New research shows that London-based production companies have delivered majority of Scottish network quota hours for the BBC

A new report from Oliver & Ohlbaum Associates Ltd (O&O), commissioned by Screen Scotland, reveals much of the BBC’s 'Scottish' network quota has been commissioned from London and produced by London head quartered production companies via Scottish branch offices.  

O&O reviewed Ofcom data on projects commissioned by the UK’s public service broadcaster network channels that qualified as “Scottish” across the period 2014 to 2022. The top 15 producers of programmes allocated to Scotland by the Public Sector Broadcasters in terms of number of episodes between 2014 and 2022 were identified. 97% of the episodes made by these producers had been commissioned by the BBC or Channel 4.  

 

Insights include

  • Only five of the Top 15 “Scottish” producers (by hours commissioned) were headquartered in Scotland over the period. 

  • The remaining ten were head-quartered in London, and their output qualified as Scottish under Ofcom’s current Guidance on regional production and regional programme definitions. In many cases they relied on the Ofcom criterion of having a ‘substantive base’ (branch office) in Scotland. 

  • The BBC and Channel 4 have adopted very different approaches to meeting their production obligations.   

  • Only two of the 11 suppliers mainly used by the BBC in the Top 15 “Scottish” producers, were companies formed and headquartered in Scotland, compared with three out of four that mainly supplied Channel 4. 

  • 80% of the total episodes made by the Top 15 for the BBC were commissioned from producers headquartered in London, compared to only 43% of the total episodes commissioned by Channel 4. 

 

The research was commissioned by Screen Scotland ahead of the implementation of the Media Act 2024, the upcoming Public Service Media Review from Ofcom and BBC Charter Renewal in 2027.  

The research looked at the impact of the Communications Act 2003, the main legislative change for the UK’s TV sector prior to the new Media Act 2024. The Communications Act marked a new era for independent production in the UK, introducing diversity of supply, competition and the introduction of Nations & Regions quotas, regulated by Ofcom.

 

Example Productions 

IMG and Sunset+Vine provided the BBC with 1,066 and 96 “Scottish qualifying” episodes respectively – primarily coverage of the World Snooker Championship and the Bowls World Championship. For 2019-2022, the share of total episodes delivered by IMG and Sunset+Vine fulfilling two or more of Ofcom’s criteria in Scotland was just 16% for IMG and 21% for Sunset+Vine, meaning that most of their episodes reported by the BBC to Ofcom as “Scottish qualifying” met the criteria on the basis of having a substantive base alone (i.e. branch office location). 

Screen Scotland is concerned that, where a company only has a substantive base in Scotland but doesn’t meet the production spend or on/off screen talent tests, this consumes a considerable share of the BBC’s quota but brings limited economic impact within Scotland.  In the case of IMG and Sunset + Vine sports coverage for the BBC this means that very few jobs were created in Scotland across the 1,100+ episodes of TV produced (with each episode of such sports coverage extending across multiple hours).

 

David Smith, Director of Screen Scotland said: “This research shows that the BBC has, across the last decade, met much of its Scottish volume quota for network TV [meaning national services such as BBC One and BBC Two] via projects bought, sold and owned in London.

"We are concerned that this subverts the purpose of those production quotas, limiting the economic impact of the BBC’s “Scottish qualifying” commissioning in the Scottish economy, and reducing creative opportunities for Scottish TV sector companies or workers in comparison to projects that originate in Scotland. This raises questions around both the BBC’s commissioning priorities, and Ofcom’s current rules for production across the UK.”  

“Looking forward Screen Scotland would welcome engagement from the BBC at a UK network level on its commissioning culture and priorities.  It cannot remain focused on meeting the letter of Ofcom’s quota without delivering the underlying intent of those quotas – to build sustainable production clusters across the UK, driving economic growth and creative opportunities in all four home nations. The concept of “British” or “UK content the BBC is currently championing as a defense against Netflix should not just mean more content from one region, London.”  

“Channel 4 meanwhile has adopted a different, and more positive approach – largely looking to producers formed and headquartered in Scotland to make Scottish qualifying programmes. This will have contributed to Scotland’s economy and provided employment for Scotland-based crew.” 

“With BBC Charter renewal on the horizon in 2027 this is the moment to embed the BBC’s new direction in its commissioning approach to British content: supporting regional economic growth, bringing people together and backing British storytelling from all four home nations.” 

Angus Robertson, Cabinet Secretary for Culture said: “This report highlights the importance of Scotland-based commissioning to support our screen sector to its fullest potential. Productions set against a Scottish quota should deliver economic impact and creative opportunities for Scotland, and the talented producers and teams that are based here. 

