Multichannel Broadcasters’ U.K. Content Investment Hits Record High

LONDON: Members of the Commercial Broadcasters Association (COBA) invested a record £725 million ($1.23 billion) in U.K. TV production last year, which is up nearly 50 percent from 2009 spending, according to the latest census figures.

COBA is the U.K. industry body for commercial broadcasters and their on-demand services; members are A+E Networks, BSkyB, Chinese Channel, Discovery Networks, FOX International Channels, NBCUniversal, QVC, Scripps Networks International, Sony Pictures Television, The Walt Disney Company, Turner Broadcasting and Viacom.

COBA's 2014 Census finds that total content investment (U.K. and non-domestic) by COBA members has continued to grow at an annual rate of 5 percent since 2011, reaching £2.57 billion ($4.36 billion) in 2013. An even higher rate of growth has been experienced in U.K. content investment, with annual growth of 5.5 percent.

Investment in first-run U.K. programming has increased sharply, up 53 percent from £387 million ($656 million) in 2009 to £597 million ($1.01 billion) last year. This is a CAGR of 7 percent. Spending on secondary rights was at £124 million ($210 million), with formats spending at £4 million ($6.8 million).

The highest area of growth among COBA members was investment in U.K. content made by external producers, which has grown at 9.8 percent CAGR since 2011. Investment in programs made by U.K. independent TV producers also recorded strong growth, up 18 percent compared to the previous census. More than a third of U.K. content investment goes toward supporting the indie production sector; of that, more than two-thirds is spent on smaller indies.

The new tax reliefs for high-end TV and animation are having a positive effect; in the first full year, they attracted £447 million ($757 million) in production investment.

Dee Forbes, COBA's chair and the president and managing director of Discovery Networks for Western Europe, said: “This is the highest recorded level of investment in U.K. content from COBA members and demonstrates our commitment to the sector. Our members increased their investment in overall U.K. television content and recorded particularly strong growth in first-run programs and commissions from independent producers. Multichannel broadcasters are one of the fastest growing parts of the U.K. broadcasting sector.”

Adrian Wootton, the chief executive of the British Film Commission and Film London, said: “We are delighted to work in association with COBA and its membership to support this report which demonstrates the U.K.’s growing success in attracting significant international investment through television production. Thanks to our excellent tax reliefs, our world-class talent and infrastructure are welcoming a range of international and domestic production, boosting the economy and creating thousands of jobs.”