UK film and TV production company insolvencies jumped 69 per cent in the past year, as staff shortages continue to batter indie firms.
According to data from audit advisory firm Mazars, insolvencies jumped from 67 to 113, despite the boom in UK shows from streaming giants like Netflix.
Partner at Mazars Adam Harris explained that smaller players are still struggling to service pandemic era debt; many have been swept up in the wave of winding up petitions since the end of March this year, when the moratorium on winding up petitions was lifted.
Creditors have since been able to apply to have companies wound up to recoup unpaid debt from the sale of these business’s assets.
“Once creditors were allowed to file winding up petitions, many in the sector simply ran out of road,” Harris explained.
On top of this, many skilled production staff have left the sector after work dried up during the pandemic, making it increasingly difficult to lure them back in once restrictions were lifted.
As a result, Harris said some firms have been unable to “take advantage of upswing in orders following the pandemic”.
However, the data comes as streaming giants continue to bet big on UK studios. Last year, streaming platforms fuelled spending with a record £737m UK film and TV investment, according to the BFI.
Amazon Prime Video penned a multi-million pound long-term deal with Shepperton Studios earlier this year, while Netflix has continued to pump millions into production across the UK.