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The year is off to a flying start and the first 2026 edition of our UK film and TV newsletter covers how shifting viewing habits will see ad-supported streaming rise, cinema admissions decline and more YouTube experimentation, and discuss how studios will adapt by testing vertical drama formats while broadcasters strengthen partnerships with global streamers.
We are excited to announce our brand-new partnership with UK Screen Alliance /Animation
UK as their exclusive legal sponsor for 2026.
Since its inception, UK Screen Alliance, in partnership with Animation UK, has championed
the strengths of the sector, playing a pivotal role in securing the introduction of the UK’s Film
and High-End TV tax relief in 2013. More recently, the UK Screen Alliance and Animation UK
persuaded the UK government to introduce an uplift in respect of Animation and VFX in the
Audio-Visual Expenditure Credit.
Keep an eye on our LinkedIn to learn more about how we’ll be working with UK Screen
Alliance /Animation UK over the next 12 months. And if you’re a member, you may be seeing
more of us in the near future!
2025 marked Indielab’s 10th anniversary, and as part of our ongoing partnership, we joined
their Growthlab conference in November for the launch of their first Innovation Awards.
Edward Lane, Clare McGarry, Katerina Capras, and Caitlin McGivern all attended and Ed
had the honour of presenting the award for ‘Outstanding Indie of the Year’ to CPL
Productions, the creative force behind MAFS UK, Love is Blind, 90 Day Fiancé, and A League
of Their Own, among others. It was a fantastic day and evening celebrating some of the
most exciting innovation and creativity across UK television and digital-first content.
Our annual industry “Harbottle Happy Hour” returned this year and was held at the German Gymnasium in King’s Cross. This was a great opportunity to catch up with friends, clients and contacts during one of the busiest weeks in the industry calendar.
Back in December, Sarah Lazarides, Abigail Payne, Catherine Flood, and Caitlin McGivern attended the Women in Film and TV Awards, joined by key contacts and clients at our annual table. The awards celebrate the outstanding female talent across the film and television industry, and it was a pleasure to be part of such an inspiring event.
We are continuing our long-standing partnership with Indielab into 2027 as the exclusive legal sponsor of their Content Futures 2026 Accelerator.
This year, the newly rebranded Content Futures programme will focus on technology, branded entertainment, digital platforms and the global TV market, supporting participants in reaching their goals in distribution, funding, and investment.
UK film and TV performers vote overwhelmingly for AI protections
Equity’s indicative ballot in December saw 99.6% of participating performers vote to refuse digital scanning on set without stronger AI protections. Although not legally binding, the result prompted Equity to push Pact for improved proposals focused on explicit consent, transparency and fair compensation, building on standards set by SAG AFTRA. Pact has now issued a revised counterproposal that strengthens provisions around synthetic performers and maintains that existing protections, combined with UK GDPR, already offer comprehensive safeguards. Pact has also rejected claims that producers are selling biometric data to third parties, noting no evidence has been found, but has agreed to review GenAI market practices on a regular basis.
New Pact Equity TV Agreement rates card
As of 1 January 2026, the new rates card under the TVA is now in effect. Pact and Equity have
also agreed to extend the current rates under the CFA until 5 April 2026.
After the twists and turns of its parliamentary journey in 2025, the long-awaited
Employment Rights Act 2025 is now law. Read our note to see what this means for
employers in the film, TV and entertainment sectors: ERA 2025: the new Act and the
entertainment industry.
The updated agreement, effective from 1 July 2025, keeps commercial fees for PSB and Sky
commissions at current levels and introduces a 3% net revenue share from year eight on profitable, fully recouped programmes.
Producers do not need to include this in individual contracts, as it applies automatically unless a separate deal is less favourable. The agreement covers all new and returning commissions after the effective date and will be reviewed in 2028.
Proposed Home Office reforms could see companies face fines of up to £60k per casual worker if they fail to carry out right to work checks on freelancers, extending existing obligations beyond standard employment contracts and hitting sectors reliant on short term labour such as film and TV. Experts warn that gaps in verification processes could create significant financial and reputational risk, and the clear message for employers is that right to work checks must be completed for every individual engaged, regardless of contract type or duration.
