Building Ireland's AV Economy

8/4/2019 Building Ireland's AV Economy

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Creative CapitalBuilding Irelands Audiovisual Creative Economy

Te PricewaterhouseCoopers (PwC) report on the audiovisual content production industrywas published in December 2008.

Te report looked beyond those working solely in eature lm production to include everyoneinvolved in all orms o audiovisual content production in Ireland.

Following presentation o the PwC report to the Department o Arts, Heritage and theGaeltacht, a Steering Group was established with Brendan uohy ( ormer Secretary Generalat the Department o Communications) as its Chairperson. Te Steering Group was askedto examine and recommend new enterprise policies to maintain and develop the industrysgrowth.

Members o the Steering Group were drawn rom sectors o the audiovisual industry withexport experience ( lm, V drama, animation and entertainment television) as well asrepresentatives rom the Department o Arts, Heritage and the Gaeltacht, the Departmento Communications, Energy and Natural Resources, the Department o Enterprise, Jobs and

Innovation and Bord Scannn na hireann/the Irish Film Board (IFB).

Te task o the Steering Group was to consult with stakeholders in the audiovisual industryto identiy what opportunities exist to generate urther sustainable growth nationally andinternationally and also what policies and initiatives are now needed to acilitate andsupport uture growth and increased employment in the industry.

Members o Audiovisual Strategic Review Steering Group

Brendan Tuohy Chair of the Audiovisual Strategy Steering Group

Cathal GaneyManaging Director

Brown Bag Films

anna ConghailePrincipal Ocer,Broadcasting Policy Division

Department of Communications, Energy and National Resources

Ed GuineyCompany Director

Element Pictures

James MorrisChair IFB / CEO WindmillLane Pictures

Bord Scannn na hireann/the Irish Film Board/ Windmill Lane Pictures

Preace


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Larry BassCEO

Screentime Shinawil

Margaret LawlorAsst Principal,Enterprise Development Unit

Department of Enterprise, Jobs and Innovation

Niall ODonnchuAssistant Secretary General

Department of Arts, Heritage and the Gaeltacht

Tristan Orpen LynchManaging Director

Subotica Entertainment

Preface


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Creative Capital Building Irelands Audiovisual Creative Economy

Table of Contents

Introduction

Introduction iObjectives v

Executive Summary vi

Chapters1. Develop the industry and build strong companies 1

2. Build exports 8

3. Develop skills and talent 10

4. A strong domestic industry 15

5. Mobilisation o the industry and the whole o government 18

6. Unlocking the potential 22

7. Implementation plan 28

AppendicesAppendix 1 MethodologyAppendix 2 Outcome o Consultation Process

Appendix 3 Te Audiovisual Ecosystem

Appendix 4 Government Stakeholders

Appendix 5 Review o International Incentives

Appendix 6 Case Studies

Appendix 7 Awards and Critical Recognition


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In 1993 the Irish Government introduced three pieces o legislation that laid the oundationor the creation o an Irish audiovisual content production industry.

An amendment to the Broadcasting Act that required R to spend a minimumamount o the annual licence ee on independently commissioned programmes.

An amendment to Section 481 o the Finance Act to provide or a competitive taxincentive to encourage Irish and international lm making in Ireland.

And the reconstitution o Bord Scannn na hireann /the Irish Film Board (IFB) underthe Irish Film Board Act (1980) as a dedicated agency with a mandate and unding toassist in the development o Irish lm making and in the development o an industry inIreland or the making o lms.

Te number employed ull-time in the industry in 1991 was established to be 6941. ByDecember 2007, the numbers working ull time in the industry had grown to 5,440 and theannual economic value o the industry reached over 550 million, a substantial part o which is

represented by oreign direct investment

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Graph 1: Full-time Equivalent Employment in the Irish AV Sector.

1 Report on Indigenous Audiovisual Production Industry, Coopers and Lybrand, 1992

2 Irish Audiovisual Content Production Sector Review, PwC, 2008

Introduction

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oday there are in the region o 500 Irish-owned companies involved in a diverse range oaudiovisual content production activities mainly working on lm, television, animation and

video content or all platorms. Tis level o production activity in turn produces urthersubstantial indirect employment in the Irish economy at a ratio o 1:1.25 according to IBEC3gures. A key eature o the industry is that production expenditure in Ireland is spreadthroughout the country.

In a recent EU report on building the European digital economy it states that Creative andcultural industries are a powerul motor or jobs, growth, export earnings, cultural diversityand social inclusion representing 4.5% o the total European GDP in 2008 and accounting or3.8% o the workorce4.

Te global market or creative audiovisual content is growing and is estimated to reach $1.7

trillion by 2013 and is projected to grow at a rate o 30% over the next ve years

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Te opportunity and the challenge or the Irish industry is to build on the substantial progresso the last 15 years into this global market.

Te purpose o this report is to identiy the strengths and weaknesses o the Irish industryand to recommend to government specic policies that will equip the industry to successullyenter the next phase o its growth rom a predominantly domestic platorm into internationalmarkets.

Just as clear government policy introduced in the 1993 legislation led to an overall increase o

ten times the number employed in the industry, so the policies recommended in this reportwill underpin the next phase o growth or the next ve years and should lead to an increasein the numbers employed directly in the industry by an average o 8% per annum over the nextve years.

3 Film and elevision Production in Ireland, IBEC, 2010

4 Building a Digital Economy: Te importance o saving jobs in the EUs creative industries, ERA Consultants, March 2010.

5 Global Entertainment and Media Outlook, 2010 2014, PricewaterhouseCoopers, 2010.

Introduction


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Graph 2: Estimated Full-time Equivalent Employment Growth in the Irish AV Sector

Developing the people and the skills to meet this demand is undamental to the growthstrategy or the industry. Policies to develop people and skills orm a major part o the reportsrecommendations.

With the convergence o media and technology, the landscape o production internationally and also in Ireland has changed, and continues to change dramatically. Te internationaldemand or quality content has never been greater and the traditional lines o division withinthe industry have blurred, and in some areas even disappeared entirely. oday, the majority othose working in lm also work in V production, on-line content and animation. Tis is thecontext in which we have addressed the issues or the uture.

Te policy recommendations in this report should enable the audiovisual industry to continueto develop with a distinctive and creatively-led Irish lm, V and animation industry while, atthe same time, ullling its potential as a key pillar o Irelands creative economy and emergingcreative industries.

Te recommendations in this report are not an a la carte menu. Tey are designed as anintegrated set o proposals that will only deliver i delivered in an integrated manner. Tey arecost neutral in their eect.

Finally, I would like to take this opportunity to thank all those on the Steering Group and allthe industry stakeholders who have engaged with the consultations on which our conclusionsare based. I would also like to thank in particular eresa McGrane and Mags OSullivan romthe IFB who have provided tremendous support and back-up to the Steering Group.

Brendan uohyApril 2011

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How can the Irishaudiovisual content

production industrycontinue to develop

and grow over the

next five years?


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o recommend a ramework o policies and initiativesor government that will stimulate growth over a ve-year period and:

o recommend policies that are achievable, costneutral and that maximise the employmentpotential o the audiovisual content productionindustry.

Objectives

2.

Double the value o the Irish audiovisual industry toover 1 billion;

Increase direct employment in the industry rom5,440 to over 10,000;

Increase exports o Irish audiovisual production.

1.


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Following an extensive consultation process, the Audiovisual Strategic Review Steering Groupconclusion is that meaningul and sustainable growth can only take place by expansion intointernational markets through Irish content companies and content creators exportingsuccessully, and by Ireland expanding as a centre or international content production.

Te Steering Group has identied the key areas that Government should prioritise in order to achieve thestated growth objectives o the report within a ve year timerame.

In each priority area, the Steering Group is also making specic recommendations designed to achieve thestated growth objectives o the report within a ve year timerame.

