The British film industry experienced an unprecedented financial surge in 2025, with Hollywood studios and streaming giants fuelling a record-breaking £2.8 billion spend on film production across the United Kingdom. This remarkable figure, representing a substantial 23% increase compared to the previous year, underscores the UK's continued appeal as a global hub for major cinematic projects.
Inward Investment Dominates the Landscape
According to the latest annual data released by the British Film Institute (BFI), which has been tracking production expenditure since 2002, a staggering 91% of this record film spend was attributed to inward investment. This term refers to funding originating from studios and companies based outside the UK, predominantly from the United States.
More than £2.5 billion of the total £2.78 billion spent was directly contributed by US-based Hollywood studios and prominent streaming services, including Netflix and Amazon. This segment alone saw a significant 30% year-on-year growth, highlighting the scale of American financial involvement in the British creative sector.
Blockbuster Productions Drive the Boom
The surge in expenditure was largely propelled by a series of high-profile blockbusters filmed on British soil. Major productions such as Avengers: Doomsday, featuring Robert Downey Jr., Super Girl, and a quartet of biopics focusing on each member of The Beatles, were key contributors to this financial influx. These projects not only provided substantial economic benefits but also reinforced the UK's reputation for hosting world-class filmmaking.
Parallel Growth in High-End Television
The boom was not confined to the film industry alone. Spending on high-end British television productions, defined as shows with a budget of at least £1 million per episode, also rose significantly. This sector experienced a more than 7% year-on-year increase, reaching a total of £4 billion in 2025.
Again, US streamers dominated this arena, with platforms like Netflix, Amazon's Prime Video, and Disney+ accounting for an estimated 80% of the total spend. Popular series such as Bridgerton, Slow Horses, Outlander, and The Thursday Murder Club were among the major productions benefiting from this investment.
UK Broadcasters See a Slight Recovery
In contrast to the dominant US players, spending by domestic UK broadcasters, including ITV, Sky, Channel 4, and Channel 5, showed a modest increase to £688 million. This followed a concerning drop to a five-year low in 2024, indicating a tentative recovery for the homegrown broadcasting sector amidst the competitive streaming landscape.
Clouds on the Horizon: The Netflix Factor
Despite the vibrant performance in 2025, which saw total spending on UK-made films and high-end TV rise by 13% to £6.8 billion, future growth prospects face considerable pressure. A significant factor is the strategic shift by Netflix, one of the industry's biggest spenders.
Ted Sarandos, the co-chief executive of Netflix, recently testified before the US Senate's antitrust subcommittee regarding the company's proposed $82.7 billion offer to acquire the studios and streaming businesses of Warner Bros Discovery (WBD). During his testimony, Sarandos explicitly stated that Netflix is pulling projects back to the United States to appease lawmakers scrutinising this massive takeover.
He cited new tax credit schemes in New Jersey, where Netflix is constructing a major studio complex, as a key competitive advantage. "Since that incentive passed we had 11 projects, seven of which were slated for the UK and were pulled back into New Jersey," Sarandos told senators. He emphasised that these incentives have made filming in New Jersey so competitive that "there is no reason to go overseas for film production."
Political and Economic Pressures Mount
This move aligns with broader political pressures, including efforts by figures like former President Donald Trump to increase production within the United States. Sarandos framed the strategy as being "very invested in creating more American jobs [and] keeping production in America," a stance that could divert significant future spending away from the UK market.
While the UK's film and television industries celebrated a record-breaking year in 2025, the reliance on inward investment from US entities presents a double-edged sword. The potential slowdown in growth, driven by corporate strategies and shifting political incentives, underscores the need for the British sector to navigate an increasingly competitive and volatile global landscape.
