centres second after New York, according to professionals in the technology, media and telecommunication sectors (Real Estate BNP Paribas 2012 TMT survey)
  • 6. THE RIGHT ENVIRONMENTLegal / IP environment: Received particularly favourable ratings and responses with regard to the enforcement of data protection laws and the perceived fairness of the UK regulator (the Information Commissioner’s Office) in the Global Intellectual Property Index 2011, Taylor Wessing Design IP rights: the UK come 2nd after Germany; likely to improve due to the revamping of the Patents County Court to ease the cost burden of all intellectual property litigation, including design disputes. London now has a proportionate, specialist and efficient court procedure for design right infringement cases The UK stays in 2nd place for the third time in a row, and is also 2nd for cost-effectiveness of enforcement Wide array of legal firms specialising in IP / Patent legislationLondon as a place for companies to thrive & grow: Technology, Media and Telecommunication companies (TMT) are considering London are the place to grow: 54% plan London headcount increases by 2015, on average increasing staff numbers by one-third (BNP Paribas real estate study, Oct 2012) At 89% the results showed unanimously that organic growth will be the main driver behind the planned staff increases over the next three years. The relocation of existing staff into London from either the UK or abroad scored lowly at 7%
  • 7. GOVERNMENT SUPPORT As of 2012, it was estimated that the film tax credit, helped generate over £1 billion of film production investment in the UK in 2010/11. Corporation tax reliefs from April 2013 for the video games, animation and high-end TV production industries from April 2013 £100m for ultra-fast broadband infrastructure improvement 4G in London by end 2013 – early 2014: will change the mobile world with faster / bigger downloads on mobile phones / tablets TechCity ‘acknowledgement’ by UKTI & creation of TCIO is promoting the cluster growth In 2012, the Mayor of London has invested more than £2.3 million in the British Fashion Council, Film London and the London Design Festival to help boost creative talent and attract inward investment
  • 8. PROVEN TRACK RECORD IN CREATIVE INDUSTRIES London has a proven track record in attracting more investments in the creative Industries since 2003 than any of its major European competitor cities Number of Greenfield FDI projects in Creative Industries attracted into the location since 2003 300 250 200 150 100 50 0 Source: fDi Markets (www.fdimarkets.com) ; fDi Intelligence, from the Financial Times Ltd (2012)
  • 9. NEW PRODUCT DEVELOPMENT & INNOVATION
  • 10. NEW PRODUCT DEVELOPMENT London is an ideal location for customising products to European markets, combining a good understanding of the European culture and markets:  London offers a globally inclusive location, with over 233 languages spoken in the capital  It is estimated that 35-40% of Londoners were born outside the UK
  • 11. „INNOVATIONRCA‟ INCUBATOR InnovationRCA Incubator launched by the Royal Academy of Arts, following collaboration projects with business school of Imperial College of London Brings together talented teams from design, business and technology backgrounds, helping them transform innovative ideas, products, service concepts and prototypes into viable business propositions The incubator has three main objectives:  To develop a new community of design entrepreneurs empowered to act as change agents in industry  To pioneer new models for interdisciplinary incubation of design-led ventures  To demonstrate the value of this approach through a flow of commercially successful projects 11
  • 12. ADVERTISING & PUBLIC RELATIONS
  • 13. ADVERTISING & PUBLIC RELATIONS Advertising generates £6.2 billion annually for the UK economy The UK leads the worlds ranking for advertising excellence and the UK has the third biggest advertising sector in the world after the USA and Japan London overwhelmingly chosen as the European hub for major agencies - around 70% of the industry is based in London. It is a young industry with 47% of the workforce under 34 UK advertising revenue grew by an estimated 3.8% and 2.6% in 2010 and 2011, respectively, to a total of £16.18bn There are 13,640 advertising agencies in the UK, 3,855 in London Despite subdued business confidence in 2012 and careful spending, Key Note & PwC both expect that the advertising industry will keep growing. Total UK advertising expenditure is expected to increase by 4.2% to £16.86bn in 2012, a positive trend that is expected to continue for the next 5 years 85 of top 100 interactive agencies are located in London demonstrate London’s leadership on digital media advertising 13
  • 14. ADVERTISING AGENCIES IN CENTRAL LONDON (WEST END)
  • 15. E-COMMERCE
  • 16. E-COMMERCE 88% of London residents use Internet, above the UK average of 84% in 2012 There are 875 million e-buyers globally and 84% of the world’s Internet users now shop online and Internet spending is expected to account for 40% of all retail sales by 2020 The UK has 37 million online shoppers, and the e-retail market is growing at 16% per year; it is the fastest growing online retail market in Europe and is second only to the United States globally, testament to the diverse range of businesses and great ideas that make up the UK marketplace On average, each of us spends almost £2,000 per year online, generating total revenues of over £50billion, and 12.0% of UK retail trade London’s edge in e-commerce: entrepreneurial spirit coupled with strong digital ecosystem and financial backing thanks to an ecosystem facilitating networking and growth: e-commerce expo; VC & private investors London is a place for innovation and a location to build a successful business quickly: London- based Shutl currently offers delivery in under an hour to almost two-thirds of Britain Results from 2012 Start-up Genome report: London is the market place for e-commerce products (50% more likely to succeed than in the Silicon Valley) and project management software (twice as more likely to succeed than in the SV) London is the best place to attack existing markets with better products Deemed low risk compared to silicon Valley & NY 16
