Investment in UK film production reached a record £2.8bn last year, driven largely by Hollywood studios and global broadcasters, according to new figures from the British Film Institute (BFI).
However, industry leaders warn that growth is likely to slow in 2026 as Netflix shifts production back to the United States amid political pressure and blockbuster acquisition plans.
The BFI said 91 per cent of the £2.78bn spent on UK film production by 2025 would come from “inward investment”, funding from studios and broadcasters outside the UK. The total marks an increase of 23 per cent year-on-year and represents the highest level of film production spent since the BFI began tracking the data in 2002.
The move was inspired by a string of major international productions choosing the UK as a filming location, including Avengers: Doomsday, Super Girl and four separate biopics focusing on members of The Beatles. More than £2.5bn of total film spending came from US-based companies such as Netflix and Amazon, up 30 per cent on last year.
High-end television production also remained strong. Spending on UK-made TV shows with budgets of more than £1m per episode rose by more than 7 per cent to £4bn, and was dominated by US-backed platforms. Netflix, Amazon Prime Video and Disney+ accounted for nearly 80 percent of that number, supporting global hits including Bridgerton, Slow Horses, Outlander and Thursday Murder Club.
UK broadcasters have shown a modest recovery after a difficult period. Investments from ITV, Sky, Channel 4 and Channel 5 reached £688m, following a five-year decline in 2024, but remained well below historical figures.
Overall, combined spending on UK film and premium TV production is set to reach £6.8bn by 2025, an increase of 13 per cent per annum. Yet despite the strong headline numbers, the outlook has become uncertain.
Netflix chief executive Ted Sarandos has confirmed the streaming giant is still eyeing projects in the US to support domestic job creation, as it seeks regulatory approval for its proposed $82.7bn (£59bn) takeover of Warner Bros Discovery. Speaking before a US Senate subcommittee this week, Sarandos said new tax incentives in New Jersey made filming in the US more attractive than overseas locations, including the UK.
He pointed out that since these incentives were approved, Netflix had redirected 11 projects to the US, seven of which were planned for the UK. Sarandos said the company had “invested heavily in creating more American jobs” and keeping production at home, reflecting increased competition from UK broadcasters as governments scramble to offer more incentives.
While the UK remains one of the world’s most attractive locations for large-scale film and TV production, thanks to its talent, infrastructure and tax breaks, industry figures are increasingly concerned that geopolitical pressures and competition for funding could dampen growth after a record-breaking year.
