Multichannel investment in UK television programming - CONTENT REPORT 2019
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CONTENT
REPORT 2019
Multichannel
investment in
UK television
programming
CONTENTS 03 04 10 14 Executive Content Independent International Summary investment Commissioning influence Written by
COBA Content Report
Multichannel investment in UK television programming 03
Executive
Summary
The multichannel broadcasting sector, which was surveyed for COBA’s
2019 Content Report, comprises hundreds of digital, cable and satellite
channels. They are available on free-to-air and pay-TV platforms, as well as
increasingly via on-demand services. Their investment in the production of
UK television programming covers a wide variety of genres, including news,
arts, entertainment, sport, drama, factual, comedy, music and children’s and
animation. This investment is directly linked to their commercial revenues,
particularly advertising and subscription fees.
INVESTMENT IN UK CONTENT INDEPENDENT COMMISSIONING
KEY FACTS
l Annual UK content investment made l Spending with UK external producers Investment in UK production:
by COBA members crossed the £1 has more than doubled since 2011, £1.1 billion pa
billion mark for the first time in 2017, reaching £447m in 2017
Increase in overall
hitting £1.1 billion spending since 2011:
INTERNATIONAL INFLUENCE 75%
l This marks a 57 per cent uplift since
Spend on commissions from
2013 and 75 per cent since 2011 l COBA members with international
external producers:
channel groups raised just over a third
l In 2017, UK content accounted for of their content investment from their £447m pa
half of all content spend by COBA own overseas channels Increase in commissioning from
independents since 2011:
members
l COBA members exported over 100%
l COBA members’ spend on UK 21,000 hours of UK content across Hours of UK content broadcast
originated content has grown faster their international channels, up globally:
than that of the main PSB channels 79 per cent on 2011 21,000 pa
since 2011
04 COBA Content Report
Multichannel investment in UK television programming
Content
Investment
COBA members invested more than £1.1 billion in UK
television production last year, a record amount and the first
time multichannel spending on the creation of homegrown
content has crossed the £1 billion mark
FIGURE 1
Total investment in UK content made by COBA members reaches £1.1 billion in 2017
Total UK content
investment 1500
CAGR CAGR
surpassed £1 billion 2011-17 2013-17
COBA members’ total investment in UK content, 2011-2017
in 2017, up over TOTAL 9.8% 12%
57 per cent since 1141
2013 and 75 per
cent since 2011 962
1000 933
(excluding sports
855
rights)
£Millions
725
651 665
500
0
2011 2012 2013 2014 2015 2016 2017
Source: COBA members, Oliver & Ohlbaum analysis
COBA Content Report
Multichannel investment in UK television programming 05
FIGURE 2
Advertising revenues relatively flat while subscription grows
Investment
in content is 110
directly linked n SUBSCRIPTIONS
n TOTAL
to commercial n ADVERTISING
UK TV sector revenue growth by source, 2011 – 2017
revenues, notably n LICENCE FEE
advertising
(relatively flat 100
overall) and
subscription fees
Index
(still growing)
90
80
2011 2012 2013 2014 2015 2016 2017
Note: Index (2011=100)
Source: Ofcom, Oliver & Ohlbaum analysis
FIGURE 3
Growth in multichannel spending outpaces all other broadcasters
Since 2011,
COBA members’ 190
n COBA MEMBERS
investment in UK n CHANNEL 5
180 n CHANNEL 4
originations has
n ITV
continued to grow 170 n BBC
UK originations spend by source, 2011 – 2017
faster than the main 160
five PSBs
150
140
Index
130
120
110
100
90
80
2011 2012 2013 2014 2015 2016 2017
Note: Index (2011 = 100)
Source: Ofcom, Oliver & Ohlbaum analysis
06 COBA Content Report
Multichannel investment in UK television programming
FIGURE 4
Investment in new “first-run” production drives overall growth
Growth in total UK
content investment 1500
CAGR CAGR
COBA members’ total investment in UK content by source, 2011-2017
was supported 2011-17 2013-17
in particular by a Total 9.8% 12%
significant uplift Reversioning 25.5% 64.5%
UK Secondary 3.2% 4.3% 1141
in spend on new UK first-run originations 10.8% 12.8%
29
UK programming 147
1000 933
962
(“first-run 20 29
855
originations”), 25 128 140
£Millions
which outpaced 725 119
665 4
total growth at an 651
8 3 124
annual rate of 12.8 122 122
per cent since 2013 500 965
785 792
710
597
522 541
0
2011 2012 2013 2014 2015 2016 2017
Source: COBA members, Oliver & Ohlbaum analysis
FIGURE 5
Spend on independent commissioning doubles
Total sector growth
was bolstered 1500
CAGR CAGR
COBA members’ total investment in UK content by type, 2011-2017
by multichannel 2011-17 2013-17
groups’ continued Total 9.8% 12%
investment in the Reversioning 25.5% 64.5% 1141
UK Secondary 3.2% 4.3%
UK independent Co-production -1.7% 21.3%
29
production sector, Independent producers 13.9% 16.3% 147
1000 External non-indie 35.1% 40.6% 933
962
11
with spend more 20
29
In-house 8% 8.8% 855
than doubling 25 128 140
£Millions
10 9
between 2011 and 4
725 119 381
651 665 10
2017 8 3 124 291
295
122 122 5 247
12 5 55
500 208 18 19
187 24
175
14
9 11
463 518
430 473
326 338 370
0
2011 2012 2013 2014 2015 2016 2017
Source: COBA members, Oliver & Ohlbaum analysis
COBA Content Report
Multichannel investment in UK television programming 07
FIGURE 6
COBA members’ annual investment in UK content increased by £416m since 2013
Annual sector
spend on UK 1500
