In 2023, the total spending on European original content, excluding news and sports rights, amounted to EUR 22 billion, marking a slower growth following the post-pandemic rebound, according to a report by the European Audiovisual Observatory. This spending increased faster than the overall revenues of the European audiovisual sector, despite a concurrent rise in sports rights costs. The shift in spending patterns reflects strategic decisions by industry players, such as a preference for original content over acquisitions, a focus on market share rather than immediate profitability, and the bundling of streaming services with other offerings.
Global streamers significantly contributed to the rise in spending, increasing their investment by 34% in 2023, reaching EUR 5.7 billion and accounting for 26% of all spending on European original content. The expansion of global streamer investments in Europe was driven by the region's growing share of worldwide content investments. Notably, Netflix's share of streamer spending on European original content dropped from 58% in 2021 to about 35% in 2023, as other platforms like Amazon Prime increased their contributions.
Broadcaster spending on original content, which includes both private and public entities, continued to rise at a moderate pace and was not replaced by global streamer investments. Private broadcasters have been the main drivers of this growth, despite facing escalating costs for sports rights. Public broadcasters continue to play a significant role in financing original content in several countries, including Denmark, Belgium, and Germany, while private broadcasters lead in markets like Poland, Italy, and France, and global streamers dominate in Spain.
The United Kingdom and Spain together accounted for 53% of global streamer spending on original European content. The prominence of global streamers in original content spending is particularly notable in Spain, where they represent over 50% of the market, followed by significant shares in Italy and the UK.
In 2023, original content accounted for 33% of total broadcaster spending, with sports rights and acquired programming nearly equal at 28% and 25%, respectively. For private broadcasters, sports rights represented the largest share of spending, whereas public broadcasters were able to allocate more to original content. Over time, spending by global streamers has increased for both original content and acquisitions, with original content making up 53% of their European content spending in 2023. Despite a slight decline, scripted programming remains dominant in streamer spending on original content, constituting 80% of the total, with series making up about 90% of scripted investments compared to films.
Despite the financial pressures and growing costs of sports rights, broadcasters, especially private ones, continue to expand their investments in original European productions. Meanwhile, global streamers are steadily increasing their market share, driven by the strategic importance of European content in their global portfolios. As the landscape shifts, the interplay between broadcasters and streamers will continue to shape the future of European content production, presenting opportunities for innovation and collaboration in the industry. The ongoing commitment to original content underscores its critical role in the broader strategy of audiovisual services across Europe, ensuring diverse, high-quality programming for audiences.