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Branded Content: Navigating the New World

Posted on by Anna Weeden

With traditional commissions remaining hard to come by, producers are increasingly seeking branded content as an alternative ‘holy grail’ to getting their shows funded. But what exactly is it? And how does having a brand onboard interplay with broadcasters’ duties to the public?

ISN’T IT JUST THE SAME AS SPONSORSHIP?

Advertiser Funded Programming (AFP), means programmes created with the input of a brand – often financial but it can also be creative too. Branded content on the other hand, usually means programmes created by producers for a brand where the brand effectively acts as commissioner. Increasingly, the term “branded content” is used colloquially in the TV industry to mean either.

Crucially, AFP for traditional TV is where the brand buys into the existing editorial integrity of the programme and is looking to reach consumers by aligning with the programme’s existing values. As Jon Willers of The Development Network puts it, “branded content for Channel 4 must feel like something they would commission anyway”. In other words, the branding is complementary, or supplementary, to the story being told. Of course, there is branded content which starts with the brand and works backwards, but again, the final product isn’t intended to look and feel like an advert.

The key difference between AFP and sponsorship is that usually with AFP, there is a deeper relationship with the programme makers (the producer and broadcaster) and the programme itself. The Branded Content Marketing Association describes it as “any means by which an advertiser can have a deeper relationship with programming product beyond traditional media activity”. This definition requires a funding relationship with the programme or series that goes beyond sponsorship because the funding goes directly into production. Effectively, it is programming that wouldn’t exist without the brand partner. Sponsors, on the other hand, rely on the right programme being available, and only then are they able to secure sponsorship on it.

WHO OWNS THE IP?

Typically, in AFP, brands do not take a share of the intellectual property rights in the programme as they perceive the value of the partnership to lie in the exposure and reach it provides for their brand. This is good news for producers as it leaves them free to exploit the format and the like, subject to any terms agreed with the broadcaster. However, this position may be changing, at least in the digital space, as brands get savvier to the potential upside in owning a share of the IP-pie. Some might even be interested in a share of net revenues from producers’ exploitation of the programme on the secondary market after the initial broadcast. With negotiations wide open, it’s all to play for.  For public service broadcaster (PSB) deals, though, under the Terms of Trade, the producer must remain the owner of the IP in the shows (which means that certain brands who are entering the AFP space for the first time may need to have their expectations managed).

HOW DOES BRANDED CONTENT WORK FOR THE PSBS WITHIN THE OFCOM RULES?

The BBC has historically shied away from any type of brand involvement in its shows, primarily due to restrictions on its funding and operational framework. The BBC is funded by the licence fee, which is public money provided by Parliament. It is prohibited from using these funds for services that are wholly or partly financed through advertisements, sponsorship, or other alternative funding methods, unless prior written approval is granted by the Secretary of State. This restriction ensures that the BBC remains independent and free from commercial influence, maintaining its public service remit. That being said, commercial arms of the BBC do engage in brand-funded content, like BBC StoryWorks which commissions branded content for the non-UK market.

The other PSBs however, have previously engaged in a fair level of AFPs, but the last few years has seen  a huge rise as the climate for fully funding their shows remains challenging. A good example is Cooking With the Stars in partnership with Marks & Spencer; DNA Journey with Ancestry; and John and Lisa Down-Under with Trailfinders.

However, the PSBs fall under the jurisdiction of Ofcom, meaning any branded-funded content they show needs to comply with the Ofcom Broadcasting Code (the Ofcom Code).

PRODUCT PLACEMENT UNDER THE OFCOM CODE

Product placement involves the inclusion of a product, service or trade mark within a programme in return for payment or other consideration.

Product placement is permitted in certain types of programmes, such as films, TV series’, entertainment shows, and sports programmes, provided it complies with the rules set out in Section 9 of the Ofcom Code. These rules require that product placement does not compromise editorial independence, is not unduly promotional and is clearly signalled to viewers through a universal product placement logo displayed at the start, end and after advertising breaks in the programme. This means that whilst certain brands may want to have control over how their products are featured in content, the extent to which they can do so is limited under the Ofcom Code meaning their expectations need to be managed accordingly.

SPONSORSHIP UNDER THE OFCOM CODE

Under the Ofcom Code, the sponsor may not influence the editorial content of the programme. The sponsorship must be clearly identified and there must be a clear distinction between editorial content and advertising to maintain transparency and consumer protection. Whilst we said above that AFP and sponsorship are not the same, the sponsorship rules in the Ofcom Code may well still apply to brand-funded content.

SO, WHAT DOES THIS MEAN?

In short, setting aside the BBC (which is subject to additional restrictions) branded content for the PSBs is permitted provided producers successfully navigate and adhere to the standards and transparency requirements of the Ofcom Code.

WHAT ABOUT STREAMING PLATFORMS?

For the PSBs’ digital offerings, like Channel 4, BBC iPlayer and ITVX, the regulatory landscape is currently different than for their PSB main channel counterparts, as the Ofcom Code itself does not apply. The same is true for streamers like Netflix and Amazon Prime. Instead, VOD services are currently regulated by the ODPS (On-Demand Programme Services) Rules which impose alternative broadcast standards. Whilst the ODPS Rules on sponsorship and product placement are broadly similar to the Ofcom Code, they are slightly lighter with regards to how VOD services are allowed to implement them. For example, under the Ofcom Code, product placement must be editorially justified and signalled with a ‘PP’ logo. That being said,  the ODPS Rules for signalling requirements must only ensure that viewers are adequately informed about product placement – there is  no strict format requirement. This means an ODPS would be able to use its end credits to disclose a promotional consideration.

The Media Act 2024, now in force, gave Ofcom the power to create a new Ofcom code which will apply to Tier 1 Video On-Demand (VOD) services (the VOD Code), This  would cover the PSBs’ VOD offerings as well as independent streaming services like Netflix, Amazon Prime and Disney+ etc. Will this tighten up the rules on branded content in the online space? Based on current thinking, the new Ofcom code will not focus on these areas meaning ODPS will continue to be governed by the existing ODPS Rules.

HOW ABOUT YOUTUBE, INSTAGRAM AND TIKTOK?

YouTube is the home of long-form branded content; Instagram and TikTok are the home of short-form branded content and clips. Brands and producers make use of all of them as part of a cohesive, multi-platform branded strategy.  

Crucially, none of the above Ofcom or ODPS Rules currently apply to YouTube, TikTok or Instagram. A recent Government announcement has confirmed that video-sharing platforms like YouTube, will not in and of themselves be designated as Tier 1 VOD (though some individual channels on YouTube with a high number of subscribers, like the PSB’s own YouTube channels, may be caught).

Instead, branded content on these types of platforms is subject to the CAP Code. This is a separate set of rules governed by the Advertising Standards Authority which states that, where a brand has editorial control, there must be clear labelling to allow viewers to easily recognise the content as an advert, and messages should not be conveyed surreptitiously. On social media sites, influencers must use clear labels like “#ad” to ensure transparency where they are posting a brand-funded video.

WHAT NEXT FOR BRANDED CONTENT?

Branded Content shows no sign of waning. Whilst the regulatory landscape continues to evolve, producers, broadcasters and brands remain set on navigating the rules and reaping the benefits that collaboration between traditional TV indies and brands can bring.

We are experts in advising on both sides of the fence as well as advising on deals with broadcasters where there is brand involvement. Our advice ranges from deal-making and structuring, contract drafting, negotiation and advice on the regulatory regime. If you are a TV production company, agency or a brand working on a branded content or AFP project, please get in touch.

Behind the lens of March 2026: UK Film and TV insights

Posted on by Anna Weeden

In 2026, buzzwords like digital-first, micro-dramas, the creator economy and vodcasts will face their moment of truth; Paramount’s Warner Bros. Discovery deal could reshape UK PSBs – will Sky and ITV tie the knot, and what about a BBC-Channel 4 merger? AI’s influence will grow with the anticipation of the first fully AI-generated feature film and increased use of generative tools by UK broadcasters.

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.

HARBOTTLE HIGHLIGHTS

Harbottle & Lewis and Animation UK Partnership

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!

GROWTHLAB AND INDIELAB INNOVATION AWARDS 2025

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.

