The UK government wants to make it easier for legacy broadcasters to consolidate and partner up.
Revealed in its long-awaited Creative Industries Sector Plan this morning, the government has tasked the UK’s Competition & Markets Authority (CMA) and regulator Ofcom to compile a review which will “set out how changes in the sector – such as the convergence of broadcast, on-demand and video sharing – could be taken into account as part of any future assessment of television and advertising markets.”
Notably, this could include “possible consolidation between broadcasters which may benefit their financial sustainability and audiences,” or “strategic partnerships” between the rivals. The government noted that “the television market is transforming, leading to consolidation… to increase economies of scale.”
“In the context of a fragmented and highly competitive TV landscape we want to ensure that domestic companies are able to compete effectively, ensuring that they are not held back from funding and producing the distinctively British content that brings benefit to audiences,” added today’s report.
Traditional broadcasters have long been getting to grips with the impact of American streaming giants along with a rapid rise in costs of drama and other genres. This has led to partnerships such as the BBC and ITV’s BritBox venture, although ITV then sold its stake. More recently, ITV, Channel 4 and Sky announced the launch of an “advertising marketplace” in which companies will be able to advertise on all three networks through a single campaign for the very first time.
The government’s nod to “consolidation” comes with rumors abounding that ITV or its studios division will be sold, although all those reported to be interested are headquartered outside the UK. We have asked the Culture, Media & Sport (CMS) department whether the scope of the CMA and Ofcom’s work could cover companies based outside of the UK.
The creative sector plan said “we must take active steps to ensure our domestic broadcasters can adapt to this changing market and continue their support for independent producers of all sizes so that IP remains in the UK.”
The plan said government will update policy and regulatory frameworks to help “promote a more level playing field” for broadcasters, while examining how the BBC’s commercial activity could do more to support the BBC and wider industry.
“Best place in the world to make film and TV”
The plan reflects the UK government’s desire to prioritize the likes of film and TV as high growth industries, leading the UK to become the “best place in the world to make and invest in film and TV” by 2035.
On Friday, the UK government unveiled a £75M ($100M) “Screen Growth Package” which will expand the UK Global Screen Fund to £18M per year from next year, put £25M towards businesses in the augmented reality and motion capture tech space and give £10M to expand the National Film and Television School, which the government said will unlock £11M in investment from the likes of the Walt Disney Company, the Dana and Albert R. Broccoli Foundation and Sky.
The government also revealed today it will modernize its co-production treaties with Canada, Australia and New Zealand while “identifying other valuable co-production treaties, as well as ensuring tax reliefs are effective in stimulating international collaboration.”
The British Film Institute (BFI) has been doing a separate piece of “urgent analysis” examining potential improvements to the UK’s film and high-end TV tax credit.
Revealed today, the government is also bowing to the wishes of industry bodies by agreeing to appoint a “creative freelance champion” to support the sector’s ailing freelance workforce, which will take place later this year.
Philippa Childs, who heads up the Bectu union, said she was “delighted” the government has listened to Bectu and welcomes “that the government has taken a number of other steps to back creative workers including a strengthened commitment to tackling bullying and harassment in the industry, a new skills passport, and confirming the intention to support self-employed workers through the Make Work Pay agenda.”
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