UK TV Production Market Insight Report 2017
About this report
This report focuses on the UK TV Production Market. It describes the market, quantifies its size and describes key trends.
The report contains historical growth rates and our forecasts for the market which are based on analysis of historical trends and growth drivers.
Key trends and drivers reported on and analysed include levels of TV viewing, impact of the development of new platforms such as OTT / IPTV, television industry revenue (advertising spending, licence fee trends, pay-TV subscriptions) and the recent BBC charter renewal.
The competitive landscape section identifies the leading production companies, profiles them and comments on trends such as market consolidation and the growth of the super-indies, development of content distribution models, deficit funding and exploitation of new revenue sources such as digital rights.
Who is the report intended for?
TV production companies
Broadcasters and television networks
Consultants and other advisors
Governments and Regulators
What are the sources and methodology?
This report is based on
– In-depth analysis of the macroeconomic and legislative environments and relevant industry drivers
– Analysis of information on the leading TV production groups
– Interviews with senior-level contacts in the TV and TV production industries
– Our own experience of advising both companies and investors in the TV and TV production industries and the wider media sector.
Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.
The UK TV Production Market is just under €3bn in size.
The PSBs – which have certain statutory requirements regarding production and rights ownership – are by far the most important segment in terms of demand for TV production. However, in recent years, multi-channel broadcasters, in particular, BSkyB, have increased their programme spending.
The development of new forms of entertainment such as gaming and other interactive content on smartphones, tablets and other platforms, has led to fall in TV viewing levels, with the effect being greatest amongst younger generations.
New revenue models have continued to develop with the proportion of programme funding from the initial broadcaster decreasing as a consequence.
Exploitation of the potential from international sales of finished content, licensing of formats, digital rights and success-based payments is important to the commercial success of a format with the UK being a major exporter of formats.
All of the leading international operators are present in the UK market along with some significant domestic players.
The largest operators in the UK television production market are the in-house production arms of the two leading networks, BBC and ITV.
Relative to other markets, the UK has a strong independent production sector with Endemol Shine being the largest indy group.
Despite recent consolidation activity, the market remains fragmented.
The outlook for the market appears favourable.
In particular, following charter renewal, the situation at the BBC should be more settled in the future. The new charter potentially creates greater opportunities for independent producers with the abandoning of quotas for internal production in areas outside news / current affairs.
However, Brexit represents an area of uncertainty with potential to impact ad revenue and even to impede international sales.