“It also illustrates the strength of our television production sector, with an average annual increase of 5.5 percent in commissioning spend since 2010. The Scottish Government will continue to engage with Ofcom and the public service broadcasters to support that growth and ensure that Scottish industry, and audiences, are properly represented on our screens.” 

Helen Keefe, Head of Policy & Regulation at Oliver and Ohlbaum Associates Ltd said: “We were asked to assess trends in the Scottish production sector since the Communications Act 2003. Overall, our study finds that the Comms Act had a significant impact, helping to unlock production growth in Scotland with key policy levers such as the Nations & Regions quotas and PSB terms of trade.

"There remains an overarching policy aim to support and strengthen the UK TV production sector and creative economies of the UK’s Nations & Regions, and to ensure that audiences have access to programmes that are relevant to them and the areas in which they live. These principles will help secure the foundations for sustainable growth.” 

In Screen Scotland’s most recent figures from 2021, PSB content was valued at £223.3million in Scotland. This includes productions across several genres with recent examples including; Only Child (Happy Tramp North), An T-Eilean (The Island) (Black Camel Pictures), The Traitors (Studio Lambert Scotland), Shetland (Silverprint Pictures), Money for Nothing (Friel Kean), Dinosaur (Two Brothers Pictures), Murder Trial (Firecrest Films) and The Masked Singer (Bandicoot Scotland). 

 

Read the full report now on our website.


More information

Top 15 Made in Scotland producers, by number of episodes, aggregated over the period 2014-2022
  Made in Scotland episodes Type Main commissioner
1. 12 Yard (part of ITV Studios) 1165 Office in Scotland BBC
2. IMG 1066 Office in Scotland BBC
3. STV Studios 829 HQ in Scotland BBC
4. BBC Studios 688 Office in Scotland BBC
5. Lion Television (part of All3Media) 610 Office in Scotland BBC
6. Mentorn (part of Tinopolis) 517 Office in Scotland BBC
7. Raise the Roof Productions 438 HQ in Scotland Channel 4
8. Remarkable Television (part of Banijay) 418 Office in Scotland BBC
9. Remedy Productions (part of Argonon) 383 Office in Scotland Channel 4
10. Friel Kean Films 347 HQ in Scotland BBC
11. IWC Media (part of Banijay) 291 HQ in Scotland Channel 4
12. Mighty Productions 279 Office in Scotland BBC
13. Firecrest Films 112 HQ in Scotland Channel 4
14. Sunset + Vine (part of Tinopolis) 103 Office in Scotland BBC
15. Tuesday's Child 91 Office in Scotland BBC

 

Further insights from the report

  • Overall, a total of 7,337 episodes were delivered by these top 15 producers of “Scottish” programming to PSB Network channels over the period 2014 to 2022. Of this, 5,319 episodes (73%) were made by production companies formed and headquartered outside of Scotland while only 2,017 (27%) of the episodes counted by Ofcom as “Scottish” by the Top 15 suppliers of “Scottish” qualifying shows were made by production companies headquartered in Scotland.    

  • The BBC and Channel 4 are the largest buyers of “Scottish” qualifying programmes (hours).

  • The BBC was the main commissioner for 11 of these top 15 “Scottish” production companies. Only 2 of these 11 (STV Studios and Friel Kean Films) were formed in Scotland and had a Scottish HQ. Between them, STV Studios and Friel Kean Films accounted for a total of 1,176 (less than 20%) of the episodes produced by the top 15 “Scottish” suppliers for the UK PSBs network channels across the period 2014 to 2022.

  • Another 4,874 “Scottish” episodes (80% of the BBC’s total episodes from the Top 15 producers) were commissioned by the BBC from producers HQ’d in London. IMG and Sunset + Vine (part of Tinopolis) were among the top 15, providing the BBC with 1,066 and 96 episodes respectively.  These focused on sports coverage – the main strands are the World Snooker Championship and the Bowls World Championship. For 2019-2022, the share of total episodes delivered by IMG and Sunset + Vine fulfilling two or more of Ofcom’s criteria in Scotland was just 16% for IMG and 21% for Sunset+Vine, meaning that most of episodes allocated to Scotland qualified on the basis of having a substantive base alone (i.e. branch office location).

  • Channel 4 was the main commissioner for four of the production companies in the top 15. Three of these four Channel 4 suppliers had a Scottish HQ.  Looking at 2019-2022 only, on average 71% of the total episodes that Channel 4 commissioned from the producers with a Scottish HQ met two or more of Ofcom’s three criteria in Scotland (substantive base, production spend and/or off-screen talent). Meaning they contributed to Scotland’s economy and provided employment for Scotland-based crew.