Netflix has seen an 11% increase in production spend in 2022, which amounts to £8.4million. Increase in revenue is mainly due to an increase in content expenses,” explained Emily MacKintosh, director of business and legal affairs at Netflix U.K., in the company’s financial report.
In 2022, the industry faced rising costs in various areas, including food, fuel, and energy, despite a production boom post-pandemic. This increase in expenditure is seen as a necessity, enabling productions to keep pace with rising operational costs, as opposed to purely facilitating the development of new projects.
Despite these challenges, Netflix continues to expand its presence in the UK, producing hit series like Sex Education and Bridgerton and even increased its UK production budget to $1billion in 2020.
Documents submitted to the U.K. business registrar, Companies House, disclose the financial workings until December 2022. The turnover rose from £7.5million in 2021 to almost £8.4m the following year. Notably, content expenses reached £11m, up from £10.1m in 2021, with a hefty part assigned to general and administration costs.
The administrative costs too saw a rise of 8%, moving from £7.1m to £7.7m. Additionally, the average number of employees increased slightly, increasing from 18 to 20, reflecting a modest growth in the workforce.
A spokesperson from Netflix stressed that the company was “deeply committed” to the UK, calling it their “most important production hub outside North America”. The streaming giant has invested nearly $6 billion since 2020 in creating shows like Heartstopper and The Crown, which airs its final season in November.
This investment, almost 50% more than initially anticipated, facilitated the production of globally acclaimed content and generated thousands of jobs across the UK.