As the global film and TV industry navigates a challenging start to 2025, the UK sector is experiencing a mixed bag of fortunes. While scripted TV and feature films show resilience, unscripted content continues to struggle. Meanwhile, significant changes are underway at Pinewood Studios, one of the UK's iconic film production hubs.
Scripted TV: Budget Squeezes but Resilience
The UK's scripted TV sector is navigating a challenging landscape, marked by budget constraints and reduced commissioning. Despite these pressures, the industry remains resilient, thanks in part to financial support mechanisms like tax credits, which are not typically available for unscripted content. The BBC has played a crucial role in maintaining stability by sustaining its scripted commissioning levels, focusing on genres such as Children & Family and Crime & Thriller. This strategic approach has allowed larger production companies to adapt more effectively, while smaller firms face greater challenges.
The UK's TV production sector is facing significant financial pressures. Broadcaster commissioning budgets have been squeezed due to declining linear TV advertising revenue and economic uncertainty following the pandemic. This has resulted in a decrease in scripted commissioning activity across various platforms. In 2023, UK scripted commissioning fell by 18%, with major reductions at pay TV operators, commercial free-to-air broadcasters, and SVoD services. However, the BBC has maintained its commissioning levels, increasing its share of UK scripted TV commissions to 50%.
Scripted TV benefits from tax credits, which are a vital component of the UK's film and television production incentives. The Audio Visual Expenditure Credit (AVEC) provides a cash rebate of up to 34% on eligible UK core expenditure for qualifying films and high-end TV projects. This financial support helps mitigate the impact of budget constraints and reduced commissioning, allowing producers to maintain production quality despite tighter budgets.
The BBC has focused on specific genres to maximize its impact within the constraints. Children & Family content saw a 23% increase in orders, while Crime and Thriller titles rose by 16%. This strategic approach not only supports the BBC's audience engagement goals but also helps maintain a stable pipeline of content for UK viewers.
Larger production companies have generally been more resilient due to their diversified portfolios and existing contracts. However, smaller firms are disproportionately affected by reduced commissioning and budget constraints. These companies often rely heavily on new commissions to sustain their operations, making them more vulnerable to market fluctuations
Despite current challenges, there is optimism about the future of scripted TV in the UK. The industry's ability to adapt and innovate, combined with the BBC's commitment to maintaining its commissioning levels, suggests that scripted content will continue to play a significant role in the UK's media landscape. Additionally, the potential for co-productions and partnerships could offer new opportunities for growth, helping the sector navigate the complexities of the current market.
Features: A Possible Robust Recovery
The UK feature film industry has experienced a robust recovery, outpacing the television sector in terms of growth and resilience. This resurgence is largely attributed to successful theatrical releases and the enduring popularity of franchise films. Inward investment has played a pivotal role in this recovery, with the UK attracting a substantial number of international projects.
In 2024, inward investment in film and high-end TV (HETV) production reached £4.7 billion, marking a significant increase from the previous year. This surge was driven by a combination of factors, including the resumption of production following the 2023 US strikes and the appeal of the UK's world-class infrastructure and tax incentives. International feature films contributed £1.9 billion to this total, while HETV productions accounted for £2.8 billion.
Looking ahead to 2025, several major productions are set to begin filming in the UK, which could sustain the current momentum. Notably, Marvel's Avengers: Doomsday is anticipated to start production in the spring, alongside two Marvel/Disney+ shows: Star Wars: Ahsoka and Tin Man. The Harry Potter series will also resume filming at Warner Bros. Studios Leavesden over the summer, further bolstering the UK's position as a hub for high-profile productions.
The UK's ability to attract such significant projects is underpinned by its strong support from the government, enhanced tax credits, and a world-class skills base. The introduction of new tax credits, including an increased VFX tax credit and a credit for independent films, has been particularly effective in drawing international productions. Additionally, the UK's diverse locations and cutting-edge facilities continue to make it an attractive destination for filmmakers.
While the feature film industry faces challenges, such as shifting market conditions and global content commissioning changes, the UK remains well-positioned for continued growth. The British Film Commission is experiencing a high level of inward investment enquiries, suggesting that the UK will maintain its competitive share of global production spend in the coming months. As the industry looks to 2025, the combination of major productions and ongoing investment is expected to sustain the momentum achieved in 2024.
Global Production Trends: Downturn but Regional Resilience
The global film and TV production industry began 2025 with a notable downturn, marked by a 10% decline in overall production activity compared to previous periods. This decrease reflects a combination of economic caution and strategic adjustments in commissioning by major studios and streaming platforms. Despite this global trend, regional variations have emerged, with the Americas demonstrating resilience and an 8% increase in production activity compared to January 2024. This disparity underscores the industry's complex landscape, where certain regions are better equipped to navigate shifting market conditions.
The decline in global production activity is attributed to several factors, including seasonal production delays, commissioning gaps, and more conservative content spending by major players. According to Vitrina's Production Pulse report for January 2025, production volumes decreased across most regions, with the Asia-Pacific (APAC) experiencing the steepest drop at 35%, driven by reduced financing in India and Japan. The Europe, Middle East, and Africa (EMEA) region also saw a significant 32% decline, influenced by seasonal slowdowns and commissioning pullbacks from key broadcasters.
In contrast to the global downturn, the Americas have shown remarkable resilience, with an 8% increase in production activity compared to January 2024. This growth is supported by stable market conditions and investment flows. The region's ability to maintain production levels reflects its strong infrastructure and competitive incentives, which continue to attract significant projects.
By February 2025, global production trends began to show signs of stabilization. The EMEA region led the recovery, driven by enhanced tax incentives, increased local talent investments, and rising demand for Arabic content ahead of Ramadan. The APAC region also demonstrated early signs of stabilization, with a slight uptick in production volume. Meanwhile, the Americas maintained a steady output, with notable gains in Texas due to expanded film incentives.
Several factors contribute to regional variations in production activity:
Tax Incentives: Regions offering competitive tax credits, such as the UK and certain U.S. states, have attracted more international productions. For instance, the UK's increased incentives for independent films have been particularly effective.
Infrastructure and Talent: Areas with well-developed infrastructure and skilled labor pools, like the UK's North regions, are becoming hubs for high-end TV and film production.
Market Demand: Shifts in audience preferences, such as the demand for localized content, have influenced production strategies. Streaming platforms like Netflix have increased investment in regional content to cater to evolving audience needs.
As the industry moves forward in 2025, regional resilience will play a crucial role in navigating the complexities of the global market. While challenges persist, areas with strong infrastructure, competitive incentives, and adaptable production strategies are poised to capitalize on emerging opportunities and drive growth in the sector.
Despite these challenges, there is cautious optimism about the UK industry's future. Producers are planning investments for 2025, indicating a commitment to growth despite uncertainty. The UK's strong infrastructure, tax incentives, and global appeal continue to attract major international productions, which will be crucial for sustaining momentum in the coming months. While the UK film and TV industry faces significant challenges, particularly in unscripted content, there are signs of resilience in scripted TV and feature films. As global production trends continue to evolve, the UK's ability to attract inward investment and adapt to changing market conditions will be key to its long-term success.
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