UK production sector suffering due to commissioning imbalance claims Pact report
UK producers association Pact has issued an in-depth report which raises serious concerns about the growing imbalance in the TV screen sector, with small and medium-sized producers threatened by a prolonged commissioning slowdown.
Pact’s Changing UK Content Report suggests that nations and regions programming has been badly compromised by the industry contraction, while investment in certain genres such as specialist factual and daytime entertainment is shrinking sharply.
With public service broadcasters (PSBs) and streamers spending their money on flagship big-budget drama series and cheap high-volume reality shows, the polarisation of content genres has left the so-called ‘squeezed middle’ of the industry feeding off commissioning crumbs.
Pact’s report claims the success of the UK TV production sector relies on a cycle of creative renewal built on talent being incentivised to build and develop businesses. In turn, that attracts third-party funding to the sector, with commissioners benefitting from innovative ideas and audiences enjoying a diverse range of programming.
The association says this model “has worked extremely well over the last two decades, supported by a balanced PSB regulatory framework.” However, with advertising investment pivoting towards online campaigns, public funding declining and linear audiences gradually dwindling, PSBs are changing their commissioning strategies to focus on ‘fewer, bigger, better’ productions to drive engagement on their streaming platforms.
Pact believes the trend has resulted in investment moving away from several content genres and budget ranges – putting severe pressure on smaller prodcos to develop their businesses.
The report shows that in the UK, streamers invested £1.6bn (US$2.07bn) on original programming in 2023 – largely spent on high-end drama and factual – while the BBC invested £1.2bn.
To compete with the streamers, PSB commissioning too is being spent on high-end drama, factual and peak-time entertainment, while investment is moving out of daytime entertainment, factual entertainment, specialist and arts programming – the bread-and-butter genres of many smaller prodcos in the UK.
The picture gets worse when you take into account that a large portion of high-end TV dramas are more likely to be produced by a small number of experienced prodcos with proven track records. Pact says the imbalance in the industry particularly affects producers active in shrinking content genres across the nations and regions.
A factual entertainment producer quoted in the report said: “We would do a lot of work in the higher volume, lower tariff area. And we can see those margins being squeezed quite considerably. I know specialist programming companies are struggling because they have to get so many different funders involved. Only the companies with really deep pockets are able to finance both the cost of sale and the development.”
Another regions-based indie producer said: “When it’s a slow market, when there’s less money, people are naturally more risk averse, and that means they’re not going to take a bet on small indies. People are just less open to try new things.
“There’s less money, there’s less creative risk. That’s why you see a lot of reboots. So, when you’re an indie that wants to offer new, original formats, original content, maybe new talent, that does tend to get squeezed out of consideration.
John McVay, Pact’s CEO, said: “The report shows that if recent trends continue, the balance of the production sector could be at risk, further progress in improving the diversity of off-screen talent and crew would come under pressure and the whole cycle of creative renewal could be challenged.
“This would affect both commissioners and audiences across the UK and could also affect the UK’s global competitiveness and ability to attract inward investment.
“It’s important that we start a conversation about the findings of this report and the impact they will have on the future of the production sector.”
