UK TV Revenue Hits $5.1 Billion
International sales surge 15.8% as domestic TV revenues plummet below £2 billion for the first time in five years
British TV sector revenues reached £3.81 billion ($5.1 billion) last year, driven by a significant increase in international TV revenue from US streamers. International TV revenue accounted for 41.1% of total revenue, with a figure of £1.57 billion, an increase of £214 million (15.8%) year-on-year.
The growth in international revenue was largely driven by SVOD platforms such as Netflix and Amazon's Prime Video, which have continued to grow their commissioning budgets, resulting in all-time high investment into the country. Subscription streamers now make 72.3% of all primary commissions from outside the UK, accounting for £916 million.
However, domestic TV revenues fell below £2 billion for the first time in five years, a 4.7% drop year on year. This decline was driven by a drop in UK commissions, with public service broadcasters such as the BBC and ITV experiencing a small decline in spend, and a larger decline in multichannel spend.
Despite the decline in domestic TV revenues, non-TV revenue grew by £34 million last year, thanks to UK feature films, management and event production, and advertising, among other revenue streams. Secondary rights revenue also grew by 12.7% to a record £575 million.
## Why it matters The growth in international TV revenue and the decline in domestic TV revenues highlight the increasing reliance on global streamer commissions and the challenges faced by traditional public service broadcasters. Pact CEO Nigel Warner warned that a new settlement for a strong and sustainable BBC is urgently needed, and that the decline in domestic TV revenues places significant pressure on small- and mid-sized production companies.
The British TV sector's revenue growth is a significant indicator of the strength of the UK production market, with international streamers driving investment into the country. As the TV landscape continues to evolve, the UK production market is likely to remain a key player, with a growing focus on international collaborations and diversification of revenue streams.
