New research by Ampere Analysis shows that total revenues from paid streaming services (including subscriptions and advertising) surpassed public TV revenue (from taxes, licence fees, and advertising) in Europe for the first time last year.
Streaming has enjoyed strong growth in Europe, with Ampere predicting a 37% increase in revenue to reach €38.4 billion by 2029, primarily driven by US streaming giants. However, at the same time public TV revenue growth is stagnant, and projected to rise by just 1% to €27.9 billion by 2029. Ampere says the trend is particularly challenging for countries like France, where alternative funding models have replaced licence fees.
The US streaming giants have enjoyed strong growth in their European revenues. Netflix leads the growth following the introduction of its ad tier in 2022, its account sharing crackdown, and more recent expansion into live events.
Sam Young, Analyst at Ampere Analysis says: “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.”
Despite the changing financial power, European public service broadcasters’ video-on-demand services are highly popular among local audiences and consistently rank among the most used VOD services.
