U.K. Film, High-End TV Production Spend Exceeds $3.9 Billion in Pandemic Year, Down 21% on 2019 Levels

In what is the first official glimpse of the pandemic’s impact on U.K. film and television production, British Film Institute (BFI) data reveals that film and high-end television production spend exceeded £2.84 billion ($3.9 billion) in 2020, 21% down on 2019 levels.

The year was heading towards a record spend for the first quarter, but production was suspended in late March at the onset of the global pandemic. Although some post-production, VFX and animation was able to continue, physical production only began resuming in earnest from mid-July. The industry showed extremely strong signs of recovery, however, in the final quarter of 2020, generating a £1.19 billion spend for film and high-end TV — the second highest three-month spend on record.

The annual BFI report, released Thursday, shows that film production reached £1.36 billion, 31% down from a year prior, while high-end TV production topped £1.49 billion, only 11% down on 2019.

Meanwhile, inward investment and co-production spend on film and high-end television in the U.K. reached £2.36 billion, with £1.24 billion spent on feature films, representing 91% of the total (£1.36 billion) spend. Around £1.13 billion was spent on high-end TV production, making up 76% of the total (£1.49 billion) spend.

The greatest drop came for domestic (independent) film production, where spend amounted to just £119.5 million, or 9% of total spend. This constituted a 43% drop on 2019 levels. Domestic high-end television production spend of £357.4 million reflected a 26% decrease from a year prior.

U.K. animation TV production generated £61 million in spend, with 73% coming from co-productions and inward investment.

On the exhibition side, the closure of cinemas and reduced capacity screenings during restrictions saw 44 million admissions in 2020, 75% down on 2019. A £307 million box office total for the U.K. and Republic of Ireland reflects a 81% drop on 2019.

U.K. independent productions grew their market share to 14%, led by Guy Ritchie’s “The Gentlemen” (£12 million), “Emma” (£7 million) and “The Personal History of David Copperfield” (£6 million). Three of 2020’s top five grossing films at the U.K. box office were made in the U.K.: “1917” (£44.1 million), “Tenet” (£17.5 million) and “Dolittle” (£15.9 million)

Film and television production has managed to continue throughout the COVID-19 crisis — and the U.K.’s three national lockdowns — thanks to pan-industry guidelines that were drawn up in late spring. The BFI led the Screen Sector Taskforce, creating guidance for COVID-safe productions alongside the British Film Council. The organization also worked with producers’ trade body Pact to set out the U.K.’s pioneering Film & TV Production Restart Scheme for independent production, which provided £500 million ($678 million) of funding for productions struggling to get COVID-related insurance.

Tentpoles such as “Jurassic World,” “Fantastic Beasts 3” and “Mission: Impossible 7” managed to continue shooting throughout the pandemic, along with many local productions. Indeed, even as the U.K. government warned that the country was entering the “worst weeks” of the crisis in January, the Department for Culture, Media and Sport (DCMS) confirmed that the film and television sectors could still continue.

A year ago, the U.K. was looking at both a record first three months of filming activity and investment in film and TV production.

Spend on film and high-end television production in the U.K. was the highest ever recorded in 2019, hitting £3.62 billion ($4.7 billion), an increase of 16%, according to British Film Institute figures. That growth was driven by high levels of international production investment in the U.K., which topped the £3 billion ($3.9 billion) mark for the first time. The figures underlined how the U.K. has cemented its place in recent years as a key global production hub, underpinned by a strong talent base, production services and attractive tax credits.

For domestic independent production, however, the 2019 figures tell a different story. The data revealed that spending on U.K. independent film production fell by 45% to £175 million ($228 million) in 2019, highlighting an unforgiving climate for independent producers.

More to come.