Te consultation process identied the key priority areas as:

Develop the Industry and Build

Strong CompaniesInnovation and entrepreneurial drive led by Irish-based companies o scale will open upnew markets and develop new products and services or all markets. Te summarisedrecommendations o the report are:

Develop the Industry Section 481 to be extended to 2020;

Introduce annual international V co-production und with high economicreturn;

Te Minister or Arts, Heritage and the Gaeltacht to convene industry-wide

industrial relations consultation with a view to concluding comprehensiveagreements;

Establish Piracy Prevention and Policy Group;

Continue broadband roll-out and investment in digital sites.

Executive Summary


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Build Strong Companies arget innovation unding rom Innovation Fund Ireland;

Extend Research and Development ax Credit to include contentdevelopment, supporting convergence between the audiovisual contentindustry and the gaming industry;

Employment and Investment Incentive Scheme to be extended toaudiovisual content production companies;

Rights ownership to vest in production companies and content creators todrive export growth;

Multi-project development unding to be made available to the industry;

Multi-annual commissioning to be a eature o broadcast commissions;

Develop Irish banking acilities to support audiovisual exports and trade;

Build access to angel investors and private equity;

Incentives to be made available which will promote scale throughconsolidation;

Build new partnerships in the convergence space.

Build ExportsIreland is a highly successul exporting country and the transer o this know how via existingState channels will greatly benet the audiovisual content industry in the next phase o itsgrowth rom predominantly domestic markets to predominantly international markets. Tesummarised recommendations o the report are:

A strategic plan concentrating on audiovisual exports (sales andpromotion) to be developed by the relevant agencies (EnterpriseIreland, Irish Film Board, Culture Ireland and the Irish Film Institute) inconsultation with the industry. Tis plan will include metrics to measurecultural exports.

Develop Skills and TalentTe audiovisual content industry is dependent or its success on the quality o talent and skillsavailable to it. Te employment targets will depend on a signicant increase in the numbersand quality o people available to the industry. Te summarised recommendations o thereport are:

Te IFB to take ull responsibility or determining the essential creative and


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technical skills necessary to sustain growth and development;

Develop Screen raining Ireland to ensure skills training is aligned with

industry growth plan targets; Develop and plan or the existing and uture skills needs o the industry and

update the Fors reports on Future Skills Needs;

Develop on the job training initiatives;

Develop apprenticeships and graduate placements;

Develop retraining opportunities rom other sectors;

Establish business mentoring and export ocused programme;

Develop digital and media literacy programmes or primary and post-primaryeducation delivering the ambitions o 21st Century Schools;

Establish an Industry and Education Forum to assist in rationalising specictraining and education at third level to eliminate duplication and waste;

Introduce high-level international mentoring.

A Strong Domestic IndustryA vibrant domestic industry with the dynamics to raise quality o output and develop skills isan essential requirement rom which to build sustainable export markets or the Irish contentindustry. Te summarised recommendations o the report are:

IFB policies to increase the Irish audience or Irish lm and develop earlystage marketing and audience plans;

IFB to encourage the development o a local distribution market;

IFB and local broadcasters to identiy mutual opportunities to co-und Irishcinema and television drama;

IFB and each o the local broadcasters to agree a Memorandum oUnderstanding (MoU) setting out common ground or eature lm, Vdrama, animation, documentary production and industry training;

Protect and develop small, niche content companies and content creatorsdriven by innovation and creativity;

Increase the percentage o locally produced childrens programming;

Establish the Irish Film Channel;

Create a single content unding agency by merging the unds o the Soundand Vision und with those o the IFB while preserving their individual remits.

Executive Summary


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Mobilisation o the Industry and theWhole o GovernmentTe objectives set out in this report require a coordinated response rom the industry and therelevant state agencies i they are to be achieved. Success will require organisation through co-ordination and action rom the various constituent sections which make up the audiovisualindustry working together the Irish Film Board (IFB), Enterprise Ireland (EI), the IndustrialDevelopment Authority (IDA), industry guilds, trade unions, Screen raining Ireland (SI),the Higher Education Authority (HEA), broadcasters and all elements o the industry. Tesummarised recommendations o the report are:

An updated mandate or the IFB so that it can act as an eective integratedscreen agency or the whole o the audiovisual industry and can drive

orward the recommendations in this report; Resources are provided to develop a Business / Enterprise Development Unit

within the IFB;

An MoU between IFB and EI to enhance export growth;

An MoU between IFB and IDA to coordinate FDI opportunities across theaudiovisual industry;

IFB to ocus on enhancing existing key relationships across culture and all-island opportunities;

IFB to develop a regional policy to assist local lm commissions and digital

industry initiatives to develop; Expanding international networks with a particular emphasis on the

Diaspora;

Align national policy with emerging EU policy and support or the contentindustry through the Creative Industries, Cultural Agenda and Digital Agendarameworks.

Te implementation o the recommendations in this report will be overseen by an Inter-Departmental Steering Committee comprised o representatives o the Department o

Arts, Heritage and the Gaeltacht, the Department o Communications, Energy and Natural

Resources and the Department o Enterprise, Jobs and Innovation together with industryrepresentatives.

Te growth objectives set out in the report will only be achieved within the fve yeartimerame i the ull body o the recommendations is implemented through a managedand integrated action plan supported by all stakeholders in the industry and theenabling government departments and agencies.


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Ideas dont fall fromthe sky; they come

from people. Peoplewrite the software.People design the

products. People startthe new businesses.

People create themusic and images that

come streaming at usout of devices that

other people create.The Flight of the Creative Class

R. Florida


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Developing the IndustryContinuous high quality production emanating rom Ireland and attracted into Ireland isthe necessary environment in which to develop the industry as a whole. In the internationalmarkets or lm, television and animation those countries that have an internationallycompetitive nancial incentive, cost base and proven expertise in all aspects o creative

production will be in the best position to compete.

Continuous and increasing levels o quality production provide the environment or

long term planning and investment on which growth will depend.

Production Incentive Section 481 (TCA 1997)Many countries including the United Kingdom, France, Germany, Hungary, Canada, Australia,New Zealand and many states in the United States have production incentives designed toattract international lm and television projects. In the context o this international situationit is an essential requirement that Ireland has an attractive and competitive tax incentivetargeting the audiovisual industry.

Te audiovisual industry is dened by mobility with signicant competition or productionsbetween dierent jurisdictions. Section 481 remains vital as a key part o the competitiveoering in the international marketing o Ireland as a location or investment. Te SteeringGroup acknowledges that the recent extension o Section 481 will be an importantcornerstone or urther growth. However, long term growth o inward investment orinternational production is likely to require a longer term horizon and commitment i realgains are to be made.

International TV Co-production FundOver the last number o years, Ireland has successully attracted major event V seriessuch as Te udors, Camelot, Primeval, Neverland, and Game o Trones. In order tocapitalise on this initial success at a time when the success o these large scale V productionsare expanding internationally, the creation o a new and specic 2m per annum und is

Develop the Industry andBuild Strong Companies


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recommended to assist in increasing the ow o these productions into Ireland. Te undwould aim to generate additional annual production to the value o 40m representingsubstantial inward production unds and generating a substantial number o new jobs.

Industrial RelationsTe audiovisual industry in Ireland operates in a complex industrial relations environment,

which has not been perceived as internationally-competitive in the past and has led tonegative comment rom international trade press about Ireland.

Irelands lm making talent and skilled workorce are recognised the world over and arecentral to the strategy or expanding Ireland as an international centre o excellence or

content production. In the interests o the workorce and both international and Irish basedproducers it will be essential or the industry to develop progressive industrial relations thatmatch exibility and competitiveness with air and transparent terms and conditions or theIrish workorce.

In order to expedite air, exible, transparent and internationally competitive labouragreements across the industry, the Steering Group recommends that the Minister or Arts,Heritage and the Gaeltacht convene an industry wide consultation or all stakeholders toconclude a new set o agreements as a matter o urgency.

Piracy PreventionPiracy is as great a challenge or the audiovisual industry in Ireland as it is to the rest o the

world. Over 100,000 movies are illegally downloaded each week in Ireland according to guresproduced by INFAC, the industry body which monitors piracy. Te industry needs to play agreater role in policy ormation in this area and needs to agree a coordinated approach to the

protection o content creators work.

