British films performed strongly in the recent three years. UK box office receipts grew steadily；the box office share of UK films increased continuously；inward investment films kept breaking the box office record of UK films；independent films shone brightly with The King’s Speech grossing $ 414 million at the worldwide box office as well as winning the Academy Award for Best Picture；the UK had the third largest filmed entertainment market in the world（after the USA and Japan）；the film industry made positive contribution to the national economy. The British films and talents enjoyed worldwide reputation. The British government increased public funding to the film industry and paid due emphasis on digital innovation，talent training and oversea promotion. But behind the prosperity is concealed a bleak reality，namely，the British film industry is heavily dependent on inward（Hollywood）investment co-productions. They are registered as British films，whose box office success glamorizes statistics，yet the profit flows to the US. This paper will look at the development of British film industry from 2010 to 2012 and offer brief analysis.