  • 17. E-COMMERCE EU MARKET COMPARISON 2012 Increase online Online Forecast share of Sales all retail 2011-12 business UK 14.0% 13.2% Germany 13.0% 10.0% Switzerland 16.0% 9.9% Denmark 14.0% 9.1% Norway 17.0% 9.1% France 22.0% 8.7% Sweden 18.0% 8.0% N/B/L 14.0% 5.7% Spain 16.0% 4.1% Poland 24.0% 3.8% Italy 18.0% 1.6% Average 16.1% 8.8% EuropeSource: CRR research commissioned by Kelkoo 17
  • 18. RADIO & TV BROADCASTING
  • 19. RADIO & TV BROADCASTING Over 59,000 people are employed in radio and TV broadcasting in London (incl. 18,400 self employed) Watching online content through broadband connection is becoming highly prevalent throughout the London and UK demographic With 88% broadband coverage in London alone, data relating to online video streaming point to the ever increasing need for ISPs and broadband TV providers in London to enhance their video streaming capabilities for the UK and European market. This provides good opportunities for companies streaming programmes from outside of the UK There are over 50 broadcasting firms with a primary listing on the London Stock Exchange. Two are FTSE 100 members - BSkyB and ITV. These two blue chips account for 77% of the sectors market capitalisation, whilst the 43 AIM companies together account for just 5% 19
  • 20. GAMES, APPLICATIONS & DIGITAL CONTENT
  • 21. GAMES, APPLICATIONS & DIGITAL CONTENT London has a world-wide reputation as a place to undertake computer- generated imagery (CGI) work The UK’s videogames and interactive entertainment industry is one of the biggest in the world. The UK boasts 48 of the world’s most profitable games studios, all of which have a proven track record of developing, publishing and distributing first- class content. From Tomb Raider to Grand Theft Auto to Little Big Planet, UK-made games rank among the most popular in the world Some 70% of the UK population enjoys playing games 19% of the computer games workforce is based in London, making the city the main cluster in the UK; other easy to access cities with a concentration of games developers include Guildford, Cambridge and Brighton London universities provide courses in games development to ensure flow of talent and the attractiveness of London as creative location 21
  • 22. FILM INDUSTRY
  • 23. LONDON IS THE 3RD BUSIEST PRODUCTIONINDUSTRY IN THE WORLD AND ACCOUNTS FOR ABOUT 75% OF THE UK INDUSTRY
  • 24. FILM INDUSTRY The UK film industry contributes around £4.5bn annually to UK GDP and supports 100,000 jobs (around 80,000 in London) 2011 saw a record production spend of over £1billion spent in the UK Total public funding for film in 2010/11 was £358 million, the majority coming from the film production tax relief (56% of public funding), grant-in-aid from central government (14%), and the National Lottery (12%). Film production took 73% of the total financial support, followed by archives and heritage (6%) then education, young people and lifelong learning (5.5%) Further investment from the government through the British Film Institute new five year plan, Film Forever Tax relief: for films with a total core expenditure of £20 million or less, the film production company can claim payable cash rebate of up to 25% of UK qualifying film production expenditure; for films with a core expenditure of more than £20 million, the film production company can claim a payable cash rebate of up to 20% of UK qualifying film production expenditure UK has International Co-Production Agreements in place with Australia, Canada, India, Jamaica, New Zealand, South Africa and the European Union London has city agreements with Rio, Paris Ile de France, Rome, Toronto, Melbourne and Mumbai Video on Demand: expected that the UK film VoD market, worth around £166 million in 2011 (£114 m on TV, £52 m online) will grow as new services are rolled out to reach £252 m by 2015. Globally, the market is forecast to reach $18 billion by 2016, with online VoD set to expand by 21% per year, to eventually reach $11 billion from its current $4.3 billion 24
  • 25. FILM INDUSTRY ECOSYSTEM The global film and broadcast commissioning companies are in London along with film industry associations (British Film Institute – encompassing the UK Film Council; British Film Commission) Home to global leaders:  London hosts major European offices for the world’s six largest film studios (Sony Pictures, Warner Brothers, 20th Century Fox, UIP, Paramount and Disney)  The world’s four largest media companies (Walt Disney, News Corporation, Viacom and Time Warner) have a major European office in London  Other major broadcasters (including the BBC, Channel 4, MTV, Sony, Discovery, CBS and Turner) also have European offices, broadcast centres or their European HQ in London In Oct 2011, David Cameron announced the extension of the film tax relief until at least 2015. In 2009/10, the policy provided around £95 million of support to the British film industry, supporting over £1 billion worth of investment in 208 feature films (including Pirates of the Caribbean, World War Z, Prometheus, Snow White and the Huntsman and the latest James Bond movie Skyfall) In 2011, there were nearly 5,000 film production