Yet the UK television and film industry now stands at the brink of unprecedented challenges. Digitization and globalization Streaming platforms like Netflix, Amazon and Apple TV™ are quickly establishing cultural hegemony. A recent report highlights a troubling trend, revealing a 27% decrease in domestic high-end TV productions over the past year. At the same time, spending on these productions has dropped off a cliff—by 25%. Industry stakeholders, including the BFI’s staff and leadership, are imploring the UK government and the BFI to act on these complaints. Secondly, they want a national awareness campaign to raise awareness about the diverse career pathways and job opportunities the sector presents.
It’s no secret that streaming services like Netflix and Amazon Prime are disrupting the standard broadcast model. This all-encompassing change has put unprecedented pressure on legacy public service broadcasters like the BBC and ITV. These companies don’t know how to pay for expensive, high-quality British dramas anymore which puts us on a collision course with a future without one-off distinctively local storytelling. Peter Kosminsky, director of the hit series “Wolf Hall”, painted a picture of the present big picture as one great crisis for the industry.
To address these issues, there is currently a legislative proposal for a $5 Billion levy on streaming services. This new levy would force them to invest a certain amount of their revenues into a pot which helps fund British high-end TV production. However, this concept has been the cause of great controversy, with the Association for Commercial Broadcasters and OnDemand Services (COBA) vehemently opposed to the levy. They claim that, if imposed, it would act as a major disincentive to streaming companies’ investments in the UK.
“It is time for streamers to put their money where their mouth is.” – CMS committee report
Their deeper controversy Mercury’s proposed levy is intended to address and rebalance the playing field for British producers was actually much broader and aimed at these bigger issues. Dame Caroline Dinenage, Chair of the CMS Committee, warned that without government intervention, many distinctly British stories may never reach screens. In her remarks, she underscored the positive impact major streaming services are having on the industry. She cautioned that the very substantial levels of inward investment could drown out home-grown British independents.
“The boom in inward investment of recent years now risks crowding out our many talented independent British producers.” – Dame Caroline Dinenage
The UK is Netflix’s largest production base outside of North America, a claim both sides desperately want to hang on to. A Netflix spokesperson stated, “The UK is Netflix’s biggest production hub outside of North America – and we want it to stay that way.” They were alarmed at the prospect of levies eroding competitiveness and eventually raising costs to audiences.
“In an increasingly competitive global market, it’s key to create a business environment that incentivises rather than penalises investment, risk taking and success. Levies diminish competitiveness and penalise audiences who ultimately bear the increased costs.” – Netflix spokeswoman
Industry leaders are further calling on government to improve support for freelancers, who increasingly make up the bedrock of UK production efforts. This largely freelance creative workforce benefits from that same flexibility. Too many workers fall through the cracks without basic safety nets when they lose their jobs. Others have proposed a minimum hourly wage or a guaranteed basic income as ways to offer workers some level of security.
Philippa Childs, head of industry union Bectu, highlighted that it is crucial for the industry to avoid becoming overly reliant on large streaming platforms. She warned that this would result in homogenization of composite and a loss of the UK’s distinct storytelling brand.
“It’s essential that the industry does not become too skewed towards large streamers, which risks the homogenisation of content and the loss of much of the UK’s unique and distinctive output.” – Philippa Childs
Proposals for a new streaming levy and improved support for freelancers have garnered significant momentum. A lot of others are pushing the administration to lower value-added tax (VAT) on cinema tickets to further help the industry growth. By tackling the cost of entry, stakeholders hope that the initiative can improve audiences’ engagement with British cinematic and televisual heritage.
That made COBA’s Adam Minns, executive director of COBA, sound the alarm. He added that a levy would accidentally threaten the finances of UK productions and would lead to real job losses at this economically uncertain time.
“Especially in this economic climate, a levy risks impacting existing content budgets for UK shows, jobs, and growth, along with raising costs for businesses.” – Adam Minns
He warned that the consequences might extend even to public service broadcaster dramas. One way this could happen would be to cap co-production budgets negotiated by cultural imperialist streaming services.
“Ironically, it could actually damage public service broadcaster dramas by reducing co-production budgets at streamers.” – Adam Minns
Stakeholders are prepared for the sobering reality. They understand that urgent co-ordinated action is needed to safeguard the long-term future of the UK’s creative industries. That’s why government intervention is so important in keeping British stories alive. Simultaneously, the industry needs to change to continue prospering in this rapidly expanding and competitive environment.
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