Linju Mariam Sabu (1621120)

Impact of Brexit on Entertainment Industry

Brexit has become and widely talked topic since the British Referendum. The United
Kingdom underwent elections on 23rd June. With a leave percentages win by 52% to 48%,
UK elected to the leave the European Union. Even though the process might take one to two
year, the effects of Brexit has started.
The European Union, previously known as European Economic Community or EEC, was an
antidote to the extreme nationalism which had devastated the continent. Europe has been the
centre of many wars over the years. It was a politico-economic union of 28 member
states that are located primarily in Europe. EU has developed an internal single
market through a standardised system of laws that apply in all member states. EU policies
aim to ensure the free movement of people, goods, services, and capital within the internal
market, enact legislation in justice and home affairs, and maintain common policies on trade,
agriculture, fisheries, and regional development. EU has 19 EU member states which use
the euro currency. Importance of EU is that European Union has brought peace and stability
to Europe. In 2012, the Union was even awarded the Noble Peace Prize. Educational
institutions work together, students may go to another EU member state to study. School
diplomas and employment certificates are accepted in all EU member states. And last
maintaing peace and security in that region of the world. The theory that countries engaged in
trade will not go on war against each other was made true here.
But since the inflow European migrants to the country since accession of Eastern European
countries in the early 2000s, the government underestimated the groundswell of public
resentment. The inflow of young educated immigrants to Britain in search of jobs is good for
the EU and Britain's economy. The Britons or the pre-existing British population income will
be reduced by this. There has been second thoughts of UK membership in the EU. The
present government under the leadership of David Cameron tried to keep the Eurosceptics at
bay. But the general sentiments were against it.
The day following the British referendum, there was a large impact on the British markets.
The value of the British pound fell to an all-time low in 31 years. Indian business also felt the
impact of the Brexit. As the value of Indian rupees also decreased on the following days.

Entertainment Industry was one of the main industries that have been affected by this Brexit.
British film industry and music industry has been affected by this. Last month, over 250
notably names including actors Patrick Stewart, Benedict Cumberbatch, Chiwetel Ejiofor,
Keira Knightley, Jude Law and director Steve McQueen signed a "love letter" urging Brits
to oppose the Brexit. Many people from this industry have openly criticised the country for
choosing to leave the European Union. HBOs mega-series Game of Thrones (GoT)
would have been one of many domestic and international productions feeling the tremor of a
U.K. exit of the EU. GoT is been partially financed by the European Regional Development
Fund. HBO representatives have said GoT will not be financially affected by Brexit. But it
is hard to think that this decision will not affect new and emerging shows with limited access
to funds. Similarly other TV sitcoms that are viewed in other parts of EU states will be
affected by the finance and export.
Media Programme, founded by the EU in 1991, has been a major source of funding to British
productions over the last decade, pouring millions into projects like The Kings
Speech, Slumdog Millionaire, Tinker Tailor Soldier Spy and others. Without such funding,
its very likely that these films would have never made it to the big screen. The British
entertainment industry had came out almost unanimously in favour of remaining in the EU,
warning that a Brexit would threaten the export of British film and TV series to Europe and
would cut off British filmmakers from European subsidies, such as the MEDIA program,
which came around $180 million into Brit productions between 2007 and 2015. Taxes will be
levied on British entertainment products by the other EU states.
The Enders study said the British audiovisual industry was highly exposed because more
than half of its exports, which totals $5.5 billion (4.0 billion) in 2014, go to the EU. It
warned a decrease its growth forecast for the U.K. industry, which had been for 5.4 percent
growth in advertising revenue for the 2016-2018 period. The music Industry was also
affected similarly. Most of the albums are sold and tours happens in the states of European
Union. Taxes will be added on the exports and shows will need separate admission from each
EU state to be held. "The decision to exit the European Union is a major blow to the U.K.
film and TV industry," Michael Ryan says in a statement to Variety.
Even though all these side effects of the Brexit has started, the wait from the new government
in Britain and the compromise deals with the EU has started. The compromise deals and the
way UK exits from the EU will have immense impact on the entertainment industry.