Overall revenues for independent TV producers remained flat last year at £2.2 billion. This was despite broadcaster commissions – the main source of revenue for independent producers – declining by over £100 million (or 7.5%) in 2009. Producers offset this domestic decline by increasing international revenue. Sales of finished programmes overseas increased by 12.4%. Producers also increased other sources of overseas income, such as commissions from non-UK broadcasters, by 32.2%.
Almost two thirds of respondents to Pact’s annual indie sector report said they’d also cut overheads, while 29% said they’d saved money by making people redundant.
More than 85% of producers told consultants Oliver & Ohlbaum that gap financing – the gap between what a production costs and what a commissioning broadcaster will pay – will continue to increase, putting further pressure on profit margins and the need for other sources of revenue.