In a landmark development, streamer investment in British television has surpassed $1 billion for the first time, according to the latest findings from Pact. This surge reflects a significant shift in the television landscape, particularly as traditional networks face mounting challenges.
Streamer Investment in British TV Surpasses $1 Billion
Streamer spend on British TV shows comfortably topped $1 billion last year, according to Pact’s latest census. Chief John McVay criticized Channel 4 for its “snarkiness” regarding the Adolescence controversy that unfolded at the Edinburgh TV Festival.
Record Investment Amidst Industry Challenges
For the full year of 2024, streamers invested £850 million ($1.15 billion) in UK series, marking a 24% increase that broke records during a year described by Pact as having “sluggish” overall growth. Streamers commissioned notable titles like Adolescence, Rivals, and additional seasons of Slow Horses.
Decline in Traditional Network Investment
While streamer spending rose, investment in British content from traditional linear networks outside the UK fell by 36% to £279 million. This meant that overall commissioning revenue from non-UK players remained virtually flat during a tumultuous 2024, characterized by a “Survive ’til 25” attitude, the decline of mid-budget programming, and the closure of several established British production houses. Additionally, sales of British shows abroad dropped by 26% to a 12-year low of £153 million.
Channel 4’s Accusations and McVay’s Response
During a recent Pact Census briefing, McVay highlighted that streamer spending on British TV now significantly exceeds Channel 4’s annual originals budget. He accused the network of engaging in “snarkiness” regarding the Adolescence issue, which ignited when Channel 4 news chief Louisa Compton claimed that Netflix acted like “TV tourists” by commissioning the show after Channel 4 had nurtured its co-creators for years. Netflix commissioner Mona Qureshi countered this claim, asserting her long-standing presence in the industry.
Welcoming Streamer Investment
McVay expressed support for streamers, stating, “They are not public service broadcasters, but they will invest in brilliant British creatives and independents like Jack Thorne, and we should welcome that.” He noted that many professionals working on Netflix UK shows are also available for domestic productions.
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Concerns Over Channel 4’s Programming Strategy
At the Edinburgh event, Channel 4’s content boss Ian Katz claimed his network is taking risks with new shows, while rivals opt for international formats and reboots. However, McVay challenged this assertion, referencing Pact Census research that revealed only 17% of Channel 4’s spending last year went towards new commissions, a decline of 4 percentage points. This rate placed Channel 4 last among its peers, despite similar declines at the BBC, ITV, and Channel 5.
Future of British Drama and Production
Despite the challenges, McVay acknowledged that Channel 4 commissioned more drama than ever last year, with drama spending by all British broadcasters reaching a record high of 42%. However, he cautioned that securing co-productions is becoming increasingly difficult as American buyers focus on originals. The BBC has described this situation as a scripted funding crisis, with many dramas “stuck in limbo” due to insufficient funding.
Looking Ahead
McVay emphasized the need for an improved UK high-end TV tax credit and noted that discussions are ongoing about how to finance domestic drama sustainably. Overall, British producer revenues rose by 1.3% to £3.6 billion last year, which McVay suggested could represent a new normal, contrasting sharply with the 5%-8% average annual growth seen before the pandemic.
As McVay prepares to exit Pact after over 25 years, the search for his successor continues.
