This 22% figure is the largest single annual increase since the BTDA began working with the DCMS (Department for Culture Media and Sport) in 1998 to produce more accurate data and, significantly, means that total revenue from TV exports has now risen in excess of 80% in the past five years.
For the third year running revenue derived from business in the US increased substantially – by 41% in 2003, and constitutes some 43% of total UK exports. Much to the industry's delight the sale of finished programmes increased by 12%, compared to a decline of over 5% last year. Despite this growth, 2003 becomes only the second year in which finished programmes accounted for less than 50% of the total export earnings, reflecting both the changing nature of the international marketplace, where more rights are being traded up front, and the benefits to be had of effective rights exploitation across a range of platforms.
Ian Jones, chairman of the BTDA comments:
"2003 was a milestone year for the UK television sector, with the Communications Act heralding significant changes in rights ownership. There is evidence of a blurring of boundaries between the distribution and production communities and I would like to think that this significant year on year increase in export revenue is partly attributed to the arrival of some new producer/distribution companies set up in anticipation of these legislative changes. Established companies also continued to perform very well, although there is no room for complacency in such a dynamic and ever changing market.
"Economic conditions generally were a little easier last year than previously – but most importantly the UK did of course have some fantastic shows out there in the marketplace, ranging from Bad Girls which Target Entertainment sold to 30 countries, to the Innovations science series which Carlton International sold to 80 countries and Granada International's Living with Michael Jackson, the Martin Bashir documentary, which went to more than 120 countries. The industry largely mitigated the impact of currency fluctuations, particularly the US dollar vs UK pound rate. But we anticipate that continuing dollar volatility may well impact on 2004 figures."
2003 Export Survey Summary Findings
- Export earnings up 22% - the largest annual increase since new records began
- Sales to the US jump 41% in 2003
- Real growth in revenue from key markets in Western Europe (Germany, France, Spain, Italy and Scandinavia) show on average 38% growth (Germany 53%), compared to flat or minus figures last year
- Finished TV programmes provide less than 50% of total revenue earnings
- Europe buys most finished programming
- Bulk of US sales revenues derived from video/DVD, co-production funds and licensing
- Licensing revenue is fast catching that derived from finished programmes, with a 35% increase in 2003
- DVD earnings slowed to 9% growth after more than doubling in the previous year, demonstrating that significant increases in prior years are rapidly driving the market towards maturity
- Co-production revenues up 38%, following 37% increase last year: 93% of co-production revenue comes from the US
- Format sales up 62% compared to 11% growth last year
- Best-selling new programmes in 2003 were documentaries: Living with Michael Jackson went to more than 120 countries and Ancient Greek Olympics and Innovations both went to 80 countries
- Inspector Morse remains the best-selling programme over five years (+200 territories) followed closely by Midsomer Murders (164), Frenchman's Creek (150) and Bob the Builder (142)
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Brit TV Playing a Bigger Part in Europe
2003 has seen a dramatic turnaround in the fortunes of Brit TV in Western Europe. Revenues have been in decline for a number of years as more and more countries squeezed UK programmes out of the schedules to make way for US blockbusters and domestic content. However, with small revenue declines in 2002 for Germany and Italy being converted to a 53% increase in Germany in 2003 and a 34% increase in Italy, we are clearly back in favour. Much of this has to do with the quality of top documentary and drama programming available from the UK, plus enduring formats such as BBC Worldwide's Top of the Pops and Weakest Link, which continue to travel well. But the effect of changes in local markets, such as the collapse of the Kirch Group in Germany, can be substantial. If a local supplier of volume content disappears, airtime still needs to be filled and broadcasters will look to the UK for the best in ready-made programmes.
In addition, the UK has seen a great deal of interest from European countries in licensed product associated with popular programmes brands. The continent now accounts for 34% of revenues in this area.
The US Proves a Consistent Production Partner
Five years ago, co-production sales accounted for only 9% of export earnings. Last year this figure was more than 12% of the total – and 93% of this money came from the US. Top quality documentaries and drama are expensive to produce and up-front investment funding is the only way that some shows get made.
And, unlike paying for a show after it has been made, a co-production partner usually gets a say in the look, feel and content of a programme and this tends to guarantee it a better slot in the schedules. The US respects our creative and production skills, particularly in the areas of drama and documentaries and we are increasingly the partner of choice for big budget programming.
Quarter of Export Earnings is Child's Play
With a 35% increase in 2003, Licensing continues to be big business, particularly for companies with great children's brands and particularly with those brands that are popular in the US. Hit Entertainment's Bob the Builder and Pingu for example continue to do well, as does Chorion's Noddy.
Export earnings from video and DVD has grown dramatically in the past few years but slowed down in 2003 to a 9% increase after more than doubling in 2002 - demonstrating that significant increases in prior years are rapidly driving the market towards maturity It is anticipated that this figure will gradually level off during the next few years as back catalogue gets used up and the market begins to concentrate on newer programming.
Formats Faring Well
Formats may be the buzzword in UK TV at the moment but, less lucrative than finished programmes, only the truly massive hits such as Weakest Link and Who Wants to be a Millionaire – which go everywhere – are likely to bring in major export earnings. In 2002 format sales increased just over 11%, but last year this figure increased to 62% with The Television Corporation's Paradise Hotel proving the biggest format hit with major success stateside. With some formats such as Granada International's I'm a Celebrity…' doing well in Germany this year and selling to other markets, it is anticipated that this success will continue into 2004.
Culture Secretary Tessa Jowell said:
"At its best, our TV is the envy of the World. These figures bear that out. They show the UK industry going from strength to strength - producing programmes that are not only of exceptional quality but also overwhelming popularity both here and across the globe. They are a testament to the power of UK creative talent in the international arena."
Rupert Dilnott-Cooper from the BTDA concludes:
"We have always had the heritage, creativity and technical expertise to produce quality programmes but there is a real buzz in the industry at the moment and I believe the increased sales are reflective of this.
"We now have an even more impressive platform from which to take full advantage of the Communications Act and producers and distributors now need to work closer together to make sure that we continue to maximise the value of UK programmes and ideas in the international marketplace for the benefit of the industry as a whole. More revenue into the UK TV economy means more development and ultimately more high quality programming for domestic and international broadcasters."
Notes to Editors
- *The figures for 2002 have been revised upwards and restated following the receipt of late data for 2002 during the 2003 collection process. This is a necessary procedure due to the varying financial years of BTDA companies. In addition, some of the marked change in 2002 can be attributed to a small number of companies who did not provide data at the time and had grown significantly above our estimation, in some cases due to new acquisitions. The 2002 total has been restated as $754m from $666m. Approximately 60% of this increase comes from the US, the majority relating to DVD and licensing exploitation.
- All figures have been either rounded up or down to the nearest whole number.
- The figures for percentage change were calculated using unrounded data and so may not exactly match those percentages that would be calculated using the published rounded data.
- These statistics were compiled for the BTDA by DCMS under the supervision of a Government Statistician.
- The British Television Distributors' Association represents over 30 of the UK's leading distributors, including all the major companies such as BBC Worldwide, Carlton International, Granada International, 4 Rights, Hit Entertainment and Fremantle International Distribution. In total the organisation accounts for more than 90% of all UK exports.
- The Creative Industries Task Force TV Exports Inquiry, published in November 1999, recommended that regular statistics should be produced for TV exports. Since then, DCMS has worked with the BTDA on producing these figures.
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