CONTENT LONDON

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.

WOMEN IN FILM AND TV AWARDS 2025

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.

INDIELAB CONTENT FUTURES ACCELERATOR 2026

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.

INDUSTRY UPDATES

PACT/EQUITY UPDATE

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.

EMPLOYMENT RIGHTS ACT 2025

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.

NEW DIRECTORS UK BLANKET AGREEMENT

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.

RIGHT TO WORK CRACKDOWN

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.

OFCOM STATEMENTS

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.

AI UPDATE: FIRMLY IN FOCUS FOR 2026

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.

IT’S ALL ABOUT COLLABORATIONS

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.

IN THE SPOTLIGHT

M&A – THAT’S ALL, FOLKS!

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!

IP, THEREFORE I AM?

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.

AI, deepfakes and the protection of personality rights

Posted on by Anna Weeden

Increasingly, AI is being used to generate digital replicas, also known as “deepfakes”, of real-life 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.

In December 2024, the UK Government launched an “AI and Copyright” consultation. The Government sought views from the industry on whether “personality rights” legislation should be introduced, or if existing performers’ rights legislation should be amended in the UK to give individuals greater control over how their likeness or voice is used. The Government recognises that other countries have taken action, or proposals have been made, to address this issue. For example, in the United States, two bills were enacted in California in 2024 to protect performers regarding the use of digital replicas imitating an individual’s voice, image or personal attributes without consent (California Assembly Bills 2602 and 1836). In Denmark, a bill was proposed allowing individuals to own copyright over their physical likeness which includes face, body and voice.

There were over 11,500 responses to the Government’s AI and copyright consultation from a range of parties including creators and right holders, developers of AI models and applications, academics, researchers, cultural heritage organisations, and legal professionals. The Government will be submitting a full report and economic impact assessment of its consultation before Parliament on or before 18 March 2026.

Whilst it is currently unclear whether or not specific personality rights legislation will be introduced into UK legislation to protect an individual’s likeness or voice from being digitally replicated by AI, it is worth bearing in mind that there is a patchwork of existing civil rights in the UK that may be relevant to the use of digital replicas without the consent of the real-life individual. Enforcing these rights in the UK civil courts in the context of AI digital replicas is, however, currently untested.

The rights include:

  • Trade marks. A UK trade mark registration gives the holder the potential to sue for trade mark infringement in respect of signs that are similar or identical to which the trade mark is registered. A real-life individual may wish to register a trade mark using a portrait of their face to give them the potential avenue of bringing a trade mark infringement claim when a digital replica of their face is used without consent by an AI. Well-known figures have sought such trade mark registrations. For example, Jeremy Clarkson has recently obtained a UK registered trade mark comprising two photo portraits of his face. This approach has also been taken in other jurisdictions, for example Dutch models Rozanne Verduin and Yasmin Wijnaldum have registered portrait photos of their faces as EU trade marks.
  • Passing off. If the public is misled into thinking a real-life individual has endorsed a product or service via a digital replica, the tort of passing off may be helpful to bring a stop to what the digital replica is doing.
  • Misuse of private information. If the real-life individual can establish that they have a reasonable expectation of privacy in the information contained in the replica (which may, depending on the circumstances, include private events, or intimate scenes etc), then this tort may be helpful in relation to any unauthorised publishing of such information via the digital replica.
  • Data protection. Data protection legislation may also be helpful to prevent the misuse of personal data (which may, depending on the circumstances, include an individual’s likeness/voice) that has been processed by the digital replica’s handler.
  • Defamation. If a digital replica uses the real-life individual’s likeness/voice in such a way that causes the individual serious harm, the individual may have grounds to sue for defamation.

For now, the Government’s upcoming report on the consultation is due to be published by 18 March 2026 and is eagerly awaited by practitioners and the creative industry. It is almost guaranteed to encourage more debate on the issue of an individual’s personality rights in the UK.

ERA 2025: the new Act and the entertainment industry

Posted on by Anna Weeden

After the twists and turns of its parliamentary journey in 2025, and many amendments later, the long-awaited Employment Rights Act 2025 is now law. We unpack what this means for employers in the film, TV and entertainment sectors for the year ahead. 

UNFAIR DISMISSAL CHANGES

Turning first to the biggest change, unfair dismissal rights. The Labour Government’s aspirational ‘day one’ right not to be unfairly dismissed did not become law. However, the changes are still significant.

From 1 January 2027, employees will need six months’ service to bring a claim for ordinary unfair dismissal (rather than the current two years), meaning anyone continuously employed on or before 1 June this year will have protection from unfair dismissal from the start of 2027.

The current statutory cap on compensation for unfair dismissal, a year’s pay or £118,223, will also be abolished.

This is a big moment in employments rights. Although moving from ‘day one’ to ‘six months’ feels like a welcome compromise, employers must take greater care to get recruitment practices right, assess fit early on and take decisive action when things do not go to plan.

For film and TV companies, who hire staff short term for specific productions, careful thought will need to be given to employment status and termination processes when a production wraps or projects come to an end.

Equally significant is the removal of the compensation cap. Employers are used to the comfort of the statutory cap representing a worst-case scenario for unfair dismissal claims, but such claims will have a higher potential value. In the entertainment industry, where talent, presenters, and behind the camera executives are on significant salaries, this change really will matter.

TRADE UNION EMPOWERMENT

The Act has promised modernisation of trade union legislation, and with this comes a shift of power back to the unions. The Government’s union proposals have largely made it into the final law, with the result that unions will have more freedom to access members and workplaces, call industrial action and secure recognition.

Major changes begin to take effect in February 2026 (with some immediate changes for the public sector before then). In relation to industrial action including strikes, unions will need a simple majority vote to take action, any mandate will last for 12 months, instead of six months, and the notice of industrial action will reduce from 14 to 10 days.

This change to the law is of particular relevance for the film and television industry at the moment, given British Equity’s indication late last month that it may hold a statutory ballot on industrial action if terms cannot be agreed regarding AI. This followed a poll of British Equity members in December, with 75% turnout, where 99% of members indicated that they would refuse to be scanned on set without AI protections.

During 2026, a framework will be introduced giving trade unions stronger rights of access to workplaces from October 2026, both physically and through digital communications with employees.

More detail will follow in Regulations over the coming months.

Union agreements and relationships form an integral part of employment terms and arrangements for many businesses in the entertainment industry. It will be important for employers to fully understand the enhanced union rights and consider how this impacts their own union engagement and industrial relations strategies.

FAMILY FRIENDLY AND LEAVE RIGHTS

Day one rights have been introduced for family and other types of leave, with most expected to come into effect in April this year, or in early 2027.

These include: an entitlement to at least one week of bereavement leave, including for early pregnancy loss; paternity and parental leave rights from day one of employment; and statutory sick pay applicable from the first day of absence.

Rates of pay in respect of such rights remain low or uncertain. Statutory sick pay is capped at £123 per week, and a significant increase is not currently contemplated. The day one rights in respect of maternity and paternity leave do not extend to statutory pay, with employees still needing a period of continuous service for eligibility.

This means immediate costs to businesses are not duly onerous, although employers should note there is an ongoing wider Government review on the parental leave and pay system, although the review stage will not conclude before 2027. 

For many employers in the entertainment industry, these reforms won’t mean significant changes, as many already offer over and above statutory entitlements. However, for smaller employers and productions with staff on short or fixed term contracts, it will be important to be aware of the changes and how they may impact policies and different staff groups.

AND THE REST…

The above is a snapshot of three key aspects of the Act likely to be especially relevant to the film, TV and entertainment industries, but there is a raft of further reforms to be aware of.

You can read our overview of the changes here and we will share further insights and webinar offerings as more details emerge.

The takeaway from here is that whilst there are undoubtedly reforms of significance, and employer clients need to use the coming year to get ready for the changes, businesses should not be unduly worried. Being informed and prepared will help the creative sector successfully navigate and manage risk in this new landscape.

Please reach out to our head of film and television and partner, Sarah Lazarides, for more information or training requests about employment law changes and their potential impact.