Content creators are entitled to the same protection as the owners o any other asset.

Irelands ailure to protect the rights o content creators is very damaging or Irelandscredibility as a potential intellectual property hub and or the growth o indigenous contentindustries.

It is recommended that the industry establish an Industry Piracy Prevention and Policy Groupto ormulate a comprehensive and coordinated approach to the issue.

Develop the Industry and Build Strong Companies


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Broadband and DigitisationTe continued development o the broadband network including nationwide high-speed

coverage and digitisation o sites and screens are key priorities or the audiovisual industry.Tese policies are essential or stimulating local demand, increasing global access andensuring that audiovisual content companies throughout Ireland unction eectively.

Te availability o a sophisticated broadband inrastructure in urban and rural areas alsopresents opportunities or content creators to stimulate local demand and nd globalaudiences. According to Analysys Mason, although Ireland lags behind other countries inbroadband speeds and price, initiatives are underway to remedy this including major publicsector projects: the National Broadband Scheme and the Metropolitan Area Networks 6. Wideravailability o aster broadband will make an enormous contribution to the development othe audiovisual industry on a regional basis.

It is recommended that there be continued investment in broadband and the expansion oinvestment in digital sites.

6 International rends in the Audiovisual Market and opportunities or development in Ireland, Analysys Mason, 2010, p.79


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Building Strong CompaniesBuilding strong substantial Irish based companies capable o developing international

markets and exploiting ancillary areas o opportunity around content creation will resultin high value employment and achieving industry sustainability. Te consultation processidentied a number o initiatives that would create an environment or Irish companies todevelop and grow.

New Innovation FundingGiven the dramatic changes happening within the audiovisual content industry, the SteeringGroup recognises the need or on-going industry innovation and development. Tere is need

or a new source o unding to support development and innovation in companies.

As outlined in theProgramme or Government, 2011-2016a ocus needs to be placed ontechnological innovation in the creative industries. Te Steering Group is recommending thatsupport is provided by Innovation Fund Ireland to promote innovation and convergence in theaudiovisual industry.

Content Development Tax CreditTe audiovisual industry is no dierent to any other industry it relies on quality researchand development. Te quality o projects depends upon the quality o its initial development.Project development can be the creation o great narratives but in the digital world it is modelmaking, character creation, digital eects, visualisation and prototypes, ormat creationand pilot development. Tis is high-end, value added activity and this is where ideas andconcepts are visualised and created.

Consideration should be given to extending the current Research and Development ax Creditto include audiovisual content development, where an intellectual property (IP) value iscreated that can be exploited rom Ireland.

Tis initiative would promote innovation and enhance high-end creative development inIreland, and would contribute to the value chain o activities being undertaken here, romdevelopment through production and exploitation. Tis would assist Irish companies to havemeaningul creative international partnerships and would create high value employmentthrough the concentration o creative development in Ireland.

In particular this initiative will drive the natural convergence o the audiovisual industry andthe video games industries.



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Employment and Investment Incentive SchemeTe revised Business Expansion Scheme (BES) allows investors to invest in companies and

obtain a relie o tax or their investment. It is a stimulant to private investment in small tomedium size enterprises. As the audiovisual industry evolves rom being project-based to acompany phase o development, access to investors equity is vital to support the growth osmall companies.

It is recommended that companies producing and exploiting audiovisual content orinternational markets are allowed to qualiy or the revised BES incentive scheme.

Rights OwnershipFor audiovisual content companies and content creators revenue streams come rom theability to sell and exploit the intellectual property rights o content. I companies have norights and rely only on ees they earn as part o the production process, they have no intrinsicor lasting value in the work they create.

A undamental principle o content creation is that ownership is vested in the creators. Icontent creators have greater ownership o the IP in their work, they can exploit those rightsthrough licensing in national and international markets and on new platorms. By retainingand realising the value o their own rights, companies and individuals can create lasting value.Tis creation o long term asset value will in turn encourage re-investment in new content and

investment in building companies o scale.

Te overall principle o content creators ownership o the rights in the work they create isrecognised in the recently published Guidance or Public Service Broadcasters7. Te SteeringGroup welcomes the BAI guidelines as potentially creating a key building block or successulIrish content companies to develop the scale and expertise to expand into export markets.

Te experience in the United Kingdom suggests that beore the change to the broadcast termso trade regime which enshrined the rights o the content creators to ownership o the contentthey created, the industry was ragmented and lacked the scale to grow. Recent reviews haveshown that, ollowing the change in regulation, the benets in the UK owed both to the

producers and the broadcasters through reinvestment, new co-production partnerships andenhanced quality.

7 Code o Fair rading Practice: Guidance or Public Service Broadcasters, Broadcasting Authority o Ireland, April 2011


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Importance o Early Stage Project DevelopmentProject development is critical to successul content creation and is the R&D driver in

the industry. Project development relies on good creative skills, instincts and access tosufcient project development unding. Development unds currently provided throughthe IFB are essential to the delivery o high quality content. A commitment to multi-annualcommissioning would also help television companies to escalate development with thecertainty o commissioned work.

Development is underpinned by strong creative teams and, in some cases, the involvement okey international talent.

Te Steering Group recommends the ollowing actions:

IFB to instigate multi-project development unding or companies and individual contentcreators;

Broadcasters to initiate multi-annual commissioning o programmes.

Finance Banking Facilities, Angel Investors andVenture Capital Engagement

Access to banking acilities is a key challenge in the audiovisual production industry. Tetype o unding generally available to companies is project-based, and companies rely on

production ees in budgets or sustainability. Business supports have traditionally beenlimited.

Te current economic climate is obviously impacting on national production unding. Inthis challenging environment, greater emphasis must be placed on international sources ounding, and in this regard lines o credit rom Irish credit institutions or guaranteed exportsales are not only essential, but will enhance the overall appeal and competitiveness o Irelandas a centre or international production.

o date the industry has not been seen as attractive to third party investors and/or venturecapitalists. Te combined eect o the measures proposed in this report will change the prole

o the sector, and in the longer term, the underlying commercial viability o companies tradingin the sector will attract private investment and this in turn will greatly enhance the long termviability o the sector.

o this end there are a number o interventions which would greatly help content companiesincluding:

Contract discounting acilities with Irish based nancial institutions;

BES availability to encourage private investment in the sector;



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Improved access to equity unding and venture capital unds.

Te industry needs ongoing access to working capital to maintain expansion and continuityo production. Strong relationships with the banking sector are important and should be a keyunction o enterprise development.

Te Steering Group is also recommending initiatives with Enterprise Ireland (EI) and theIndustrial Development Authority (IDA) to broker relationships between content companies

with international partners, and private equity and venture capital unds as part o an overallgrowth strategy.

Promote Companies o ScaleCompanies o scale are better equipped to compete internationally and the Steering Grouprecommends that incentives could be introduced to promote and encourage local industryconsolidation. Te objective o this process would be to assist individual companies achievesustainable economics o scale to order to acilitate the internationalisation o the localindustry.

Building New Partnerships in theConvergence Space

Who are the new partners or Irish content companies and individual content creators?Tey are platorms, content aggregators, telecommunication companies, multi-nationals,advertisers, web developers and gaming companies. Te presence in Ireland o many o themajor media multi-nationals is a resource Irish content producers have not yet used to ulladvantage.

It is recommended that mechanisms are put in place by government agencies to enablethe audiovisual content industry to develop new networks and partnerships between Irishand multinational content aggregators, telecommunication companies, advertisers, webdevelopers and gaming companies.


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International and domestic market conditions are currently difcult. Te shit rom linearschedule based television to digital on-demand and internet based services, as well asdigital cinema and Video-on-Demand platorms have disrupted traditional business models.Extracting value rom content in these new environments has not been ully realised, with

various models such as pay-per-play, micro transactions, and subscription models still being

tested. Alongside dealing with these challenges, the industry is also battling the reality opiracy.