In November 2025, Ofcom released two significant publications relating to the implementation of the Media Act 2024, which is expected to result in substantial changes in the media landscape by 2027. Ofcom’s report focuses on how streaming services that are available in the UK protect their audiences and further identifies areas for improvement.
Read our note on the key points and practical implications: Ofcom gives weight to the Media Act.
Disney Partners with OpenAI’s generative platform to license iconic characters
Disney is making more than 200 characters, along with costumes, props and vehicles from Marvel, Pixar, Star Wars and classic animations available on OpenAI’s Sora platform, allowing fans to create AI generated videos and images. Disney also plans to use OpenAI technology internally to support new products and enhance Disney Plus, with both companies stressing responsible AI use and a commitment to protecting creators’ rights while expanding storytelling and audience engagement. This is BIG news, especially given Disney’s historic reputation of being super protective over its IP.
No changes to the UK’s AI legislative framework
The UK has made no major changes to its AI framework following its government consultation, confirming it will retain a flexible, non-binding, sector based approach rather than introduce formal legislation (for now…). Although the consultation highlighted gaps and the need for more support, the government has kept its non-statutory model and committed funding to strengthen regulators instead of creating binding obligations. With other regions introducing comprehensive AI laws, the UK’s slower approach risks ongoing uncertainty for the creative sector seeking clearer rules on responsible AI use.
Getty v Stability AI: UK Appeal set to shape copyright & AI in 2026
Getty Images has been given permission to appeal its case against Stability AI. Getty’s original claims centred on the alleged use of millions of its images to train Stable Diffusion, but the primary infringement claim was dropped after the court accepted that training took place outside the UK.
After the primary claim fell away, Getty instead argued that making the model available for download in the UK amounted to importing an infringing copy, which the court rejected on the basis that Stable Diffusion does not contain copy’s of Getty’s works. The court recognised the issue as both novel and important and allowed an appeal on the meaning of an infringing copy, leaving open future arguments about AI training and primary infringement.
The Court of Appeal’s decision will be key in determining the reach of English copyright law reaches into global AI development.
BBC announces new strategic partnership with YouTube
The BBC is expanding its YouTube presence with new digital first programming, including targeted channels for children and young adults such as Deepwatch and channels featuring content from Operation Ouch, Horrible Histories, Horrible Science and Deadly 60. The partnership aims to boost the visibility of major BBC brands and deliver trusted news through global channels, live story streams and new storytelling formats to reach younger audiences who do not consume traditional BBC content. It also includes a UK wide creator development programme, with around 150 media professionals receiving YouTube training through workshops and events led by the National Film and Television School.
Netflix and Spotify’s video podcast partnership: a strategic move
Netflix has partnered with Spotify to bring a slate of established video podcasts to the SVOD platform, supporting its strategy to expand engagement through more diverse and timely formats. The selected shows sit within genres where Netflix already has a strong presence or ambitions to grow, including sport and true crime, and are intended to complement its mix of appointment viewing and more casual background content. The move is aimed at positioning the service more competitively against platforms like YouTube in the live and interactive space. While some questions remain about how this fits with Netflix’s premium brand, the partnership offers creators new distribution opportunities and opens the door for further live or timely formats.
Netflix and Sony expand exclusive movie pact
Sony and Netflix have expanded their Pay 1 deal into what they describe as an industry first worldwide arrangement that will roll out as Sony’s individual territory licences expire, giving Netflix exclusive first post theatrical rights to Sony films. The deal builds on their existing agreements in the US, Germany and Southeast Asia and is expected to reach full global availability by early 2029.
Titles covered include Sam Mendes’ four-part Beatles project due in 2028, Spider Man: Beyond The Spider Verse, the live action Legend of Zelda adaptation, Sony Pictures Animation’s Buds and The Nightingale, with Netflix also licensing select Sony feature film and television library titles.
Written by partner Ed Lane.
The last few days has brought big news on two of the most exciting “will they, won’t they” storylines we’ve had since Ross and Rachel. Paramount pipped Netflix to the post on Warner Bros Discovery and – hot off the press – Banijay Entertainment and All3Media have finally confirmed their merger of equals. Yes, please welcome to the stage (deep breath) Paramount Skydance Warner Bros Discovery and Banijay Entertainment All3Media. I am sure that someone is, as we speak, working on some better names.
Yes, big deals are back!
