Spending by subscription video-on-demand (SVOD) platforms will reach €10 billion ($10.7 billion) in Europe’s key TV markets by the end of 2024, according to a forecast by Ampere Analysis. This exceeds the investments of the region’s public and commercial broadcasters, which are struggling with stiff competition from well-funded streamers, tighter content budgets and declining viewer engagement.
Ampere’s Media Consumer Behavior Tracker reveals a 16% decline in viewer engagement with commercial broadcasters in the top five European markets since 2016. This slump has contributed to a nearly €1 billion decline in the linear TV advertising market in recent decade. In response, broadcasters are focusing more on streaming, but their content budgets have shrunk by 19% since 2016, with €8 billion spent on film and TV content in 2023.
Despite these challenges, a strategic opportunity looms, Ampere says. Global streamers’ investments in European content are expected to grow by just 8% annually in 2025, compared to average annual growth of 35% between 2021 and 2024. Major players such as Netflix, Disney and Warner Bros. spending to maintain profitability, creating space for national broadcasters to shine.
To stay relevant, broadcasters must increase their own content investments and differentiate themselves through bold client choices, Ampere says. Additionally, they need to improve their video-on-demand platforms, expand content libraries, improve digital advertising, and experiment with varied content release strategies. Focusing on a younger audience will be key to maintaining engagement and securing advertising revenue.
Neil Anderson, senior analyst at Ampere Analysis, said: “Despite the short-term benefits of cost savings during an economic downturn, it is critical for commercial broadcasters to prioritize long-term investments in both content and streaming capabilities to maintain their prominence in cutthroat European TV market. .”
