The global screen sector will play a pivotal role in contributing to the worldwide economic recovery from the impact of Covid-19, according to a new study from Olsberg SPI.
‘Global Screen Production – The Impact of Film and Television Production on Economic Recovery from Covid-19’ reports production spending of $177bn drove a total global economic impact of $414bn in 2019. following several years of groundbreaking growth.
The study’s valuation focused on scripted film and television and documentaries, but not sport, news or commercials.
Additionally, screen production spend drives employment right across the screen value chain, with 14 million full-time equivalent (FTE) jobs created in 2019, the report says.
Analysis of global production flows in the report showed many regions attract expenditure that is significantly higher than the screen investment they generate themselves. For example, the UK is the source of 3% of global screen production spend but the recipient of 12% – a positive difference of nearly $16bn.
Latin America originates 2% of global spend, but receives 3% – a positive difference of over $1.6bn.
A range of film and television drama project budgets were assessed in depth, and results in the study demonstrated the rapid spending that production delivers. For example, analysis of a film budgeted at $220m showed an average of $10m per week was spent during its 16-week shoot.
Production spend was also found to impact a range of business sectors outside of screen production, including significant amounts in sectors particularly impacted by Covid-19. Of the projects analysed in the study, an average of 8.1% of spend occurred in the travel and transport sector, and 6.6% in hospitality and catering.
The report also assessed the economic impact of Covid-19 on global production and estimated a loss of $145bn in economic impact over the first six months of 2020 and a loss of 10 million global screen sector value chain FTE jobs.
The independent study was undertaken with the support of Media Business Insight, publisher of Screen International and Broadcast, and Netflix. It was endorsed by leading film commission associations and networks representing intergovernmental bodies around the world: Asian Film Commissions Network (AFCNet); Association of Film Commissioners International (AFCI); European Film Commission Network (EUFCN); and Latin American Film Commission Network (LAFCN).
The study can be downloaded here.
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