NEM Dubrovnik continues in Croatia, offering a platform to discuss and analyze the most pressing topics shaping today’s entertainment industry. One key issue is inflation, which has significantly affected the costs of content production, distribution, and marketing.
Izabella Wiley, Senior Vice President and General Manager, Central & Eastern Europe, Hearst Networks EMEA, confirmed that content costs have indeed risen: “We have to make everyday decisions about how to manage that within budgets that are not necessarily increasing either,” she noted. One of their approaches has been to commission fewer episodes or renegotiate existing deals. They also aim to maximize value by distributing commissioned content across multiple platforms — not just linear broadcast, but also online, including YouTube and other digital formats."
Hasret Ozcan, President of Inter Medya, described the mounting pressure on distributors to deliver distinctive content: “When I first joined ten years ago, it was mostly about distributing the profits of the business. Now the business relies heavily on content to survive.” She pointed out that Turkish content is particularly affected by currency discrepancies: “The biggest impact comes from the gap between U.S. dollar inflation and Turkey's domestic inflation. That’s a major concern. However, the upside is that Turkish content continues to travel well and perform successfully.”
Katarina Pavlović, Program Director at Prva TV and B92, said they are both broadcasters and producers. “We’re creating more studio-based talk shows to reduce costs in one part of the schedule, so we can still invest in scripted or big productions.” In the scripted segment, they’ve focused on original content development for the past three years, aiming to recoup revenue across various platforms, especially through IP exploitation."
Frank Spotnitz, CEO and Executive Producer at Big Light Productions, emphasized the heightened pressure to “do more with less.” “Tax credits are now especially important. For all our productions, it's about tax incentives and low production costs.”
Igor Draguzet, Chief Content Officer at CME, shared how the company reinvented itself five years ago: “We moved from being a successful linear broadcaster to becoming a content powerhouse. We decided to create, own, and monetize our content across multiple platforms and windows, maximizing its value. It’s paid off.” Despite inflation, CME hasn’t reduced commission volumes and has supported a healthy ecosystem by collaborating with independent and small producers."
Saar Dor, COO and CFO at Keshet International, observed that while production costs have risen, channel budgets remain flat. “We now depend much more on international prospects. We need to be creative, shoot in other regions, and secure tax incentives — which unfortunately don’t exist for TV production in Israel.” Keshet has produced in India, Georgia, and Israel. “The deficit financing is very high, so international distribution success is crucial,” he said."
THE EVOLUTION OF TV ADVERTISING
With consumer options like CTV, FAST, AVOD, and SVOD growing, advertising investment has undergone significant shifts. Maria Rua Aguete, Executive Director and Technology Fellow at Omdia, stated that the Eastern European media and entertainment market is projected to grow to $20.1 billion by 2025, expanding at an impressive 7% annually — surpassing global averages. While traditional TV still dominates, generating $9.1 billion in revenue, the most promising growth areas lie in digital transformation, including streaming and connected TV (CTV) advertising.
The market breakdown is as follows: traditional TV ($9.1B), online video ($4.6B), games ($3.4B), cinema ($2.25B), and music ($0.8B). SVOD penetration in CEE stands at just 34%, compared to 91% in North America and 73% in Western Europe. “Eastern Europe represents a significant growth opportunity for streaming services,” she noted. The regional streaming market is led by Netflix (25%), followed by Disney+ (12%), YouTube Premium (11%), and Max (10%).
While global CTV advertising nears parity with linear TV, CEE’s CTV ad share is only 3% (vs. 23% globally). Partnerships with platforms like YouTube could help improve this. Regarding smart TV OS, Android, Tizen, and WebOS control over 70% of the European market, with Samsung and LG accounting for 40%. “Eastern Europe has immense potential in streaming and connected TV advertising,” she emphasized. Omdia forecasts that by 2029, traditional TV revenues will grow modestly to $9.76 billion, while online video will reach $6.10 billion.
