The UK TV export industry has reached new heights, with British TV shows fetching a record £1.85 billion ($2.25 billion) in 2022-23. This growth can be attributed to the booming sales to streamers and the resurgence of finished tape deals. Despite facing a brutal economy, a battered TV ad market, and major buyers withholding spend, the demand for popular shows such as The Ipcress Files, Frozen Planet II, and This England continued to build. However, a critical analysis reveals both the successes and challenges faced by the industry.
One significant trend identified in the UK TV Exports Report is the increasing sales of British TV shows to international streaming and VoD platforms. For the first time, over half of the programmes (53%) were sold to these platforms, marking a significant increase from 39% the previous year. This shift can be attributed to streamers’ preference for licensing finished programs, as they moved away from costlier original content spend. Finished programmes accounted for 60% of sales, surpassing the £1 billion mark for the first time. This indicates a shift in viewership habits and the increasing global appetite for British content.
While the report highlights the overall growth in the UK TV export industry, it also sheds light on specific markets and their varying levels of success. North America, despite remaining the largest buyer of UK content, contributed £525 million, which is still below pre-Covid levels. This decline represents an 11% decrease from the previous year. On the other hand, several European markets experienced significant growth, with Spain leading the pack with a massive 79% increase in sales (£40 million). Italy and Germany also experienced growth, with increases of 21% (£38 million) and 26% (£108 million) respectively.
However, it is crucial to critically examine the challenges faced by the industry. The survey conducted as part of the report revealed that financing support from commissioners was a widespread concern among respondents. The UK has seen a commissioning downturn, with Channel 4 reportedly moving up to 50 shows into 2024. Additionally, 91% of respondents expressed concerns over increased production costs, which could impact the industry’s profitability. Moreover, the growing market for Free Ad-Supported TV (FAST) channels was identified as a potential market disruptor by 73% of respondents. These challenges highlight the need for strategic planning and adaptation to ensure sustained growth in the face of uncertainty.
According to the report, scripted drama remains the primary driver of international content sales for UK companies, accounting for 49% of revenue. This is followed by entertainment at 21% and factual programming at 18%. The success of scripted dramas such as The Ipcress Files and The Traitors is evident in the increased sales and format deals. The Traitors, in particular, experienced a 22% increase in format sales. These figures emphasize the global appeal of UK-produced dramas and the creativity and storytelling prowess of British TV producers.
The record-breaking growth in the UK TV export industry has garnered praise from industry leaders. John McVay, CEO of Pact, stated that the strong sales figures reflect the quality of TV programmes produced by UK indies. However, he anticipates that next year’s report may reflect the current global financial uncertainty and rising production costs. The sentiments were echoed by Bob McCourt, COO of Commercial and International at Fremantle, who highlighted the importance of compelling storytelling and world-class talent in delivering successful TV content.
Moving forward, industry leaders remain optimistic about the UK TV export industry’s resilience. Rebecca Glashow, CEO of Global Distribution at BBC Studios, commended the BBC Studios team for their leadership in bringing high-quality British content to the world. Louise Pedersen, CEO of All3Media International, celebrated the record growth in the export sector while acknowledging the challenges posed by the uncertainties in the market. Ruth Berry, Managing Director of Global Partnerships at ITV Studios, expressed the need for top-tier content to cut through the increasingly discerning buyers and commissioners.
The UK TV export industry has achieved unprecedented success, driven by sales to streaming platforms and the resurgence of finished tape deals. However, critical analysis reveals ongoing challenges such as financing support, production costs, and the rise of FAST channels. The industry’s ability to adapt and deliver high-quality content will determine its future growth and success in the global market.