Our recent Pact member survey has found that indies’ costs have increased between 10 – 20% over the past year with 86% of respondents saying that increased costs have impacted their margins.

Additionally, 42% of respondents said that the broadcasters and streamers have not been understanding or tried to help with rising costs.

We surveyed our members in October 2022 to find out how the cost of living crisis was impacting their businesses. The survey questioned whether costs for labour, services, materials, business and talent had increased over the past year. It also asked if any increases had had an impact on margins, and whether broadcasters and streamers had been understanding or tried to help with costs.
 

We knew that members were facing higher costs but this survey has helped to show us the extent that the cost of living crisis is impacting production companies across the UK. We will use this survey going forward to aid our discussions with Government and broadcasters.
John McVay, Pact CEO

Costs

Forty-three per cent of respondents said that labour costs (e.g. crew, freelancers) had increased by 20% over the last year with only 3% saying that these costs had not increased at all. And nearly half (49%) said that their costs for services (e.g. catering, locations, post production) increased by 10%.

Thirty-three per cent of respondents said that costs for materials (e.g. art department, costumes) had increased by 10%, rising to 40% for producers based in London.

For on screen talent, 40% said costs had increased by 10% over the last year with 26% saying that costs had increased by over 10%.

For off screen talent, more producers (42%) said that costs had increased by 10% over the past year and 32% of respondents said they had increased by 20%.

For producers based in the Nations and Regions, 38% said that costs for on-screen talent had increased by 10%.

For producers based in London, 47% said costs for on-screen talent had increased by 10% in the past year. This was on a par with off screen talent with 45% saying these costs had increased by 10%.

Forty-six per cent of respondents said that their direct business costs, which includes things such as rent, utilities and office supplies, had increased by 10% over the past year while 29% said these costs had increased by over 10% in the last year.

Margins

Eighty-six per cent of respondents whose costs have increased said that this has impacted their margins, with nearly half (46%) saying that these increased costs have impacted margins by 10%. Thirty-three per cent said their margins have been impacted by 20%.

Ninety-two per cent of respondents based in London said their margins have been impacted by increased costs. For producers outside of London, 78% said their margins have been impacted. For both London and the Nations and Regions, the majority of respondents (51% for London and 45% for outside London) whose margins have been impacted said increased costs have impacted margins by 10%.

Broadcasters

Forty-two per cent of respondents to the survey said that the broadcasters and streamers they have been working with over the last year have not been ‘understanding and tried to help with costs’, although 35% said some broadcasters and/or streamers have been ‘understanding and tried to help with costs’. Thirty-nine per cent of respondents said the BBC has not been helpful, followed by Channel 4 (34%), then Channel 5 (27%). Of the 31% who said that ‘other streaming service’ or ‘international broadcaster(s)’ have not been helpful, the majority of these responses were for Discovery, followed by UKTV.

Download the report

Pact Costs Survey Report 2022.pdf

We would like to thank all the Pact members who took the time to respond the the survey.