Indie revenues up by 14% to a record £2.8bn, says Pact Revenues in the UK’s independent TV production sector grew by 14% between 2011 and 2012 to £2.8bn, according to Pact’s annual census. The sector’s growth overall during 2012 represents the biggest annual increase in indie revenues since Pact first commissioned a financial census in 2004. Revenues are up by more than £1bn since then. Pact said the sector has been boosted over the past year by UK broadcasters spending more money on commissions. After years of spending reductions, domestic commissioners increased their investment by about £307m in 2012 to £1.5bn. This included more spending with smaller indies by the BBC and Channel 4. From 2011 to 2012, smaller companies with a turnover of under £1m saw their share of overall sector revenues grow almost five-fold (1.1% to 5.0%). Debbie Manners, Chair of Pact and MD of Keo Films, said: “Our independent sector is stronger economically than it has ever been. Revenues are at a record high, encouraged by a UK broadcast ecology that is a catalyst for growth and entrepreneurialism. Our productions are in demand the world over, borne out by year-on-year increases in international revenues.” The sector has also seen international revenues continue to grow, albeit at a slightly slower rate than in recent years. Revenues from indies’ international subsidiaries and overseas commissioning grew by £18m (a 3% increase on 2011), from £652m to £670m. Meanwhile revenue from sales of UK programming abroad continued to grow strongly at 28% year on year, up from £119m to £152m Despite the headline growth, margins fell for the second year in a row, down from 6.7% in 2011 to 5% in 2012 – illustrating the pressure that remains within the industry for indies. And non-TV revenues show little signs of growth for indies, with the survey suggesting that new media investment in the UK audio visual industry is likely to be focused on sector specialists rather than the TV producers. According to the survey, the sector made £200m from non-TV revenues, of which just £33m was from new media sources. John McVay, Chief Executive at Pact, said: “There are encouraging findings in the new Pact census, especially in the rebalancing of revenue sources for indies. Companies have been smart to embrace international markets, but domestic investment in indies’ content is vital. “The top line figures show strong growth and there are success stories for many indies. But it remains a tough and competitive market and there is no room for complacency in the independent productions sector.
Posted on: Tue, 09 Jul 2013 18:54:00 +0000
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