Ofcom gives weight to the Media Act

Posted on by Anna Weeden

Yesterday, Ofcom released two significant publications relating to the implementation of the Media Act 2024, a piece of legislation bringing substantial changes to the media landscape by 2027. In this article, we summarise the key points and practical implications.

Review of Audience Protection Measures for Streaming Services

What has Ofcom published?

Ofcom has published a comprehensive report examining how streaming services (also known as on-demand programme services, or ODPS) protect their audiences. This covers major platforms including Disney+, Amazon Prime Video, BBC iPlayer and Now.

Why does this matter?

The Media Act introduces new standard requirements for streaming services available to UK audiences. Ofcom now has the power to examine and report on the measures providers are using to protect audiences, and to identify areas for improvement.

This review is part of Ofcom’s broader work implementing a new content standards code, anticipated to be named the Tier 1 Standards Code for designated Tier 1 services.

What did Ofcom find?

Ofcom assessed the following audience protection measures (APMs):

  • Age ratings
  • Content warnings
  • Parental controls
  • Age assurance mechanisms

Some good news: the current implementation of APMs is broadly adequate across the sector.

Areas for improvement:

  • Better user guidance: services should provide clearer information on how to find and use protection tools.
  • Enhanced content warnings: viewers want more detailed warnings, particularly episode-specific information for serialised content.
  • Cross-device consistency: parental controls need to work reliably across all platforms and devices.
  • Proportionality: protection measures should balance safety with user experience and not intrude on data privacy.

What should streaming services consider?

  • Review current APMs against Ofcom’s findings.
  • Consider how available protection tools are communicated to users.
  • Assess whether parental controls function consistently across all devices.
  • Ensure approach is tailored appropriately for UK audiences.

Ofcom plan to conduct a further review of APMs used by Tier 1 services once the Secretary of State has announced how Tier 1 services should be determined.

Channel 4 Commissioning Policy Guidance

What has Ofcom published?

Following public consultation, Ofcom has published final guidance on Channel 4’s commissioning obligations under the Media Act.

Why does this matter?

The guidance establishes clear requirements to ensure fair access, transparency and competition in Channel 4’s commissioning process. This creates a more level playing field for independent producers and increases accountability.

What are the key requirements?

Channel 4 must publish an annual Statement of Commissioning Policy covering:

  • In-house production separation: how Channel 4 maintains appropriate separation between its commissioning and in-house production activities.
  • Programme submissions: clear processes for how external programme proposals are handled.
  • Dispute resolution: transparent mechanisms for resolving commissioning-related disputes.
  • Annual reporting: year-on-year progress tracking to demonstrate accountability.

What should you consider?

If you work with or supply content to Channel 4:

  • Familiarise yourself with the new transparency requirements.
  • Understand the dispute resolution mechanisms available to you.
  • Monitor Channel 4’s annual statements to track changes in commissioning approach.

Next steps

These developments represent important steps in the evolving regulatory framework for UK media services. We will keep you updated as these changes get implemented along with other aspects of the Media Act.

If you have any questions about this article, please reach out to managing associate, Clare McGarry.

Behind the lens of November 2025: UK Film and TV insights

Posted on by Anna Weeden

Synonymous with the recent change in seasons, the UK production industry is currently in a state of transition. Collaboration is on the up with a rise in co-productions, streamers and broadcasters joining forces, and traditional content businesses working alongside content creators and digital-first start-ups.

The third edition of our UK film and TV newsletter covers key industry updates including the Warner Bros. Discovery takeover, Pact/Equity negotiations, AI advancements, UK indie tax credit impacts, Trump’s proposed film tariff, microdramas, the creator economy, children’s TV inquiries, major legal cases, and new data and immigration updates affecting the sector.

HARBOTTLE HIGHLIGHTS

Edinburgh TV Festival 2025

In August, Minty Hamer and Julika Schmidt attended the Edinburgh TV Festival, which brought together leading voices across the television industry through a wide range of events and sessions.

It was a great opportunity to reconnect with clients and meet new faces from across the sector. Some sessions acknowledged the challenges faced by the industry in dealing with the traditional commissioning ecosystem – some even describing it as “medieval” – and proposed ideas for change in the marketplace.

Additionally, the international potential for new shows remained a key focus, however it became clear that the ideas grounded in authentic, local perspectives continue to resonate the most.  

MIPCOM 2025

Broadcast quoted MIPCOM’s director, Lucy Smith, describing this year’s MIPCOM as “the biggest step change in a generation” owing to the creator economy being at the forefront of the event, with YouTube taking up more conference space than ever before.

The chatter in the air reflected the current themes in the market – budgetary constraints, collaboration being necessary between everyone in the industry to get things made, and the industry pivoting into new areas such as microdramas.

Ed and Clare met up with clients and contacts including distributors, production companies, financiers and union representatives. Deals may be slower and harder to come by, but there was certainly still an appetite for business, on-the-ground meetings and networking in Cannes.

CONTENT LONDON

We are looking forward to attending Content London again in December. We will be hosting our ‘Harbottle Happy Hour’ drinks on the evening of 2 December in Kings Cross so please get in touch if you would like to join us.

BAFTA Elevate 2025/6

On 22 September, we hosted another session for the current BAFTA Elevate cohort. Clare McGarry and Amy Bradbury alongside James Jones (director of Antidote) and Dominic Harrison (Channel 4) explored defamation and other legal issues that filmmakers working in documentary need to be aware of to assess and mitigate risk, whilst maintaining their journalistic integrity.

The session sparked insightful discussions and a Q&A that left everyone with plenty to reflect on and take forward in their work.

INDUSTRY UPDATES

WARNER BROS. DISCOVERY’S POTENTIAL TAKEOVER

Warner Bros. Discovery (WBD) has become the centre of a growing acquisition battle, with several major players expressing interest in its assets. Paramount Skydance, led by David Ellison, has made multiple offers – most recently at $24 per share and including a proposed co-CEO role for WBD’s David Zaslav – all of which have been declined. In response, WBD has confirmed it is actively exploring strategic options, including a full or partial sale, as well as a potential separation of its streaming and cable businesses.

Netflix, despite publicly downplaying interest, has reportedly been given access to WBD’s financial data room, suggesting a possible bid focused on WBD’s valuable IP. Paramount and Comcast (who are also busy looking at ITV’s broadcasting business!) are also said to be evaluating opportunities, each with different strategic goals. Paramount’s potential merger with WBD could create a formidable streaming entity, combining HBO Max and Paramount+ with a combined subscriber base of over 200 million.

UPDATE ON PACT EQUITY NEGOTIATIONS

Negotiations between Pact and Equity on the Cinema Films Agreement (CFA) and TV Agreement (TVA) are still ongoing. In July, Equity responded to Pact’s previous counterproposals, with some key points resolved. This includes a minimum three-year term for both agreements, with negotiations starting again after two years. Pact and Equity were also aligned that artists should be given the first opportunity to dub in English, with certain caveats for production needs still being finalised.

Discussions are also ongoing on issues such as rest periods, overtime provisions and health and safety protections. For the TVA, Equity wants 12-hour minimum rest periods for actors, which Pact says it can’t agree to due to concerns from its members. Pact and Equity met in early November to discuss working patterns under the TVA.

Streaming rights and residuals continue to be a focus, whilst AI provisions are being handled separately, with Equity pushing for strong protections around performer consent, data use, and transparency. At the end of October, key terms on Generative AI were tabled by Pact with Equity – we will give you more detail on this in our next round-up. October / early November also saw Pact and Equity meet to discuss terms for residuals.

Regular meetings are scheduled through the end of the year, and Equity members will vote on the final deal and all financial terms once they are agreed.

BROADCASTERS AND STREAMERS TEAM UP

Disney and ITV signed a deal in July billed as a ‘first of its kind’ initiative to share a curated selection of content across their respective streaming services. Disney+ now carries a promotional selection of titles from ITV under the banner ‘Taste of ITVX’ that includes shows such as ‘Mr Bates vs The Post Office’ and ‘Love Island’ whilst ITV now hosts shows such as ‘The Kardashians’ and ‘Lilo and Stitch’. Around 70-100 hours of content from each streamer’s library have been shared since 16 July. Their goal is to drive subscriptions from demographics outside of each platforms’ typical audience. The partnership, along with other similar deals like Channel 4 and UKTV in the UK and Netflix and TF1 in France, suggest this type of content-sharing arrangement may become a broader trend as the streamers continually evolve their businesses and their place in the market.

