A new research study published by measurement firm Ampere Analysis on Tuesday reveals premium subscription platforms earned more revenue than public service broadcasters in Europe.
The shift marks the first time that premium streaming services have overtaken public service broadcasters as the biggest driver of television revenue on the continent. It comes as more foreign streaming services launch a mixture of premium and ad-supported subscription offerings throughout Europe, and as public service broadcasters — who are largely reliant on taxes to support their operations — grapple with the uptick in competition.
A chart published by Ampere Analysis on Tuesday showed the amount of money earned from public service broadcasters in Europe has been relatively steady at just above €25 billion (around U.S. $26.3 billion) every year since 2016. Meanwhile, revenue attributed to premium streaming services has climbed from just under €5 million (around U.S. $5.3 billion) in 2016 to north of €25 million in 2024.
Ampere is projecting revenue associated with public service broadcasters in Europe to remain stagnant over the next four years, while premium streaming services are forecast to earn €38.4 billion (around U.S. $40.4 billion) within the same time frame — a 37 percent increase compared to 2024 levels.
Netflix is leading all streaming services in Europe, with the introduction of its low-priced, ad-supported tier and its crackdown on password sharing between paying customers and freeloaders. Disney Plus and Amazon have also introduced ad-supported tiers on the continent, and Ampere projects ads will account for around 8 percent of European streaming revenues within the next four years.
Typically, ads are not something public service broadcasters are able to utilize in order to generate ancillary revenue for their services. Instead, operations like the BBC in the United Kingdom and ARD/Das Erste in Germany are bankrolled by a tax levied on television-viewing households in their respective countries.
That tax, generally referred to as a “TV license,” has been met with public and political challenges in several European countries, including the United Kingdom and France, as viewers shift their TV consumption habits toward streaming. The challenges faced by public service broadcasters have forced them to explore unique ways to generate cash. The BBC, while forbidden from airing advertising on its broadcast channels in the U.K., isn’t banned from doing the same overseas; it’s BBC Studios business is specifically tasked with forging commercial relationships outside the U.K. in order to supplement the BBC’s domestic operations with additional income.
While public service broadcasters are experiencing a drop in linear TV viewership as streaming competition heats up, Ampere said the on-demand platforms operated by traditional TV broadcasters are still wildly popular with European audiences. Video on-demand platforms run by public service broadcasters were the second-most used service in the U.K., Denmark and Finland during the third quarter (Q3) of 2024, the measurement firm said. In Sweden and Norway, on-demand platforms operated by broadcasters were the third-most used service.
“While Ampere’s projected public TV revenue growth represents a challenging outlook, Public Service Broadcasters remain a crucial stabilizing force in the European TV landscape,” Sam Young, an analyst at Ampere, said in a statement. “To remain competitive amid shifting viewing habits, and in the face of global streamers, PSBs must prioritize 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.”
Young said local government must also “recognize 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,” Young affirmed.
