Europe’s PSBs in need of support to overcome market challenges
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Editor
| 21 August 2023
A research paper from Ampere Analysis is warning European policy-makers that to ensure public service media can successfully transition into the streaming world they must deliver funding and structural support.
Ampere PLM 21Aug2023
The analyst noted that over the last six years engagement with public service media (PSM) linear or their video-on-demand (BVOD) services has fallen by 15% in Europe's largest markets, and this decline was particularly prominent among younger age groups.

With PSM navigating a rapidly changing content landscape, Ampere believes policy responses to changing audience patterns have seen public funding either plateau or fall, and this has limited the ability of PSM groups to respond to competitive pressures. It observed that adoption of PSM VOD services was notably strong among consumers in the UK and Italy, markets where the BBC and RAI have expanded their VOD platforms.

However, the research warned that PSM faces a difficult challenge in striking a balance between serving their traditional audience bases, attracting new viewers, and addressing the needs and interests of minority groups, while at the same time dealing with funding constraints caused by declining public TV revenue, budget cuts and austerity measures. Ampere believes that these factors, combined with what it calls “intense competition” from digital platforms, have limited PSM groups’ ability to invest in their own VOD services and programming.

Despite the growing importance of streamers in Europe, Ampere stressed that strong public service media remains key to a healthy European production market. It calculated that Europe's leading six PSM - ARD, ZDF, BBC, France Télévisions, RTVE and RAI - account for 40% of TV shows ordered in Europe’s largest five markets. This equates to a third of all European original content spend.

To address forthcoming issues, Ampere suggested that bolstering public service funding in the short term would allow PSM to adapt and invest in the necessary range of high-quality content and accelerate their digital plans. This it said would be the simplest way of ensuring that public service media continues to support local production industries. In addition, Ampere highlighted a number of other initiatives where policy-makers could provide support, namely: secure multi-year funding; guaranteeing prominence; partnership flexibility.

“The European broadcast industry is undergoing a rapid transformation, driven by a significant shift in viewing habits. Today's audiences expect immediate access to a vast array of content, tailored to their individual preferences, setting higher expectations for broadcasters. To gain and retain viewer attention, broadcasters must invest in production capabilities, diverse programming, and digital platforms,” said Neil Anderson, report co-author and senior analyst at Ampere Analysis.

“However, success in the PSM sector has traditionally been measured solely by audience share, leading to decisions that prioritise programming based on TV ratings. This narrow focus on ratings overlooks other crucial aspects that define the relevance and impact of PSM. These include its role in promoting cultural diversity and providing vital support to Europe's TV production sector.”