2023-09-21-莱坊-UK_Film_and_Television_Studios_Market_2023_24页_10mb

UK Film and Television Studios Market Report 2023

Introduction & Market Overview:

• Increased spending to meet demand for original content from major streaming platforms (Netflix, Disney+, Apple TV+, Amazon Prime, BBC) and broadcasters.
• Spending projections suggest growth beyond pre-pandemic levels, potentially plateauing in the medium term due to rising costs and profitability scrutiny by platforms.
• Demand for production space remains strong but may diversify, requiring different types and locations of facilities.
• Market fundamentals point towards continued investment, though supply increase faces hurdles like inflation, financing costs, and planning complexities.

Drivers of Demand:

• Streaming Growth & Investment: Major platforms lead investment, seeking long-term studio commitments via Master Lease Agreements (MLAs).
• Rising Content Spending: Increased budgets for high-end and long-form content, particularly in genres like crime/thrillers and sci-fi/fantasy.
• Global Appeal: UK production increasingly targets global markets.
• Talent Shortage: Growing demand coupled with persistent shortages of trained crew exacerbates space and operational needs.

Supply Challenges & Changes:

• Inflation & Costs: Increased operational costs (energy, crew, materials, equipment); rising construction/tender prices; elevated financing costs due to interest rate hikes.
• Planning & Development: Slowdown in new speculative development due to cost concerns; focus shifting towards smaller expansions, conversions, and temporary/studio-ready space.
• Supply Shortfall: Existing stock insufficient to meet even moderate growth projections without significant new development.
• Master Lease Agreements (MLAs): Changing leasing model providing longer-term certainty for production companies, committing space to specific clients.
• Regional Distribution: Concentration of stock in London and the South East (71% of total), though regional development plans aim to diversify.

Key Trends & Challenges:

• Technological Shifts: Adoption of LED volume stages, virtual production, and technologies enhancing sustainability.
• ESG Focus: Growing importance of Environmental, Social, and Governance principles in studio operations and facility design (e.g., BREEAM standards, sustainable energy use).
• Sustainability: Increasing scrutiny of the industry's carbon footprint; rising fuel and energy costs impacting operational choices and space requirements (e.g., reduced location shooting, need for large-volume power).
• Regulatory Issues: Impact of the Business Rates revaluation; potential long-term effects of recent Labour Party job cuts on sector stability; demands by councils for better skills in the creative industries.

Supply-Demand Analysis:

• Correlation between production spend and studio space requirements holds even with global markets. ~£1 billion spend requires ~1.1 million sq ft.
• Uncertainty in future demand trajectory due to platforms' profitability pressures.
• High-growth scenario suggests increased spending (~£2.9 billion/sq ft requirements by 2028); low-growth scenario shows lower spending increased space still needed; central estimate points to £8.7 billion spend and 2.6 million sq ft deficit by 2028.
• Existing pipeline of developments (~3.8 million sq ft planned) is significant but may not fully close the supply gap given validation and funding hurdles.

Conclusion:
The UK film and television studio market remains a key hub for content creation, supported by institutional backing and government initiatives. However, balancing supply and demand, mitigating the effects of inflation and rising costs, and adapting to changing production and technological needs are critical for continued success and investment attractiveness.