Pact voices concern about the future health of the production sector

The report looks at the future of the UK production sector following a prolonged slowdown in commissioning and investment as well as changes to the mix of programmes being commissioned.

Pact said that the report, titled Changing UK content investment: what could this mean for the health of the production sector?, is intended to start a conversation about where the sector is heading in the next five years.

The report says that commissioning by public service broadcasters (PSB) is essential to the health and sustainability of the production and its cycle of creative renewal.

However, the report noted that PSB commissioning has been challenged in recent years as viewing of linear television continues to gradually decline in favour of VOD services as well as video sharing platforms like YouTube and TikTok, and gaming. The rise of online platforms has also impacted advertising models and public funding has declined in real terms.

To respond to these pressures, PSBs are changing their commissioning strategies to focus on ‘fewer, bigger, better’ productions that can cut through and drive viewing on their VOD services.

The report concluded that investment is moving away from a range of genres and budget ranges that provide opportunities for new producers to grow and develop their businesses. 

It said that spend is moving into high-end drama and factual, as well as peak-time entertainment, which are traditionally handled by large and experienced production companies. In turn, spend is moving out of lower cost specialist factual and programmes traditionally broadcast in daytime such as daytime entertainment, which have traditionally supported a large variety of production companies.

Pact concluded that a polarisation seems to be emerging between the largest and the very smallest producers and programme budgets. The report said this will put pressure on progress in increasing the diversity of off-screen talent and crew.

Pact CEO John McVay, said: “The report shows that if recent trends continue, the balance of the production sector could be at risk, further progress in improving the diversity of off-screen talent and crew would come under pressure and the whole cycle of creative renewal could be challenged.

“This would affect both commissioners and audiences across the UK and could also affect the UK’s global competitiveness and ability to attract inward investment. It’s important that we start a conversation about the findings of this report and the impact they will have on the future of the production sector.”