However, the US remains the top export market, accounting for 33% of total exports, or £593 million.
This performance is all the more impressive in that it comes against a backdrop of multiple challenges, ranging from the global economic crisis to strikes by actors and scriptwriters, and inflation in production costs.
Finished programme sales remain the main source of revenue, accounting for 56% of the total, with 50% of sales made via video-on-demand (VOD) platforms.
However, this segment was down 8% on the previous year. Co-productions were particularly hard hit, with revenue down 28% to £120 million. This drop was largely due to the withdrawal of investment from US studios.
A major market
Despite the challenges, the US remains the leading market for British exports, the report points out. Sales to the US rose by 13%, consolidating this leading position.
In contrast, other export markets, such as France and Italy, recorded significant declines of 21% and 23% respectively. Business to China and Japan fell by 25%, but exports to Mexico saw the greatest growth, at 113%.
The report highlights a diversification of revenue sources. Sales of finished programmes fell by 8% to £1.019 billion, but remain the main source of revenue.
International production grew by an impressive 29% to £325 million. Digital sales (TVOD and EST) fell slightly by 1%, while non-categorized revenues jumped to £113 million.
The impact of streaming platforms
Streaming platforms continue to play a crucial role in the distribution of UK content. Sales to streaming services showed an increase in activity, with a rise in deals with services such as Roku and Freevee.
However, some streamers such as Warner Bros Discovery and Peacock saw a drop in the number of distributors signing deals with them.
Despite the current challenges, 67% of respondents surveyed for the report believe that the current difficulties are temporary and that the market will recover. UK distributors continue to find outlets for their programmes, with a particular focus on ad-supported streaming models (AVOD and FAST).
The Pact and 3Vision report suggest that, despite the challenging economic climate, UK programmes continue to appeal to US viewers.
With record revenues and a diversification of revenue sources, the British TV industry seems well-equipped to face the challenges ahead.
A similar trend was identified in separate research by Parrot Analytics, showing that British series are back in favor with American viewers.