Netflix’s ‘Lupin’
Courtesy of Netflix
Europe’s commercial broadcasters need to resist content cuts and embrace streaming to regain lost ground, especially as spending growth from streaming giants is slowing down, as per research firm Ampere Analysis.
A forecast predicts that spending by subscription video-on-demand platforms in Europe’s major TV markets will exceed that of commercial broadcasters in 2024, reaching 10 billion euros ($10.9 billion). This poses challenges for commercial broadcasters who face competition from deep-pocketed streamers and decreasing viewer engagement levels.
Despite the challenges, broadcasters have an opportunity as streamers are moderating their spending growth. Consumer engagement and content spending have declined for broadcasters in Europe, leading them to focus more on streaming strategies.
Global streamers are forecasted to grow their investment in European-sourced content by 8% year-on-year by 2025. This presents an opportunity for broadcasters to capitalize on the shift as major streamers adopt more conservative spending strategies.
To differentiate themselves in a competitive industry, broadcasters must maintain or increase content investment levels. Bold commissioning decisions can help drive engagement and advertising revenue.
Ampere estimates content spend by European commercial broadcasters to remain steady, while streamers’ content spend is expected to increase. Beyond content spending, broadcasters must prioritize transitioning audiences to streaming to ensure long-term relevance.
Long-term investment in both content and streaming capabilities is crucial for commercial broadcasters to stay prominent in Europe’s TV market, according to Neil Anderson, senior analyst at Ampere Analysis.
