UK’s screen sector recovering by relying less on success of small number of big releases
The UK screen sector is strengthening its recovery by relying less on the success of large releases, say leading audit, tax and business advisory firm, Blick Rothenberg.
Mandy Girder, a partner at the firm, said: “A reduction in dependence on a small number of large releases has improved profits in the sector. The British Film Institute’s (BFI) latest statistics shows improving cinema revenues and a stronger showing for UK films. UK cinema admissions increased by 7% to approximately 30.2 million in Q1 2026, with box office revenues increasing 5% to £243.6m, an uplift of £12.0m.”
She added: “In Q1 2025, box office performance was heavily influenced by a single title – Bridget Jones: Mad About the Boy – which generated £46.2m and accounting for roughly 20% of total quarterly UK box office. By contrast, Q1 2026 revenues were generated from a broader range of mid-performing releases.”
Mandy said: “Only 3 UK independent titles exceeded £2m in Q1 2025 compared with at least 5 UK independent titles in Q1 2026. This shift materially reduces risk and supports more predictable revenue flows for distributors, exhibitors and investors. Instead of putting all its eggs in one basket, the industry is spreading both risks and cost across multiple smaller projects.”
She added: “UK qualifying films increased their market share from 54.2% in Q1 2025 to approximately 57.4% in Q1 2026, a rise of 3.2 percentage points. Within this, UK independent films showed particularly strong growth. This indicates improving commercial viability for UK independent productions, with stronger audience engagement and reduced reliance on a single breakout success.”
Mandy said: “Total UK film production spend remained broadly stable year-on-year at approximately £2.7bn, but the number of film starting production fell from 214 in the year ending March 2025 to around 186 in the year ending March 2026 (a reduction of 28 films, or c.13%).”
She added: “Production remains heavily weighted toward inward investment with 90% of spend. The UK continues to operate as a world leading production hub, but domestic production volume is under pressure and increasingly dependent on policy and incentives.”
Mandy said: “Q1 2025 marked a peak year for spend and certification volume, while Q1 2026 represents a transition to sustainable growth. Audience demand has returned faster than production volume, UK films are capturing a larger share of box office revenues, and financial performance is becoming more diversified. The rollout of the available tax credits continues to reshape the independent film economy, with over 600 films qualifying at interim or final stages since its launch. It is positive to see that incentive reform is working but competition for inward investment remains under pressure.”
She added: “For the sector, this represents a healthier, lower-risk growth profile, albeit one that continues to require careful management of capital, talent and public funding support.”