Europe’s audiovisual sector is showing signs of both resilience and transformation as it moves through 2025. According to the European Audiovisual Observatory’s latest 'Key Trends' report, the continent has not only bounced back from the pandemic disruption but is now entering a new phase marked by strong film production volumes, changing financial structures, pressure on TV fiction output, and a digital market increasingly dominated by global players. For content producers, distributors, streamers, and policymakers, these trends present both new opportunities and deeper challenges.
The clearest indicator of recovery is the number of feature films produced across Europe. In 2023, the region delivered 2,358 fiction and documentary features, exceeding the output recorded in 2019 and confirming a return to pre-COVID production capacity. Italy led all markets with 354 feature films, followed by Spain with 306, and both France and the United Kingdom with approximately 236 each. This increase of 15 films over the previous year confirms that production ecosystems have not only stabilized but are capable of scaling. It also suggests that national film industries are regaining confidence in distribution models and audience demand across theatrical and on-demand platforms.
However, the foundations supporting this recovery are shifting. The report notes that in 2022, direct public support—including selective and automatic subsidies—and production incentives covered up to 47% of financing for European live-action fiction films released in cinemas. This is a significant shift in the economic model, as reliance on public money has grown while the relative contribution of traditional financing sources like broadcasters, distributors, and private investment has declined. This development underlines the increasing strategic importance of national and regional funding mechanisms, as well as the necessity for producers to build funding strategies that align closely with evolving public support frameworks.
In contrast to the rebound in film, the production of TV and SVOD fiction content appears to be softening. For the first time after several years of growth, 2022 saw a 3% decline in the volume of TV fiction produced in Europe. The downturn could signal budget tightening among broadcasters and platforms, shifts in commissioning strategies, or a recalibration of audience demand. It also reflects the maturity—and possible saturation—of the market, particularly for scripted series. For industry executives, the decline calls for a reassessment of long-term content pipelines and greater scrutiny on project ROI, especially in high-cost drama productions.
Meanwhile, the digital streaming space continues to be heavily shaped by US-based platforms. As of 2023, 82% of SVOD subscriptions in Europe were held by US companies. This ongoing market concentration by players like Netflix, Amazon Prime Video, and Disney+ puts European platforms at a disadvantage, particularly when it comes to scaling, brand recognition, and catalog diversity. Despite regulatory efforts to mandate European content quotas and invest in local markets, the structural power of these global platforms remains largely unchallenged. For regional telecoms and local VOD services, the need to differentiate—whether through local productions, bundled offerings, or targeted user experiences—has become critical.
Taken together, these developments signal a complex and evolving landscape. While theatrical and film production appears to be on solid ground, its sustainability is now more dependent on public intervention. Television content is showing early signs of contraction, and digital consumption is consolidating under global brands. As outlined in the 'Key Trends 2025' report, these shifts require businesses to adjust their strategies across development, financing, distribution, and regulation. For stakeholders across Europe’s audiovisual value chain, understanding and acting on these indicators may determine competitive relevance in the years ahead.