In order to build successul exports, producers must produce high quality content withthe ability to appeal to international audiences, while retaining rights that allow them toeectively exploit and repatriate the value o their work. Actions to help build exports include:

Foster a make-to-sell culture by encouraging a proactive engagement with marketpartners and audiences rom early inception;

Encourage the development o projects with international appeal;

Retain rights and improve revenue sharing positions or producers in order to incentivisesales;

Improve training or negotiation and sales skills in order to maximise the potential osales and distribution deals;

Identiy and engage with key emerging markets such as Singapore, Japan, Brazil, Russia,India and China;

Improve collective Irish presence and strategic engagement at key international estivalsand markets.

Audiovisual exports rely on strong inter-personal contacts and networks o internationalcontacts with broadcasters, distributors, co-producers, sales agents, talent agents andnanciers. Brokering these relationships is important. Tis can be done by:

Inward rade Missions: Developing deeper relationships with international productioncompanies, broadcasters and sales agents;

Outward rade Missions: Identiying and developing international strategic markets andorganising ocused trade missions;

Build Exports


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Establishing an international sales operation or Irish audiovisual content;

Market Intelligence: Establishing a process o sharing market intelligence gathered at key

markets to the domestic producing community.

Ireland does not have a base o companies with expertise in international sales. It is, thereore,timely to investigate the easibility o housing more international sales and distributioncompanies in Ireland. Tis could be through the establishment o a new venture or a virtualmodel o sales. A sae haven digital storage and distribution hub may be a distinct possibilityhere, given Irelands leading market position on data centres. EI and the industry shouldexplore possibilities in this area.

A strategic plan concentrating on audiovisual exports (sales and promotion) should beprepared by the relevant agencies (i.e. IFB, EI, Culture Ireland and the Irish Film Institute) inconsultation with the industry. Tis plan needs to include new metrics to measure culturalexports including audiovisual content.


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alent is the central driver o all aspects o the industry. alent constitutes the quantumo creative, entrepreneurial and technical people working in the industry. Te nurturingo that talent, allied to education and training are at the core o a successul industrystrategy.

Current responsibilities are divided between FS and the IFB through Screen rainingIreland (SI). SI is unded by the IFB in terms o its training provision and by FS in terms ooverheads.

It is recommended that the IFB in consultation with the industry take ull responsibilityor determining the essential creative and technical skills necessary to sustain growth anddevelopment.

In addition, the IFB should take responsibility or coordinating the links between the industryand the second and third level education sectors, and in managing industry-wide initiatives todevelop the skills and talents o individuals necessary to support growth.

Screen Training IrelandTe development o the skill base in the industry is crucial to uture competitiveness. Asthe development o people and skills is so important, SI should be repositioned closer tothe industry so that there are clearer lines o policy evolution and delivery o training andoutcomes.

Industry training should be strengthened in terms o unding and should work to a strategythat is delivered in the orm o an annual business plan. Te delivery o this training

programme should be overseen by a strong industry advisory body.

A constant theme in the consultation process was the need or greater emphasis on individualwriters, producers and directors who show exceptional talent. Work is needed on thedevelopment o initiatives ocused on very promising Irish talent.

It is recommended that unding to support individual mentoring with internationallyrecognised leaders in their elds be made available.

Develop Skills and Talent


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Te industry, in consultation with the appropriate educational and training bodies and Fors,should develop and plan or the existing and uture skills needs o the industry and update thereport on Future Skills Needs.

On-the-job TrainingTe audiovisual industry is about doing, creating and making. Tere is no better substitute orskills enhancement and talent acceleration than on-the-job training and practice. Structuresshould be encouraged to acilitate this type o career progression through apprenticeships,graduate placement, and creators in residence programmes. Te industrys growth is greatlyenhanced by micro-budget and low-budget lm-making to provide opportunities or this on-the-job training.

Apprenticeships and PlacementsIt is recommended that Screen Producers Ireland (SPI) and SI jointly develop specic

programmes or apprenticeships alongside a graduate placement programme. Tisprogramme should also provide the opportunity or cross-industry placements andopportunities or international placements by industry proessionals. Industry has committedto support this initiative and has agreed to make 100 placements available to apprentices and100 placements available or graduates. Te training programme should also provide greater

involvement o international proessionals in the educational sector.

Retraining rom Other Industries and SectorsRelevant experience rom other sectors, particularly those currently in recession, can greatlyassist the industry to meet its growth targets over the next 5 years. Te Steering Grouprecommends that research is carried out to identiy retraining opportunities or skilled

workers in other sectors to gain employment in the audiovisual sector.

Building Business AcumenTe industry, in consultation with Enterprise Ireland, should establish a business mentoringand export-market ocused programme or entrants and emerging companies so as to improvebusiness skills and develop a stronger understanding o international markets.


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Early Learning Primary and Post-Primary CycleGrowing talent begins early in the development cycle and the education system is the way in

which the skills that develop creativity are ostered. Audiovisual subjects should have a keyrole within the school curriculum to help in the development o a creative education and lend

value to the development o the innovation economy. Irelands cultural lie has a storytellingculture based on words and music. Film and television alongside interactive content are acontemporary orm o communication and, as a visual medium, benet the curriculum as adynamic method o education delivery. Tis content would play a key part in delivering theGovernments objectives to build digital and media literacy.

Third Level SectorTe third level sector is already providing a steady stream o graduates each year. Te SteeringGroup consulted widely with the third level sector. From these discussions the ollowingthemes emerged:

Tere are a broad variety o courses available, many o which oer practical andtheoretical modules with a strong emphasis on the practical. Concerns were expressedabout the prolieration o similar courses in dierent institutions. It was also noted thatthis prolieration diminishes critical mass and spreads resources thinly instead o aconcerted eort to build specialisations and centres o excellence in dierent disciplinescapable o achieving international recognition;

Access routes to the industry were not clear and this was also evidenced in the PwCstudy. Programmes to acilitate access would be helpul;

Tere was universal acceptance o the critical importance in students having directcontact with the industry. Te exposure o students to practitioners was considered aninvaluable resource;

Diminishing resources due to education unding cutbacks was seen as a real threat toquality and, in some instances, acilities were said to be basic;

Understanding how media is evolving as well as nancing, branding, marketing (speakingto audiences and consumers), access to markets and evolving business models was seenas essential to the education curriculum.

Tere are no ormalised accredited programmes connecting the third level sector with theaudiovisual industry. Graduate placement programmes including cross-industry placementshave yet to be established on a ormal basis. Action is required to address these weaknesses

while also examining the match/mis-match o the third level curriculum and the needs o theaudiovisual industry.

Develop Skills and Talent


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Industry and Education ForumTere are opportunities or the third level sector to strengthen links with the industry. It is

recommended that industry and the third level sector establish a orum to share the needs othe industry with third level institutions and to establish cross-research and innovation links.

A priority or this orum should be to establish much stronger alignment between the existingthird level curriculum and current industry skills requirements. Te industry also needs tobuild strong links with the Higher Education Authority through this orum.

High Level Mentoring and InternationalBenchmarking

Te Irish industry and home grown talent can benet greatly by encouraging internationallinks with leaders in the sector rom other countries. Te Irish Diaspora oer manyopportunities to organise such links and industry leaders in Ireland should be encouragedto help new Irish talent gain access to their own international networks. Wherever possiblethe quality o work produced in Ireland should be judged against the highest internationalstandards.


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Ireland is wellplaced to capitaliseon the Creative Ageand become a trulysustainable society,

wealth is no longerabout big factories but

the ability to createnew ideas, not just

around products but inculture, entertainment

and the arts.Capitalising on Culture, Competing on Dierence.

F. Bradley and J. Kennelly


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Innovation, originality and creativity are the core qualities that produce compelling contentappealing to audiences and consumers at home and internationally. Te importance o astrong and successul local V broadcasting and theatrical market is equally important toensuring quality o output in lm, V drama, animation and V entertainment.