Valid questions are being raised about whether Netflix and other similar streamers teaming up with traditional channels will scupper the opportunity for shows to benefit from a secondary rights window, and whether this will in turn put traditional financiers off funding shows if this new model interrupts their ability to recoup against secondary distribution income.

AI UPDATE

We keenly track updates in the AI legal landscape so that we can keep you up to date with the latest. So, what’s new?

In July, the Government announced an AI and copyright working group, with representatives including Open AI, Meta, Amazon and Sony Music Entertainment. The group will focus on the impacts and opportunities of AI, whilst trying to find common ground on key issues. This suggests the Government doesn’t want to be too bullish about bringing in new legislation and is treading this sensitive topic cautiously and slowly.

Meanwhile the Copyright Licensing Agency (CLA) has been developing an AI licensing framework to ensure fair compensation for creators. This could help bridge the gap between rightsholders and big tech developers by ensuring that rightsholders are paid if their works are used to train AI models.

Separately, in September, over 70 signatories, including Sir Paul McCartney and Sir Elton John, accused the Government in an open letter of ignoring copyright violations by AI companies. They claim the use of copyrighted works is undermining the £127bn creative industries and violates creator’s human rights. The Government responded to say that the creative industries’ concerns were being taken “seriously” and a report into the impact of potential changes would be published by the end of March 2026.

Last week, the much-anticipated judgment in the Getty Images v Stability AI case concluded that Stability AI’s model is not an “infringing copy”. However, the ruling left certain questions surrounding the legality of AI training unresolved.    
 
Our AI experts explore the landmark ruling in the summary here.    

STEEP RISE IN UNDER £20M UK FILMS SUBMITTED TO BFI AFTER INDIE TAX CREDIT GREEN LIGHT

The BFI have reported that the number of films with production budgets under £20m applying for BFI certification rose by 27% year-on-year across the first six months of 2025 (417 films vs 328 in 2024). This increase coincides with the introduction of the Independent Film Tax Credit (IFTC) in October 2024 (as part of the new Audio-visual Expenditure Credit regime), which offers enhanced relief for low-budget films. Low-budget films can now benefit from an enhanced credit of 53% (equating to an actual relief of just under 40%, on up to 80% of qualifying expenditure) versus the standard credit rate of 34% (25.5% in actual relief). There have been some voices in the industry calling for an equivalent enhanced tax credit to be applied to TV productions, not just theatrical, but there’s no indication that the Government will be introducing this.

EQUITY VS SPOTLIGHT

The legal dispute between the UK actors’ union, Equity, and prominent talent directory service, Spotlight, concluded in early September with a High Court ruling in favour of Spotlight.

The case focused on Equity’s claim that Spotlight (an organisation providing a service which allows performers to market and advertise their own skills) operates as an “Employment Agency” and therefore should be subject to stricter regulatory requirements, especially in relation to its subscription fees.

The court eventually agreed with Spotlight’s position that it does not actively find work for its subscribers, who either represent themselves or engage agents for that purpose, and so is not an agent. Accordingly, Spotlight is not subject to restrictions on charging work-seekers for their fees.

The ruling highlights the distinctions between platforms that facilitate connections between individuals (i.e. directories), and those that actively provide employment services, setting an important precedent for similar disputes in the future.

WARNER JOINS MIDJOURNEY CASE

In June, Disney and NBC Universal filed a joint lawsuit against generative AI startup, Midjourney, alleging copyright infringement. They claim Midjourney displayed images on its platform that were AI-generated and copied the IP of well-known films such as Star Wars, Shrek, The Simpsons, and Toy Story.

Disney’s Chief Legal Officer, Horacio Gutierrez said: “we are bullish on the promise of AI technology and optimistic about how it can be used responsibly as a tool to further human creativity, but piracy is piracy, and the fact that it’s done by an AI company does not make it any less infringing.”

In September, Warner Bros Discovery also entered the fray, separately suing Midjourney for using iconic characters from the studios’ works to generate images of Batman, Superman and Scooby-Doo, among other characters. They allege that Midjourney have recently “eliminated guardrails that blocked users from creating videos that infringe on its IP”.

As of 5 November 2025, according to a joint stipulation filed by the parties, Warner Bros. Entertainment, Disney and NBC Universal have agreed to consolidate their separate but related lawsuits against Midjourney. The case remains ongoing; no hearings have taken place yet, and no settlements have been reached. However, a Scheduling Conference has been ordered. The studios are seeking a jury trial and a preliminary injunction, while Midjourney has denied any infringement is asserting a fair use defence.

NEW INQUIRY INTO CHILDREN’S TV AND CONTENT

The Culture, Media and Sport Committee launched an inquiry in July asking how future generations of children can continue to have access to high-quality British-made programming. This was in response to children watching less television in favour of online apps and websites, with knock-on effects for those in the creative industries who wish to create original high-quality content aimed at the children’s market. It also focused on concerns for the well-being of the young children consuming this newer content which is not subject to the same level of regulation.

The inquiry closed for submissions at the start of September. While no official publication date for the final report has been announced, the Committee has confirmed that further updates will be provided in due course.

TRUMP REPEATS THREAT TO IMPOSE 100% TARIFF ON FILMS MADE OUTSIDE OF THE UNITED STATES

Donald Trump took to his social media network, Truth Social, to reiterate his view that the American film industry had been stolen by the rise in foreign-made films; “like stealing candy from a baby”. This is the second time that the president has threatened to impose a 100% tariff on films made outside of the United States, having claimed in May that the American film industry was dying “a very fast death”.

As with the initial proclamation, there is a lack of detail how the tariffs might be imposed or when they might come into force, with the industry quietly hoping that this issue disappears into the background of the US government’s broad agenda.

If the tariff ever becomes more than headline-grabbing rhetoric, key questions to answer will include what constitutes an ‘American’ film, particularly in the context of global streamers, and the fact that several major films produced by US studios were shot outside of the US (Wicked and Gladiator II being recent examples). The UK Government is waiting for details of any potential tariff before it decides how to respond. We will keep you updated of any concrete plans to impose these tariffs, but please get in touch if you would like to discuss this further.

IN THE SPOTLIGHT

THE CREATOR ECONOMY IN FILM AND TV

Written by managing associate Clare McGarry.

The television and media landscape is undergoing a profound shift. Where traditional broadcasters and studios once exclusively dominated, now content creators, originating from platforms like YouTube, TikTok and Instagram, are emerging as some of the most powerful forces in entertainment. Their profound influence is being recognised across the UK, highlighted by the recent launch of an all-party parliamentary group (APPG) to represent UK creators and influencers. These online platforms enable creators to cultivate direct relationships with audiences and bypass traditional gatekeepers, retaining complete control over their content.

You can read our full article here.

THE RISE OF THE MICRODRAMA

Microdramas — or “verticals” — are one of many new forms of content reshaping the entertainment landscape. These bite-sized film episodes, designed for mobile viewing, gained popularity in China during the pandemic and have since expanded globally. In 2024, US revenues reportedly reached $819 million, though this pales in comparison to China’s reported $7 billion market during the same period.

The sector has already attracted significant investment and strategic partnerships. Fox Entertainment recently announced an equity investment in Holywater, a Ukrainian tech start-up specialising in vertical video. The deal commits Fox to creating over 200 vertical video titles for Holywater’s My Drama app over the next two years.

Elsewhere, Night Train Media and Spirit Studios have announced a funded development deal to produce a new vertical microdrama series for worldwide digital distribution by Night Train Digital. Meanwhile, in India, Mumbai-based Balaji Telefilms has partnered with Indian microdrama platform Story TV, aiming to establish microdramas as a mainstream format across the continent. And with Omdia projecting that microdramas will generate $11 billion in global revenues by 2025, this new wave of content evolution is unlikely to slow down soon.

THE DATA ACT 2025

The Data (Use and Access) Act 2025 became law in June 2025, with changes due to come into force over time.

It introduces targeted reforms to the GDPR and other data and privacy law, with the aim to reduce compliance burdens and support smart data access.

