Growth - but for how long?

David Wood

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Welcome to Broadcast's fourth annual survey of the UK distribution sector. This year's survey is more comprehensive than ever, including 36 of the UK's leading distributors.

The good news for the sector in the past year is that turnover has topped £1bn for the first time, thanks to continued strong performances from its biggest players plus impressive growth from companies in the £10m to £100m turnover bracket. 

One of this year's biggest movers at the top of the table was Digital Rights Group, moving up from 12th place last year to ninth position following the acquisition of Channel 4 International. Both DRG and Target have nearly doubled their turnover - a clear demonstration that acquisitions remain the fastest route to growth at the top.

While turnover from the top 30 distributors was up 7%, of more concern is the fact that growth is sharply down from last year's 16% - a sign interpreted by some as the first signs of the impact of the credit crunch. The big question now is how much this slowdown will affect next year's results. 

Looking at the international scene, there was little change in the list of top export territories with the UK, US and Australia
topping the list.

There was more evidence of change in the emerging territories, with strong growth in eastern Europe and China. ITV must be looking at Hunan TV's version of Saturday Night Takeaway in China with its potential audience of 55 million with green-eyed envy.

A note on methodology: this year we have changed the rules for inclusion in the survey. Companies no longer have to be third party distributors, but can be indies actively distributing their own intellectual property via a recognised sales division. Joining the old hands are newcomers Leopard and Steadfast.

Looking to the future, our requirements for inclusion in next year's survey are: 

• Companies need to be key players in the UK distribution market, selling their own or third party product. They need to be UK-based or with a sales team based in the UK. 

• Companies also need to include distribution financial turnover figures in their responses.

• Companies are ranked based on distribution turnover for the year to April 2008 or their latest financial year.

Thanks to all the companies that took part this year. If you'd like to be included next year please email emily.booth@emap.com