Spending by subscription video-on-demand (SVOD) platforms is set to hit €10 billion ($10.7 billion) in Europe‘s major TV markets by the end of 2024, according to an Ampere Analysis forecast. This surpasses the investment by the region’s public and commercial broadcasters, who are grappling with fierce competition from well-funded streamers, tightened content budgets and declining viewer engagement.
Ampere’s Media Consumer behavior tracker reveals a 16% drop in viewer engagement for commercial broadcasters across Europe’s top five markets since 2016. This slump has contributed to a nearly €1 billion decrease in the linear TV advertising market over the past decade. In response, broadcasters are pivoting towards streaming, but their content budgets have shrunk by 19% since 2016, even with €8 billion spent on film and TV content in 2023.
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Despite these challenges, a strategic opportunity looms, Ampere says. Investment by global streamers in European content is forecast to grow by only 8% year-on-year in 2025, down from the 35% average annual growth between 2021 and 2024. Major players like Netflix, Disney and Warner Bros. Discovery are curbing their spending to maintain profitability, creating an opening for national broadcasters to shine.
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To stay relevant, broadcasters must ramp up their own content investments and differentiate through bold commissioning choices, Ampere says. Additionally, they need to enhance their video-on-demand platforms, expand content libraries, improve digital advertising and experiment with varied content release strategies. Focusing on younger audiences will be key to maintaining engagement and securing advertising revenue.
Neil Anderson, senior analyst at Ampere Analysis said: “Despite the short-term benefits of cutting costs during economic downturn, prioritising long-term investment in both content and streaming capabilities is crucial for commercial broadcasters to maintain prominence in Europe’s cut-throat TV market.”