Changes include updates to data processing rules and new cookie exemptions, as well as changes to the complaints procedure if an individual believes their data protection rights have been infringed. Previously, the individual could go straight to the Information Commissioner’s Office (ICO), but now they will have to raise their complaint with the data controller, such as their employer, before escalating it to the ICO. There are also new obligations on organisations as to how they should deal with these complaints.

Please get in touch with our data experts if you would like to know more.

IMMIGRATION UPDATE

For production companies bringing overseas personnel to the UK on the Skilled Worker visa scheme, standard sponsored applicants must now earn at least £41,700 per year and work in a role that requires a bachelor’s degree. A number of creative roles will continue to be part of the scheme until the end of 2026, including dancers, set designers and producers, due to being included on the Government’s ‘Temporary List’.

Actors can no longer be sponsored under this route unless they already hold Skilled Worker status. The Creative Worker and Creative Worker concession routes are not affected by these changes and will continue as before.

In summary, this sees a tightening on some of the rules allowing overseas personnel to come into the UK to work on film and TV projects.

Please get in touch with our immigration experts if you would like to know more.

The Creator Economy in film and TV

Posted on by Anna Weeden

The shift in the TV and media landscape

The television and media landscape is undergoing a profound shift. Where traditional broadcasters and studios once exclusively dominated, now content creators, originating from platforms like YouTube, TikTok and Instagram, are emerging as some of the most powerful forces in entertainment. Their profound influence is being recognised across the UK, highlighted by the recent launch of an all-party parliamentary group (APPG) to represent UK creators and influencers. These online platforms enable creators to cultivate direct relationships with audiences and bypass traditional gatekeepers, retaining complete control over their content.

What has caused this shift and how have audiences responded?

The Covid-19 pandemic in 2020 accelerated the global digital transformation, leading to a surge in online content creation. With audiences spending more time online and in isolation, many individuals who faced job losses during the pandemic turned to content creation as a source of income. Simultaneously, established creators were forced to adapt their practices by developing a more innovative, dynamic and home-grown approach to producing content, now that access to traditional studios, large production teams, and elaborate sets was closed off to them.

However, it has now become clear that this was not merely a trend during the pandemic. Rather, this new medium has endured and significantly grown since 2020, as evidenced by a recent impact report by Oxford Economics which revealed that YouTube content creators contributed £2.2bn to the UK economy in 2024 and supported 45,000 jobs. The speed and ease of producing social media content, in contrast to traditional linear television series for example, enables influencers and content creators to publish daily content. This, in turn, helps them maintain their cultural and social relevance, audience engagement, and visibility on the constantly changing and elusive algorithm.  

The resulting content is concise, impactful, and high-quality; catering to modern preferences (particularly among Gen-Z viewers) for short, easily digestible, and more personal viewing experiences with real-time audience engagement. Digital platforms democratise content by breaking down barriers, enabling direct interaction between creators and audiences rather than the traditional one-way broadcast model, and reaching a global viewership.

Bridging the gap between content creators and traditional media

As content creators continue to build their vast platforms and fanbases, traditional broadcasters are recognising the value of collaborating with these influencers and engaging them directly to produce, host, or star in more conventional TV and media formats. Content creators bring fresh, dynamic new voices and concepts and large (typically young) viewership. Paired with the resources, studios, personnel, equipment and budgets of streamers or other platforms, the result is exciting new content that appeals to a new audience – many of whom may not typically engage with traditional media.

Examples include:

  • MrBeast: Beast Games, hosted by YouTuber MrBeast (real name Jimmy Donaldson), is a high-budget reality competition series on Amazon Prime Video. Released in 2024, the show featured over 1,000 contestants competing for a $5 million prize. Produced by Amazon MGM Studios, Insider Entertainment, and Blink49 Studios, the series amassed 50 million viewers within 25 days of its debut and has been renewed for two more seasons.
  • Amelia Dimoldenberg: Known for her YouTube series Chicken Shop Date, Amelia has transitioned into traditional media, hosting Channel 4 documentaries such as Celebrity Rebrand and Meet the Markles. She has also worked with the BBC and hosted major events like the BRIT and NME Awards.
  • Charli and Dixie D’Amelio: The D’Amelio sisters rose to fame on TikTok, with Charli becoming the platform’s first creator to surpass 100 million followers. They starred in Hulu’s The D’Amelio Show (2021–2023) and have since expanded into mainstream projects, including Charli’s roles in Apple TV+’s The Studio and the upcoming thriller Hurry Up Tomorrow.

Commercial considerations for content creators and production companies

As content creators become ever-more prominent in the TV world, their business operations also become more sophisticated and complex. Content creators are:

  • Establishing their own production companies and studios to scale their content, including hiring teams of writers, producers, directors and crew.
  • Developing their own YouTube channels.
  • Branching out into ancillary media avenues like podcasting and vodcasting.
  • Collaborating with traditional broadcasters and streamers, both on traditional platforms and on newer digital platforms.
  • Monetising and protecting their IP.
  • Generating income through securing brand deals, sharing sponsored posts, brand collaboration posts and product reviews, offering exclusive content to paying subscribers and even marketing and selling their own product lines.

Meanwhile, independent production companies are also wanting in on the action. We’re seeing a real uptick in interest from traditional production companies in creator-driven business, from traditional players making investments in new YouTube channels to pairing up with content creators to access brands to fund shows and have been advising production companies on how to structure such deals with content creators.

What legal issues does this present?

As with any industry disruptor, as content creators, indies and broadcasters lean into the opportunities presented by the new TV landscape, so too do the legal complexities grow. Some of the legal issues being grappled with are:

  • IP and rights management: protecting ownership of IP in the content being created and negotiating licensing terms with third parties who want to use it.
  • Production and talent contracts: as content creators increasingly act as producers, they are looking to engage third parties, or vice versa where the content creator is engaged by a streamer or studio. Negotiation of production and talent contracts is key.
  • Co-Production deals and contracts: where a content creator teams up with a larger, established production company in order to create a show.
  • Clearance issues: risks arise when content creators feature copyright protected or controversial material in their content.
  • Corporate structuring: many content creators are establishing their own production companies.
  • Corporate investment: content creators and traditional production companies, broadcasters and streamers are joining up and navigating commercial or equity partnerships and investments.
  • Employment: as content creators expand their businesses and begin hiring employees, they need to ensure they comply with employment laws, minimum wage and working hour regulations, as well as having workplace policies in place.
  • Advertising: content creators have no excuse for not complying with advertising standards, including the UK’s Advertising Standards Authority’s rules which affect transparency in marketing activities and other promotional content.
  • Compliance with regulations: content creators need to understand their obligations under the Online Safety Act 2023, which requires influencers to take greater responsibility for their content to prevent any harm to viewers, and under the Digital Markets, Competition and Consumers Act 2024, which prohibits fake reviews and mandates transparency in endorsements.
  • Reputation management: this relates to protecting content creators’ online presence and public persona, personal and confidential material and privacy, as well as managing reputational risks and managing defamation claims and paparazzi intrusion.

What does the future hold?

The dominance of content creators in the modern entertainment landscape is undoubtedly here to stay. However, this doesn’t spell the end for traditional film and TV. By adapting to these shifts and seeking opportunities to collaborate with creators, traditional production companies and broadcasters can capitalise on the success of content creator-driven media. In fact, aligning themselves with the burgeoning ‘creator economy’ could not only help them stay relevant but also enhance their profitability.

Conversely, content creators aiming to maintain their loyal and dedicated audiences might find value in partnering with established industry players. Such collaborations help creators broaden their reach and also reinforce trust with their audience.

For more information or for advice on any of the above topics, please reach out to managing associate Clare McGarry.

Behind the lens of July 2025: UK Film and TV insights

Posted on by Anna Weeden

The UK production industry is showing cautious optimism, with increased investment into the country, despite challenges like tight budgets and Channel 4’s shift to in-house production. AI dominates discussions, with legal disputes and policy changes signalling its transformative impact.

The second edition of our UK film and TV newsletter covers key industry updates including production trends, AI developments, and further updates to the Employment Rights Bill.

