Channel Hopping: Selling UK TV Abroad

'At its best, our TV is the envy of the world. The UK industry is going from strength to strength - producing programmes that are not only of exceptional quality but also overwhelming popularity both here and across the globe. They are a testament to the power of UK creative talent in the international arena.'
Tessa Jowell, UK Culture Secretary

Is UK TV the 'envy of the world'? How much of our TV output is exported overseas? What types of products does the industry sell? How should we go about promoting it? Who is responsible for the development and growth of 'Reality TV'? This At Your Leisure looks at the success of the UK TV industry.

How are UK TV exports promoted?

Government figures indicate that UK exports of TV programming reached nearly £1 billion in 2003. It was partly at the request of the Department for Culture Media and Sport (DCMS) that a trade association for this industry was formally set up in 1998. The Government is keen to promote exports of UK's TV programmes.

The British Television Distributors' Association (BTDA) is the main organisation responsible for promoting sales of UK-produced TV programmes abroad. The BTDA has more than 30 member organisations, ranging from large broadcaster-owned companies to independent distributors of varying size. The BTDA accounts for more than 90% of UK TV exports.

The BTDA is funded by member subscriptions, voluntary levies and occasional government grants. Its members include the following organisations:

The UK TV Market: Imports and Exports ($ million)

Clearly, although there is strong demand for UK TV output, this is outweighed by the UK's thirst for overseas programming. The growth of the UK television market, with increasing choice in the number and range of channels, creates a need for content to fill programme schedules; foreign imports often meet this need.

Who buys the most UK TV programmes?

The most important market for UK TV sales is the USA. In 2003, Americans spent nearly $400 million on UK TV programmes. In Europe in the same period just short of $300 million worth of UK TV content was bought. This represents an improvement in sales in Western Europe, where programmes from the UK have lost out in recent years to US products. The collapse of the Kirch Group in Germany had a marked impact. The loss of a major content supplier such as Kirch leaves TV schedules empty. In 2003 this void was filled with content from the UK.

Do we provide any other TV products and services?

The largest share of UK TV products sold abroad is accounted for by the finished programmes themselves. In this case, overseas TV viewers will see the original programme bought by one of their broadcasting companies. A separate language track may be recorded over the original, or sub-titles may be used. Europe buys most finished TV programmes from the UK. In 2003, finished programmes accounted for 40% of total UK TV exports. However, this is only the second year in which finished programmes accounted for less than 50% of the total export earnings. Companies increasingly sell the rights to a programme idea, rather than the programme itself.

Licenses to the rights for TV programmes account for the second largest source of UK TV export earnings. This is a growing aspect of TV programmes sales; in 2003 this element increased by 35%. 'The Office' is a recent example of a UK TV programme whose rights have been licensed. US TV network NBC bought the rights from co-creators Ricky Gervais and Stephen Merchant and the BBC. In this case, the programme has been adapted for an American audience by a screenwriter who has also worked on The Simpsons and Seinfeld. Gervais was involved in the American series as a script adviser, but says that the main difference between the British and US versions is that the characters would have 'better teeth'.

Nearly 15% of UK total TV exports are taken by DVD and video sales. This element of the market slowed significantly in 2003, indicating that this part of the market has reached its maturity stage.

Co-production accounted for just over 12% of the total. Nearly all of this comes from US-UK collaboration, which is a growing aspect of the total market. Taken together, co-production, DVD/video and licensing account for the bulk of sales to the US. The reason for the growth of co-production ventures is the high cost of making a top quality documentary or drama programme. Having a partner organisation cuts this cost significantly. In addition, co-production gives the buyer some say in the creation of the 'show', which they don't have when buying a finished programme.

Almost 7% of total UK TV revenues come from what is known as 'format' sales. Formats enjoyed 62% growth in 2003, reflecting the popularity of programmes like 'The Weakest Link' and 'Who Wants To Be A Millionaire?', as well as the continued rise of the reality TV segment. Other key products in this segment include 'I'm A Celebrity...' which is produced by Granada International, and 'Paradise Hotel', a big format hit in the USA, which is made by The Television Corporation.

