Streaming’s Impact on UK Cinema and Entertainment

Viewers now have the convenience of binge-watching their favorite shows and movies whenever they want, thanks to streaming services. Gone are the days of waiting for specific time slots or enduring disruptive commercials.

Whether it’s Hulu in the UK, Netflix, BBC iPlayer, Amazon Prime, or others, individuals can enjoy uninterrupted entertainment. These services have revolutionized the film industry, enabling independent filmmakers to reach a broader audience. By uploading their content to platforms like Amazon Prime or Vimeo, filmmakers bypass traditional distribution channels and showcase their work to viewers globally.

Streaming platforms have truly globalized the content market. Previously, foreign films and TV shows struggled to secure distribution deals in the UK. However, now viewers can easily access content from around the world, fostering cultural exchange and enriching the viewing experience.

The Streaming Revolution in the UK

The British Film Institute reported a staggering production spend of £5.64 billion across film and high-end television in 2021, marking a significant increase of £1.27 billion from pre-pandemic 2019 figures. TV series accounted for £4.09 billion of the total expenditure, with £737 million allocated to films made for streaming platforms. Shortly after, Amazon made headlines with a multi-million pound, decade-long deal with Shepperton Studios, positioning itself near its competitor Netflix, which previously revealed plans to expand its Shepperton production base in November last year.

Economic Impact on UK Cinema

Streaming platforms are rushing to the UK for their major projects, enticed by our film and high-end television tax credit system. Introduced in 2007, the film scheme, followed by the high-end TV system in 2013, has attracted big productions like the Harry Potter franchise and Game of Thrones. Despite other countries offering more competitive tax incentives on paper, the UK boasts a reliable system, decades of large-scale production experience, and highly skilled crews.

Our world-class VFX and animation infrastructure, along with the country’s strong foundation in dramatic arts and exceptional writing, further add to the UK’s appeal. However, Wootton notes the potential downsides of this boom, as it risks overshadowing British independent film, which, like French independent cinema, has its unique flavor.

Changes in Content Production

In terms of the authenticity of UK cinema and British culture, there are certain risks. If we simply consider the possibilities of the entertainment industry with the advent of the streaming revolution, then they have increased significantly. Thanks to subscription models, viewers can gain access to high-quality British films at an order of magnitude cheaper than in cinemas and theaters. For British content creators, this also has its advantages, mainly stability. If traditional cinemas offer income throughout the month, content partnerships imply longer contracts. Moreover, custom content production is now popular, when streaming services themselves order films for user engagement.

Regulatory and Cultural Implications

The draft Media Bill by the UK government aims to tighten regulations on streaming platforms like Netflix, Disney+, and Amazon Prime Video. The bill brings these platforms under the purview of regulator Ofcom, leveling the playing field with traditional broadcasters. The platforms will adhere to a new content code, ensuring audience protection from various harmful materials, including misleading health claims.

Viewers can lodge formal complaints to Ofcom, which holds stronger investigative powers and the ability to take action, including imposing fines of up to £250,000. In severe and repeated cases, services may face restrictions in the UK. Additionally, global TV companies must facilitate easier access to public broadcast services like BBC iPlayer and ITV on smart TVs, set-top boxes, and streaming sticks.

At the same time, viewers may not be limited only to local streaming services. If you are not worried about cultural implications, then you can watch Voot – a large Indian service, or Hulu – a large video content portal from the USA. The only caveat is that you will have to unlock Hulu’s library through a VPN. This is not difficult, but it will allow you to open hundreds if not thousands of new titles that are not available in your region.

Moreover, streaming services will be required to provide subtitles for 80% of their programs, with 10% featuring audio descriptions and 5% including signed interpretation. Culture Secretary Lucy Frazer acknowledges that technology has transformed the way people consume TV and radio. With changes in viewing habits impacting traditional broadcasters, these new laws aim to ensure streaming giants meet the same high standards expected from public service providers, and that services like iPlayer and ITV remain easily accessible regardless of TV viewing methods.

The Future of UK Cinema and Entertainment

Predicting audience behavior can be difficult, but there are already some prerequisites and facts that can be stated. One of the noticeable trends is cord-cutting TV and the transition to a streaming landscape. Another observation is that regulatory considerations do not scare the owners of streaming platforms, because UK-centric content production is only increasing. Logically, production and distribution will gain momentum, and fans of binge-watching will receive as much content as they can cover. Although box office revenue decreased slightly in 2022, market positioning has not changed and films continue to be created. It’s not surprising to see a decline in box office receipts considering 2021, which has seen a pandemic. After all, expenses also decreased by 31% – this is a natural situation. People had nothing to do, and now society is coming to life.

Final Thoughts

A global production is underway, with the United Kingdom playing a significant role in the rising prominence of high-end TV. World-class production facilities in the UK cater to both film and TV projects. Attracting inward investment is crucial, making the presence of a top-notch creative relief tax scheme essential. In light of increasing costs and the looming threat of recession, careful consideration of this matter falls upon the newly formed UK government.