Change in UK content investment by type and source, 2013 – 2017
content increased
by £416 million
between 2013 and 25 1141
23
173 6
2017, with spend on
UK independent 1000 41
productions 148
representing the
£Millions
725
largest change at
£173 million
500
0
2013 In-house External Indie Co-production UK Reversioning 2017
non-indie Secondary
Source: COBA members, Oliver & Ohlbaum analysis
FIGURE 7
COBA members’ content investment 2011-2017
UK content spend
accounts for 2500
n UK 2267
roughly half of all n Non-UK
content spend by 2037
COBA members’ total content investment, 2011-2017
COBA members 1928
(i.e. including 1804
all spending on
2000 50%
overseas content) 53%
1323 1323 52%
£Millions
53%
1219
45%
51%
45%
1500
50%
47% 48% 47%
49% 55% 55%
1000
2011 2012 2013 2014 2015 2016 2017
Note:Excludes spending on sports rights
Source: COBA members, Oliver & Ohlbaum analysis
08 COBA Content Report
Multichannel investment in UK television programming
The production
wanted to confound
expectations about the
setting on a council
estate
COBA Content Report Multichannel investment in UK television programming 09 CASE STUDY Save Me (Sky Atlantic): Backing British talent Save Me is very much the vision of acclaimed actor Lennie James, who wrote the gripping British drama and stars in it. Commissioned by Sky Atlantic, it follows a father’s obsessive search for a kidnapped daughter that he barely knows. Talking to Broadcast magazine, director Nick Murphy explained how the production wanted to confound expectations about the setting on a council estate, creating an often riotous trip through working class South London against the darkest of dramatic backdrops. “Why have a background extra walking discreetly by when we could have a man in pyjamas with his shopping, a woman in a burka stealing a sneaky vape underneath her veil, a bruiser on a hover-board, or some elderly Sikhs playing rugby with a plastic bottle?” Produced by independent UK producer World Productions, the first series became the most rapidly watched box-set release in Sky’s history, with 700,000 watching the entire series in the first week alone. On average, more than 1.7 million watched each episode. The ending’s unpredictability might have also confounded expectations, but it left the door open for Sky to commission a second season, which it has now confirmed. Shooting will start once again on location in London in 2019. Announcing the second season, James said: “I am so chuffed that we get to keep telling the story of Save Me. Thank you to Sky Atlantic and a huge thank you to everyone who watched our little show and enjoyed it. More to come as soon as I can sit down to write it!”
10 COBA Content Report
Multichannel investment in UK television programming
Independent
Production
The multichannel sector now invests nearly £450m a year
on commissions from independent and other external UK
producers, with a particular emphasis on programming
from small and medium production companies
FIGURE 8
Commissioning from external producers hits £447m a year
The multichannel
sector continues 500
COBA members’ total investment in externally originated UK content,
to increase 447
investment in the
UK production 400
sector with nearly
£450 million 322 319
2014 – 2017 / £Millions
spent on externally
300 280
originated
content in 2017
(independent
producers, 200
non-qualifying
independents,
co-productions) 100
0
2014 2015 2016 2017
Source: COBA members, Oliver & Ohlbaum analysisCOBA Content Report
Multichannel investment in UK television programming 11
FIGURE 9
External commissions represent nearly half of first-run spending
Independent and Reversioning 3%
other external 100
producers represent UK Secondary
COBA members’ investment in UK content by source, 2017
13%
nearly half of total
External*
spending on new 46% Large Indies‡
production, while 75 47%
small and medium
producers account
for just over
50
%
half of spending
UK First-Run
on external Originations
commissions 85%
In-House
54% Small and
25 Medium Indies
53%
0
2017 UK Content 2017 Originations 2017 Indies by type
*External includes all spend with independent production companies, non-independent production companies and co-productions
‡Large indies are classified as independent production companies with an annual turnover of £70m+
Figures may exceed 100% due to rounding Source: COBA members, Oliver & Ohlbaum analysis
FIGURE 10
Commissioning from all sizes of producer has increased
Commissions from 447
small/medium and 450 11
n Small and medium indies
large producers n Large indies 55
COBA members’ total investment in externally-originated
have grown 400 n External non-indie
n Co-Production
strongly. While the
strongest growth 350 322 319
10 9
content, 2014-2017 / £Millions
was in commissions 280 18
180
from larger 300 10
24
companies, small/
250 123
medium producers
89
still account for 201
just over half 200
of spending
on qualifying 150
201
independent 158 168
producers 100 93
0
2014 2015 2016 2017
Note: Large indies are classified as independent production companies with an annual turnover of £70m+
Source: COBA members, Oliver & Ohlbaum analysis12 COBA Content Report
Multichannel investment in UK television programming
CASE STUDY
UKTV’s hit show Helicopter ER is
Helicopter ER (UKTV): a key, longterm series for Leeds-
based independent producer
Air Television. The show, which
Supporting independent documents the life-saving work
of the Yorkshire Air Ambulance
producers
teams, is now in its third season.
