Hundreds of small UK television production companies are at risk of running out of money if they face unexpected delays or overruns in filming, according to a report by Indielab, an industry organization. The analysis of financial records from over 200 independent producers revealed that 40% of them could exhaust their cash reserves within two years. These companies make up 85% of the UK's television production sector, yet they have seen a significant drop in their financial reserves, which are crucial for weathering periods of low income. Over half of the companies experienced a decline in their reserves, with 40% seeing a drop of nearly a third and 31% experiencing a decrease of more than half. The average reserve amount for these small producers fell from £51,000 to £42,000 over the past three years, according to the report. Victoria Powell, CEO of Indielab, emphasized that these reserves are not enough to cover the costs of a single production delay or a commission put on hold by a broadcaster. Several notable production companies have already closed in recent years, including Euston Films, known for BBC series like Hard Sun, and Dare Pictures, which produced shows for Channel 4. Other closures include Duck Soup Films and Proper Content, both based in Leeds and involved in producing content for the BBC and Channel 4. Powell noted that many more companies have quietly shut down or been put on hold, indicating a broader trend of financial strain. The UK's television production industry is heavily reliant on traditional broadcasters, despite the presence of major international streaming platforms like Netflix and Amazon. A report by Oliver & Ohlbaum found that public service broadcasters (PSBs) remain the primary source of original content for independent producers, accounting for 71% of UK original content investment in 2024 and 85% of all original hours produced last year. However, total spending by UK-based broadcasters on commissioning programs has fallen from £1.99 billion in 2022 to £1.73 billion in 2024—the lowest since the pandemic. This decline has been driven mainly by multichannel broadcasters like Sky, which have cut spending by nearly 40% in that period. Spending on high-profile "prestige" shows by domestic broadcasters has also dropped from £794 million in 2023 to £688 million in 2024. Everyone TV, a joint venture between the BBC, ITV, Channel 4, and Channel 5, has warned that continued budget cuts could lead to a "spiral of decline" in the industry. Powell called on public service broadcasters, which are legally required to support independent production, to examine whether they are fulfilling this responsibility. Indielab's research focused on small production companies with a turnover of less than £10 million. The broader industry group Pact, which represents over 800 independent production companies, includes mostly small and medium-sized firms with turnover under £50 million. The findings highlight the growing financial instability faced by independent producers in the UK television sector.