Paramount is forking out $111bn for Warners and the combined Banijay/All3 will be the largest production group outside of the US. We’ve also in recent months had French studio Mediawan’s acquisition of Peter Chernin’s The North Road Company and Sky and ITV in talks to do a $2.2bn tie-up.
After years of lacklustre M&A activity, what’s going on? Well, in this modern era, scale is survival. These are defensive moves. The move to streaming as the dominant business model has made access to huge amounts of content paramount. Audiences have never had more choice, and streamers have responded by competing for the best, most enduring IP. Scale also gives you pricing power and better terms.
The broader macroeconomic environment is still uncertain, inflation remains stubbornly high and interest rates are not coming down as quickly as expected. Uncertainty is the new paradigm. This should mean less M&A. The fact that we are seeing these big deals means all is not well. The Attention Wars aren’t going great for traditional media: competition from YouTube, Instagram, TikTok, purveyor of parasocial relationships OnlyFans and prediction markets has meant those selling more traditional content are fighting over an ever-shrinking pool of attention. People are spending less time watching long form content and subscriber growth has slowed.
These megadeals are really about securing a bigger slice of a smaller pie.
The question now for Paramount is whether it can get past the various regulatory hurdles and close the deal – this is only the beginning of a long process, in the course of which AI may have transformed (even more) the world of content. Meanwhile, Netflix’s share price has skyrocketed, telling us all we needed to know about the market’s view of the deal (at one point its share price has dropped by more than the $82bn it had bid for Warners). Netflix also receives a $2.8bn break fee for its troubles; not bad for a few months’ work.
At the smaller end of the market, we are seeing good levels of activity and hope to be able to talk about a number of cool things we’ve been working on soon. The main driver of the deals we’re doing is more positive: larger businesses acquiring indie expertise and experience in areas they want to expand into – it’s all about backing talent and giving them the resources to meet their full potential.
Until next time!
Increasingly, AI is being used to generate digital replicas, also known as “deepfakes”, of reallife individuals. This is often for commercial use, including on social media, to promote products and services. This is of particular concern for actors and celebrities, whose images and likenesses are widely available and accessible online, meaning that there is an abundance of source material for AI systems to draw from.
Intellectual property managing associate, Daniel Prim, shares his insight on how this development might unfold in the UK and its impact on the creative industry on our website.
He has a particular interest and expertise in the creative industries, including film and TV, video games and music, and in the broader media, entertainment and technology sectors.
His practice spans mergers and acquisitions, fundraises from pre-seed to series A and beyond, startups, growth equity investments, public takeovers, joint ventures, management incentive arrangements, including EMI options, and SEIS/EIS investments. He is actively involved as a speaker and mentor for a number of different industry accelerators and trade bodies, including Indielab, BAFTA and UKIE.
Ed trained and qualified at Linklaters, where he spent five and a half years in the private equity M&A team acting for a variety of private equity houses and businesses on leveraged and non-leveraged buy-outs, growth equity investments, exits, management incentive arrangements and bolt-on acquisitions.
Ed is ranked as a key lawyer in The Legal 500 UK guide, and is noted for his “sector expertise”, “encyclopaedic memory” and his willingness to “go the extra mile to get the best deal.”
Clare advises on a broad range of commercial and IP matters across the film, TV and theatre industries, including the development, production, financing and distribution of film, TV and theatre projects and the acquisition, protection and exploitation of rights/IP and content.
Clare works with clients of all sizes and types within the film, TV and theatre sectors, from individual producers, talent and small independent production companies, to major SVODs, high profile production companies, studios, and content financiers. Clare also specialises in advising rightsholders who wish to protect and exploit their IP and rights. Clare works across all genres of film and television, including scripted, unscripted and animation, as well as newer areas such as digital exploitation, branded content and the convergence between traditional TV and content creators.
Clare is described in listed as a ‘Key Lawyer’ and described as ‘a key contact for independent producers and rights holders’ and ‘a pleasure to work with. Fantastic attention to detail and very responsive to client requests. Runs matters efficiently and inspires confidence in her clients’. Clare has also been ranked as a ‘Rising Star’.
Clare presents at numerous industry events, including BAFTA Elevate and Indielab and regularly runs legal sessions for Pact members.
Recent news articles and thought leadership