HARBOTTLE HIGHLIGHTS

South by Southwest London (SXSW)

We attended SXSW London, their debut festival in London, and were proud to partner with them as their official legal services supplier. Our lawyers were there throughout the week, attending and chairing insightful panels and talks.

Cannes Film Festival

In May, Sarah Lazarides, Peter Armstrong, Abigail Payne, Clare McGarry and Emma Riggs attended Cannes Film Festival. We caught up with clients and other contacts from around the world, attending numerous events around the Croisette, including those generously hosted by Coutts, Sargent Disc, Fintage House and Saffery. Some reports mention the bars and restaurants being less packed than usual, and of there being a feeling of frugality reflective of the industry as a whole, but we found there to be a good buzz in the air and the festival felt “in action” after a few quiet years in the post-Covid wake.

National Film and Television School

On 3 June, Clare McGarry, Octavia Henderson-Cleland and Julika Schmidt ran a negotiation workshop for talented students from the National Film and Television School. It was a lively and engaging session, on key topics which producers at all stages of their careers need to know about.

On 24 June, Ed Lane hosted a further session for students with serial TV entrepreneur Paul Sandler covering investment readiness and how an investment process works. We ended with a mock negotiation of a term sheet which included some excellent role playing from all concerned.

Indielab TV Accelerator 2025

We have been proud sponsors of the Indielab TV Accelerator for almost a decade, and the 2025 edition came to a close on 11 June.

The day began with Ed Lane, together with Tom Manwaring and Alex Reed-Brewer from Helion Partners, offering insights into the current investment landscape and how to attract investors. Ed was later joined by Harbottle & Lewis associates Katerina Capras and Minty Hamer, who covered investment readiness and the investment process.

In the afternoon, Abigail Payne and Octavia Henderson-Cleland shared their expertise on co-production and distribution agreements.

We then all attended the closing drinks at Barclays to celebrate this year’s cohort.

BAFTA Elevate 2025/6

As part of our support for BAFTA’s Elevate programme, Ed Lane chaired a panel of indies and investors at BAFTA on 17 June.

On the panel were Nischal Randev (BBC Studios), Caroline Percy (Channel 4 Indie Growth Fund), Derren Lawford (DARE Pictures) and Ed Kellie (ScreenDog Productions).

It was a lively and insightful discussion on starting an indie and the investment journey, with some excellent questions from the floor.

INDUSTRY UPDATES

HOT OFF THE PRESS! GOVERNMENT RESPONDS TO CMC REPORT ON THE HETV AND FILM INDUSTRY

In our last edition, we reported on the CMC’s report into the state of the industry, which included recommendations of a 5% levy for streamers, a new HETV tax credit for independent TV, terms of trade for streamers, and scrapping the government’s plans to include a “data mining exemption” for copyright infringement. The government has now responded. The response dovetails with the government’s new Creative Industries Sector Plan (see article below). In short, most of the headline grabbers from the CMC report have not been agreed. Some key takeaways:

  • The government supports the sentiment of the CMC report and appreciates the challenges faced by the industry, acknowledging the “need to ensure the resilience of our domestic sector”.
  • The government has not committed to introducing terms of trade or the 5% levy on streamers, saying: “we want a healthy, mixed film and TV ecology and we welcome inward investment, including from SVoD services. One of the benefits of a mixed ecology is that producers can strike deals both with streamers, which typically involve higher upfront fees, and with PSBs, whose terms of trade mean that secondary rights normally remain with the producer”.
  • The DCMS will appoint a “creative freelance champion” to advocate for the sector’s freelancers within government.
  • Short courses in England will be introduced, funded through the Growth and Skills Levy, in areas like digital, artificial intelligence and engineering.
  • VAT relief on cultural activities, which would include cinema entry, has not been agreed.
  • The government has committed to providing its response to its consultation on copyright and AI in the coming months. They reminded readers that the Data (Use and Access) Act 2025 contains a number of updates and a report on the use of copyright material for AI training will be coming within nine months of Royal Assent.
  • No commitment has been made to analyse the benefit of an uplifted HETV Audio-Visual Expenditure Credit for domestic productions with budgets of £1 million to £3 million per hour.

£75m funding for film and TV sectors: creative industries sector plan

In June, the government revealed its £75m “Screen Growth Package” for the film and TV industry, part of its Creative Industries Sector Plan.

  • The UK Global Screen Fund will be increased to £18m yearly to develop international business capabilities, enable co-productions and showcase independent UK screen content worldwide.
  • £10m will be put towards the National Film and Television School’s facilities and training programmes, unlocking £11m in investment from industry and private supporters, including from the Walt Disney Company, the Dana and Albert R. Broccoli Foundation and Sky.
  • Funds are being made available to a “significantly expanded” BFI Film Academy, to open the industry to people from underrepresented backgrounds, with opportunities for filmmaking work experience and training.
  • £25m is going to companies in the augmented reality and motion capture technology space, to fund research and development labs, and showcase spaces.

As well as the Screen Growth Package, £150m will be given to Mayoral Strategic Authorities, to support the creation of regional screen agencies and production funds.

The true impact of the investment remains to be seen and will become clearer over time.

AI, AI, AI…

It’s been an especially turbulent quarter in the world of AI. In case you missed it:

1. Trade Unions call for an independent AI regulator. The Trades Union Congress (TUC), which represents Pact and Bectu, wants an independent regulator to be set up to manage how AI is integrated into society. The aim: a new creative industry AI taskforce to bring together creative workers, unions and technologists, transparency on AI training data, consent-based use of creative work, fair pay when creative content is used to train AI models and stronger protections against deepfakes.

The TUC has voiced strong opposition to the government’s plans to include an exemption in the law allowing AI developers to train their systems on copyrighted protected materials without permission, unless creators explicitly opt out.

2. The Data (Use and Access) Bill passes. This was passed on 11 June after much “ping ponging” between the House of Commons and House of Lords. The House of Lords tried to introduce a change forcing AI companies to declare their use of copyright protected materials for the training of AI models, including transparency regarding scraping. This was rejected by the House of Commons, who said this was not the appropriate place to deal with these issues, in particular because (a) they are running a separate consultation on AI and the creative industries (the results of which we are eagerly awaiting) and (b) a specific AI bill is in the works. Sceptics might say this shows the government siding with AI companies over creatives and displaying their fear of getting left behind if the UK stifles any technological advancements of AI.

3. Major players flex their litigation muscles.

Two major cases to be aware of:

Disney and Universal sue Midjourney:

  • The first US majors to sue an AI company.
  • They allege that Midjourney has not ceased its ‘calculated and wilful’ unauthorised infringements, despite requests to stop and adopt technological measures to prevent the practice.
  • Subscribers to Midjourney can create images from text that are reproduced and made available for download. The studios referenced pictures of Yoda and other characters from franchises being generated through the AI tool.
  • An excerpt from the complaint called Midjourney “the quintessential copyright free-rider and a bottomless pit of plagiarism”.
  • The studios are seeking maximum statutory damages and injunctive relief.

Getty goes to court: Getty Images’ landmark case against Stability AI officially began in June. Getty accuses Stability AI of using its copyrighted images to train Stable Diffusion, Stability AI’s system which generates images from inputs. Getty says Stability AI illegally scraped millions of images from its website. However, Getty dropped its primary copyright claim on 26 June as a “pragmatic” move, leaving the trade mark, passing off and secondary copyright infringement claims still on the table.

PACT resists changes to terms of trade

Ofcom is considering revising its guidance for PSBs set out in the Commissioning Codes of Practice, commonly referred to as the “Terms of Trade”. Their plans include allowing PSBs to seek ‘matching rights’ as well as changes regarding negotiation practices with indie producers.

Pact believes that this change would impact the balance of power between producers and PSBs, particularly within the indies sector. The union has urged its members to write to their MP to highlight what they see as a move that would hinder the ability of producers to retain and exploit their IP.

