Total revenues from paid streaming (including subscriptions and advertising) have surpassed public TV revenues (taxes, licence fees and advertising) for the first time, according to research from Ampere Analysis.
According to the company’s research, streaming services had enjoyed “strong growth” in Europe over the last year.
Ampere has predicted revenue on the continent will increase by 37 per cent to reach €38.4 billion by 2029, with growth predominantly driven by American streaming giants such as Netflix, Disney+ and Amazon.
By contrast, public TV revenue is expected to rise by just 1 per cent in the same period, which, said the company, presents particular challenges for countries such as France, which have replaced licence fees with alternative funding models.
Key findings of the research include:
- Netflix led the way in European growth following the 2022 introduction of its ad tier, a crackdown on account sharing and expansion into live events. Disney+ and Amazon have also introduced ad-supported plans with advertising expected to account for 8 per cent of revenues by 2029.
- Public broadcasters commissioned 43 per cent of all TV titles in Europe last year. However, Ampere cautioned that a decline in their financial power could have “significant implications” for the future of TV in the region.
- European PSBs’ VoD services remain popular, consistently ranking among the most used services in the region. According to Ampere’s bi-annual survey, local public service broadcasters’ VoD were the second most popular streaming platform in Q3 2024 in the UK, Denmark and Finland, ranking third in Sweden and Norway.
Sam Young, analyst at Ampere Analysis commented, “While Ampere’s projected public TV revenue growth represents a challenging outlook, public service broadcasters remain a crucial stabilising force in the European TV landscape. To remain competitive amid shifting viewing habits, and in the face of global streamers, PSBs must prioritise the development of their streaming platforms and find innovative ways to operate within limited and often uncertain funding structures. Forming ambitious strategic partnerships can enable them to continue to produce high-quality content at lower costs and expand their audience reach.
“However, local governments must recognise the need for financially sustainable models, especially as broadcasters face rising content costs, driven by increasing competition from global streamers. Adequate funding is not only essential for PSBs to keep investing in distinctive programming and fulfilling their public service remits, it is also necessary to support the wider European production sector.”
