UK production revenues near pre-Covid levels, but int’l & streamer spending falls, says Pact

UK drama The Crown

UK TV production revenues are bouncing back to pre-Covid levels, though figures from international TV and streaming are on a downward trajectory, according to the latest findings by trade body Pact.

The Pact Census 2021, published today, found that international revenues from commissioning fell for the second year in a row to £952m ($1.09bn), with the blame pinned on the ongoing impact of Covid-19 and the end of several big shows.

Revenues from commissions by global streamers, such as Netflix and Amazon, shrunk by £57m in 2021, though UK streaming commissioning revenue, from the likes of BBC iPlayer and All 4, increased by 191%.

Revenue from international sales of finished programming also grew, with a 10% year-on-year uptick, as the UK was able to get back into production quicker than most other countries, allowing buyers around the world to stock up on shows for their schedules.

The recovery was largely driven by increased revenues for larger producers, many of whom were hit hard as the pandemic spread in 2020, with 44% of total revenues achieved by producers with a turnover of over £70m. Pact added that more producers moved into this £70m+ bracket last year, a result of continued consolidation and high-value commissions.

John McVay

Brighter picture overall

Overall TV production revenues have nearly returned to pre-Covid levels, growing by 13% in 2021 to £3.25bn, only £79m below pre-Covid revenues in 2019.

Pact added that while the pandemic had an impact in 2021, “innovations” by the sector, as well as the Government’s Production Restart Scheme, meant that production was able to return to near full capacity. The recovery was also bolstered by the resumption of many productions delayed from 2020.

Domestic TV revenues also increased significantly in 2021 with commissions from UK broadcasters the main driving force of the recovery, reaching £2.20bn, a 30% increase year-on-year and the first time such revenues have reached over £2bn.

Public service broadcaster spend on indie producers grew by 24% and multichannel spend – largely driven by pay-TV giant Sky – nearly doubled with an increase of 99%. Increased competition from international streamers, as well as Covid-related production backlogs, drove much of these increases as broadcasters looked to bolster their originals.

Drama, meanwhile, re-claimed its place as the most valuable genre, having suffered in 2020 due to Covid-19. It accounted for 35% of all UK spend, with entertainment (28%) and factual entertainment (20%) also taking large proportions of spend.

Pact CEO, John McVay, said: “It’s encouraging to see that the production sector has made such a strong recovery following the pandemic, but clearly Covid-related challenges still remain, including a lack of viable insurance options for producers.

“Although international revenue has some way to bounce back, UK indies still pumped close to £1bn into the UK economy and the ability for the UK to get back into production quickly contributed to its strong recovery.”