Irish Audiences or Irish FilmsIn recent years the number and quality o Irish lms has increased, however the Irish andinternational box ofce perormance o many Irish lms, although on the increase, has beendisappointing. Tere are recognised structural barriers to Irish lms succeeding theatricallydue to access to cinema screens in the country, and the dominance in the Irish market ooverseas distributors and imported Hollywood lms. Te IFB should be encouraged to develop

policies to ensure that the lms in which the IFB invests are clearly able to identiy their targetmarkets and Irish lm makers engage with the marketing o the lms that they make.

Building the Local Domestic MarketAudiovisual exports are in the rst place reliant on strong take-up in the domestic market.Ireland is weak in this area due to the lack o a strong international sales base, and an under-developed distribution circuit. Irish product is oten coupled with the United Kingdom whichcreates additional complications or release and sales strategies. A strong local market place

would instill greater market rigour when projects are being developed. It is also importantthat new technologies play an increased role in international distribution strategies romIreland.

Tere is a real opportunity to build new models where emerging business-to-consumermodels across all platorms are supplanting traditional business-to-business modelsespecially in the area o distribution. Ireland should seek rst mover advantage in this area.

A Strong Domestic Industry


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Strategic Partnerships with BroadcastersTe Steering Group recognises that the audiovisual content industry is dierent to the

television broadcast industry and that broadcasters have specic mandates under legislation.Nevertheless, there is an acceptance o the link between a strong and successul localV broadcasting market and the quality o output in lm, V drama, animation and Ventertainment.

Te relationship between the domestic broadcasters and the audiovisual content productionindustry is crucial to the development o an internationally-viable audiovisual industry inIreland. It is also crucial that local content producers make programmes with the quality andappeal to drive audiences or Irish broadcasters.

R, the national public service broadcaster, has the largest share o V advertising in the

Irish market and receives 93% o the V licence ee. As a result, R elevision is currentlyresponsible or more than 80% o the independent television programme production in Irelandand, thereore, occupies a dominant place in the audiovisual content production industry.

A signicant number o independent television producers are dependent on programmecommissions rom R elevision and to a lesser extent on G4, V3 and Setanta.

It is acknowledged by both broadcasters and producers that the system o commissioning oprogramme production to independent producers, across a variety o genres, is a highly costeective method o programme production. Feedback rom R and independent producershas reafrmed the importance o a strong creatively-led independent content production

industry to meet the needs o local broadcasters.

Te relationship between the IFB and local broadcasters is also crucial to the health o theaudiovisual content industry. Priority should be given to developing new opportunitiesor collaboration and a coordinated strategic approach between the IFB broadcasters andindependent producers:

Te IFB and the broadcasters should review their relationship and co-undingmechanisms in order to identiy mutual opportunities in developing and producingoriginal Irish cinema and V drama. Such an approach will benet both Irish viewers andthe audiovisual content industry.

It is recommended that a Memorandum o Understanding be established between theIFB and each o the local broadcasters setting out common ground or eature lm, Vdrama, animation, documentary production and industry training.

Tere is also the need to protect and develop small, niche content companies andcontent creators driven by innovation and creativity. Tese companies and individualsare, in eect, the research and development o the creative industry and are critical to itson-going development and, indeed, expansion. Tese are particularly dependent in theirearly stages on support rom local broadcasters and the IFB.

A Strong Domestic Industry


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Broadcasters, in conjunction with industry partners, should explore the developmento mechanisms to acilitate greater competition or ideas in broadcasting as a means oraising quality and also to support small innovative, creative and radical companies andindividuals.

Te Steering Group has singled out the importance o Irish Stories or Irish Childrento be produced and transmitted within Ireland. It is recommended that broadcasterscommit to move towards allocating 10% o their total independent programmingspend to locally-produced childrens programming. Young people are entitled to specicprogramming. Such a policy would develop uture audience loyalty or broadcasters whilealso assisting industry development.

Te proposal in the Broadcasting Act 2009 to establish an Irish Film Channel should beprogressed by the IFB to provide greater diversity o content or the Irish public.

Single Content Funding AgencyPlacing all existing independent content unding into a single content unding agency isrecommended to:

ake advantage o the benets o policy cohesion;

Deliver eciencies in operating costs;

Concentrate resources in delivering clear objectives.

Te Steering Group recommends that the administration o the Sound and Vision Fund istranserred rom the Broadcasting Authority o Ireland (BAI) to a re-mandated IFB in order tocreate a single content unding agency. Te existing unctions o the Sound and Vision Fund

would continue in their entirety. Te Sound and Vision und and IFB unding schemes wouldremain separate and distinct supporting content creation.

It is also recommended that applicants be allowed to apply or unding to the scheme andin particular i approved they should be allowed approach broadcasters (with their approvalor unding already received) and negotiate a deal with the broadcaster or broadcasting thecontent. Broadcasters may need to commit to provide a minimum number o transmission

hours or supported broadcasting projects. Tis action would introduce greater competitionor ideas in the domestic market and improve overall quality.

A review o the governing criteria and modus operandi or qualiying projects should becarried out to reect the overall objectives o the audiovisual content industry strategy.


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Te audiovisual industry is positioned at the centre o the Smart/Knowledge Economy,Creative Economy and the echnological Economy, and thereore needs a coordinatedindustry and state response.

Te industry is young, vibrant, attractive to young people, and has much untapped potential

as identied in the recent national enterprise strategyMaking it Happen, Growing Enterpriseor Ireland:

Yet the contention is that the sector still

has considerable untapped potential. Its

overall growth may currently be hampered

by the act that a number o government

departments and agencies are responsible or

particular segments, and some aspects o the

sector are still considered cottage industries.

Te evolution o the digital era has shitedthis thinking to some extent and provides the

basis or signifcant growth opportunities8.

Concerted action is needed to achieve the objective o aligning various national policiesand initiatives that support the audiovisual industry in Ireland to assist its national andinternational development.

Tere is strong rationale in charging a single agency with the mandate o developing theaudiovisual industry, and that this role should be vested in a re-mandated Irish Film Board

as the existing state agency established by statute with specic responsibilities across theaudiovisual industry.

Substantial benets will ow rom a realignment o the enterprise and development unctionso state activity concerning the audiovisual industry. Benets will also be delivered through aclearer understanding o specic roles and responsibilities so that each agency, in a cohesive

way, plays to their respective strengths within a coordinated ramework.

8 Making it Happen Growing Enterprise or Ireland, Fors, 2010 p.117

Mobilisation o Industryand Whole o Government


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Tese recommendations are also aimed at establishing a new approach to industrypartnerships. Tese partners will play signicant roles in a new digital environment, assist inreconstructing the business environment and help build new relationships with audiences.

An Updated Mandate or Bord Scannn nahireann/the Irish Film Board (IFB)Te IFB is the state agency established by statute with specic responsibility to develop a lmindustry in Ireland. Te Irish Film Board Act 1980 (Section 4) states that, the Board shall assistand encourage by any means it considers appropriate the making o lms in the State and thedevelopment o an industry in the State or the making o lms.

Te core business o the IFB is the development o indigenous Irish lm-making. Te majorityo the IFBs annual unding and its unctions are dedicated to this objective.

Te IFB also has a remit to develop an industry or the making o lm and television inIreland and this has been ullled by the lm commission unctions that markets Irelandinternationally and provides practical assistance to all lm productions lming in Ireland. TeSection 481 tax incentive is the primary driver o inward international production and co-

production into Ireland, particularly or international television production.

It is recommended that the organisational structure and unding responsibilities o the IFBare adapted to enable the organisation to act as a specialist development agency or the entire

audiovisual industry alongside its current remit o developing the industry or the making oIrish lm and television.

Te establishment o a dedicated Business Development Unit within a re-mandated IFB isseen as crucial in delivering the role o specialist development agency. It is recommended thatthe Minister provide sufcient resources to develop such a unit within the IFB.

raining and people/talent development should be the responsibility o a re-mandated IFB.

Greater national policy coherence will be achieved by having a single content unding agency.

