How will the position of the UK TV and film industry shift in the post-Brexit era?
In the post Brexit era, the news agenda has just about got over its shock and is instead focusing on the new cabinet and resplendent Boris we have been given. Yet, over in the TV and film industry, the news of Brexit is still something that is causing incredible consternation, as thousands of pan-European co-productions enter a financial no man’s land.
Good programming needs funding; that’s a given. To find that funding, it’s inevitable that you often have several companies involved from all across the world, including Europe. The Night Manager had funding from French production company Natixis Coficine, and Creative Europe, the EU’s media programme, has funded productions such as Jamaica Inn, Hinterland and The Last Panthers. Atresmedia in Spain co-funded BBC Worldwide’s The Refugees. Getting a return on that funding means making it suitable for a range of territories. Look at Top Gear: the bad press in the UK is practically a minor irritation because it’s sold in 130 territories - more countries than ever before.
Brexit means that funding models for drama in Europe, an area that has supplied over £140M in co-production in the past decade, are in turmoil. A third of our TV exports are to Europe and there are numerous EU tax credits and funds that help the European TV industry on its way. It’s no wonder that when PACT (Producers Alliance for Cinema and Television) surveyed its members pre-vote, 85% of film and production companies said they’d vote remain.
Versailles, the BBC2 drama about Louis XIV, is a great example. A co-production between Capa Drama, Zodiak Fiction and Incendol, it was pre-sold to Canal+ in France, SVoD service Movistar TV in Spain, SquareOne Entertainment in Germany, and the BBC in the UK; all of this raised funds for the decadent series. The series was made in English to help its overseas sales, and therefore required lobbying in France in order to authorise the French 20% tax rebate that helped shift finances over the line. Nonetheless, the rebate was used on a wealth of British talent from cast to crew.
An example of how Brexit could work in its favour would be to see their expenses leave the equation, making British talent less tempting. There is, of course, the possibility of a new deal, but with the UK in a paperwork quagmire, all of this will take time throwing up a mass of uncertainty over many years. During this time, talent outside of the UK could step in and affect the UK’s flourishing post-production industry. After years of building up some of the best behind the scenes talent, the UK could find themselves at risk. The potential influx from outside the UK could mean we see more European content heading to our shores, as production companies look at different finance patterns and talent.
There’s a chance that these changes in finance models will change distribution too. Will the UK see the BBC take a step back from the rise of success at Studio Canal and diminish their prominence? Surely the switch of the financing power base will also see a switch in how the marketing money is aimed, with other territories taking precedence as primary markets. In the same way that the US often dictates the marketing approach, there is a chance that other European territories could get the opportunity to come to the fore.
It works both ways of course. Lord Puttnam, Chariots of Fire producer and former Channel 4 deputy chair, made a great analogy that we were the “pivot” between the European and US creative industries. Brexit means we no longer fit that title and may look outside of Europe for locations and talent far more often – particularly if the controversial Digital Single Market kicks in, which looks to de-regulate between the European territories.
Despite this, we must remember the value of our market to both Europe and the US. Whether law changes will compromise our broadcast industry remains to be seen, but groups such as PACT have already starting investigating how the new horizon will affect us and what they can negotiate. They have two years to lobby the powers that be to negotiate a new position for the creative industries in the UK; our talent in the creative industries is still highly sought after and the UK still offers substantial tax relief that could shore up the changes. The Creative Europe Desk has confirmed that all applied-for grants are secured post Brexit and will not be altered. The EU quotas that require EU content are separate to membership, so UK productions are still classed as European in quota terms.
In other words, UK content still has value in Europe. However, for broadcasters who operate across Europe, Brexit could mean the end of their freedom to transmit from one member state, where they are regulated. For the next few years, the UK is an uncertain investment and the golden age of UK drama may be over.
Amy Vickery is senior account director at House PR.