Impact of Downturn Eases on Euro Broadcasters

STRASBOURG: The 12 main European broadcasting groups—operating a total of 534 channels—saw their revenues fall just 1.9 percent in 2009, as compared with 3.3 percent in 2008, according to new data from the European Audiovisual Observatory.

The Observatory analyzed the financial results of BSkyB, Canal+. Mediaset, Prisa/Sogecable, Modern Times Group, Sky Deutschland, TVN, RTL Group, ProSiebenSat.1 Media, TF1, Vivendi and ITV. The 12 companies reported an overall net loss of 1.2 billion euros in 2008, while in 2009 the net profit was 1.5 billion euros.

The data indicates those with diversified businesses fared better in the crisis. BSkyB, for example, was able to increase revenues by more than 10 percent, thanks to its mix of subscription and advertising revenues. The businesses that were heavily dependent on advertising generally recorded declines last year. Central European Media Enterprises, the Observatory notes, reported a 30-percent revenue decline in 2009.