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Global revenue falls to lowest level since 2017: deadline

Global revenue falls to lowest level since 2017: deadline

The rise of UK TV that brought you the likes of Netflix The crown it may be slowing down, with the latest census from producer trade body Pact showing the lowest level of international TV revenue since 2017 and broadcast spending down 50 million pounds ($57.7 million).

While the overall UK TV market was almost back to pre-Covid levels due to a £500m ($577m) increase in domestic revenue in 2021, the report cited a worrying 12.5% ​​drop in international turnover to £950 million ($1.1 billion), which is almost a quarter below the record 2019 figure.

In recent years, Pact Census has shown significant gains in UK TV revenue from global players, with studios and streamers taking advantage of the plethora of British talent on and off screen, cheaper production costs and legendary credit. tax of the nation.

But last year, spending by streamers, including Netflix and Amazon Prime Video, fell 16% to £299m, the lowest level since data began to be recorded in 2018.

Speaking to reporters yesterday morning, Pact CEO John McVay said it’s too early to tell if the figures are a longer-term trend or a Covid-induced issue due to production delays caused due to the pandemic.

He also noted that streamers bring in-house shows and the Warner Bros. Discovery merger leads these conglomerates to “take their eyes off the ball” in the UK.

“We think there are several forces at play and we’ll know better next year,” added McVay, who said he had witnessed a strong appetite for UK content in the recent Realscreen market.

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McVay dismissed the idea that US streamers and studios are shifting investment from the UK to other nations, such as France, to cater to the rise of non-English language content.

“I don’t think Netflix is ​​stealing from Britain to pay France,” he added. “The UK is still a major player and money is not moving from one market to another.”

However, McVay’s comments came a day after a similar report from the French television market showed record international spending of 678 million euros ($672 million) boosted by the success of the tax rebate for the international production from France.

Cost of living

He also downplayed concerns that the damaging cost-of-living crisis will encourage buyers to shun the UK, though he urged UK broadcasters to help independents with these spiraling prices, comparing the situation to costs. additional Covid.

“We are monitoring this very closely,” he added. “[Spiralling costs] are fundamental that we cannot control and [UK] buyers should be understanding of that. We need a sensible discussion on how to navigate these costs.”

Domestic spending in the UK market made up for the international shortfall, with an increase of £500m leading to a domestic record of £1.9bn. This brought the total market size back up to £3.25bn, close to the record £3.33bn set in 2019.

McVay attributed this mainly to the BBC, ITV, Channel 4 and Paramount-owned Channel 5 increasing spending after a pandemic-impacted 2020 in which they had to cancel dozens of projects, although multi-channel spending, mainly from Sky , also doubled to £443 million. .

He urged the BBC in particular to keep ramping up spending and open up more of its schedules to new IPs, at a time when the corporation faces pressure to reboot old hits such as Survivor Y gladiators

More than a third (35%) of total spend went to drama, an increase of 6 percentage points from 2020, which McVay expects will continue to increase for the lucrative genre. The figure was 40% in 2019.

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Notably, the annual census also showed how the UK’s independent industries are consolidating and growing.

Almost 10% of producers turned over £70m last year, double the 5% from the previous year.

Channel 4 Evidence

Channel 4 spent nearly two-thirds (61%) of its budget on these biggest independents, up from 55% in 2020, which McVay says is a good reason to keep the It’s a sin station in public hands, while the privatization battle continues under the mandate of Liz Truss.

“This is a great consequence of the Channel 4 model,” he added. “If you’re a small business looking to grow, a Channel 4 commission gives you the capital to invest and go global.”

Pact has been a strong advocate for reversing privatization, and most recently sent an open letter to Truss and her challenger to the Conservative leadership, Rishi Sunak, from more than 750 independents urging the winner to stop the “harmful” move.

He said the lobbying will continue once Truss has appointed a Culture Secretary to replace Nadine Dorries, probably later this week.

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