U.K. Indie Sector Sees Record Growth

LONDON: The U.K.’s independent TV production sector is now worth £2.8 billion ($4.2 billion), a 14-percent gain year-on-year, according to the latest figures from Pact.

This growth, measured from 2011 to 2012, is the largest annual increase in indie revenues since Pact first commissioned a financial census, in 2004.

The sector was helped out by a boom in commissioning. Domestic commissioners increased investment by £307 million ($456 million) in 2012. This is the first time in four years that revenue from primary U.K. commissions increased. International revenues are up by more than 6 percent, to £771 million ($1.15 billion). The sales of finished programs grew by £33 million ($49 million) to £152 million ($226 million).

It was a good year for smaller indies. On average, independent outfits with a turnover of under £10 million ($14.8 million) increased their share of the overall sector revenues from 1.1 percent to 5 percent. The BBC and Channel 4 both spent more last year with smaller indies.

Debbie Manners, chair of Pact and managing director of Keo Films, said: “Our independent sector is stronger economically than it has ever been. Revenues are at a record high, encouraged by a U.K. broadcast ecology that is a catalyst for growth and entrepreneurialism.

“Our productions are in demand the world over, borne out by year-on-year increases in international revenues.

“The Communications Act of 2003 has worked well and it remains as relevant today as it was ten years ago. The results are good for business, good for competition, good for employment and good for the sector as a whole—and of course, the outcome is great for viewers.”

John McVay, the chief executive at Pact, added: “There are encouraging findings in the new Pact census, especially in the rebalancing of revenue sources for indies. Companies have been smart to embrace international markets, but domestic investment in indies’ content is vital.

“The top line figures show strong growth and there are success stories for many indies. But it remains a tough and competitive market and there is no room for complacency in the independent productions sector.

“Pact will continue to work with government and key stakeholders to help encourage a business environment that will enable sustained growth.”

Mark Oliver, the chief executive of Oliver & Ohlbaum Associates, which compiled the census for Pact, said: “In O&O’s fifth year of compiling the Pact census the U.K.’s independent producer sector has managed to improve upon its recent and consistent strong medium-term growth performance with its highest annual growth rate yet.

“In the U.K. there are encouraging signs of a significant and consistent contribution to new commissioning from the multichannel sector in addition to PSB investment, and a growing income stream from secondary rights as new on-demand platform competition takes effect. Overseas, the story is of continued success as the world’s broadcasters look to the U.K.’s indie sector for the ideas that drive viewing and subscriptions.”