The high-end television production sector in the United Kingdom faces significant challenges, as highlighted by Jane Featherstone, COO of Sister, a transatlantic production company. During her testimony to the Culture, Media and Sport committee, Featherstone expressed concerns about escalating costs, shifting viewer habits, and technological changes impacting the industry. She emphasized that production expenses have surged, making it increasingly difficult for public service broadcasters to fund projects. Additionally, British content struggles to find international markets, complicating financial sustainability. To address these issues, Featherstone proposed reforms to the current tax incentives to better support public service broadcasting and regional productions outside London.

Economic Pressures on UK Television Productions

Featherstone pointed out that rising production costs are creating unprecedented challenges for the UK’s high-end TV sector. Costs associated with below-the-line elements have increased by approximately 40%, while above-the-line expenses have escalated even more significantly. This has led to a situation where budgets are so inflated that public service broadcasters can no longer afford to fully fund projects. Consequently, producers now face greater uncertainty when a project is greenlit, as securing full funding has become a major concern.

Traditionally, receiving a green light for a new show was a moment of celebration. However, Featherstone noted that this has shifted dramatically. Now, producers immediately worry about how they will finance the project, especially since green lights often only come with partial funding. The BBC, for instance, has multiple shows that it cannot fully fund despite their quality and potential. Lindsay Salt, the BBC’s director of drama, echoed similar sentiments at an industry conference, emphasizing the need for co-productions to manage costs.

International Market Challenges and Proposed Solutions

Beyond domestic funding issues, British content faces difficulties in international markets. Featherstone explained that uniquely British programming does not sell as well abroad as it once did. This poses additional challenges for producers who rely on international sales to offset local production costs. There is a clear distinction between British content and global content produced in the UK, with the former struggling to find traction overseas.

To mitigate these challenges, Featherstone suggested reforming the existing high-end TV tax incentive. She proposed aligning it more closely with the 40% indie film tax incentive, specifically targeting public service broadcasting and regional productions outside London. Such reforms could provide much-needed financial relief and encourage the creation of more sustainable and diverse content. Other industry leaders, including directors and producers from various successful shows, have also contributed insights during the parliamentary inquiry, underscoring the collective effort needed to address these pressing issues.