RTS DEBATE
US INWARD INVESTMENT
THE BANG OF THE BUCK
The impact of US HETV inward investment on UK production was the topic of debate at a recent RTS virtual panel
discussion with senior industry executives, moderated by Televisual’s MD, James Bennett. The discussion explored studios investment, the implications for UK Indie funding
models, the future shape of UK output and how the industry can remain competitive and attractive to inward investors.
JANE MILLICHIP CHIEF CREATIVE OFFICER, SKY STUDIOS
Millichip is responsible for editorial activities in original drama, comedy and documentary and oversees Sky Studios’ commercial activities, including international deficit funding and production partnerships. Previously, Millichip was Managing Director of Sky Vision, Sky’s former production and distribution arm, which was merged into NBCU last October. At Sky Vision, Millichip and the team grew the business from £8m revenues to £250m in six years, spearheading Sky’s investment into independent production companies and content distribution.
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televisual.com Spring 2021 WAYNE GARVIE
PRESIDENT OF INTERNATIONAL PRODUCTION, SONY PICTURES TELEVISION
Garvie oversees Sony Pictures Television’s (SPT’s) global network of 21 production companies outside the US, including Left Bank Pictures and Eleven Films. He is also responsible for driving creative development within international production, steering the business to develop locally created properties into global formats and fostering co- developments across the group. Garvie joined SPT in 2012 and previously held senior roles at All3MEDIA, BBC Worldwide, the BBC and Granada.where he was key to the implementation and delivery of its high end Drama slate.
The debate took place against a background of surging inward investment into the UK. In 2019, film and high-end television production spend in the UK was over two billion pounds, with £1.6 billion coming from inward investment, according to the BFI, and high end television spend has increased by 93% over the past five years, with a 51% increase in 2019 from 2018. It is forecast to be in excess of £4 billion by 2024/25 However, as viewing habits change, the worry is that PSB spend on originated content is diminishing. According to Ofcom, PSB investment has fallen by nearly 30% over the last 15 years (not taking inflation into account) to 2019. The panel debated whether this will disrupt the unique production ecology that has grown up in the UK over the years – and made it so attractive to international shoots.
JAMES BENNET T: What does UK production talent have to offer to the US?
WAYNE GARVIE: I think our strength in television is because we never really had a film industry in Britain, whereas in America they do. Why were our creatives ideally placed for the sudden explosion of streaming services, in particular, for high-end premium drama content? One, because we’ve got a very strong TV industry. Secondly, the language. Thirdly, we’re creative entrepreneurs. We’ve had to be because we’re a small island, and we’ve had to go out and sell our wares. Then, we’ve got
unbelievable quality acting talent. No one can come close to us. Also, we have a culture of innovation which stems from our fundamental belief in public service broadcasting, which has kept the rest of our industry in the right place.
JANE MILLICHIP: We have incredible production skills in the UK, not least because for decades, we’ve had some of the best run soaps in the world. These are superb training grounds for skills, and you see some great super bright writers coming out of those factories. One of the reasons also that it’s attractive to shoot here is that the cost per hour is less than in the US. We can produce a fine, high quality hour of production at a better price point than you can in the States. The US, thank goodness, sees the UK as an exciting market. But equally, we still need the US for a lot of our funding. Last year at Sky, for instance, we had 29 productions go into the States with either co-pros or pre-sale deals with 15 different networks and platforms. And thank goodness for them, because the price per hour of a Sky Original is significant. As we have improved the quality of our shows, the budgets have increased, and so have the deficits. So I think we’re in a very interconnected world right now where we need each other significantly.
JB: Cost per hour – is that one of the primary reasons why the US come here, and if so does that cost per hour get squeezed over time?
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