The Future of Production Kit Rental: Evolving to Survive

The production kit rental sector has faced significant upheaval in recent years, with numerous companies shutting their doors. The combination of cheaper high-quality equipment, shifting production trends, and economic pressures has forced the industry to rethink its approach. As we navigate this challenging landscape, rental companies must evolve not only to remain relevant but to ensure they continue providing value to filmmakers and production crews.

The Changing Face of Production

In 2010, acquiring a broadcast documentary shooting kit could cost upwards of £150,000. Today, an entry-level Sony FX3, a small tripod, and a pair of autofocus lenses can be purchased for just £10,000. The affordability of equipment raises a fundamental question: why would anyone choose to rent? The answer lies not just in cost but in access to high-quality, specialised tools that enhance storytelling.

Despite the marketing emphasis on high-resolution cameras (4K, 6K, 12K), beautiful images are not solely the result of pixel count. Dynamic range, lenses with character, well-executed composition, and sophisticated lighting create visually compelling work. However, many producers overlook these aspects in their drive for cost-cutting and efficiency.

Rental companies must position themselves as more than just providers of gear; they must be curators of artistic tools. Cinematographers (DPs) need access to a diverse selection of lenses, including anamorphic glass, lenses with unique flares, and those that bring a distinctive character to a production. Movement is another critical element—dollies, sliders, jibs, and gimbals are all integral to creating cinematic shots. Lighting remains paramount in shaping mood and storytelling, requiring not just lights but a variety of modifiers, flags, bounce kits, and projection tools.

Beyond equipment, the “right tool for the job” argument is essential. A DP who owns a camera may prefer to use it for all projects, but it may not be ideal for every production. Rental companies that foster strong relationships with production teams—offering tailored solutions rather than simply pushing their most expensive kits—will secure long-term loyalty.

The Industry in Crisis

Despite the value rental companies bring, many are struggling due to industry-wide shifts. A key challenge is the ongoing race to the bottom in pricing. Some producers relentlessly negotiate, playing rental houses against one another in pursuit of the cheapest deal. This unsustainable approach hollows out the industry, forcing companies to operate on razor-thin margins or close altogether. As one industry veteran wisely noted, everyone deserves to make a living, and aggressive cost-cutting will only lead to fewer reliable suppliers in the future.

The recent wave of closures has already had tangible effects on production companies. As one rental company driver discovered when thanking a client for their loyalty, the response was stark: “You’re the only rental company left—you HAVE to survive!” The Sunbelt consolidation of 2021-2022 and the subsequent closures have left just three dominant players and a shrinking pool of independent rental houses.

This lack of competition is a double-edged sword. On one hand, fewer suppliers may mean more business for the remaining companies. On the other, with such a limited number of rental houses available, production teams risk facing equipment shortages if demand surges. If 2021 levels of production return this summer, there simply may not be enough gear to go around.

Unique Challenges Facing Kit Rental Companies

Production kit rental companies face obstacles that set them apart from other businesses in the film and television industry:

• Declining Demand for Rentals: With cameras becoming more affordable, more crew members are purchasing their own gear rather than renting.
• Market Saturation with Used Equipment: The closure of rental companies has flooded the industry with second-hand equipment, making it easier for individuals to buy rather than rent.
• Post-Pandemic Reality Check: The explosion of production in 2021 led rental houses to expand their inventories to meet demand. When the boom subsided, companies were left with surplus equipment and heavy financial burdens.

• Industry-Wide Slowdown: The impact of the SAG-AFTRA strikes led to a halt in scripted production. Even with work resuming, streaming services have become more selective in commissioning new projects.
• Budget Constraints: A Netflix executive recently compared the current content climate to filling a library—the initial rush to create new shows has subsided, and now only a select few high-impact projects are being greenlit, often at significantly lower budgets than before.
• The Decline of Traditional Broadcast Revenue: Young audiences are abandoning linear television in favour of digital platforms. This shift has reduced advertising revenue for terrestrial broadcasters, leading to fewer commissions and, consequently, less demand for rental equipment.
• AI and Automation: The potential for AI-driven content creation looms large. If AI-generated video significantly reduces traditional production needs, the rental market will feel the impact as well.

The Path Forward

Despite these challenges, rental companies still have avenues for survival and growth. The key lies in adaptability and strategic positioning:

1. Fostering Strong Client Relationships.
2. Expanding Services Beyond Equipment. Service is so much more important than the kit alone
3. Specialised Equipment Niches. All companies have to areas where they excel.
4. Adapting to New Industry Norms. The industry is changing at light speed and we have to change or become another casualty.
5. Innovating and exploring New Markets in order to remain relevent.

Conclusion

The production kit rental industry is at a crossroads. While the economic and technological landscape presents formidable challenges, companies that evolve and adapt can continue to thrive. By focusing on strong client relationships, offering specialised gear, expanding service offerings, and remaining agile, rental houses can secure their place in the industry.

As we move forward, production companies must recognise the value of rental businesses and work collaboratively rather than exploitatively. If the remaining rental houses disappear, the entire industry will suffer. Supporting these essential service providers ensures that filmmakers and production teams continue to have access to the tools they need to create compelling, high-quality content. The message is clear: evolve to survive, or risk becoming another casualty in an ever-changing industry.

Barry Bassett, Managing Director, VMI.TV Ltd

March 2025