Sales boom: UK TV exports reach record sales of $2.25 billion, tape contracts are back in fashion

New statistics show British TV shows made a record £1.85 billion in revenue in 2022-2023.

Sales to streamers soared and on-tape deals came back into fashion, helping exports rise 22% year-on-year, Pact’s UK TV Exports Report showed.

Ask about programs like The Ipcress files, Frozen Planet II And This England was built even as the global television industry faced a brutal economy, a struggling television advertising market and reluctant big buyers. Half of the respondents said their companies have been affected by the period of cutbacks and cost control at large US companies.

For the first time, more than half of the programs (53%) were sold to international streaming and VoD platforms, compared to 39% last year. This could be related to the increase in sales of finished shows, as streamers are more likely to buy licenses because they are not spending more on original content.

Completed programs accounted for 60% of revenue, up 11% to £1.11bn, breaking the £1bn mark for the first time. Format sales of shows like The traitors rose by 22% and co-production deals increased by a whopping 69%.

As US buyers cut back, growth remained stagnant. Although the United States remains the biggest consumer of UK content, contributing £525m (or 28%) of the total, this remains below pre-Covid levels and is similar to the 11% decline in 2021-2022. Overall, North America accounted for 38% of sales, an increase of 14% year on year.

Several European markets recorded growth of more than 20%, with Spain growing a whopping 79% to £40m, Italy up 21% to £38m and Germany rising to third place behind Australia after a rise of 26% and 108 Pounds generated million. Just outside the top ten spending countries, South Africa grew by 66% to £23 million.

Other key statistics: Scripted dramas remained the main driver of international content revenue for UK companies, accounting for 49% of revenue, followed by entertainment (21%) and factual content (18%).

When asked what impact the international distribution of UK content will have in the coming year, all respondents said there is a lack of financial support from commissioners. The UK is seeing a decline in new orders, with Channel 4, for example, set to increase to 50 shows by 2024.

Increased production costs were a concern for 91% of respondents, while 73% expect the growing market for FAST (Free Ad-Supported TV) channels to have an impact on the market.

“These strong sales figures once again underline that British India continues to produce quality television programs that the rest of the world wants to watch,” said John McVay OBE, chief executive of Pact. “However, we expect this to be an exceptional year and that next year’s report will reflect current global financial uncertainty and rising production costs.”

Bob McCourt, COO, Commercial and International, Fremantle, said: “Despite the overall industry headwinds, Fremantle once again delivered an extremely strong performance. Our exciting range of IP and powerful content across entertainment, drama, films and documentaries has once again proven popular with global buyers. Telling compelling stories and collaborating with world-class talent from around the world to deliver compelling entertainment is at the heart of what we do at Fremantle. We are proud to share these incredible stories and our extensive entertainment catalog with our valued customers and partners, helping us deliver strong performance as we move into 2024.”

Industry response

Rebecca Glasshow, CEO, Global Distribution, BBC Studios, said: “I am extremely proud of our BBC Studios team and our continued leadership in bringing the very best of British material to the world.” Even in a time of market disruption, we see a worldwide hunger for quality content Frozen Planet IIUnpleasant Serengeti And Top gear to name a few. We are fortunate to have one of the strongest content portfolios in the industry. We have an extensive library of content across all genres that address a variety of customer and audience needs around the world.”

Louise Pedersen, chief executive of All3Media International, said: “Strong growth in the export sector is cause for celebration, with UK revenues reaching £1.85 billion, the highest level since this survey began.” It is encouraging to see exports of UK formats growing strongly and we are pleased with the global breakthrough of A3MI The traitors did his part. According to the survey results, All3MI recorded an increase in distribution and co-production activity in Germany, which was reflected in a third place in the UK’s export ranking.

“However, the current situation brings challenges: American buyers’ budgets have been strained in recent months, which, combined with high production costs, has made financing trade shows more risky. But overall it is a sector that remains confident in its abilities and has learned to adapt quickly to market changes, bringing significant income to the wider UK television production and creative industries.”

Ruth Berry, Managing Director, Global Partnerships, ITV Studios, said: “Despite the challenges and uncertainties of the past year, it is great to see record growth, proving that British television remains popular around the world. “However, we are aware that buyers and clients have become more demanding than ever before and only want the very best content. ITV Studios’ portfolio includes exciting reality series Litvinenkothrilling thriller The suspect and the immense stylish drama The Ipcress fileAll programs have been broadcast in more than 100 countries and have lived up to these high expectations.”

Fremantle, BBC Studios, ITV Studios and All3Media International are sponsoring the report, produced by TV analytics firm 3Vision. More than twenty UK distributors were interviewed about their international sales and the challenges they have faced in the past year, as well as the challenges they face in the future.