Netflix’s turnover through one of its U.K. subsidiaries rose to £8.4 million ($10.2 million) in 2022 but the figure doesn’t represent entirely good news for the British film and TV industry.
The streaming company puts the 11% increase on production spend through Netflix Productions U.K. Limited from the previous year down to inflation in the industry. “Increase in revenue is mainly due to an increase in content expenses,” Emily MacKintosh, director of business and legal affairs at Netflix U.K., presented in the company’s financial report.
As PvNew reported last year, a post-pandemic production boom had resulted in skyrocketing costs across the industry in 2022, compounded also by rising costs of food, fuel and energy in the U.K. more generally.
But the increase does also point to Netflix’s increasing presence in the U.K., where it has produced a number of hit shows including “Sex Education.” “Bridgerton” (and spin-off “Queen Charlotte: A Bridgerton Story”), “Top Boy,” “The Crown” and “Heartstopper,” among other fare. In 2020 Netflix doubled its U.K. production budget to $1 billion. The average number of employees at the company also increased, from 18 to 20.
The report for Netflix Productions U.K. Limited, which provides production and content services to its ultimate parent company, Netflix Inc, was filed alongside the company’s accounts at U.K. business registrar Companies House last week. The documents cover the financial year up to Dec. 2022.
They show that in 2021 the company’s turnover was £7.5 million, rising by almost £1 million the following year. The report also stated that content expenses came to £11 million (compared to £10.1 million in 2021) of which a significant proportion were general and administration expenses. These increased by 8%, from £7.1 million to £7.7 million.
“The U.K. is our most important production hub outside North America and we are deeply committed to making Netflix series and films here,” said a spokesperson for Netflix. “Since 2020 we have invested almost $6 billion in making shows like ‘Heartstopper,’ ‘The Crown,’ and ‘Top Boy.’ This is an increase of nearly 50% on what we originally anticipated and has created thousands of jobs right across the country.”
