In the previous year, spending by streaming platforms on British television productions notably surpassed $1 billion, as revealed by a recent report from Pact. John McVay, the organization’s leader, supported the stance of American streaming giants and criticized Channel 4 for its negative comments during the controversy involving the show Adolescence at the Edinburgh TV Festival.
In 2024, the amount invested by streaming services in UK-based series reached £850M ($1.15B), marking a 24% increase and setting a new record in a year described by Pact as having otherwise “sluggish” growth. Popular series such as Adolescence, Rivals, and more seasons of Slow Horses were among the projects commissioned by streamers in the UK.
While streaming investments in the UK soared, funding from traditional linear broadcasters outside the UK for British content fell by 36% to £279M. As a result, the overall external commissioning revenue remained nearly unchanged in 2024—a year marked by challenges including the “Survive ’til 25” mindset, the decline of mid-budget programming, and the closure of several renowned UK production companies. Furthermore, international sales of British shows dropped by 26% to a 12-year low of £153M.
At a Pact Census briefing, in response to a question from Deadline, McVay highlighted that the budget for original programming from Channel 4 is now significantly lower than what streamers spend on British TV. He accused the network of undue criticism and negativity stemming from the Adolescence dispute. This issue began when Channel 4’s Louisa Compton labeled Netflix as “TV tourists” for their involvement with Adolescence after Channel 4 had long supported the show’s creators, Jack Thorne and Stephen Graham. This comment quickly became a hot topic at the festival, prompting a rebuttal from Netflix’s Mona Qureshi who asserted her deep involvement in the industry.
McVay defended the streamers by stating that although they are not public service broadcasters, their investment in talented British creators and independent productions should be appreciated. He criticized the accusation against them as petty and unnecessary, especially since many UK professionals are gaining experience and employment through projects commissioned by Netflix.
He expressed that British public broadcasters are uncomfortable with the reality that streaming platforms are investing heavily in UK content. According to McVay, public service broadcasters wish to monopolize access to talent and resources, but streamers are providing competitive alternatives that often lead to faster project approvals and production.
Another controversy arose at Edinburgh, where Channel 4’s Ian Katz highlighted his network’s commitment to pioneering new shows, in contrast to competitors focusing on international formats and reboots. McVay countered this by pointing out that according to Pact Census data, only 17% of Channel 4’s programming budget was allocated to new projects, a decrease of 4 percentage points, placing it last among its peers. He also noted that Channel 4 predominantly funds projects from larger production houses.
McVay mentioned that the strategy of Channel 4 is causing concern among smaller, independent companies, suggesting that the network is becoming less appealing for startup productions.
In defense of Channel 4, McVay acknowledged that the network had commissioned more dramas than ever before, which is notable as the spend on drama in relation to other genres reached a historical peak of 42% among all British broadcasters.
He also touched on the growing difficulty of securing co-productions, especially as American buyers now prefer funding original content. This challenge has been labeled by the BBC as a crisis in funding for scripted content, with many potential dramas remaining unfunded.
McVay is actively involved in advocating for enhancements to the UK high-end TV tax credit and emphasized the necessity of reevaluating the financial sustainability of domestic drama productions.
The overall revenue for British producers slightly increased by 1.3% to £3.6B last year, a figure McVay suggested might indicate a new baseline for the industry, which contrasts starkly with the 5%-8% growth rates seen before the pandemic.
He concluded by stating the industry is neither optimistic nor pessimistic about the current state but is waiting to see how UK TV revenues pan out in the coming year.
McVay is preparing to leave Pact after over 25 years leading the organization, which represents hundreds of UK production companies, with the search for his successor currently underway.
Daniel Hayes is a business journalist with a focus on market trends, startups, and corporate strategies.
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