A spending spree by Hollywood studios and streamers pushed investment in film production in the UK to a record £2.8bn last year, but growth is expected to slow this year as Netflix switches investment to the US to secure an $80bn (£59bn) takeover.
The British Film Institute, which has been publishing annual data on spend on the production of films since 2002, said 91% of the record film spend was down to “inward investment” from studios and companies based outside the UK.
The 23% year-on-year surge in film-making spend was down to a clutch of blockbusters being produced in the UK including Avengers: Doomsday, Super Girl and a quartet of biopics focusing on each of the Beatles.
However, the co-chief executive of Netflix Ted Sarandos said this week he was pulling projects back to the US to please lawmakers scrutinising the company’s proposed takeover of Warner Bros Discovery (WBD), which could divert spending away from the UK market.
More than £2.5bn of the total of £2.78bn spent in the UK last year was by US-based Hollywood studios and streamers such as Netflix and Amazon, a 30% year-on-year increase.
The amount spent on high-end British-made TV shows, where the budget an episode is at least £1m, rose bymore than 7% year on year to £4bn. Again, this was dominated by spend by US streamers such as Netflix, Amazon Prime Video and Disney+, which accounted for 80% of the total.
Among the biggest TV shows were Bridgerton, Slow Horses, Outlander and The Thursday Murder Club.
Spending by UK broadcasters such as ITV, Sky, Channel 4 and Channel 5 increased slightly to £688m, after having dropped to a five-year low in 2024.
However, despite a vibrant 2025, during which total spending on UK-made films and high-end TV rose by 13% to £6.8bn, the push by Donald Trump for increased production in the US is already putting pressure on future spending commitments.
On Tuesday, Sarandos was questioned by the US Senate’s antitrust subcommittee about Netflix’s proposed $82.7bn offer for the studios and streaming businesses of WBD.
He said the approval of a new tax credits scheme in New Jersey, where Netflix is building a studio complex, competed with “UK incentives” and brought “production home” to the US.
“Since that incentive passed we had 11 projects, seven of which were slated for the UK and were pulled back into New Jersey,” he told senators.
“Some of the incentives that we were able to work on … have made it so competitive to film in New Jersey that there is no reason to go overseas for film production. Not just for Netflix but for others. We are very invested in creating more American jobs [and] keeping production in America.”
In September, Ollie Madden, a former director of Film4 and Channel 4 drama, joined Netflix UK as its new head of film. Madden will also work with Dan Lin, the chair of Netflix Film, to develop new movies for its global slate.
“Our commitment to the UK is as strong as it’s ever been,” said a spokesperson for Netflix UK. “Over the last four years we’ve spent $1.5bn annually and that continues to be the case.”