Michal Stefanski, Head of Partnerships, CEE at Google, highlighted that regional broadcasters can no longer afford to ignore digital assets. “COVID accelerated the digital shift by four to five years,” he said. Even after pandemic peaks, digital viewership continues to rise, influenced by digital natives. At Google, Stefanski explained, “We believe the future of video and video advertising is powered by AI — personalized and responsive to user needs.” He noted advancements in content creation tools that allow for flawless dialogue and synchronization. “Distribution is also evolving — YouTube now hosts long-form and premium content, with over 2.7 billion monthly active users and more than 1 billion hours watched daily.” Monetization strategies are also maturing. “We now offer addressable TV products that span OTT, free-to-air, and hybrid platforms. We also enable smaller digital-native advertisers to participate,” he added. He emphasized the need for a seamless cross-device experience and suggested that advertising should evolve from an interruption into an engaging user experience.
A panel featuring Denis Oštir (VIDAA), Karina Rompa (Rakuten TV), Inga Alika (Alika Media and Tech), and Lucyna Koba (Nielsen Media) also addressed advertiser needs. Rompa noted that while traditional media still delivers reach, advertisers are increasingly selective. “TV remains cost-effective for mass reach but must be combined with digital for broader demographic targeting.” Lucyna Koba agreed, noting that “streaming video ads are still more expensive than TV ads, yet TV continues to deliver higher reach — even compared to premium formats on YouTube.”
Inga Alika pointed out that Baltic markets are leading in OTT adoption. “In 2024, OTT overtook traditional pay-to-view streaming, with most subscriptions going to local players. The key is to start early — streaming is a whole new playing field,” she advised.
THE BATTLE FOR LIVE EVENTS
With streamers acquiring rights to sports, concerts, and other live events, they are reshaping how audiences experience real-time content — once the stronghold of FTA and Pay-TV channels. Kenechi Belusevic, VP of Business Development and Distribution at Warner Bros. Discovery, said they operate across FTA, Pay TV, and streaming. “It’s about building a complementary ecosystem across platforms, ensuring audiences get the best experience no matter where they watch,” she said.
Aleksandra Martinović, Director of Multimedia at Telekom Serbia, said sports were a game-changer: “In 2017, we had 400,000 users; today, over 1.6 million. Sports bring real-time engagement, large screens, and emotional connections — great for both users and advertisers.” She added that on-demand content is also key for building loyalty. Telekom Serbia now produces a catalog of over 200 titles, and they will launch a new platform in September.
Victoria Davies, Managing Director at Accelerate Consulting, observed that major streamers like Netflix, Amazon, and Apple have entered live sports to boost global reach and ad revenues. “These are one-off events with huge value. Paramount+ gained 3.5 million U.S. subscribers during the Super Bowl. Netflix drew 1.5 million for Tyson vs. Paul,” she explained. "In CEE, however, it’s different. Streamers must think locally — sports, news, and reality entertainment drive local engagement,” she said. “Monetization strategies must reflect that, and live content is clearly crucial.”
THE UPCOMING CONTENT
Piotr Lenarczyk, Director of Trade and International Relations at Telewizja Polska (TVP), introduced several new crime series. "The Profiler" (12x45’) features a female lead, Julia — a complex and seasoned criminal profiler. "Shadow Play" (13x45’) is a noir drama set in Stalinist Poland, centering on Helena Bielawska, a brilliant surgeon with a promising career. Finally, "The Bay of Spies" (10x45’) is now in its second season.
George Wilkinson, International TV Distribution Manager, Amazon MGM Studios Distribution, and Paloma Roldàn, Senior Distribution Coordinator, offered a showcase where has introduced its upcoming programming slate. Wilkinson stated that they used to release four to six theatrical films per year and perhaps one TV series. “Now, in 2026, we’re set to release twenty films — ten of which will be theatrical. The total budget for that entire slate will be one billion dollars,” he said.
On the TV side, Amazon MGM Studios Distribution now offers a vast catalogue of Amazon Originals and presented four series at NEM. Among them is "The Lord of the Rings: The Rings of Power". “It’s the most expensive TV series ever made,” he said. “The budget was £60 million per episode, and it’s the most-watched series on Prime Video. Two seasons are available for distribution, and season three is in the pipeline for release next year.” Amazon MGM Studios Distribution also showcased "Citadel", "Butterfly", and "Countdown".
By Romina Rodriguez, from Dubrovnik
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