Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.This should be the best of times for British television. Not only have US streaming platforms such as Amazon and Netflix been pouring billions into UK productions, but they have supported unlikely hits. Baby Reindeer, the Netflix show about a comedian and his stalker, won four Emmy awards in Los Angeles last week.Ted Sarandos, co-chief executive of Netflix, flew to London later in the week to celebrate its success at a Royal Television Society event. Three out of Netflix’s top four shows globally (Fool Me Once, Baby Reindeer, and The Gentlemen) in the first half of this year were produced in the UK, and the other was Bridgerton, US-produced but filmed in Britain.“All of them became global sensations because they were all, in their own way, authentically British,” he said. Netflix has invested nearly $6bn in the UK over the past four years, working with more than 200 producers and 30,000 cast and crew between 2020 and 2023. Since the first series of The Crown in 2016, the UK has become the company’s biggest production hub outside North America.But the mood among British television producers at the RTS was gloomier than this suggests. Alex Mahon, chief executive of Channel 4, was not unusual in declaring that “It is an incredibly tough time to be an indie [independent production company] in the UK right now.” Despite the proliferation of film studios and proud talk of British creativity, money is tight.This is partly due to retrenchment in Hollywood as the era of “peak TV” recedes and film and television companies consolidate. Although Netflix says it is still investing heavily, primary UK commissions by international companies fell by nearly 15 per cent in 2023 to £1.1bn after a post-pandemic bump, according to Pact, the trade body for independent producers.It also reflects cutbacks by UK public service broadcasters as budgets are affected by a drop in advertising and the BBC tries to reduce its costs. “It was really rocky. We cut spending last year [and] it hit indies hard,” Mahon said, adding that it has commissioned more again this year.The worry for independent producers extends beyond a cyclical downturn. There is also a widening gap between small companies that have borne the brunt of the squeeze and the largest, most prolific companies, with the scale and credibility to work with Amazon and Netflix. As in other industries, globalisation expands the market for those who are already strongest.Clerkenwell Films, which produced Baby Reindeer, is wholly owned by BBC Studios, while Fool Me Once was made by Manchester-based Quay Street Productions. The latter is run by Nicola Shindler, who has produced UK broadcast series including Happy Valley and Queer as Folk. About 90 per cent of drama commissions went to the largest independent producers in 2023.This flow of business is enticing investors. All3Media, the UK producer behind Fleabag and Squid Game: The Challenge, was acquired for £1.15bn by the US investment group RedBird IMI this year. Harry Hampson, a global chair of investment banking at JPMorgan who advised on the deal, said that 15 other parties expressed interest.But globalisation can also be brutal on those left behind. As UK broadcasters attempt to match Netflix in high-budget drama and documentary, there is less money to commission less glossy and prestigious shows. “The middle ground of lifestyle and factual entertainment gets cut, and the middle is where my members live,” said John McVay, chief executive of Pact.Pact has more than 700 members, reflecting the broad production base built in the UK since 1982. This was when Channel 4, which relies entirely on commissioning independent producers, started broadcasting. That ecosystem, supported by public service broadcasters and tax breaks, has been vital to what Sarandos referred to as “a creative culture unlike any other”.The question is what happens to the ecosystem now. McVay said it would be stupid to look Netflix’s gift horse in the mouth: “If they think this is the best place to come, I applaud it, because they could spend the money elsewhere.” But some parts of the industry gain more than others: the smaller the outfit, the tougher it may be to stay profitable.The influx of Hollywood money and commissioning power has not dulled British originality in prestige television: shows such as Baby Reindeer prove the opposite. But if other producers go out of business, no one will know what they might have created.john.gapper@ft.com
