Barclays has launched a £100m loan fund aimed at UK indie productions funded by SVoD broadcasters like Netflix and Amazon.
Barclays says it has developed the Barclays SVoD Financing fund to more closely match the funding requirements of companies working with SVoD distributors.
Conventional TV production loans are repaid as the content is delivered with the broadcaster paying the production company and funder simultaneously. With SVoD, revenues are often spread over a much longer term, which can present funding challenges.
The new £100m Barclays SVoD Financing fund allows indies to borrow money over a longer period.
One of the first companies to benefit from the new fund is comedy indie Roughcut Television, the producers of Trollied, Cuckoo and People Just do Nothing.
The new funding through Barclays SVoD Financing involved the bank purchasing Roughcut’s Netflix receivable, giving the company the upfront cash benefit of the multi-year contract for the streaming of their BAFTA nominated comedy Cuckoo.
Roughcut’s commercial director Tim Sealey said: “Netflix are notorious for paying over a long period, 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. Another side benefit is that it improves our relationship with the writers and artists as they get their royalties quicker too.”
Lorraine Ruckstuhl, Head of Media at Barclays Corporate Banking said: “We’ve been supporting TV production with a dedicated 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. 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 programmes.”