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Hollywood blockbusters including eagerly awaited Beatles biopics and big-budget TV shows like Bridgerton have been keeping UK film and TV studios busy.
But when streaming wars recalibrate gone “Peak TV”the decline in the arms race is prompting manufacturers to adapt and build datacenters amid the AI boom.
When the British Film Institute (BFI) finalizes the number of high-quality films and TV programs produced in the UK in 2025 later this year, it is expected to show the third consecutive annual decline.
“High-end TV production has stopped us now,” says one industry executive. “The great British studio boom is over. The stock industry thought riding this wave would be successful; now data centers are the new studios.”
Four years ago the industry reached its peak in television as the streaming wars cost £7.8bn of UK production, amid competition to renew video and TV shows that had shrunk significantly. The outbreak led to the closure of UK facilities.
This led to the creation of new plans for studio construction and expansion, as well as the promotion of the “current use” – use temporary sites such as former carpet factories, military sites and other areas such as greater demand.
In 2023, the shows of Hollywood actors and writers were suspended, at a time when advertising companies stopped focusing on the losing competition until more money wisely for things in search of sustainable profits.
In recent years, the financial boom of domestic broadcasters, such as the BBC, ITV and Channel 4, has also meant go back to shipping.
Adrian Wootton, chief executive of the British Film Commission (BFC), said: “More was built here in three to three-and-a-half years than any other country in the world. The UK went from 3m sq ft in 2020 to 6m sq ft. It was a challenge.”
The list of casualties is growing.
Even Pinewood, home to James Bond and Disney franchises from Marvel to Star Wars, has received planning permission to convert 78% of its proposed 1.4m sq ft – 21 units – at the datacentre.
Last year, Blackstone’s private equity group Hudson Pacific Properties abandoned the plan to build a 700m studio building in Hollywood in Hertfordshire, and is discussing other projects including datacentres.
The closure of Stage Fifty, a leading player in the provision of “in-the-moment” venues, led to the withdrawal of proposals for Wycombe Film Studios, in High Wycombe, Buckinghamshire, and £265m plan for six estates.
The delay also led to Sunderland’s Crown Works Studios, a £450m attempt to build a large power plant in the north of Englandis reeling after its chief executive, Cain International, exited.
Earlier this year, Michael Mordey, the leader of Sunderland city council, said the initial plans for 19 units were reasonable. “very crazy”adding that there was no “need or want”, and that only small-scale development would continue.
As it continues to grow, specifically at Ealing Studios in west Londonand at the end of last year the ministers gave the green light to a Studio expansion in MarlowBuckinghamshire, but the UK seems to have the best studio location.
“I think we’re at a crossroads between the demand for production and studio space,” said Chris Berry, director of property consultancy Lambert Smith Hampton (LSH), and co-author of the Sites report, Camera Action. “Development land is worth twice, maybe three times, as much as it used to be. It’s very beneficial to move planning permission.”
Although there has been a decrease in commissions – especially the number of popular TV shows that cost at least $1m per hour, such as Bridgerton, Youth or the upcoming Harry Potter series – it is not all doom and gloom for the UK industry.
Around £7bn was spent on film and TV production in the UK last yearthe third highest figure recorded by the BFI, whose figures show the importance of US-based studios and streamers in the UK industry.
Just under 80% of the £2.8bn spent on UK film production came from leading Hollywood studios or exhibitors, which also accounted for 82% of the £4bn spent on high-end TV production.
Photos of LSH Latest Pages, Camera, Actions! report shows that the US continues to fight for success in TV and film, with countries such as the UK offering good tax treatment and skilled workers and world-class locations.
Disney has a long-term production contract at Pinewood, while Netflix and Amazon have them Similar works in progress at his Shepperton studio. Amazon also acquired Bray Film Studios, where it filmed the second season of The Rings of Power, while Netflix has a long-term lease at Longcross Studios in Surrey, where movies including Skyfall and Guardians of the Galaxy were shot.
Warner Bros. began leasing Leavesden in 2000 for the production of the Harry Potter films, buy it in 2010 with the help of a £100m expansion and refurbishment, and is now home to all of its DC franchises as well as an upcoming TV series about young witches heading to HBO Max for Christmas.
And soon to urinate Pictures by Sky Studios Elstree it serves as the European production hub for NBCUniversal, which owns Universal Studios, producers of Fast & Furious and Jurassic World, and Sky, both owned by US pay TV company Comcast.
“All the big players have set up homes here, and they don’t need more space,” says Wootton. “The UK is also benefiting from the fact that there is a great stability from many great things that continue to be produced here: such as Bridgerton, Outlander, House of the Dragon, Rings of Power and Harry Potter. And in the high-profile film of the Avengers, Marvel and DC superhero franchises, as well as Star Wars.
“Funds are up and the world is producing less, but with new shows we’re seeing fewer commissions. I’m not sure what the new ones are. Production may not return to the highest level of TV, but I’m optimistic that there’s a big increase coming.”
