£1 of funding for S4C means nearly £2 for the Welsh Economy
S4C has revealed that an economic study has shown that for every pound that the channel invests in content, it produces almost two pounds of added value to the Welsh economy.
According to Arad, the company that carried out the research, every £1 of expenditure by S4C in the creative industries creates an economic impact of £1.95 in those industries in Wales.
The research has been commissioned by S4C as part of the process of measuring the success and effectiveness of the channel.
According to the Chief Executive of S4C, the research shows that S4C plays an important role in driving forward economic activity, supporting thousands of jobs.
Chief Executive of S4C, Ian Jones, said:
"It is clear from this research that S4C’s economic value to Wales is very significant. The figures show that the value of the channel to our economy is nearly double the amount that is paid into S4C from public sources.
"We were already aware that about two thousand jobs are being supported by S4C activity across Wales. The vast majority of those jobs serve the independent production companies that are located in all parts of Wales.
"This research shows how important it has been for us to prioritise expenditure on content during the period of budget cuts, and it’s clear that S4C is succeeding to amplify the value of the money we receive to create many more economic benefits for Wales."
Analysis has been carried out by Arad Research, specifically relating to S4C’s impact and expenditure on the creative industries based in Wales. The analysis is based on the premise of a Keynesian Multiplier Effect, where the initial expenditure generated by S4C serves as income for other creative industry businesses which in turn stimulates further rounds of spending by those industries in terms of investment and employment.
The analysis was supplemented by a survey of the suppliers of goods and services to S4C and it suggests that:
• an initial spend of £63.7 million by S4C on programmes and content in 2012 sourced from independent companies in Wales, generated an additional economic impact of £60.5 million and a total economic impact of £124.3 million on the Welsh creative industries.
• every pound spent on content sourced from independent companies in Wales generated a total economic impact of £1.95 on the Welsh creative industries.
Expenditure in Wales 2012 - £63,736,544.67
Expenditure outside Wales 2012 - £212,412.50
Additional economic effect on the Creative Industries in Wales 2012 - £60,527,495.81
Total Economic Effect on the Creative Industries in Wales 2012 - £124,264,040.48
• Since it was established in 1982, S4C has invested over £2.2bn pounds into the economy in Wales.