How advertising could future-proof British storytelling

The UK’s high-end TV production sector is facing a growing storm. Soaring costs, reduced commissioning, and growing competition from global streamers are straining the creative ecosystem - prompting renewed calls from the Culture, Media and Sport Committee for a UK streaming levy to help fund local content.

The proposal would see major streaming platforms like Netflix, Disney+, and Amazon Prime Video contribute a percentage of their UK revenues into a central pot to support the production of British programming. It’s an approach modelled on existing levies in countries like Canada and France and the intention is worthy: ensure global giants investing in the UK market also help build and sustain its creative output.

But while the intent is commendable, levies are a blunt tool. They risk stifling innovation, limiting consumer choice, and placing additional burdens on an already fragile media ecosystem. If the goal is to protect and promote British storytelling, we should look not only to regulation, but to scalable, market-driven solutions already hiding in plain sight - advertising.

The untapped power of AVOD and FAST

Advertising has long been the backbone of British broadcasting – and it will continue to play a vital role in the streaming era.

This comes at a time when consumer appetite for ad-supported tiers is rising fast. According to Barb, 4.7 million – or 16% – of UK households now access Netflix’s ad-supported tier.

The past 12 months have also seen major US AVOD and FAST players ramp up their presence in Europe – namely Pluto TV and Tubi, which now collectively boast over 100 million monthly active users globally and are expanding aggressively in markets like the UK.

According to data from Samsung Ads, FAST viewership across Europe has increased 31% year-on-year, with the UK, Germany and Spain among the fastest-growing markets. Crucially, Samsung also found that FAST viewers are 20% more likely to accept advertising compared to those on subscription platforms – with 57% ad acceptance on FAST versus 48% on SVOD.

These models are more than just alternatives to subscription platforms; they offer a privacy-first, market-driven route to monetising content without placing additional strain on audiences or creators. By making content free and easily accessible, AVOD and FAST increase the visibility of British programming, both domestically and internationally. And unlike subscription services that often prioritise global hits, these platforms resurface diverse, homegrown content – from regional comedies to historical dramas – that might otherwise be buried by algorithms.

A global trend the UK can’t afford to ignore

The rise of ad-supported streaming isn’t just about consumer choice. It’s about the transformation of advertising itself. Technology innovations, such as leveraging first party data to address appropriate messages to a household, or dynamic ad insertion where advertising messages can be decisioned and applied in milliseconds dependent upon the audience composition, or, home screen and pause ads that are being introduced to our connected tv’s and finally programmatic ad decisioning and delivery, are enabling smarter, more relevant and less intrusive viewer experiences.

This evolution is already well underway in global markets. In the US, platforms like Pluto TV, Tubi and the Roku Channel have captured significant audience share through FAST and AVOD offerings. Even global streamers such as Netflix and Disney+ are embracing ad-supported tiers as they look to diversify revenue and maintain growth.

The UK is beginning to follow suit. Recent Kantar data shows that a third of new streaming subscribers are now choosing ad-supported tiers, with take-up especially strong on services like Netflix and Prime Video. Cost-conscious viewers are voting with their wallets - and their remotes - making it clear that ad-funded content is no longer a niche preference, but a mainstream expectation.

For the UK to remain competitive - both economically and culturally - it must keep pace. That means embracing ad-supported models not just as an add-on, but as a core part of our content funding ecosystem.

Advertising is an enabler of culture, not an enemy of It

If we’re serious about protecting British storytelling for the long term, we need to think beyond short-term financial interventions. We must modernise the way our content is discovered, funded and distributed. Advertising - done right - isn’t a threat to cultural value; it’s an enabler of it - advertising allows content to be distributed for no, or a reduced, upfront charge to the consumer, which greatly increases the democratisation of available content for all to watch.

By investing in the right infrastructure, supporting innovation in monetisation, and leaning into new audience behaviours, we can create an environment where British content doesn’t just survive - it thrives.

The future of British storytelling doesn’t need to come at the expense of consumer choice, commercial viability or creative ambition. With a smarter advertising strategy, we can tell our stories louder, further, and fairer - for generations to come.

• James Grant is SVP of Advanced TV at Equativ