UK Rejects Bailouts in Favour of Mixed Production

Canada adopted an anti-technology approach to culture. It seems that the UK chose a different path.

When the Canadian government passed the Online Streaming Act, it made it’s ideas clear on technology. Anyone who innovates and creates products online must be punished. This in favour of legacy media who must be endlessly propped up because things like traditional television must be endlessly propped up. After all, that’s how entertainment was delivered decades ago, so that’s how entertainment must always be delivered.

This of course butts up against reality where countless studies conclude that the audiences have moved away from traditional television to online streaming sources in droves over the years. The thinking appears to be that if money is stolen from online sources and placed back into traditional television sources, then people will start moving back to those sources in the same manner that mass file-sharing lawsuits caused people to go back to the traditional record store (spoiler alert: that didn’t happen).

It’s this rejection of where things are moving on the part of the Canadian government that has been so incredibly frustrating. Canadian content creators who took a chance and started succeeding online are seeing their hopes and dreams slip away because the government has concluded that their speech is not valid enough. This as lobby groups cry out “that’s not art!” as they cheer on the destruction of modern culture in Canada – modern culture that Canadian’s have been happily accepting for years now. It represents an incredibly huge missed opportunity for Canada to show off its culture to the broader world and all of the economic benefits that go along with it.

While Canada seems to be intend on sabotaging its own people on the global digital stage, the UK has apparently taken a different approach. Proposals before the government include a 5% levy on streaming platforms. This, presumably, was to be re-directed to legacy media platforms in an approach similar to Canada. Punish those who innovate and reward those who are continuing to lose audience members as they rest on their laurels of being successful decades earlier. Apparently, the UK government has rejected that proposal. From Variety:

The U.K. government has firmly rejected calls for a 5% levy on streaming platforms and mandatory IP retention rules, instead emphasizing the benefits of a “mixed ecology” that welcomes both international investment and local production in its formal response to parliamentary recommendations on British film and high-end television.

As revealed by Variety in May, U.K. Culture Secretary Lisa Nandy had rejected proposals for a levy on streaming platforms operating in the U.K., despite recent recommendations from a parliamentary committee suggesting such a measure could help support the country’s television drama sector.

In the response published July 3, the government turned down multiple committee proposals while reaffirming its commitment to maintaining the U.K. as a global production destination. U.K. production spend reached £5.6 billion ($7.9 billion) in 2024, a 31% increase since 2023, with £4.8 billion ($6.5 billion) of this total coming from inward investment and co-productions.

The government’s rejection of the proposed SVoD levy represents a significant policy decision, with the response citing the economic benefits streaming services bring to the domestic industry. The government highlighted major productions like “Barbie,” which contributed £80 million ($109 million) to the U.K. economy, and “Bridgerton,” which generated £275 million ($375.5 million) over five years while supporting 5,000 local businesses.

“Investment from SVoD services contributes to the success of our domestic sector, from creating jobs to investing in the skills pipeline through training programs,” the government response stated, noting initiatives like Amazon’s Prime Video Pathway and Disney’s contribution to the National Film and Television School expansion.

It’s refreshing to see this approach being taken. Many large streaming and social media platforms make major investments in the entertainment space. Whether that is to produce premium content on paid streaming platforms or funding content creators to produce better content on social media platforms, numerous platforms know that investing in local cultures tends to yield greater results for domestic audiences. If you are creating good quality paying jobs, the money starts to flow and the domestic culture benefits. It’s a win-win for all involved.

This as opposed to the Canadian approach that has been torpedoing online efforts as much as humanly possible, effectively declaring the internet as an enemy that must be vanquished. In fact, this approach has cost the Canadian economy quite a bit in recent weeks. After the Canadian government listened to conspiracy theories and banned the TikTok company from operating in Canada, TikTok was forced to pull millions in investment from various Canadian cultural events and creator development programs. The withdrawing of funding from TikTok was widely seen as a major blow to those who are hoping to make it in the internet entertainment space.

Either way, the UK approach is a very good one from what I can tell. For one, you are investing in culture that can adapt to a modern age. What’s more, you aren’t risking litigation for discriminatory practices from larger streaming platforms. Further, you aren’t risking trade tensions escalating with the United States which is what we’ve already seen with the Digital Services Tax being rescinded as well as the Online News Act and Online Streaming Act here in Canada.

While the UK has its share of troubling issues on the digital side of policy, this is one area where I’m actually envious about the UK. At least they aren’t looking at the internet from a cultural perspective and shouting “batten down the hatches!” as if the internet is this massive ominous threat. There’s at least a welcoming embrace for culture regardless of how it is made.

(Via @MGeist)

Drew Wilson on Mastodon, Twitter and Facebook.