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Debug specters in their code.
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Because they know a ghost attack is coming… the infamous Ghosting!
Why are programmatic ads scared on Halloween?
Because they’re afraid they’ll end up on ghost spam sites
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The Turning Digital study, conducted annually by ITMedia Consulting, reveals evolving trends in the European television market, with a particular focus on traditional TV and the rise of streaming platforms. The report highlights the resilience of traditional TV in certain countries, despite the growing popularity of Video on Demand (VoD) services, and provides a detailed analysis of how advertising revenues and pay-TV are shifting in response to digital transformation.
Traditional TV’s Resilience in Italy and Spain Italy and Spain, two countries with strong traditional broadcast infrastructures, have shown considerable resistance to the global shift toward VoD platforms. While many European nations and the U.S. have seen a surge in streaming services, Italy and Spain’s broadcast networks—particularly Mediaset and Rai—have maintained dominance. In these countries, the market shares of online streaming and TV services remain relatively small, indicating the strength of traditional television in this region.
Streaming’s Continued Growth in Europe and the U.S. In contrast, the U.K., Germany, France, and the U.S. have experienced significant growth in their online TV market shares, where streaming services account for over 25% of total TV advertising revenues. The ability of VoD platforms to capture a growing slice of the market signals an ongoing digital shift. While traditional linear TV remains influential, its dominance is steadily diminishing as viewers flock to streaming services like Netflix and Amazon Prime Video.
TV Market Performance in 2023 In Western Europe, the overall TV market grew by just 1% in 2023, reaching €76.4 billion in value. However, when factoring in inflation at 6.4%, the real growth rate actually declined by 5.4%. Despite this, the sector is expected to experience a temporary boost in 2024 due to major sporting events, which historically draw large audiences and increase viewership.
Advertising revenues for linear TV have continued to decline as more investment shifts toward digital platforms and streaming services. This decline is particularly evident in countries like the U.K., where online TV advertising has captured a substantial portion of the market. However, in countries like Italy and Spain, the impact of streaming is less pronounced, and advertising on traditional channels continues to perform reasonably well, largely due to the strength of established broadcasters.
Pay-TV Remains the Primary Revenue Driver In Europe, pay-TV continues to be the most significant revenue source for broadcasters, bringing in €36.7 billion in 2023, a 5% increase from the previous year. Much of this growth can be attributed to the shift from traditional pay-TV services to subscription video on demand (SVoD) platforms like Netflix. By 2023, VoD accounted for 51% of the total pay-TV revenue, up sharply from its position in 2019, underscoring the changing landscape of television consumption.
The transition toward SVoD has been especially pronounced in Western Europe, where viewers increasingly prefer the flexibility and variety of streaming services over traditional pay-TV packages. This shift is likely to continue, with more and more consumers opting for on-demand content.
Advertising Declines in 2023 Television advertising across Europe fell by 2.9% in 2023, totaling €24.4 billion. This represents a return to pre-pandemic levels, suggesting that the brief surge in TV advertising during COVID-19 has passed, and advertisers are now reallocating budgets toward digital platforms.
Interestingly, Italy was an outlier in this trend, showing a 2.1% increase in TV advertising revenues in 2023. This demonstrates the continued reliance on traditional television in Italy, where linear TV still commands a significant audience. For most other European countries, however, the decline in TV advertising reflects a broader shift towards online platforms where advertisers can target more specific audiences with greater precision.
Shifts in European Advertising Investments In markets such as the U.K., France, and Germany, the rise of digital advertising is becoming more pronounced, with a substantial portion of total TV ad spending now being allocated to online video platforms. This growing shift is being driven by changing audience habits, as more viewers consume content on-demand rather than through scheduled broadcasts.
The impact of this shift varies across Europe, with some countries embracing digital transformation more quickly than others. In markets like Italy and Spain, where traditional broadcasters still hold sway, the transition to online advertising has been slower, though it is likely to accelerate in the coming years as digital infrastructure continues to improve.
Sporting Events and TV Revenue Major sporting events, which typically draw large audiences, have historically been a boon for broadcasters, increasing viewership and advertising revenues. The 2024 calendar is expected to give a temporary boost to the industry, particularly for traditional TV. However, this effect is likely to be short-lived, as the overall trend in media consumption continues to shift towards digital and on-demand platforms.
Despite these challenges, European broadcasters are adapting by offering hybrid models that combine traditional linear TV with VoD and digital services. This allows them to capture a share of the growing online market while maintaining their core audience base.
Conclusion The European TV market is at a pivotal moment, balancing between traditional linear television and the rapid growth of VoD platforms. While streaming services are growing, particularly in markets like the U.K., France, and Germany, traditional broadcasters in Italy and Spain continue to hold their ground. Pay-TV remains a significant source of revenue, but the future of television appears increasingly tied to digital platforms, as VoD continues to expand its market share.
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