Streamer Spending on UK TV Surpasses $1B Amid Industry Tensions

EDINBURGH, Scotland – Streaming platforms invested over £850 million ($1.15 billion) in British television shows in 2024, a 24% increase from the previous year, according to the latest census from Pact. This surge comes amid criticism from traditional networks dealing with a slow growth period.

Notable shows commissioned by streamers include ‘Adolescence’, ‘Rivals’, and new seasons of ‘Slow Horses’. However, while this spending increased, investment from traditional linear networks outside the UK dropped by 36% to £279 million, resulting in flat overall commissioning revenue during a challenging 2024.

Pact chief, McVay, speaking at the Edinburgh TV Festival, addressed tensions with Channel 4, accusing the network of “snarkiness” regarding the aggressive streaming investment. The dispute arose when Channel 4 felt threatened that streamers were now competing for shows, including ‘Adolescence’, after years of developing relationships with co-creators Jack Thorne and Stephen Graham.

In response to inquiries, McVay defended streamer spending, emphasizing their significant support for British creatives. He remarked, “The streamers are not public service broadcasters…but they will spend money on brilliant British creatives… we should welcome that.”

McVay also highlighted the reluctance of public service broadcasters (PSBs) to accept that streamers are investing heavily in UK content. He pointed out that while PSBs pursue an elite status, they face increasing competition from streaming services, which can act more quickly to greenlight projects.

Further discussions included Channel 4’s focus on returning series over new commissions, with only 17% of its program spending on new shows last year, down 4 percentage points from the previous year. This statistic places Channel 4 last among its peers in terms of new content investment.

Despite concerns, McVay noted that Channel 4 still commissioned more drama than ever before last year, demonstrating a rising trend in drama spending across British broadcasters.

McVay, who is advocating for improved tax credits for high-end television production in the UK, acknowledged the need for sustainable funding models. He stated, “We need to think seriously about how we finance domestic drama and how sustainable it is.”

As British producer revenues rose by 1.3% to £3.6 billion last year, he noted that this increase contrasts sharply with the pre-pandemic growth rates of 5%-8%. “Are we glass half empty or half full? We’re glass flat,” he said.

The search for McVay’s successor is underway as he continues to lead the organization representing numerous UK production companies.