PACT/Equity negotiations

The contract negotiations between Pact and Equity for both the Cinema Films Agreement (CFA) and the TV Agreement (TVA) are ongoing. Pact sent the TVA counterproposal to Equity on 4 April and the CFA counterproposal to Equity on 25 April. Here are some highlights:

  • Pact is pushing back on all changes to working hours and turnaround requirements following industry feedback.
  • Pact and Equity are aligned that all artists should be given the first opportunity to dub in English, however, Pact has proposed some language in its response that is broad enough to allow for production exigencies.
  • In respect of calls from Equity to curtail customary option/exclusivity terms from series regular cast deals (which Equity believes keep actors off the market), Pact has requested that Equity provide the wording they wish to include in the TVA so they can consider this issue further.
  • Pact has told Equity that it would not be realistic to ban “on or about” dates from TV performer deals, but has instead proposed including block-by-block engagements within the TVA and making it clear that artists are not on first call until dates are nominated.

Equity provided initial responses to Pact’s counterclaim on 23 May and Pact was due to meet with Equity w/c 9 June to discuss the CFA counterproposal. A further meeting will be arranged for Pact and Equity to discuss AI, Special Stipulations and exclusivity clauses.

On AI, Pact has sent to Equity questions relating to Equity’s open letter on AI training and GDPR. Pact hopes that the responses to these questions will enable it to understand the basis of Equity’s AI claim and build on this to aid negotiations.

For further details regarding Pact’s counterproposals under the CFA and/or the TVA, please get in touch directly.

PACT/Equity & PACT/Bectu rates increase

Pact/Equity

  • From 6 April, Pact and Equity agreed a 3% interim minimum rate increase under the CFA.
  • These rates will remain in place until the new CFA (currently being re-negotiated – see above) is signed or for a period of six months (i.e. until Sunday 5th October), whichever comes first.
  • With respect to the TVA, Pact and Equity had already agreed to the minimum rates being increased by 3.5% with effect from 1 January and then by a further 3% with effect from 1 January 2026.
  • Rate increases for stunt personnel under the CFA and TVA remain subject to the broader ongoing negotiations between Pact and Equity.

Pact/Bectu

New rates under the Construction Crew Agreement between Pact and Bectu also came into effect from 1 April, which have been adjusted to reflect the rise in the Consumer Price Index from 2.5% to 2.6%. The Construction Crew Agreement only applies to major motion pictures (theatrical and SVOD) with production budgets in excess of £30 million.

Directors and producers: guidelines

Pact, Directors UK, BBC Studios and ITV Studios (the Directors and Producers Forum) have published Engagement Guidelines for Ways of Working Between Producers and Directors, which sets out how production companies should work with directors across all genres of production.

There are nine key principles providing a baseline of good practice for how directors and producers can work together, including “the director having a right to consultation” and “the director having a right to the appropriate credit”. The Directors and Producers Forum say that the guidelines can act as a reference point to ensure the director’s role is clear and respected.

IN THE SPOTLIGHT

Channel 4: Key change or sea change?

Written by partner Ed Lane.

It’s chocks away for Channel 4! The news that Channel 4 plans to create a standalone in-house production business has been met with strong opinions from many quarters of the indie sector. But how significant is this shift really?

The reaction is not surprising given Channel 4’s founding mission to support the independent production sector, which it has done for over 40 years via a focus on commissioning shows from indies and allowing indies to retain all rights (i.e. it has not been interested in developing or acquiring IP).

Alongside that, Channel 4 has (to date) been prohibited from holding more than a minority equity stake in indies. Through its Indie Growth Fund (launched in 2014) it has funded and supported a host of indies, including Warp Films (Adolescence). In supporting these indies, Channel 4 was effectively acting as a venture capital fund, looking to fund at an early stage and then exit (ideally with a decent return). It has indeed exited a number of those investments, most recently Eagle Eye who were acquired by ITV Studios in late 2024.

The minority stake ‘venture capital’-style approach allowed indies to take on early stage investment and then look to sell to a wide range of potential buyers. This gave flexibility, and potentially, with enough competitive tension, a higher valuation for the business. On the flipside, often where a trade investor (like BBC Studios or Banijay) are making early stage investments, there will be a path to majority ownership built in to the deal. This deprives the indie of options later down the line.

With Channel 4’s shifting approach, the industry may have lost something pretty rare – an investor well-versed in the industry but comfortable with the founders retaining strategic control and focused on supporting indies to exit rather than looking to take full ownership or build an in-house production arm.

Only time will tell how this new, unbridled Channel 4 will operate. Will its new inhouse production arm truly be separate to commissioning, with no preferential arrangements (we hear that both teams will be in the same office space – commissions at the water cooler, anyone)? Or will its increased indie quota (up to 35% from 25%) soften the blow enough for a sector still reeling from the commissioning slowdown?

‘Sex’ in the Equality Act: impact on Film & TV

In April, the Supreme Court gave a judgment on the meaning of “sex” in the Equality Act 2010. Widely reported in the mainstream press, and generating considerable debate, we explain the judgment and how it relates to practices in the workplace.

The case of For Women Scotland v The Scottish Ministers concerned the meaning of the terms “man”, “woman” and “sex” in the Equality Act 2010 (EqA) in light of the Gender Recognition Act 2004. It decided that these terms refer to biological sex. This means that if someone identifies as trans, they do not change sex for the purposes of the EqA, even if they have a Gender Recognition Certificate.

The decision is an important development in the entrenched conflict between those on either side of the trans rights and gender critical debate. Unless future legislation changes the position, the judgment puts the meaning of sex in the EqA in unequivocal terms. Sex = biological sex.

So what does this mean for UK film and TV companies, who are employers or engage freelance cast and crew on productions? We’ve identified some key areas where this judgment will have an on the ground impact for clients.

Click here to read the full article by senior associate, Lucy Burrows.

Employment Rights Bill: Update

The long-awaited Employment Rights Bill is now set for phased implementation, with consultations beginning in summer and autumn 2025. As part of the government’s “Plan to Make Work Pay,” the Bill’s landmark reforms will be rolled out gradually over the coming years. Whilst delays in parliamentary approval have slowed its progress, the Bill is now seemingly moving forward.

For the film and TV industry, the most significant changes are as follows:

  • Reforms to expand Statutory Sick Pay to include the lowest-paid workers. Expected date of implementation (EDI): April 2026.
  • Granting workers day-one protection against unfair dismissal (which had been expected to take effect in October 2025). EDI: 2027 (date to be confirmed).
  • Banning ‘exploitative’ zero-hour contracts. EDI: 2027 (date to be confirmed).
  • Introducing enhanced flexible working rights. EDI: 2027 (date to be confirmed).

Employers can be reassured that the changes will not take immediate effect, with many of the reforms now expected to come into force later than originally anticipated. Further details on these policies, along with the exact timeline for implementation, will be provided once the consultations have concluded.

You can read more on our coverage of the Bill and its impact on the film and TV industry on our website.

Behind the lens of April 2025: UK Film and TV insights

Posted on by Anna Weeden

We are pleased to share that we have launched the first edition of our UK film and TV newsletter.

This debut edition includes some brief updates on important changes affecting the industry, and some spotlight articles that delve deeper into M&A activity in the industry as well as the impact of the government’s new Employment Rights Bill.

If you would like to sign up for future editions, please get in touch.

HARBOTTLE HIGHLIGHTS

Broadcast Summit 2025

Partner Ed Lane and managing associate Clare McGarry attended the Broadcast Summit on 2 April.

Their key takeaways were as follows:

  • “Fewer, bigger, better” is still a popular phrase, and there was lots of chatter about consolidation within the indies market.
  • Alternative funding models are the thing, including brand-funded content (if you can access it!)
  • Despite the difficult climate, there was positivity in the air both in terms of commissioning and M&A activity improving.

Indielab TV Accelerator 2025

We continue our partnership with Indielab in 2025 and will be hosting the Indielab TV Accelerator throughout April, May and June. This three-month programme is designed to help individuals develop the skills and networks needed to take their indie to the next level across the evolving TV and content ecosystems. It also offers the chance to collaborate with new industry partners, and gain insights from experts in the field.

Bafta Elevate 2025/6

On Friday 28 March, we had our first session with the talented new BAFTA Elevate cohort. Partner Sarah Lazarides and managing associate Clare McGarry focused on how producers and directors should look to protect their IP and secure their position, particularly when entering into co-productions. In the coming months, more of our lawyers will provide tailored sessions designed to share essential industry knowledge and expertise.