All o these proposals will deliver great efciencies through the centralisation o the unctionso project production and development, people/talent development, and enterprise andindustry development.

A partial or ull rebranding o the IFB may be required to better reect this new role and therelated unctions as a development agency or the whole audiovisual industry providingseamless support and leading advocacy and policy.

It should be stressed that these proposals to enhance the mandate o the IFB are intended to


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provide additional remit and unctions. Te existing legislative purpose o the IFB to build anindigenous creatively-led Irish lm industry that is culturally and artistically distinct shouldcontinue as IFBs core purpose.

Tere are several international examples where national agencies have responsibility orindustry development and support while also overseeing lm and television unding. Agenciessuch as elelm in Canada (annual budget 99m) and Screen Australia (annual budget75m) are relevant models successully providing comprehensive supports or their nationalaudiovisual industries.

Relationship between the IFB and Enterprise

Ireland (EI)As the national agency or indigenous companies seeking to export, EI has a strong role to playin the development o the audiovisual content industry. EI has specic expertise in developingcompanies and export markets which complements the IFB knowledge o project nancingand creative production.

Te IFB and EI should coordinate a development plan or the audiovisual content industrywith the specic objective o enhancing the scale o companies through mergers and creativejoint ventures, and encouraging the capability o individual companies through prioritisingleadership and sales skills, and providing support or international export development.

It is recommended that a Memorandum o Understanding is agreed by the IFB and EI toensure a seamless and comprehensive delivery o supports so that the audiovisual contentindustry can develop a signicant exporting dimension.

Relationship between the IFB and the IndustrialDevelopment Authority (IDA)Priority should be given to developing a strategic plan between the IFB and the IDA tocontinue to attract into Ireland oreign direct investment in the audiovisual content industry

so as to enhance the Irish content creation ecosystem.

Tese actions will provide new opportunities or Irish companies to work with majorinternational companies and, in that way, enhance the industrys capability and capacity,

while also giving companies exposure to international markets and networks o internationalplayers. Care should be exercised that this does not impact negatively on the growth o theindigenous industry, or example, by drawing the initial limited talent to the multinationalcompanies at the expense o the local companies.

Mobilisation of Industry and Whole of Government


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It is recommended that a Memorandum o Understanding be agreed between IFB and the IDAto support the development o a coordinated strategy or oreign direct investment.

Enhancing Existing RelationshipsTe industry will benet by using a strong and coordinated partnership approach toimplement its development plans and to create new opportunities as a means o developingthe overall sector.

Cultural Relationships: Strong relationships already exist with agencies includingCulture Ireland, the Arts Council and the Irish Film Institute;

All-island Relationships: It is recommended that the industry explores opportunitiesto encourage and develop greater all-island co-operation;

Building Creative Regions: Te audiovisual production industry has had a positiveimpact on local regional development, particularly in the Dublin/Wicklow and Galwayregions. Te Dublin/Wicklow ocus grew out o the location o Ardmore Studios andGalway emerged ollowing the establishment o G4 and support rom Udars naGaeltachta. Te Steering Group recommends a regional policy to assist local lm o cesand digital industry initiatives develop in a co-ordinated manner and to ensure thatregional and national policies or the industry are aligned.

International Networks: Te Global Economic Forum in Farmleigh (in 2009) notedthat the Diaspora is an enormous international asset or Ireland. Tere is an importantopportunity or the audiovisual industry to build on these networks.

Alignment with EU Priorities and PoliciesSeveral key European agendas including A Digital Agenda or Europe, Unlocking the Potentialo the Cultural and Creative Industries and the Cultural Programme all rom part o Europe2020, and provide direction or the industry in Ireland. Tese policy agendas underpin all therecommendations in this report. Support rom Europe to the audiovisual industry throughMEDIA and Eurimages have been important building blocks.


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A vibrant and growing creative audiovisual content industry is a key component o anational policy to develop Ireland as a centre o excellence or the creative industriesand position Ireland at the heart o the worldwide digital content explosion.

A healthy audiovisual industry is one in which all the sub-sectors are healthy in their ownright, and one in which there will be overlap and cross-ertilisation o ideas and opportunitiesleading to innovation.

Te Steering Group has projected specic growth targets or the next ve years as the outcomeo the recommendations in this report. Te potential to continue to grow the industrythereater will be urther enhanced by developing the critical mass that achieving this next

phase o growth will deliver.

As the recent PwC Irish Audiovisual Content Production Sector Review has demonstrated,the ingredients or achieving signicant international growth or the sector already exists, andawaits to be harnessed.

Global DemandTe medium term outlook or the global entertainment and media industryindicates robust positive growth. According to PricewaterhouseCoopers theglobal media and entertainment industries will increase in value rom $1.3trillion in 2009 to $1.7 trillion worldwide in 2014. Tese are global gures butthey indicate a positive growth trajectory. Te Irish entertainment and mediaindustries will increase in value over the next ve years to 5.6 billion9.

Employment and Wealth GenerationTe industry creates high-value employment and has the ability to grow jobsnot only in direct content creation but in the related areas o video gamesand interactive media. It is an important element o the creative and culturalindustries and the digital economy and contributes to national employmentcreation. It also has the ability to generate and exploit intellectual property rights,be a wealth generator and an important part o the productive economy.

9 Global Entertainment and Media Outlook, 2010 2014 10 Pricewaterhouse Cooper, 2010

Unlocking the Potential


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CreativityMuch attention is given to enterprise policies related to technology and

inrastructure but more ocus now needs to be on the creative content owingthrough that inrastructure this content will distinguish Ireland internationally.

A more organic approach to industrial development is needed to combine theinter-related disciplines o technology, art and business.

Cinema as an Expression o our Culture andNational IdentityIn an increasingly globalised world, content can become homogenous. Te

creation o content in Ireland must continue to contain a cultural uniquenesswhich helps to dene what it means to be Irish, to depict cultural diversity andcarry that message internationally. Indigenous eature lms travel internationallyand carry a strong message about our Irish identity. Films such as Te Windthat Shakes the Barley, Once, Te Secret o Kells, and His and Hers all depict aunique view o Ireland to a national and an international audience.

International ProductionInternational television production has the ability to be a growth driver as Irelandhas a distinct competitive advantage in this area the value o internationaltelevision production in Ireland in 2010 increased by over 200% rom 2009. Tese

productions make a valuable contribution to employment and investment inlocal companies and inrastructure as well as providing career opportunities orcreative Irish talent.

International Co-Production TreatiesIreland has a network o international treaties including those with Canada,

Australia and New Zealand, and is also a signatory to the European Conventionon Cinematographic Co-production. Ireland has established a reputation as anexcellent country in which to do business. On-going growth and development othese co-production relationships is vitally important. Te national tax incentivescheme is central to maintaining and growing these international networks.


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Format CreationTe creation o original television content can lead to ormat opportunities

in the international television market. Several production companies haveseized these opportunities both in the import o ormats and in the export oormats. According to gures rom the UK trade association or producers PAC,international sales o UK ormat series earned a record 1.34bn or the Britisheconomy in 2009. In the same period revenues rom oreign rights to ormatsincreased by 25% to 119m.

World Class TalentIreland has a strong talent base. We have major international acting stars, andalso highly talented individuals who are winning Oscars, Emmys and otherawards or creative and production excellence. alent nurturing is key to industry

policy.

AnimationIrish animation has achieved signicant international recognition. Te sector has

proven to be highly creative and has delivered high value employment. It has alsoachieved high export growth. Te skills in this area are also transerable to other

sectors with similar export growth potential including gaming.

Computer Generated Imagery (CGI) andSpecial Eects (SFX)

As production processes become more digitised the post production industry hasbecome more central to digital production and is poised to be the engine o visualeects and high-end CGI. Post-production is a nexus o talent and technology.Digital production will be a signicant growth area.

