British multinational bank and financier Barclays has launched a £100 million (US$126 million) fund to better support television prodcos in the UK in the wake of increasingly popular SVOD services.
The fund is slated to provide British producers with improved access to finance while enhancing their ability to compete internationally via new financing products designed to help UK businesses with new methods of payment, where conventional television production loans repaid upon delivery of content and “SVOD revenues are often spread over a much longer term, which can present funding challenges,” the bank said.
In response, Barclays SVOD Financing will allow content producers to borrow money over a longer period of time, enabling them to use the funds to develop more programs and allowing them to expand their profit margins.
British comedic indie Roughcut Television will be one of the first companies to benefit from the new fund. Barclays SVOD Financing purchased Roughcut’s receivable, providing the indie with money upfront for its multi-year contract to stream the BAFTA-nominated comedy Cuckoo.
“Our arrangement with Barclays enabled us get access to the cash much earlier which meant that we could put it to work by investing in further development,” said Roughcut’s commercial director Tim Sealey (pictured) in a statement. “Another side benefit is that it improves our relationship with the writers and artists as they get their royalties quicker too.”
“We’ve been supporting TV production with a dedicated Barclays Media team for over 30 years, and know that to meet the needs of our clients we have to adapt with them and with the viewing habits of the public,” added Lorraine Ruckstuhl, head of media at Barclays Corporate Banking. “That’s why we created this fund and developed Barclays SVOD Financing, to help UK SMEs continue to compete both in the UK and internationally, support increased employment, and create even more great programs.”