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Only one-third of TV production money is spent outside London Only one-third of TV production money is spent outside London
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Survey of TV producers also finds that just 35% of full-time jobs in the industry are outside the capital
Graham Ruddick Media editor
Tue 5 Sep 2017 14.10 BST
Last modified on Tue 19 Dec 2017 20.52 GMT
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Just one third of TV production budgets in Britain is spent outside London, highlighting concerns that the industry is too focused on the capital and illustrating why the government is considering the relocation of Channel 4.Just one third of TV production budgets in Britain is spent outside London, highlighting concerns that the industry is too focused on the capital and illustrating why the government is considering the relocation of Channel 4.
A survey of TV producers by Pact, the trade association that represents TV and film production companies, found that of the £2bn budget for UK productions in 2016 just 32% was spent outside London. Furthermore, just 35% of the full-time jobs in the industry are outside London.A survey of TV producers by Pact, the trade association that represents TV and film production companies, found that of the £2bn budget for UK productions in 2016 just 32% was spent outside London. Furthermore, just 35% of the full-time jobs in the industry are outside London.
The Midlands and the north-east are two of the worst served areas by the TV industry. Just 3% of spending last year was in Yorkshire, while there was 1% in the Midlands and none at all in the north-east.The Midlands and the north-east are two of the worst served areas by the TV industry. Just 3% of spending last year was in Yorkshire, while there was 1% in the Midlands and none at all in the north-east.
John McVay, the chief executive of Pact, said the industry had to do better but resisted calls for Channel 4 to move away from London. He said TV production outside London had been “decimated” by the closure of ITV’s regional franchises, such as Granada, Yorkshire, and Carlton. He said Channel 4 should be forced to spend more money on commissioning programmes outside London – potentially up to 50% of its budget – rather than relocate.John McVay, the chief executive of Pact, said the industry had to do better but resisted calls for Channel 4 to move away from London. He said TV production outside London had been “decimated” by the closure of ITV’s regional franchises, such as Granada, Yorkshire, and Carlton. He said Channel 4 should be forced to spend more money on commissioning programmes outside London – potentially up to 50% of its budget – rather than relocate.
“I can understand why the government wants the benefits of one of the most successful sectors spread across the UK,” he said. “[But] Channel 4 should be held to the same requirements as the BBC [on spending across the UK] rather than lifting and shifting a headquarters to a city. One city gets the benefit of that others don’t.“I can understand why the government wants the benefits of one of the most successful sectors spread across the UK,” he said. “[But] Channel 4 should be held to the same requirements as the BBC [on spending across the UK] rather than lifting and shifting a headquarters to a city. One city gets the benefit of that others don’t.
“The danger if you have it in Birmingham is everyone spends their time on the train. Plonking an office of people in Brum and suddenly they become Brum by osmosis – I don’t think that works.”“The danger if you have it in Birmingham is everyone spends their time on the train. Plonking an office of people in Brum and suddenly they become Brum by osmosis – I don’t think that works.”
The Conservatives pledged in their manifesto for the last election that they would relocate Channel 4’s headquarters outside London, with Birmingham thought to be the favoured location.The Conservatives pledged in their manifesto for the last election that they would relocate Channel 4’s headquarters outside London, with Birmingham thought to be the favoured location.
Since the election, which led to the Conservatives losing their majority, a government consultation on Channel 4’s impact outside London attracted at least a dozen submissions from local authorities expressing an interest in hosting a new headquarters for the organisation. Birmingham, Liverpool, and Sheffield are among the cities that have told the government they want to be the new home of Channel 4.Since the election, which led to the Conservatives losing their majority, a government consultation on Channel 4’s impact outside London attracted at least a dozen submissions from local authorities expressing an interest in hosting a new headquarters for the organisation. Birmingham, Liverpool, and Sheffield are among the cities that have told the government they want to be the new home of Channel 4.
However, the channel defended its spending outside London. A spokesperson said: “Channel 4 makes a substantial contribution to regional economies with over 40% of our commissioned programme budget invested in nations and regions productions, accounting for 55% of hours, both well in excess of Ofcom requirements. We want to do even more and will be discussing with government innovative, meaningful and sustainable proposals that will enable us to give even greater support to the huge amount of creative talent across Britain.”However, the channel defended its spending outside London. A spokesperson said: “Channel 4 makes a substantial contribution to regional economies with over 40% of our commissioned programme budget invested in nations and regions productions, accounting for 55% of hours, both well in excess of Ofcom requirements. We want to do even more and will be discussing with government innovative, meaningful and sustainable proposals that will enable us to give even greater support to the huge amount of creative talent across Britain.”
The Pact report shows that TV production in the UK is in robust health after a string of successful international hits such as the Crown, Downton Abbey, and Sherlock.The Pact report shows that TV production in the UK is in robust health after a string of successful international hits such as the Crown, Downton Abbey, and Sherlock.
Overall revenues for the sector – which includes cash from broadcasters commissioning programmes and the sale of rights – dipped by 3% year-on-year to £2.5bn. This included a 3% fall in commissioning spend to £1.5bn, the lowest since 2011.Overall revenues for the sector – which includes cash from broadcasters commissioning programmes and the sale of rights – dipped by 3% year-on-year to £2.5bn. This included a 3% fall in commissioning spend to £1.5bn, the lowest since 2011.
However, the sector was boosted by the growth of global streaming services such as Netflix and Amazon. Revenues from international commissions grew 5% to £468m as Netflix ordered major series such as the Crown, which tracks the life of the Queen.However, the sector was boosted by the growth of global streaming services such as Netflix and Amazon. Revenues from international commissions grew 5% to £468m as Netflix ordered major series such as the Crown, which tracks the life of the Queen.
McVay added: “It’s encouraging that the world continues to want high quality content of British TV and this important revenue stream enables indies to reinvest back into UK plc.”McVay added: “It’s encouraging that the world continues to want high quality content of British TV and this important revenue stream enables indies to reinvest back into UK plc.”
The Department of Digital, Media, Culture and Sport (DCMS) said: “The government wants a broadcasting system that provides for the country as a whole - driving growth, stimulating creative industries and serving audiences across the UK.The Department of Digital, Media, Culture and Sport (DCMS) said: “The government wants a broadcasting system that provides for the country as a whole - driving growth, stimulating creative industries and serving audiences across the UK.
“The government believes that Channel 4, as a publicly-owned, public service broadcaster has a key role to play in delivering this, and the government has consulted on how Channel 4 could relocate staff and increase commissioning out of London.”“The government believes that Channel 4, as a publicly-owned, public service broadcaster has a key role to play in delivering this, and the government has consulted on how Channel 4 could relocate staff and increase commissioning out of London.”
Television industry
Channel 4
BBC
London
Television
North-south divide
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