The British Screen Advisory Council has published a paper outlining the changes taking places across the audiovisual sector (film, TV, internet videos, games, social media) and how the Government and regulators need to react to the changes.
The paper concludes: "The global democratisation in content creation and dissemination has only just begun and the UK must be part of it.
"In approaching the issues, our overriding focus has been the development of this audiovisual industry's capability as an enterprise sector and important contributor to wealth creation."
BSAC is an independent body, funded by the media industry, which represents executives in TV, film, satellite, cable and digital media.
The council believes that, while the UK audiovisual industry appears healthy, its competitiveness is being hit by cheaper, foreign, educated workforces.
It said these countries, which include France, the US and Canada, are being supported by their respective governments to protect the audiovisual industry, challenging the UK's position.
The council is now calling for "lighter touch" media regulation in the UK. It concludes: "A light and focused set of government policies and regulations must be designed to help industry meet the challenges head on."
It has also called for government action in other key areas, including the creation of an "audiovisual UK Silicon Valley" to encourage digital media.
Wall, chairman of the working group responsible for the report, said: "This report is endorsed by the full spectrum of the UK audiovisual business. It addresses the key issues to drive this vital UK sector forward.
He added: "It should be the starting point for policy development to ensure we grow the UK audiovisual businesses both domestically and internationally."