Barclays has launched a £100 million ($125 million) fund for television production in the U.K.
The banking giant said the fund is intended to give British TV production companies “improved access to finance and enhance their ability to compete internationally.” The bank said the move comes in response to the emergence of SVOD services.
Conventional TV production loans are repaid as the content is delivered to the broadcaster, which pays the production company at that time. In the case of SVOD content, however, revenues are often spread over a longer term.
As such, the Barclays Media team felt it was time to change its loan structure for its TV clients. As part of the new fund, Barclays developed specific SVOD financing to meet the needs of production and distribution companies working with these platforms. The product allows these companies to borrow money over a longer period.
Lorraine Ruckstuhl, head of media at Barclays Corporate Banking, said, “The creative industries in the U.K. are world famous due to the range and quality of content they produce.
The TV industry specifically is in a really exciting place and is evolving at pace, with more than 250,000 people in the U.K. employed in the sector.
We’ve been supporting TV production with a dedicated Media team for over 30 years, and know that to meet the needs of our clients we have to adapt with them and with the viewing habits of the public.
That’s why we created this fund and developed Barclays SVoD Financing, to help U.K. SMEs continue to compete both in the U.K. and internationally, support increased employment, and create even more great programs.”
Roughcut Television, an indie comedy production firm, has taken advantage of the new Barclays SVoD Financing. Barclays purchased Roughcut’s Netflix receivable for Cuckoo, giving the firm upfront cash for its multiyear streaming pact with the SVOD giant.
Roughcut’s commercial director, Tim Sealey, said, “Netflix are notorious for paying over a long period, our arrangement with Barclays enabled us to get access to the cash much earlier which meant that we could put it to work by investing in further development. Another side benefit is that it improves our relationship with the writers and artists as they get their royalties quicker too.”