Which programmes sell the most?

A quarter of all UK TV exports is accounted for by children's brands. The following list shows some of the most popular UK TV programmes abroad in 2003:

Note that the Carlton and Granada businesses merged in 2003. Source of data: BTDA UK Television Export Statistics 2003 [PDF, 198K](http://www.culture.gov.uk/NR/rdonlyres/750CFA98-6566-4387-969B-0A30EFADA473/0/APPENDIX1.pdf)

Analysis of the past five years (1998-2003) sales data provides an interesting view of other countries' tastes for UK TV:

In addition, certain feature films which are owned by Carlton International are big sellers to broadcasters worldwide. One example of these is 'Carry on up the Khyber'.

What about reality TV? Do we make any of these?

Working out who owns what in the reality TV format can be tricky. The very first reality TV show was 'Big Brother', which was made by a Dutch TV company called Endemol. But the British man who came up with the idea for the competitor show, 'Survivor', claims that Endemol stole the concept from his company. The story behind this legal case is an interesting example of a battle over intellectual property rights:

Survivor vs. Big Brother

In 1992, Planet 24, the production company formed by Charlie Parsons, Waheed Alli and Bob Geldof was commissioned by Channel 4 to produce The Big Breakfast, which revolutionised breakfast TV. Planet 24 also came up with the idea for 'Survivor' but couldn't find a British TV company to commission it. A little later one of the firm's executives left to join Endemol.

Image copyright: Kutt Niinepuu, stock.xchng

Parsons believed that the Dutch company stole the idea for 'Survivor' and created 'Big Brother' as a cheaper version of the show. Endemol say the two events are not linked and that they had begun planning Big Brother before the Planet 24 employee joined them. Parsons therefore sees all reality TV shows such as Popstars, Castaway, Shipwrecked and Big Brother, as variants of his company's original idea.

Survivor was first made in 1997 when Planet 24 finally persuaded a Swedish TV company to make the programme. They called it Expedition Robinson and it quickly became the most popular programme on Swedish TV. Its final episode attracted an audience size equivalent to half the total Swedish population. Companies in other countries began to take notice and the US TV network CBS bought the format rights in 2000. The US version of the programme was the biggest hit on US TV that year and it wasn't long before a UK version was made.

Big Brother was first shown on Dutch TV in 1999; its final show is said to have attracted 15 million viewers. This is no mean feat, given that the total population of the Netherlands is only just short of 16 million!

But the success of these reality TV formats does not stretch to all countries. In France, a Big Brother equivalent known as 'Loft Story', attracted protests in 2001. The programme's location was under siege three times, with attempts made to invade the studio. Activists complained that 'trash TV turns people into idiots'. An attempt to make an Arab version of Big Brother in a house in Bahrain was halted after various governments and viewers' groups complained that the programme undermined traditional Islamist values. Eventually the show ended when 1000 protesters tried to storm the house.

Of course, it is arguable that any protests over the effect of reality TV actually boost viewing figures for the next version of a format. If programme makers and broadcasters can get people talking about their shows, then more people will watch them. Advertisers will then be more willing to spend money targeting viewers with their products and services, during commercial breaks.

But the data on UK exports of TV products and services indicates that in order to achieve global reach, the UK's industry needs to produce a consistent stream of high quality programmes with an emphasis on drama, documentary and children's entertainment.

Activity

Research into the work of the BTDA(http://www.btda.org). What evidence can you find in the 'Events' section of their Web site that they represent the UK TV industry effectively?
Visit the Endemol Web site(http://www.endemol.com). Find out which company owns the firm. Are the two organisations a good 'fit'? What advantages and disadvantages can you think there might be for the business?
What cultural values do you think British TV programmes at their best represent? What do foreign buyers find appealing about UK TV? Back up your answers with evidence from the data given above on successful UK TV exports.

At your Leisure - 06 December 2004