1. IMAGINE YOUR BUSINESS IN
LONDON
WHY LONDON FOR CREATIVE INDUSTRIES

2. A UNIQUE REPUTATION
TALENT
 London boasts some of the world‟s most gifted
designers, advertisers, film production specialists, games
programmers and animators, artists, musicians and
writers
ENVIRONMENT
 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 PER
YEAR, GENERATING 16% OF
THE CITY‟S ANNUAL GROSS
VALUE ADDED (GVA)

4. A GLOBAL HUB OF
TRAINED CREATIVE MINDS:
MORE THAN 429,000
PEOPLE WORK IN
LONDON‟S CREATIVE
INDUSTRIES

5. A UNIQUE REPUTATION
ACCESS
 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
million
POSITION
 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 ENVIRONMENT
Legal / 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 legislation
London 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 world's 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%
Europe
Source: 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 sector's 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 PRODUCTION
INDUSTRY 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 UKFC's 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
UK's 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 INDUSTRY
Prominent UK-based Financiers in other creative
financiers 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 market
Source: 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 FOR
SETTING 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

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CAN HELP YOUR BUSINESS
SUCCEED

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