Pact: UK exports dip but international production blossoming

Sales of British shows dipped by 2% to hit £1.82bn in 2023/24 although there was a surge of international productions by UK companies, according to Pact’s annual TV Exports Report. 

Despite the marginal reduction from 2022/23’s record high of £1.85bn and a significant drop in revenues from streamer co-productions, international productions grew almost a third (29%) year-on-year to hit £325m, up from £252m last year.  

The growth in this area, which now accounts for 18% of total exports (a four-percentage point increase), helped offset declines across the board, acutely felt in co-productions which sank from £167m to £120m, a drop of 28%.  

Finished tape sales fell 8% y-o-y from £1.1bn to total just over £1bn, while format sales were down 7% from £231m to £216m, according to the report which is compiled by global TV consultancy 3Vision for Pact. The report, sponsored by leading UK distributors Fremantle, BBC Studios, ITV Studios, All3Media International, draws insight from more than 20 UK distributors. 

The figures echo those revealed by Broadcast’s Distributor’s Survey earlier this year, which saw collective revenues drop 4.6% to £1.85bn this year, from £1.94bn in 2023. 

Co-pro worries 

The fall in co-productions reflects the “challenging narrative” and the “very clear retreat from the market by US Media”, with streaming majors Amazon Prime, Max and Netflix noticeably turning off the co-pro tap, according to the report. 

Some 17% of respondents said they had managed to secure a co-production partnership with Amazon Prime in 2023/24, down from 27% last year. Only 8% scored a deal with Max and Netflix this year, in comparison with 18% in 2022/23, while there were also fractional declines at all streamers – including Peacock, Disney+, Apple TV+, Paramount+ and Lionsgate+ – save for Discovery+ where there was no deals this year and last. 

“The drop in overall revenues is likely to be very sensitive to the reduction in activity – especially premium drama – by some of the large US media companies that have partnered with [UK] companies in previous years,” the report stated. 

Finished tape sales, which continued to account for the biggest proportion of exports (56%), saw an even split of business with traditional broadcasters and VoD services, which also highlighted belt-tightening at SVoDs for licensing. Sales to SVoDs dipped nine percentage points to account for 35% of TV sales.  

Historically strong acquirers of content such as Netflix, Amazon Prime, Discovery+ and Paramount+ increased their licensing activity solidly with UK exporters, according to respondents, with at least eight in 10 distributors securing deals with these services. 

North America buys in bulk while European markets reverse 

Perhaps reflecting the knock-on effect of creative strikes to its own production industry, the US, and North America in general, continued to be the most significant market for importing UK programming. The US grew 13% y-o-y to hit £593m of sales, while North America (including Canadian and pan-regional deals) hit a record £743m. The US accounted for 33% of total exports, while North America was at 41%. 

There were, however, significant reductions in business to major European markets, with exports to France dropping a fifth (21%) to reach £81m revenues, a 23% drop in Italian sales (£29m) and Spanish revenues fell to £34m (-15%). 

The key shows for the major distributors involved in the report include Boat Story, Champion and The Tourist S2 (All3Media International); Doctor Who: The Specials, Planet Earth III and Mallorca Files S3 (BBCS), America’s Got Talent, Sullivan’s Crossing and Alice & Jack (Fremantle); and The Voice, Love Island and Vigil S2 (ITVS). 

Pact chief executive John McVay said: “This year’s report reflects the challenges that the industry has faced over the past few years and highlights the very mixed picture and variances experienced by UK distributors.  

“But it also shows the strength and tenacity of the sector, as well as the continued quality of British TV content that is enjoyed across the globe.” 

All3MI chief Louise Pedersen said: “Distributors are working hard across multiple rights and revenues streams to maximise income for producers, however the decline in US co-production funding should not be ignored.  

“Its main impact is on the financing of premium scripted shows, which is proving increasingly challenging above a certain budget level.” 

Ruth Berry, managing director, global partnerships, ITVS, said: “Considering the operating environment, I think it’s a huge credit to the UK industry to see such a marginal decrease in TV exporting over the last year. It just goes to show that no matter the headwinds, Britain’s creative community is robust.”