The Games IndustryTe video gaming industry in Ireland is orecast to grow by 7% annually toa national value o almost US$647 million by 201410. Ireland has become anattractive location or the games industry. Companies located here include Jolt,

10 Pricewaterhouse Coopers (2010), Global Entertainment and Media Outlook, 2010 - 2014



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Activision, Blizzard, Big Fish, Gala Networks and Electronic Arts. Much o thework currently done in Ireland involves localisation, publishing, distribution andmiddleware. In its next phase o development Ireland has to play a key role in thecreative end o the games industry and, in particular enhancing the creative talentand providing new business opportunities or existing players. Convergence

with the Irish audiovisual content industry will accelerate this next phase o thegaming industrys development.

A Strong Multi-National PresenceIreland has a strong multi-national presence with companies based hereincluding Google, Facebook, Amazon, You ube and Yahoo. Te location o these

companies in Ireland oers potential or new business relationships with theaudiovisual industry.

The DiasporaTe Irish Diaspora is a worldwide audience that is interested in Irish content.

We also have a wealth o Irish migrs who are working in all areas o theinternational audiovisual industry and who are recognised or their specic talentand achievements. Te challenge is where possible to repatriate and harness thisasset to assist in the development o a home grown industry.


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How the industry will look like in fve yearsTe growth targets set out in the report will be achieved;

Sustained growth and continuity o production will ensure a more consistent throughput owork and career opportunities across the whole industry;

Irish content companies will enhance their value through rights ownership and the ability toexploit IP. Tis will allow them to engage more successully with potential new investors;

Companies and entrepreneurs will develop diversication strategies;

Te introduction o competition or ideas between domestic V channels will raisestandards;

Te level o ambition will increase as a result o increased export trade;

Irish-based companies will compete internationally to nance, sell and distribute content;

More talent will be attracted into the industry;

Stronger companies will mean greater re-investment in their own growth and thedevelopment o sustainable long-term business plans;

Te content industry will develop synergistic opportunities with distribution platorms, Icompanies and international partners;

Ireland will establish an international position as a recognized creative hub and internationalcentre o excellence or audiovisual content production;

New employment opportunities will increase i supported by targeted and relevant educationand training schemes.



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The audiovisualindustry is a dynamicmix of talent (human

capital), creativity(ideas and innovation)

and enterprise (addingand extracting value).


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Te implementation o the recommendations in this report will be overseen by an Inter-Departmental Steering Committee comprised o representatives o the Department o

Arts, Heritage and the Gaeltacht, the Department o Communications, Energy and NaturalResources and the Department o Enterprise, Jobs and Innovation together with industryrepresentatives.

Te recommendations in this report are not an a la carte menu. Te recommendations aredesigned as an integrated set o proposals that will only deliver i delivered in an integratedmanner.

A sustained eort by the industry and enabling state agencies will deliver the report objectiveswithin the required timerame.

Te recommendations in the report involve minimal additional costs to the Exchequer.

A hal-yearly progress report on implementation will be prepared by the IFB. Tese progress

reports will be submitted to the relevant Ministers and will be published.


Recommendations Lead timeLine

1. Develop the InDustry

Extend Section 481 to 2020 DAHG/IFB Long Term

Introduce international TV co-production und IFB Short Term

Convene industry-wide industrial relationsconsultation

DAHG Short Term

Establish Piracy Prevention and Policy Group IBEC Short Term

Continue broadband roll-out DCENR Long Term

Investment in digital sites DAHG/IFB/AC Short Term

Implementation Plan


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2. BuIlD strong CompanIes

Target Innovation Fund Ireland EI Short Term

Extend Research and Development Tax Credit to include

content developmentIFB Medium Term

Extend Employment and Investment Incentive Scheme to

include audiovisual content production companiesIFB Short Term

Rights ownership to vest in creators Broadcasters Short Term

Multi-project development unding IFB Short Term

Multi-annual commissioning Broadcasters Short Term

Develop Irish banking acilities IFB Short Term

Build access to Angel investors and private equity IFB/EI Short Term

Incentives to promote scale IFB/Broadcasters Medium Term

Build new partnerships in convergence IFB Short Term

3. BuIlD exports

Strategic plan on audiovisual exportsIFB/EI/CI/IFI/

IndustryShort Term

4. Develop skIlls anD talent

IFB to take ull responsibility or essential creative and

technical skills, including policy and growth alignment IFB Short Term

Develop plan or existing and uture skills IFB/STI Short Term

Develop on the job training initiatives IFB Short Term

Develop apprenticeships and graduate placements SPI/STI Short Term

Develop retraining opportunities IFB/STI Short Term

Establish business mentoring and export ocused programme IFB/EI Short Term

Develop digital and media literacy programmes IFB/IFI/IADT Short Term

Establish Industry and Education Forum IFB Short Term

Introduce high-level international mentoring IFB Short Term

5. a strong DomestIC InDustry

Increase the Irish audience or Irish lm IFB Medium Term

Strengthen local distribution market IFB Medium Term

IFB and Broadcasters to identiy mutual production

opportunitiesIFB/Broadcasters Medium Term


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IFB and each o the broadcasters to agree an MoU IFB/Broadcasters Medium Term

Develop small, niche content companies IFB/Broadcasters Short Term

Increase the percentage o childrens programming Broadcasters Short Term

Establish the Irish Film Channel IFB Medium Term

Create a single content unding agency DCENR/DAHG Short Term

6. moBIlIsatIon of the InDustry anD the whole of government

Updated mandate or the Irish Film Board DAHG/IFB Short Term

Resources or Business Unit within the IFB DAHG Short Term

MoU between IFB and EI IFB/EI Short Term

MoU between IFB and IDA IFB/IDA Short Term

Enhancing Existing Relationships IFB Short Term

Regional AV development policy IFB Short Term

Expanding International networks IFB Short Term

Align National and EU policy IFB Short Term

tfr

Short Term - 1 yearMedium Term - 2 5 years

Long Term - 5 years plus

org

DAHG - Department o Arts, Heritage and the Gaeltacht

IFB - Irish Film Board

IBEC - Irish Business Employers Conederation

DCENR - Department o Communications, Energy and Natural Resources

EI - Enterprise Ireland

Broadcasters - RT, TG4, TV3

IADT - Institute o Art, Design and TechnologyIDA - Industrial Development Authority

CI - Culture Ireland

IFI - Irish Film Institute

Implementation Plan


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Appendix 1 - Methodology

Tis strategy seeks to answer the ollowing core question:

How can the Irish audiovisual content production industry continue to develop and grow over the next fve years?

Set out a Mission Statement or the Irish audiovisual sector or the period 2011-2016;

Establish ve macro objectives or the Irish audiovisual sector or the period 2011-2016;

Detail the inrastructural, regulatory, legislative, public support, and private enterprise initiatives to achieve those

strategic objectives;

Engage with the wider creative and investment communities to position the Irish audiovisual content production

sector as a world leader;

Make recommendations on key international alliances, the deployment o high speed broadband connectivity and

the clustering o enterprises so as to minimise overhead and maximise economies o scale, creativity and cost;

Recommend a timescale or the implementation o the ndings.

Te Audiovisual Industry Strategic Review took place rom September 2009 to December 2010.

Te process was overseen by a Steering Group which met regularly throughout the review. Tese meetings were

chaired by an independent acilitator.

Te rst phase involved desk based research and analysis o macro-economic trends, domestic and internationalindustry reports, and a review o International policy with regards to the wider content industries.

A number o core industry groups were convened in acilitated group sessions. Tese groups included producers in

three genres; live action, entertainment, animation and digital media; as well as directors and writers. As part o the

process, eedback was sought rom the post production sector, the studios, the third level sector and the games sector.State agencies and the wider International Screen industry were then consulted with, beore the data was collated,and presented to the steering group in order to conclude ndings and present recommendations.

Appendices


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Appendix 2 - Outcome o the Consultation Process

As part o the research or this report, the Steering Group met with key individuals and groups involved in theaudiovisual industry in Ireland. Te ollowing themes emerged rom these consultations:

Ireland has a strong talent base.

Ireland has a strong creative base and a rich heritage in the art o storytelling. Storytelling is one o the mostpowerul orms o communication, and the visual medium excels at storytelling.

