Global production volumes are on the rise

Global Film and TV production volumes in July increased by 9%, continuing the slow and steady recovery from the rock-bottom levels of second-half 2023, according to a research by Vitrina. The APAC and EMEA regions saw significant growth, with increases of 48% and 19%, respectively. In contrast, the Americas experienced a 31% decline in production volumes. However, during this same month, IP and Development activity experienced a 16% decline compared to June. This turnaround highlighted a renewed focus on bringing new projects to life even as volumes of intellectual property and development cooled.

Drama remained the top genre, experiencing a 33% increase compared to June, with Comedy trailing closely behind. Scripted content made up 77% of June productions. English productions represented 38% of the June projects , marking a 12% decrease from June.

Prime Video & Netflix maintained their stronghold in commissioning, with The German Federal Film Board, Disney+ (including Star+) following closely behind. Production transactions from OTT providers contributed to 21% of the total deals (4% increase over June), with Netflix and Prime Video leading the commissioning.

The shift in power from box office and cable/broadcast to streaming continues to reshape the landscape, prompting a mid-term correction with less appetite for high-budget projects and a stronger focus on mid and smaller-budget productions. Players are gravitating towards lower-risk strategies, favoring smaller budgets, time-tested stories, IP adaptations from other media/markets, and strategic partnerships. Cross-border collaborations in co-productions are becoming essential. Production financing decision-makers need convincing on the strength of IP, development, and pilot projects, as skepticism and longer decision cycles risk delaying projects. Additionally, renewed and fierce competition between rival governments and film commissions is intensifying. Amidst these challenges, the industry must navigate a rapidly changing supply chain influenced by new tech players across every dimension of the value chain.

Vitrina revealed that EMEA emerged as the leading market bloc for July, with the United Kingdom securing the highest volume of production transactions. The top Buyers/Commissioners/Financiers comprised a diverse mix of broadcasters, OTT Providers and production houses, led by Prime Video, Mediaset, Netflix, and Rok Studios (part of Vivendi and Canal Group).

The share of APAC increased from 17% in June to 27% in July, with production volumes from India rising by 77%, driven by companies such as Sony Yay!, Zee5 & Jio Studios.

The company also detected a massive intervention by various governments and film commissions – from Australia to Malta to Quebec to Germany and many others – to incentivize, promote, support and finance new productions. The most active in July was The German Federal Film Board.

As for season renewals, the research showed significant changes in the industry’s approach to continuing series. In May, season renewals were at a high, reflecting a strong commitment to existing shows. However, this trend reversed in June, with a noticeable decline in the number of series renewals, and continued to decrease further in July. The decline in renewals may reflect an industry response to market dynamics, where there is a greater emphasis on launching new, original content to attract and retain viewers.

The prominent companies pushing season renewals include a mix of broadcasters, and streamers such as Prime Video, Mediaset & Netflix. For global season renewals, English continued to be the dominant language, with Spanish & Japanese following. Drama and Reality genres were the most popular, with scripted content making up 64% as compared to 79% in June.

In conclusion, the global film and TV production industry is undergoing significant shifts as it recovers from the downturn experienced in the latter half of 2023. July's data from Vitrina indicated a cautious yet positive trend in production volumes, with notable growth in the APAC and EMEA regions, although the Americas lagged behind. The strategic pivot towards smaller-budget productions, the increasing role of streaming platforms like Prime Video and Netflix, and the burgeoning importance of cross-border collaborations are reshaping the landscape. Despite a dip in IP and development activities, the renewed emphasis on new project initiation points to a dynamic and evolving market. The industry is also seeing a decrease in season renewals, reflecting a strategic shift towards fresh, original content to captivate audiences. As governments and film commissions intensify their support and incentives, and with the continued dominance of drama and scripted content, the industry appears poised for a robust recovery, navigating through a complex and competitive environment.