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Film Industries and Marketing

Film funding, budgets and public subsidy

  • 3 things to know
  • Component 1

Overview

Three sources of finance for a low-budget British film, film tax relief and cultural test.

What you need to know

Answer each one before you reveal it.

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Key term

What does a film's budget cover?

Key term

How is a Hollywood blockbuster typically financed?

Key term

Name three sources of finance for a low-budget British film.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What does a film's budget cover?

    Model answer

    A budget covers everything from script development to the delivery of the finished film. Marketing costs are usually accounted for separately.

  2. 2

    How is a Hollywood blockbuster typically financed?

    Model answer

    A studio funds a blockbuster from its own resources and its parent conglomerate's cash flow. Co-financing partners sometimes take a share of the risk.

  3. 3

    Name three sources of finance for a low-budget British film.

    Model answer

    The BFI, a broadcaster such as BBC Films and an overseas co-producer are three sources. Pre-sales to foreign distributors add further money.

  4. 4

    What is the BFI, and where does its funding come from?

    Model answer

    The BFI is the lead organisation for film in the UK. National Lottery money and government grant-in-aid fund its work.

  5. 5

    What is film tax relief, and how does it work?

    Model answer

    Film tax relief returns a cash rebate on a share of a production's qualifying UK spending. Productions must pass a cultural test or qualify as a treaty co-production.

  6. 6

    Why do governments subsidise film production?

    Model answer

    Subsidy protects national culture and supports skilled employment. Inward investment from foreign productions is a further motive.

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