Te industry has a credible creative reputation internationally. Over the last 20 years, Irish lm and televisionproductions have won every major international award.

Tere is a strong view that Irish creativity is a brand in its own right, and the industry should use this asset toachieve even greater international recognition.

Troughout the industry there is a widely held recognition o the strong State support or audiovisualproduction as an outlet or Irish artistic and cultural expression, and a willingness to convey a sense o an Irishnational identity on the international stage.

Te industry is marked by remarkable resilience. While there has never been a signicant boom, the industryhas still enjoyed great success. Even in the current economic recession, production levels have remained strong.Tere has not been a reduction in production levels.

Despite these strengths, there is concern at overall competitiveness given competition rom low-cost economiesand territories oering more attractive incentives.

Te Irish audiovisual industry is operating in the wider media and entertainment industry, where there isglobal growth driven by transormative impact o digital technologies.

In the national arena, a change in the industrial relations environment, and an entrepreneurial approach torights, are widely seen as actors impacting upon urther growth.

Troughout the consultation process, the Steering Group was repeatedly reminded that developing a morecollaborative and joined up approach would bring greater benets.

During the consultation process the Steering Group identied the main challenges acing the industry as:

Fragmentation

Te industry is ragmented and lacks scale;

Te industry is characterised by a large reelance sector and a large SME sector which can be seen both as a strengthand as a weakness;

Te industry is developed along service lines. It needs ownership o intellectual property to create value in individualproduction companies so as to provide them with revenue to reinvest in other projects;

Multiple agency involvement compounds ragmentation.


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33

Partnerships

Due to the ragmented nature o the industry, strong partnerships are essential;

Tere is a lack o clarity in the relationship between broadcasters, unding agencies and independent producerswhich has prevented the industry rom realising its ull potential;

Industry leadership is ragmented. Te industry needs to develop powerul advocates and more joined-up thinkingbetween dierent state agencies;

Tere is potential to develop new partnerships with emerging platorms and technology players.

Domestic Environment

Te local production and distribution market is small and, in real terms, is dicult to extract value rom;

Alongside small and fexible companies the industry needs companies with sucient scale to compete beyondIreland and to establish strong international relationships with an ability to manage multiple projects;

Business expertise (at all levels) is crucial to eective management o growth;

International competitiveness is at the heart o the selling proposition;

Sustainability is a key issue or individuals and companies the boom/bust nature o production tends to compoundthis diculty;

Tere is a lack o combined content planning between R and the independent industry;

National high-speed broadband is a key inrastructural requirement and is essential to stimulate demand and winnew audiences;

Tere is a lack o a domestic competitive dynamic;

Tere is a lack o a rights regime which avours creators;

Piracy is a signicant threat.

Innovation

Innovation is vital or growth;

Te industry needs to adapt to new technologies, new content opportunities, new business relationships and various

new platorms or content distribution;

Tere is a strong multi-national base in Ireland but the industry has little contact with these companies. Greatercross-ertilisation will be important to uture growth;

Tere is a need or strengthened business acumen across the industry to create a stronger entrepreneurial culture

and develop industry leadership.


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Appendix 3 - The Audio Visual Ecosystem

Te content production industry is made up o many talented individuals and companies that develop, produce andexploit great content.

Te industry is comprised o Writers, Directors, Producers, Actors, echnicians, Artists, echnologists, ProductionCompanies, Post Production Companies, Studios, Commercial Production Companies, Corporate and VideoProduction Companies, Audio Studios, Service Providers, Gaming and Digital Content Companies, working acrosslive-action, animation, and interactive content.

None o these individuals work independently o each other, they work within an ecosystem.

FIG 1:alent/Creativity/Enterprise/Innovation

IMAGINATION

TALE

NTE

NTER

PRISE

CREA

TIV

ITY

INNOVATIO

N

AUD

IOVISUALOUTPUTS


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Te creative outputs rom the audiovisual industry provide an experience to the audience which include: Feature lm(live action & animation), elevision production (live action & animation), Creative documentary, Short lms (liveaction & animation), Games, Web and internet production, Entertainment ormats and global brands, CGI and visual

eects.

FIG 2.Creative Outputs

CREATIVEOUTPUTS

live action

animation

FEATURE FILM

live action

animation

TELEVISION

PRODUCTION

CREATIVE

DOCUMENTARY

CGI/VISUAL

EFFECTS

ENTERTAINMENT

FORMATS AND

GLOBAL BRANDS

WEB AND

INTERNET

PRODUCTION

GAMES

live action

animation

SHORT FILMS

COMMERCIALS

MUSIC VIDEO

CORPORATE


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Te audiovisual industry is unique in that it is structurally organised around the production and delivery o individualprojects, and there is oten a long and complex process rom ideas generation to content delivery to the screen,with value added at each stage o the production process. Content creators need rights ownership in order to gain

downstream benet in this value chain.

FIG 3.Production Value Chain

Te value chain represents the activities carried out at each stage o the production process. Te value chain ischanging dramatically rom a traditional silo series o activities to one where there is the potential or producers tocontrol more o the activities leading to vertical integration. Vertical integration is where development productionand distribution activities are carried out in one company and the value created remains in-house.

Development is the stage where audiovisual talent collaborates to create viable stories, ideas and concepts.Development includes activities rom narrative screenplays to the creation o prototypes. All o these activities arebased around telling a story in both visual and narrative orm.

Financing o projects comes rom broadcasters, equity unders, banks, tax incentives, co-production partners, pre-sales and market guarantees. Producers build a network o relationships and contacts with which they partner ornance and co-production.

Te production and post-production process involves assembling a large team so as to capture the story visually andthen combine the visual with editing, sound, music and eects.

A completed project is usually sold to distributors on a territory-by-territory basis and licensed to internationalagencies who act as sales intermediaries.

Platorms are the means by which audiences consume content which is now produced, marketed and distributedin multiple methods. Platorms will continue to evolve as devices become more sophisticated. Tey include CinemaExhibition, DVD/Blu Ray, Pay and Free V, Video on Demand, and Mobile Internet through ablets and Hand-helddevices.

As platorms change it is clear that the industry will become a multi-platorm environment creating an enduring

value relationship with the audience.

Development

Financing

Production/PostProduction

International Salesand Distribution PLATFORMS AUDIENCES


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FIG 4: Te Audiovisual Ecosystem

CONTENTCREATION

DISTRIBUTION/AGGREGATION

Active Government

Tax incentives

Corporation Tax

R&D

Creative Innovation

Finance

Technology

Business Models

GOVERNMENTINNOVATION

Creative

Entreprenuerial

Technical

TALENT

Primary

Post-Primary

Third Level

Fourth Level

EDUCATION

Current Skills

Future Skills

SKILLS/TRAINING

Broadcasters

Irish Film Board

Broadcasting

Authority of Ireland

Sales

Distribution

Co-Production

International Finance

FINANCE

PLATFORMS

AUDIENCE

Movie Theatres

DVD

Internet

Tablets

Mobile

Games Consoles

TV

Pay TV

Speciality TVVideo on Demand

MARKET

International

Promotion

Festivals

Trade Missions

PROMOTION


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Appendix 4 - Government Stakeholders

Organisation o Government DepartmentsTe Irish audiovisual industry is part o the cultural, creative, communications and economic sector. It interacts witha number o state agencies.

Department o Arts, Heritage and the Gaeltacht

Bord Scannn na hireann / the Irish Film Board (IFB) is responsible or the development o the indigenouslm industry as well as the marketing o Ireland as a lm location.

Te Arts Council / An Chomhairle Ealaion is the national agency or the promotion and development o the artsin Ireland.

Culture Ireland (CI) is the national agency designated to promote Irish arts and artists overseas.

Department o Communications, Energy and Natural Resources

Te Broadcasting Authority o Ireland (BAI) established on October 1st 2009, as the independent regulator orradio and television broadcasters in Ireland. Te BAI administers unding

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Building Ireland's AV Economy

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