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TRENDING
June 12, 2024
$10.7 Billion
Spending by SVOD platforms is set to hit $10.7 billion in Europe's major TV markets in 2024, according to an Ampere Analysis forecast. By: K Dass.
UK - Ampere Analysis has released its latest report into
the challenges faced by Europe’s largest commercial broadcasters. According to
an Ampere Analysis forecast, 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. This surpasses the investment made by the region’s
commercial broadcasters in original and acquired content.
According to Ampere’s
Media Consumer Behaviour tracker, commercial broadcasters across Europe’s big
five markets – Germany, France, the UK, Spain and Italy – have experienced an
average decline of 16% in consumer engagement since 2016, equating to a fall of
nearly €1 billion in the linear TV advertising market over the past decade.
Despite this,
broadcasters have demonstrated adaptability by focusing on streaming
strategies, added the report. However, their content spending budgets have
reduced by 19 per cent since 2016, even with their TV and film content
investments totaling €8 billion in 2023.
Ampere said
investment by global streamers in European-sourced content is predicted to grow
by 8% year-on-year in 2025, against the annual growth rate of 35% seen between
2021 and 2024. Companies such as Netflix, Disney and Warner Bros Discovery are
scaling back spend, which, said the company, paves the way for national
broadcasters to capitalise on the shift. The company also said sustaining or
increasing content investment is “crucial” as global streamers adopt more
conservative strategies, with bold commissioning decisions setting them apart
to drive engagement and revenue.
The competition from
well-funded streamers, tightened content budgets, and declining viewer
engagement have prompted broadcasters to pivot toward streaming, even though
their content budgets have shrunk by 19% since 2016. To stay relevant,
broadcasters must ramp up their own content investments, enhance their
video-on-demand platforms, and focus on younger audiences to maintain
engagement and secure advertising revenue.