companies and over 2,200 post-production companies in the UK London dominates the production, post-production industries, and distribution with respectively 56, 51 and 56% of all film companies based in the UK. London’s domination is even greater when looking at the turnover: it accounts for 67% of UK film production revenues, 77% of post-production and 97% of film distribution revenues. Behind the scenes, there is a sophisticated film finance sector (mobilising hedge funds, Enterprise Investment Schemes and other financial instruments) and a pool of people with specialist skills in the business management and legal dimensions of the film economy. This is cited as one of the main reasons for the industry cluster in London as a global financial centre UK Film Council and the British Film Institute merged, with BFI taking over most of the UKFCs functions and funding from 1 April 2011. The BFI is therefore responsible for all Lottery funding for film—currently in excess of £25 million per year 25
  • 26. FILM STUDIOS IN LONDON & NEARBY
  • 27. LATEST STUDIO DEVELOPMENTS Large-scale capital investment projects recently finished or within the pipeline for the UK film industry including the £100 million investment by Warner Bros. at Leavesden (20 min from central London), after acquiring the production studios in 2010 From 2007 to Q2 2012 total capital investment by Pinewood (30 min from Central London) amounted to £63 million; a proposed major development scheme to extend studio capacity is also planned at Pinewood to respond to demand for production space following a record year in 2011 whilst in April 2012, the 30,000 square feet Richard Attenborough stage officially opened. Additional stage capacity is also planned at Shepperton Studios Future investment plans have also been highlighted by Elstree Studios (20 min away from central London) which is planning to build a 30,000 square feet studio and the production company was recently awarded a £2 million grant from the Hertfordshire Local Enterprise Partnership Board, for a job creation scheme which will develop new film and TV facilities on site
  • 28. LONDON‟S FILM INDUSTRY TALENT  London offers a large, talented and flexible film and broadcast workforce  About 80,000 people are employed directly in film, video and broadcasting in London: 29,000+ in film and video; 49,000 radio and television  Nearly 60% of all employees in film and video are in companies with 10 or fewer employees  They are a particularly flexible workforce: 43% of those employed in production are freelance allowing companies to scale up to meet the needs of specific projects and with the ability to work on a variety of projects – three quarters (73%) of people working on feature films also work on other projects such as TV programmes (51%) and commercials (34%) The workforce is highly educated:  For instance, 70% of the film production workforce are university educated, with either a postgraduate degree (24%) or an undergraduate degree (46%). This compares with 31% of the population of working age in the UK educated to degree level or above)  The core UK film industry also attracts many highly skilled foreign workers to the UK: around a tenth of all UK-based production staff are non-British, while in sub- sectors like visual effects this can rise to more than 30% (Source: The Economic Impact of the UK Film Industry - June_2010)  A higher proportion of women are graduates than men (83% compared to 63%) 28
  • 29. LONDON‟S FILM INDUSTRY TALENT  Film Forever initiative: £21 million investment for skills and talent development through Creative Skillset as skills and talent development are highlighted as a critical component to support the future success of the UK film industry:  £4 million per year of investment to deliver a new four year film skills strategy building upon the work to date  A new commitment of £5 million over four years to provide capital investment in the UKs film schools  ‘A Bigger Future, the UK film skills strategy developed by Creative Skillset and funded by the Creative Skillset Film Skills Fund. The Creative Skillset Film Skills Fund is supported by the National Lottery through the BFI and the film industry through the Skills Investment Fund (SIF), a voluntary levy on all productions shooting in the UK. The following five key funding priorities have been identified to deliver the greatest impact in the future success and sustainability of the UK film industry: training in new technologies; improving business skills; developing creative talent; supporting new industry trainees; enhancing health and safety skills  Creative Skillset is the licensed Sector Skills Council for the Entertainment Media, Fashion and Textiles, Publishing and Advertising. We are owned and invested in by employers working in social partnership with unions. They aspire to have the best skills and talent in the world to drive growth of the industries and the UK economy. Creative Skillset brings all parts of the Creative Industries together to add value through collaboration on workforce development. 29
  • 30. TAX RELIEF IN FILM INDUSTRY Tax relief is available for British qualifying films:  Films must either pass the Cultural Test or qualify as an official co-production  Films must be intended for theatrical release  Films, including those made under official co-production treaties, must reach a minimum UK spend requirement of 25% Tax relief is available on qualifying UK production expenditure on the lower of either: 80% of total core expenditure; or the actual UK core expenditure incurred. Note: There is no cap on the amount which can be claimed. The FPC responsible for the film needs to be within the UK corporation tax net.
