Television production revenues in the UK fell by 8.4% to £3.61 billion ($4.7 billion) in 2023, compared to a record year in 2022, according to the latest Pact Census. This fall was driven largely by a decline in domestic commissions as well as a sharp decrease in linear broadcaster commissions from international markets.
Domestic TV revenues experienced a decline of £183 million but remained above £2 billion for the third time, totalling £2.02 billion. The decline in domestic commissioning was driven by a sharp fall in commissioning spend from UK multichannels. In 2023, UK broadcasters were exposed to various factors that likely constrained their commissioning budgets, including a downturn in the advertising market, declining viewership for broadcast TV, the freeze on the BBC license fee, and rising inflation in the UK.
Meanwhile, international TV revenues also fell, decreasing by £209 million from the previous year, driven by a fall in linear international commissions. Revenue from these commissioners shrank by £183 million, likely due to a poor advertising market as well as broadcasters such as Discovery shifting their commissioning strategy towards digital commissions. Additionally, the U.S. market was severely impacted by the six month-long WGA strike alongside the four month-long SAG strike in 2023, which halted most production and commissioning activity during that period.
However, international digital commissions remained stable, declining by only £12 million in 2023, totalling £684 million. Revenue from international digital commissions accounted for 23.5% of all primary TV rights revenues, as the UK continues to attract global SVODs as a destination for high-value productions.
“We have seen two strong financial years as the industry rebounded following the pandemic,” said John McVay, Chief Executive, Pact. “The 2024 Census shows how many producers are really feeling the impact of the financial crisis and tough market conditions, but also that producers are resilient and able to diversify during these tough times. Next year’s Census will give us a clearer idea of the longer-term impact of the uncertainty of the past few years,” he concluded.
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