UK TV Industry in Crisis: Calls for Streaming Levy Amid Rising Production Costs
The UK television industry is facing a severe funding crisis, with acclaimed director Peter Kosminsky warning that public service broadcasters like the BBC and ITV can no longer afford to produce high-end British drama. The financial strain has led to significant cuts in production budgets, impacting the quality and scale of UK-made content.
Budget Pressures on High-End Drama
Kosminsky, known for directing Wolf Hall, revealed that the second series, The Mirror and The Light, nearly collapsed due to budget constraints. Costly exterior scenes were scrapped, leaving the production confined to indoor settings. Despite pay cuts taken by key figures—including Kosminsky, executive producer Colin Callender, and writer Peter Straughan—major sacrifices had to be made.
“The original script had many outdoor scenes, including a joust conceived by Hilary Mantel, but we had to cut everything,” said Kosminsky.
This financial squeeze is not unique to Wolf Hall. Kosminsky believes public service broadcasters today could not afford to produce landmark dramas like Mr Bates vs The Post Office or Netflix’s Adolescence, which follows the story of a teenager accused of murder.
Rising Costs and Funding Shortages
Several factors have contributed to rising production costs, including:
The impact of the Covid-19 pandemic
The 2023 US actors' and writers' strikes
Increased energy costs
Inflation driven by the advent of streaming platforms
Jack Thorne, writer of Adolescence, acknowledges that while UK broadcasters could have made the drama, it would have required substantial financial compromises. “In episode two, I wrote a fire drill involving 300 extras. Those extras were employed for 10 days—that’s an enormous cost. Public service broadcasters would have needed co-financing, but that funding has disappeared,” he explained.
The Case for a Streaming Levy
Kosminsky and others in the industry are now urging the UK government to impose a 5% levy on subscription streaming services, with the proceeds going into a British cultural fund.
Figures from the BFI reveal that in 2024, £5.6 billion was spent on high-end TV and film production in the UK. However, only £598 million of that was allocated to domestic UK productions—a 22% drop from the previous year. Kosminsky argues that a levy would bring the UK in line with European countries like France and Denmark, which reinvest streaming revenues into local content.
However, international resistance could pose challenges. The White House memorandum in February called such levies “one-sided, anti-competitive policies” that “violate American sovereignty.” The UK government would need to navigate potential opposition from the US, where many streaming giants are based.
Industry Calls for Government Support
Jayne Featherstone, executive producer of Netflix’s Black Doves, has echoed warnings that UK storytelling is at risk. Speaking at the Broadcasting Press Guild Awards, she stated, “We are in the 45th minute of the pilot episode, and we've got five minutes left to stop the bomb from going off.”
She recently urged MPs to consider increased tax relief for high-end TV productions, similar to the existing support provided to the UK film industry.
The Future of British TV
Without urgent intervention, experts fear that British audiences will soon notice the absence of prestige dramas from UK broadcasters. Patrick Spence, executive producer of Mr Bates vs The Post Office, stated that even if funding were available, he wouldn’t start developing such a project today due to financial risks.
Sir Alan Bates, the former subpostmaster whose real-life story inspired Mr Bates vs The Post Office, described the show’s impact as critical. “A lot of people saw for the first time the sort of hell going on in the background in the Post Office—the real miscarriage of justice,” he said.
As industry leaders push for solutions, the question remains: Will the UK government step in to save British television, or will the golden age of UK drama come to an end?
Challenges for Future Productions
The ongoing budget crisis isn’t just a temporary setback. It’s indicative of a wider structural problem facing British TV. As production costs continue to climb, public service broadcasters, traditionally seen as the bedrock of quality TV in the UK, are struggling to keep up with both inflation and the financial demands of streaming giants.
The shift towards streaming platforms such as Netflix, Amazon Prime, and Disney+ has fundamentally changed the market. With vast international budgets, these platforms can afford to create high-end drama without the same financial constraints faced by the BBC or ITV. But for UK audiences, this shift comes with a double-edged sword: the quality of locally produced drama may diminish, and British stories could disappear from mainstream TV.
Patrick Spence warns that the financial shortfall is not just affecting the production of existing shows, but also preventing new ones from even being developed. Without financial support, the future of UK drama looks bleak, and audiences may soon feel the impact of the lack of fresh, high-quality content that previously defined British television.
The Government’s Role: Will They Step In?
While the streaming levy proposal has garnered support from many in the industry, the question remains whether the UK government will take action. Many industry experts believe that without government intervention, the problem will only worsen, and the UK may lose its standing as a global leader in high-quality television production.
By introducing a streaming levy, the UK would not only be providing financial backing for domestic productions but could also foster a more balanced global content market. The move would align the UK with European countries like France and Denmark, where similar levies have proven successful in funding local content.
However, as streaming platforms continue to grow in influence, with their global reach and enormous budgets, it will be a battle for lawmakers to navigate. The potential diplomatic ramifications, particularly with the US, could complicate efforts to introduce the levy. In particular, US-based streaming platforms may resist additional taxation, arguing that it creates an uneven playing field in international markets.
A Changing Landscape for UK Audiences
For British TV audiences, the future of high-end drama is uncertain. Shows that once dominated the TV landscape, such as the critically acclaimed Wolf Hall and Mr Bates vs The Post Office, may no longer be possible without substantial changes in how content is funded. As public service broadcasters are forced to scale back their investments, the gap between streaming platforms and traditional broadcasters will continue to widen.
Kosminsky's warning that viewers will soon notice the absence of these high-quality dramas is a stark reminder of the profound impact that financial pressures are having on the British TV industry. While streaming services may offer an alternative, they are unlikely to fill the unique cultural and national narratives that British television has long been known for.
Looking Ahead: Innovation or Decline?
Despite the challenges, some industry experts are optimistic that the UK TV industry can adapt. Increased international co-financing opportunities, creative partnerships, and new funding models may offer a path forward. However, these solutions may come at a cost, potentially altering the character of British TV in ways that will be felt by both producers and viewers.
In the end, whether the British television industry can survive the current crisis may depend on the ability of all stakeholders—the government, broadcasters, streaming platforms, and creators—to come together and find solutions that balance creativity with financial sustainability. Without this collaboration, the UK could face a future where the types of stories that have long defined British TV are relegated to the past.
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