UKTV, owned by BBC studios, is UK’s largest television network. Most of its sales are generated by the UK audience and the US market. However, the inability to Stream UKTV in New Zealand and other countries has affected its profits.
In 2020-21, the worldwide profit of TV shows and movies on conventional viewing methods declined due to covid. However, UKTV has increased its earnings and viewership in times like this.
Few factors have contributed to increasing their profits and allowing them to stand neck-to-neck with their top competitors.
General sales
Profits increased by 50% yearly to £226 million ($267 million), and sales increased by 30% to £1.63 billion. BBC Studios, the commercial arm of Britain’s public broadcaster, has seen unprecedented growth for 2021/22 when viewers Stream UKTV in New Zealand
During the most recent financial year, the company’s profits reached a new high, surpassing £200 million for the first time.
The rise in sales, which has increased from £1.26 billion in the fiscal year 2020–21, is the direct outcome of a prosperous year for production and advertising income at the broadcaster UKTV, which BBC Studios back.
The BBC did not receive any cash dividend the previous year because of the epidemic; nevertheless, the company has provided the broadcaster with 135 million pounds this year.
It’s significant to note that the business has already surpassed its target of providing the BBC with returns of £1.2 billion in the initial five years of the BBC’s contract.
Irrespective of the profit they have generated, UKTV has decided to invest a bit more in its marketing and programming.
Increasing Growth with Ads Revenue
The majority of the population shifted from conventional TV and cable format to online streaming services mainly because of unnecessary and un targetted ads.
UKTV took a measure to handle this situation. Since the majority of revenue for the company comes from advertisement as they do not offer video-on-demand service, they have decided to showcase not more than 3 ads and 4 min length in a mid break while you view your favorite show.
Popular Shows and Movies
According to Fussell, BBC Studios had a successful year in 2017 thanks to the popularity of the Planet, Time, Bluey, and Strictly/Dancing with the Stars series.
“Everyone can see our creative and financial achievements, and I am very proud of our people worldwide who toiled so hard to achieve this under such trying conditions.”
The company has produced 2,400 hours worth of material globally from 2021–2022. In the meantime, BBC Studios’ production sales increased by 56%, with outside producers accounting for 25% of new commissions.
Content sales surpassed £400 million due to well-known franchises like Sherlock Holmes and Peaky Blinders, Historically accurate unscripted shows like Planet Earth and Our Planet, and other shows.
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Top Viewing Channels
UKTV also enjoyed its year with high profits. They saw an increase in profit of 105% as the rebounding advertising market boosted revenues. The broadcaster’s channels, such as Drama, Gold, and Alibi, recorded increased audience shares of 11%, 7%, and 5% in the calendar year 2021.
Dave saw an increase in its audience share of the highly sought-after 16- to 34-year-old audience of 14% due to its investment in fresh, original content. Additionally, UKTV Play attracted 1 million new registered users.
Collaboration with Production Houses
Large British production businesses like Baby Cow Productions, Clerkenwell Films, Expectation, Lookout Point, and Sid Gentle Films have financing from BBC Studios. House Productions was most recently added to the company’s portfolio.
The company also collaborates with a sizable number of independent producers. This increases the number of shows and movies it must market through its distribution business.
Equality in Organization
BBC Studios released its annual gender pay gap report, which includes information on employee pay differences based on gender, ethnicity, disability, and LGBTQ+ status, broken down by career-level band and across the entire crew.
While the total median gender pay gap is currently below 10%, most career-level bands exhibit less than 5% median pay discrepancies. According to the corporation, new initiatives to increase diversity are “impacting some wage gap measures” in entry-level positions.
Conclusion
General TV platform sales have changed over the years. The pandemic, content availability, diversity, and the rise of streaming platforms have made it harder for advertising campaigns to run between your favorite show.
All of these factors have played a role in revenue generation. However, UKTV is the top streaming service provider in the UK. It has managed to maintain and enhance its viewership.
It managed to garner sales from Australia, New Zealand, and the US and remain the top tv content exporter helping increase the profit by 46% from 32% last year. It has generated £574 million in revenue.
