European Broadcasters Invest $19.7 Billion in Content Annually

BRUSSELS: A new study reveals that European commercial broadcasters contribute 15 billion euros ($19.7 billion) annually to the audiovisual content sector.

The study—Audiovisual Content and Online Growth, commissioned from the E-media Institute by the Association of Commercial Television in Europe (ACT)—showed that the aggregate expenditure on content of the largest European commercial broadcasting groups in 2010 was 15.1 billion euros. This breaks down to 41 million euros per day. During 2009, French broadcasters invested around 5.4 billion euros in programming, including production, co-production, commission and rights’ acquisitions. In the U.K. investment was around 6.3 billion euros in 2010, when BSkyB alone contributed some 2.3 billion euros in programming—of which 1.4 billion euros was invested in British content.

While TV viewing has risen to an historic high, demand for video content online has been growing rapidly over the past few years, according to the report. Average linear viewing in France was at 206 minutes in 2005, growing to 212 minutes in 2010. In the U.K., the average grew from 219 minutes to 242 minutes int he same five-year period. In Italy, viewing jumped by 9 minutes, from 237 minutes in 2005 to 246 minutes in 2010. According to the report, over the past two years alone, the number of non-linear services offered by national commercial broadcasters more than doubled, from 146 at the end of 2008 to more than 314 in 2011.

Philippe Delusinne, CEO of RTL Belgium and president of the ACT, said: “We know that European television is an 84 billion euros sector—but we did not know until today how much of that revenue is reinvested in sport, news, entertainment or movies. Our study concludes that the largest commercial broadcasting groups in Europe invested a total of 15.1 billion euros in program content in 2010. When the contributions of public broadcasters, and of smaller operators, are also taken into account, we conclude that overall around 40 percent of broadcasters’ revenues are reinvested in the next season’s schedule. Quite simply, great program content isn’t cheap. The media business will continue to invest and to innovate so as to ensure that the strengths of our sector are also reflected in the online world.”

Ross Biggam, the ACT’s director-general, added, “This study is part of our response to a number of very pertinent questions posed by the European Commission, in its Green Paper on Audiovisual Content, in the Digital Agenda, and in other policy documents. Television has never been stronger, with the average European citizen watching linear TV for 228 minutes per day. Our member companies aim to build on their existing strengths to tap into new revenue streams and better serve consumer demand. If all players—broadcasters, producers, distributors and regulators—can rise to the challenge of the new era, then we are confident we can deliver a strong presence for European content online.”