  • 31. FINANCIAL & LEGAL SUPPORT IN CREATIVE INDUSTRYProminent UK-based Financiers in other creativefinanciers in film Aquarius  Hummingbird Ventures (high- Aramid (hedge fund) growth digital media and CinemaNX (Isle of Man) software companies) Footprint Film fund  UPS strategic venture capital fund (Information technologies) Future Films  Angel investors: Paul Birch (e- HS films (Hammer/Spitfire) commerce; Internet), Mark Ingenious Films Zaleski, Robert Dighero (e- Limelight (EIS) commerce) Prescience Quickfire (EIS)
  • 32. ARCHITECTURE
  • 33. ARCHITECTURE London is an inspiring magnet for world-class architecture and design talent with landmarks such as Canary Wharf and the Shard, alongside Wren’s creation London is home to a large and established architecture sector, which employs over 31,000 people (incl. 7,500 self employed) In 2010/11, there were over 11,780 students studying Architecture or Building related courses at London’s Universities, and 4,590 graduates Existing players: leading London-based architects include: Rogers Stirk Harbour + Partners, Foster and Partners, HOK International Limited, Future Systems and Terry Farrell and Partners The London-based Royal Institute of British Architects (RIBA), is one of the most influential architectural institutions in the world and has been successfully promoting architecture and architects since 1837 33
  • 34. ENTERTAINMENT & MEDIA
  • 35. ENTERTAINMENT & MEDIA FORECAST  PwC predict the UK Entertainment & Media sector will grow by 3.1% from 2012 to 2016 to a value of £63 billion  The growth will be driven by internet advertising, which is forecast to grow at 12% annually  The UK will remain in leading position as EMEA’s largest internet advertising marketSource: The outlook for the Entertainment 35& Media industry to 2016, PwC
  • 36. “LONDON IS ONE OF THE WORLD‟S MOST EXCITING CULTURAL CITIES THIS WAS ONE OF THE KEY REASONS FORSETTING UP HERE, COUPLED WITH THE FACT THAT LONDON IS A HUB OF KNOWLEDGE ” ON THE DESIGN FRONT BRAZILIAN COMPONENTI SUPPLIES INNOVATIVE ACRYLIC- BASED FURNITURE, LIGHTING AND ACCESSORIES
  • 37. HOW LONDON & PARTNERSCAN HELP YOUR BUSINESS SUCCEED
  • 38. THE EXPERTS ON DOING BUSINESS IN LONDON HOW WE CAN HELP YOU SET UP BUSINESS FIND THE PROPERTY FIND THE BUSINESS FIND THE EXPAND YOUR YOUR &PROPERTY LOCATION CASE RIGHT PEOPLE NETWORK LONDON & LOCATION- Sector Intelligence - Specialist Recruitment - Office Specialists - Professional Service - Culture & Social Life- Legal Requirements - Funding & Training - Market, Clients & -- Events - Visas & Work Permits- Corporate/Tax Structure - Salary Benchmarking Transport -- Government Contacts - Schools & Colleges- Cost-effective Set-up - Employment Practice - Labour Pool -- Policy-makers - Demographic Mapping WWW.LONDONANDPARTNERS.COM/IMAGINEYOURBUSINESS BUSINESS@LONDONANDPARTNERS.COM @L_PBUSINESS JOIN US ON LINKEDIN: „LONDON & PARTNERS FDI GROUP‟
  • 39. IMAGINE YOUR BUSINESS IN LONDON