U.K. Indie Production Sector Records Revenues of £1.88 billion

LONDON, April 30: According to the Independent Production Census, developed by Pact, Bank of Ireland Corporate Banking and KPMG, the British indie sector generated £1.88 billion in revenues in 2006, a 9.8 percent increase on 2005.

The report also notes how attractive British independent production companies have become to external investors: 45 percent of companies surveyed received a takeover approach in 2006, while 36 percent have sought to raise finance during this period, in the form of both equity and debt finance. Moreover, 33 percent of companies with revenues of between £5 million and £10 million intend to merge, acquire or be acquired.

U.K. terrestrial commissions still account for the lion’s share of revenue for independent production companies. However British multichannel commissions are becoming a larger source of revenue, now accounting for 9.4 percent of revenues, compared with the 4.2 percent reported in the 2005 census. In addition, 19.8 percent of all TV revenue now comes from the international market, compared with 14.1 percent in the 2005 census. Of this, 60.5 percent, or £202 million, is from factual and factual entertainment programs commissioned by U.S. broadcasters.

John McVay, the chief executive of Pact, commented: “This is the first comprehensive report on the performance of one of the world’s leading program markets. It demonstrates that by empowering creative businesses to exploit their intellectual property rights that it is possible to build scale businesses that can compete in the global markets. The economic strength of the U.K. indie sector is the envy of the world and realizes a key ambition of the 2003 Communications Act.”