The UK's film and television sector appears to be thriving, with blockbuster hits like Star Wars and Barbie being filmed in the country. The industry generated over £17 billion in gross value added in 2021 and employs around 300,000 people. However, beneath this success lie significant challenges. The rise of streaming platforms, industrial action, and falling ad revenues have created a 'perfect storm,' leading to declining revenues and job losses, particularly affecting smaller independent firms and freelancers.
The Golden Age of British Cinema and TV
The UK has emerged as a global powerhouse in film and television production. Major productions such as Barbie and Indiana Jones have been filmed here, contributing significantly to the economy. In 2021, the sector generated more than £17 billion in gross value added, and it is the second-largest exporter of TV programming globally. Over 300,000 people are employed in video production roles, from actors to administrative staff. This impressive performance is partly due to policy reforms introduced in the early 2000s, which mandated broadcasters to commission a portion of their content from independent studios, fostering competition and growth.
The impact of these policies is evident in the expansion of studio space, with major investments by companies like Sky and Warner Bros. doubling the available area for film production in just three years. Shepperton Studios in Surrey has expanded to become one of the largest film studios in the world, attracting titles from Amazon and Netflix. By the end of next year, the UK will rival Hollywood in terms of studio space availability. Films like Barbie, shot almost entirely in Hertfordshire, have contributed millions to the local economy and created hundreds of jobs, showcasing the sector's economic significance.
Navigating the Challenges Ahead
Despite its apparent success, the UK's film and television industry faces significant challenges. Streaming platforms like Netflix and Amazon have transformed viewer habits, reshaping how content is funded and produced. While these platforms have increased revenue and commissioning power, they have also created financial instability for smaller production companies. High-profile closures of indie firms and layoffs have become commonplace, with companies like Euston Films and RDF shutting down after decades of operation.
The sector's downturn has been exacerbated by rising production costs, lower consumer demand, and the collapse of traditional TV advertising revenues. The Writers Guild of America (WGA) and Screen Actors Guild (SAG-AFTRA) strikes in the US further pressured UK production companies, leading to cash flow problems and closures. Freelancers, who make up a large part of the workforce, have been hit hard, with many out of work for months. A Bectu survey revealed that 68% of freelance workers are currently unemployed, and nearly 90% are concerned about their financial security. The mental wellbeing of workers has also suffered, with three-quarters reporting struggles due to poor economic conditions.
To address these issues, policy-makers must provide targeted support to independent producers and freelancers. Introducing measures like tax credits and employment insurance could help stabilize the sector. Regulating streaming platforms to reinvest a portion of their revenues into UK productions, similar to France's quota system, could provide much-needed financial relief. Protecting scriptwriting and storytelling from AI disruption is also crucial for the long-term health of the industry. With the right policies in place, the UK's film and television sector can rebuild and continue to thrive.