SVoD platforms are projected to spend €10bn on content in Europe's big five markets this year, surpassing investments by commercial broadcasters in original and acquired film and TV content. These broadcasters face major challenges of strong competition from deep-pocketed streamers, increased pressure on their own content budgets, and falling viewer engagement levels.

According to Ampere's Media Consumer behaviour tracker, commercial broadcasters have seen an average 16% decline in consumer engagement across Europe’s big five markets since 2016. The result is a decline of nearly €1bn in the linear TV advertising market over the past decade. Despite these obstacles, commercial broadcasters have demonstrated adaptability by intensifying their focus on streaming strategies. However, their content spending budgets have reduced by 19% since 2016, even as they continue substantial investments in film and TV content, totalling €8bn in 2023.

The next few years present a strategic opportunity for broadcasters amid a slowdown in spending by the major streaming services. Investment by global streamers in European-sourced content is forecast to grow by 8% year-on-year in 2025, compared to an average annual growth rate of 35% between 2021 and 2024. Industry giants including Netflix, Disney, and Warner Bros. Discovery are scaling back streaming spend growth to ensure sustained profitability, paving the way for national broadcasters to capitalise on this shift. Sustaining or increasing content investment is crucial for broadcasters to differentiate themselves in an industry where major global streamers are adopting more conservative spending strategies. Bold commissioning decisions can set broadcasters apart, drive engagement and advertising revenue.

However, content spending strategies are not the only consideration; broadcasters must also prioritise the transition of audiences to streaming to ensure their long-term relevance. This involves investing in their video-on-demand platforms, expanding content libraries, enhancing digital advertising capabilities, experimenting with content release strategies across linear and VoD, and tailoring content output to cater to younger demographics.

For further details, clients can read the full report: How Europe's commercial broadcasters can fight back