INDUSTRY UPDATES

HETV: Hot off the press

A pretty punchy report from the House of Commons CMS Committee was released on 10 April which contains recommendations which, if implemented, have the potential to transform upend the industry. The stated aim: to protect and reshape the UK indies market.

Here are some highlights:

  1. Enhanced tax incentives for HETV to match the new independent film tax credit.
  2. Terms of trade for streamers, “akin to the PSB terms of trade”.
  3. Greater support for freelancers, including a commissioner for freelancers.
  4. A distribution tax relief and a reduction in VAT on cinema tickets, to support struggling cinema numbers.
  5. A controversial 5% levy on streamers’ UK subscriber revenue to rebalance the HETV market.
  6. Increased funding for the UK Global Screen Fund.
  7. Government should abandon its proposed data mining exception for AI training, plus a stronger framework for AI which should “consider the interests of copyright holders, creatives and audiences”.

Update on PACT/Equity negotiations

Pact and Equity are continuing to meet and progress discussions. In the meantime, interim fee increases have been approved across both the Cinema Films Agreement and TV Agreement for 2025.

New UK independent film tax credit now officially available

From 1 April 2025, the new UK Independent Film Tax Credit which forms part of the AVEC became officially available – it has a net rate of 39.75% (overall equating to 29.25%) and it applies to films with budgets up to £15m and which began principal photography on or after 1 April 2024.

Equity issued open letter to the industry on AI training

In February, Equity published an open letter to the industry on AI training. This was a call to arms to industry stakeholders stressing the need for an urgent conversation to ensure that any exploitation of rights-protected content in the context of AI is carried out with recognition of performers’ property rights and applicable data protection laws.

The letter provides some background on the current issues (specifically that most AI models being used have been trained on vast quantities of (often rights-protected) materials, which have been scraped from online sources without consent from or compensation for creators and performers) before going on to summarise its interpretation of the legal position on performers’ rights under the Copyright Designs and Patents Act and data protection rights under the GDPR. Whilst the legal analysis produced by the union is open to debate in certain areas, Equity has flagged in its letter that it considers the current activities of AI companies to constitute a breach of existing IP rights. Where performers’ rights are breached, Equity has said it will robustly defend members, including via the courts if necessary. It is worth noting that the government is running a consultation on whether to update IP laws to allow for the commercial data mining of protected works by AI companies, which would circumvent some of the issues raised by Equity in this letter. The government’s request for the public to feed into its consultation has now closed and we are eagerly awaiting the outcome.

Pact is seeking feedback from its members before planning to respond to Equity.

BBC published protocol for generative AI content

In January, the BBC established a new editorial guidance policy for generative AI in its content creation. The guidelines emphasise three core principles: (i) acting in the best interests of the public; (ii) prioritising talent and creatives; and (iii) being open and transparent with audiences about the use of technology.

The BBC has emphasised that, subject to certain exceptions (such as where AI is the subject of the content and its use is illustrative), generative AI must not be used to directly generate news content or factual journalism, as a key aim is to build audience trust and to prevent dissemination of biased, false or misleading information.

The BBC has experimented with the technology through various pilots which has led
to AI being used to generate subtitles and live text pages, and for translation
purposes.

UK introduced ESTA-style VISA

The government has introduced a new Electronic Travel Authorisation (ETA) scheme, which is a security measure for visa-exempt travel similar to the US ESTA. This may be relevant for overseas individuals travelling to the UK for a production. The ETA is aimed at strengthening border security and streamlining entry procedures for visitors.

As of 8 January 2025, citizens of 49 countries, including the United States, Canada, Australia and Japan, must obtain an ETA before travelling to the UK. European Union nationals will need an ETA starting from 2 April 2025.

Travellers can apply for an ETA through the UK ETA app or online. The application requires personal details, travel information and a valid passport. The decisions are usually made within three working days.

The ETA costs £10 and is valid for multiple entries to the UK over a two-year period or until the relevant individual’s passport expires, whichever is sooner.

It should be noted that the ETA is not a visa and does not grant the right to enter the UK; it merely authorises travel to the UK. Upon arrival, travellers will still need to meet the entry requirements set by UK Border Force officers. For the most current information and to apply for an ETA, please refer to the government’s guidance here.

High Court dismissed TV formats copyright infringement claim

In a recent case in the UK, the High Court considered the extent to which TV formats can be protected by copyright. Comedian Joshua Rinkoff created a comedy show “Shambles” which involved a live comedy night, combining short clips of stand-up comedy with behind-the-scenes narrative in the form of a sitcom. Rinkoff claimed that the Baby Cow Productions’ series “Live at the Moth Club” copied this format.

In considering whether a format can be protected as a dramatic work, the judge cited the fact that there were at least two conditions which must be met. First, there must be a number of clearly identified features which, taken together, distinguish the show from others of a similar type. Secondly, those distinguishing features must be connected with each other in a coherent framework which can be repeatedly applied so as to enable the show to be reproduced in recognisable form.

The High Court dismissed the claim for copyright infringement finding that: (a) there was no copyright in the series; and (b) even if there were, there was no infringement. The case highlights the challenges of claiming copyright protection for a format, which to date, has not been found to subsist in a TV format in this jurisdiction. It is a reminder of one of the fundamental principles of copyright law in England and Wales, in that it protects the expression of an idea, but not the idea itself, and the importance of clearly defining and documenting unique elements to establish protectable works.

UK Film and TV production bounces back (for some)

Film and high-end TV production in the UK is officially bouncing back from its slowdown in 2023, felt during and immediately following the Hollywood writers’ and actors’ strikes. According to the British Film Institute, which compiles the official data, the total spend on film and TV production last year (based on the year in which principal photography started) reached £5.6 billion ($6.9 billion), which represents a 31% increase from 2023 when £4.23 billion ($5.37 billion) was spent.

Wicked was the highest-grossing release in the UK in 2024, with box office sales of £59.6 million. 65% of total UK production spend on film was accounted for by productions from the five major U.S. studios and the three major US streaming platforms (Netflix, Apple and Amazon), also representing a 49% increase in spend in 2024 versus 2023. A few of the films which were shot by these studios and streamers in the UK last year include The Running Man, Wake Up Dead Man: A Knives Out Mystery, How to Train Your Dragon, Project Hail Mary, and Jurassic World Rebirth.

But whilst the studio landscape is coming back strong, the picture is mixed for Indies. Pact released a major report into the state and future of the indies TV sector, outlining shrinking production company numbers, a loss of talent and threats to “niche” genres such as specialist factual – times are tough and much of the industry is still feeling it.

IN THE SPOTLIGHT

M&A: here to stay?

Written by partner Ed Lane.

M&A activity had, in the past 12 months or so, been confined to the bulge bracket – witness the mega merger between Skydance Media and Paramount and the sale by Warner Bros. Discovery and Liberty Global of All3Media to Redbird IMI. Deals at the lower end of the market have been harder to come by – until recently, that is. In the past few months, we’ve seen Mediawan take a majority stake in Slow Horses and indie See-Saw and ITV Studios pick up majority stakes in indies Eagle Eye and Moonage Pictures.

We have also seen a raft of so-called ‘start-up deals’, where investors back talent in a new venture, including BBC Studios’ backing of Samphire Films.

At a more macro level, further consolidation amongst the larger media players and streamers is expected as consumers tire of a deluge of content – Disney recently announced it was merging Hulu + Live TV with competitor Fubo TV. Heavyweights such as Comcast/NBCUniversal and Warner Bros. Discovery are expected to separate out and look for options in relation to their cable network division.

That being said, the macro-economic conditions – primarily interest rates – are not looking as auspicious as they were at the start of the year. Interest rates had been expected to come down reasonably quickly as the global economy got back to business after the Covid-19 pandemic and related supply shock, and prior to this, they had been on a steady downward trend. However, President Trump’s economic policies, in particular the imposition of wide-ranging tariffs, may halt that return to normality.

Employment rights: A once in a generation shift

The Employment Rights Bill, described by the government as “the biggest upgrade to workers’ rights in a generation”, has been making progress through parliament over the last few months. Senior associate Lucy Burrows delves into the latest round of amendments to the Bill and how they provided further insight into what lies ahead for the film and TV industry.

Read the full article here.