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.
