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DATA CENTRE

14

COBA Content Report Multichannel investment in UK television programming

RECORD INVESTMENT HINTS International AT COMPLEX TIMES FOR Influence FUNDING CONTENT

62 | TVBEUROPE JANUARY / FEBRUARY 2019

FIGURE 11

Multichannel broadcasters often raise additional investment for their UK commissions by leveraging against projected sales from overseas channels within their own portfolios. In 2017, just over one third of all UK multichannel spend came from these international channels

Proportion of content spend by source, made by COBA members with international channel groups, 2014-2017 / %

Overseas investment in UK content 100

75

Non-UK 31%

Non-UK 43%

Non-UK 33%

Non-UK 35%

50

25

UK 69%

UK 57%

UK 67%

UK 65%

0 2014

2015

2016

2017

15 15

Source: COBA members, Oliver & Ohlbaum analysis

COBA Content Report Multichannel investment in UK television programming COBA Content Report Multichannel investment in UK television programming

FIGURE 12

FIGURE 12 Hours of UK programming shared across international channels Hours of UK programming shared across international channels In 2017, COBA

members broadcast In 2017, COBA more thanbroadcast 21,000 members hours of UK more than 21,000 content hours ofacross UK their portfolio content across of international their portfolio channels, up 79 per of international cent since up 2011 channels, 79 per cent since 2011

HoursHours of UKofchannel UK channel programming programming shared shared internationally, internationally, 2014 2014 – 2017– 2017

O

n one level, COBA’s 2019 Content Report carried a straightforward message – the multichannel broadcasting sector now invests £1.1 billion per year in UK television production, the first time the sector’s spending on home-grown content has crossed the £1 billion mark. But in reality the report by media analysts Oliver & Ohlbaum Associates provided a glimpse into an increasingly complex world. Commissioning original content used to be the preserve of a few channels – in the UK, the four Public Service Broadcasters (PSBs) were for years responsible for 90 per cent of the investment into domestic production. But, as our Content Report highlights, COBA members, the non PSB channels that comprise the multichannel broadcasting sector, have increased their investment by 75 per cent since 2011. Meanwhile, spending by PSBs has remained fairly flat (largely due to a declining BBC licence fee). The net result is that COBA broadcasters now account for roughly 25 per cent of all investment in UK content. Producers have many more commissioning doors to knock on – and of course the nature of financing content these days means they may have to knock on several broadcasters’ doors just to fund one production. Nowhere is the complexity of modern-day production financing more evident than in the international section of our report. Alongside more domestically-focused players, the multichannel sector includes many international media groups who use their overseas channels to partially fund UK commissions, leveraging projected revenues from non-domestic services within their own portfolio. In 2017, those COBA members that are part of international channel groups raised just over one third of their spend on UK commissions from their own overseas channels. That content then went on to appear on those international channels, giving UK creativity a global platform. In 2017 COBA members broadcast more than 21,000 hours of UK content across their portfolio of international channels, up 79 per cent on 2011. Not surprisingly, the EU was the biggest destination for this content, accounting for 42 per cent of all international hours. The resulting picture is one of a complex, mixed ecology, with funding for content flowing from an increasing number of sources and different markets. Public Service Broadcasters remain crucial, providing the majority of funding, but COBA members and others are providing dramatically increased investment of their own, as well as strong creative competition and audience choice. ■

30000 30000

21461

20917

21461

20917 17408

20000

17408

20000 12003 12003

10000 10000

0 0

2015

2016

2017

2015 Source: COBA 2014 members, Oliver & Ohlbaum analysis

2014

2016

2017

Source: COBA members, Oliver & Ohlbaum analysis

FIGURE 13

FIGURE 13 Proportion of UK programming shared across non-UK channels in 2017 Proportion of UK programming shared across non-UK channels in 2017 Europe was

the biggest Europe was international the biggest market for UK international programming, market for UK but growth was programming, shared across most but growth was territories shared across most territories

Proportion Proportion of UKofchannel UK channel programming programming shared shared internationally, internationally, 2017 2017 % %

By Adam Minns, executive director, COBA

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

50 50 40

42% 42%

40 30 30 20 20

18%

18%

18%

18%

10

8%

8%

10

8%

8%

MENA

LatAM

Asia

North America

MENA

LatAM

Asia

North America

6% 6%

0 Europe

Africa (sub-Sahara) Africa Europe (sub-Sahara) Note: Figures may exceed 100% due to rounding

0

Source: COBA members, Oliver & Ohlbaum analysis Note: Figures may exceed 100% due to rounding Source: COBA members, Oliver & Ohlbaum analysis

Profile for Future PLC

TVB Europe January / February 2019  

TVB Europe January / February 2019