That sustained investment has
helped Air grow to be one of the
biggest producers in Yorkshire.
“We wanted to set up a production
company that was based in the
North,” says Air’s Ian Cundall.COBA Content Report
Multichannel investment in UK television programming 13
We wanted to set up a
production company that…not
only reflected life in the North but
was solidly based here.
“One that not only reflected life in As it has grown, it has opened The shows have strong “public
the North but was solidly based a new production office in service” credentials, documenting
here. That has been directly built York University’s Hub building the work of the UK emergency
on the funding that we have and acquired post-production services. “It’s a fantastic
received from UKTV.” facilities that are used to edit opportunity to highlight how our
episodes of new UKTV series and highly trained paramedics work
Air now makes a range of other upcoming projects. In turn, alongside their colleagues in
shows for UKTV’s portfolio other companies in the region have Yorkshire Ambulance Service and
of channels, all based around benefited. the other emergency services in
its speciality of factual some of the most precarious and
entertainment. These include Air is also the only production life-threatening situations,” says
999 Rescue Squad, which company with a full-time team of Mike Shanahan, Head of Special
follows the work of a specialist Technical Aircrew qualified to fly on Operations at Yorkshire Ambulance
ambulance team. UK air ambulances. Service.14 COBA Content Report
Multichannel investment in UK television programming
International
Influence
COBA members gave a global platform to UK talent by
broadcasting more than 21,000 hours of homegrown
content across their international channels in 2017. They also
raised a third of their total investment in UK production
from overseas markets via their international channels
FIGURE 11
Overseas investment in UK content
Multichannel
Proportion of content spend by source, made by COBA members with inter-
broadcasters often 100
raise additional
investment for their Non-UK Non-UK Non-UK
31% 33% 35%
UK commissions by Non-UK
43%
leveraging against
national channel groups, 2014-2017 / %
75
projected sales from
overseas channels
within their own
portfolios. In 50
2017, just over
one third of all UK
69% UK
UK multichannel UK 67%
UK
57% 65%
spend came from 25
these international
channels
0
2014 2015 2016 2017
Source: COBA members, Oliver & Ohlbaum analysisCOBA Content Report
Multichannel investment in UK television programming 15
FIGURE 12
Hours of UK programming shared across international channels
In 2017, COBA
members broadcast 30000
Hours of UK channel programming shared internationally, 2014 – 2017
more than 21,000
21461
hours of UK 20917
content across
their portfolio 17408
of international
20000
channels, up 79 per
cent since 2011
12003
10000
0
2014 2015 2016 2017
Source: COBA members, Oliver & Ohlbaum analysis
FIGURE 13
Proportion of UK programming shared across non-UK channels in 2017
Europe was
the biggest 50
Proportion of UK channel programming shared internationally, 2017
international
market for UK 42%
programming, 40
but growth was
shared across most
territories 30
%
20 18% 18%
10 8% 8%
6%
0
Europe Africa MENA LatAM Asia North America
(sub-Sahara)
Note: Figures may exceed 100% due to rounding
Source: COBA members, Oliver & Ohlbaum analysis16 COBA Content Report
Multichannel investment in UK television programming
CASE STUDY
101 Dalmatian Street
(Disney): Giving British
talent a global platform
101 Dalmatian Street is the biggest Studios, headquartered in London
and most ambitious UK-produced and employing an international
series ever commissioned by Disney crew of more than 50 artists, is the
Channel’s European operation lead producer, while the series was
(Disney Channel EMEA). The developed by Disney’s UK-based
animation series re-imagines Dodie original animation team.
Smith’s novel and Walt Disney’s
classic film, 101 Dalmatians, for the In total, the series will include
21st Century, setting a new story more than 50 episodes, shorts and
against a backdrop of modern-day specials. A special, introducing the
London. characters and setting, aired in the
UK and across Europe, the Middle
The large-scale production features East and Africa in December, with
43 cast members covering 106 the series itself launching in the
speaking roles, and includes a UK from spring 2019. From there,
raft of UK talent such as Paloma the show will roll out on Disney
Faith, Miriam Margoyles, Ben Channels globally throughout the
Bailey Smith, Tameka Empson, year. Disney Channels Worldwide
and Bethan Wright, as well as is a global portfolio of 120
US talent such as Josh Brener entertainment channels or feeds,
and Michaela Dietz. Oscar® and available in 164 countries, in 34
BAFTA winning Passion Animation languages.
101 Dalmatian Street is the
biggest UK series ever
commissioned by Disney’s
European operation18 COBA Content Report
Multichannel investment in UK television programming
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