The UK Parliament is seeking a new revenue stream to support British high-end TV production, with a proposed fund that would see streaming services pay 5% of their UK subscriber revenue into the cultural sector.
A share of the revenue streaming services make from subscription fees should be paid into a fund to support British high-end TV production, an influential group of MPs has said. The Culture, Media and Sport (CMS) committee urged the government to improve support measures for producers while safeguarding the creation of distinctly British content.
The UK TV industry has undergone significant changes since its inception.
From the first public demonstration of television in 1926 to the current digital age, UK television has evolved rapidly.
The introduction of colour TV in the 1960s and satellite broadcasting in the 1990s transformed the industry.
Today, streaming services such as 'Netflix' and 'Amazon Prime' have disrupted traditional broadcast models.
According to Ofcom, 80% of UK households have access to multiple devices for watching TV, with 45% using their smartphones.
The report noted how the rise of streaming platforms like ‘Netflix, Amazon, and Apple TV‘ has had a significant impact on the UK TV industry. While these platforms have proved valuable additions to the industry and economy, unless the government urgently intervenes to rebalance the playing field, there will be countless distinctly British stories that never make it to our screens.
Streaming platforms have revolutionized the way people consume media, offering on-demand access to movies, TV shows, music, and live events.
According to a report by Deloitte, 71% of internet users worldwide use streaming services regularly.
The most popular streaming platforms include Netflix, Amazon Prime Video, Hulu, and Disney+.
These platforms have disrupted traditional television and music industries, providing users with unparalleled convenience and choice.
Chair of the CMS committee, MP Dame Caroline Dinenage, noted how recent ‘big box-office blockbusters made in Britain have showcased the UK’s world-class film and high-end television industry like never before.’ However, she added that this boom in inward investment now risks crowding out our many talented independent British producers. The report suggested that streaming companies pay 5% of their UK subscriber revenue into a cultural fund to help finance drama with a specific interest to British audiences.
The Association for Commercial Broadcasters and On-Demand Services (COBA) said a levy risks damaging streamers’ investment in the UK. COBA executive director Adam Minns stated that especially in this economic climate, a levy risks impacting existing content budgets for UK shows, jobs, and growth, along with raising costs for businesses. Ironically, it could actually damage public service broadcaster dramas by reducing co-production budgets at streamers.
The report also noted the importance of supporting freelancers in the industry. Paul W Fleming, general secretary of Equity, which represents British performers, said the government should ‘heed the call’ for the licensing of creative works in all cases where they are used to train artificial intelligence models. Big tech firms ‘must be held to account,’ he added, ‘brought to the table and made to pay creators what they owe.’
The cross-party committee recommended that the government and British Film Institute (BFI) launch a national awareness campaign, highlighting the employment opportunities offered by film and high-end TV, and ‘the range of skills the industry requires.’ It stressed how the industry benefits hugely from the flexibility afforded by a predominantly freelance workforce and therefore more should be done to support freelancers when they are out of work.
The UK TV industry is facing significant challenges, including the impact of streaming platforms, the decline in the TV licence fee, and the rise of AI. However, with the right kind of investment and support, there is hope that distinctly British content will continue to thrive. The government must take urgent action to rebalance the playing field and ensure that our talented independent producers are able to create high-quality content for audiences at home and around the world.
