{"id":5305,"date":"2026-08-14T21:38:38","date_gmt":"2026-08-14T21:38:38","guid":{"rendered":"https:\/\/uspropertymoves.com\/?p=5305"},"modified":"2026-08-14T21:38:38","modified_gmt":"2026-08-14T21:38:38","slug":"europes-broadcasters-want-to-get-bigger-the-hard-part-is-how","status":"publish","type":"post","link":"https:\/\/uspropertymoves.com\/?p=5305","title":{"rendered":"Europe\u2019s Broadcasters Want to Get Bigger. The Hard Part Is How."},"content":{"rendered":"
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\n\tIn little more than a year, Europe\u2019s broadcasting sector has seen a burst of dealmaking that would have looked improbable a decade ago. Comcast-owned Sky has agreed to acquire ITV\u2019s broadcast and streaming operations in the U.K. in a deal valued at $2.1 billion. RTL in Germany is combining its market-leading free-to-air broadcaster with the country\u2019s No. 1 pay-TV group Sky Deutschland, recently acquired from Comcast. The Berlusconi family\u2019s MediaForEurope (MFE) last year took control of Germany\u2019s number two commercial network ProSiebenSat.1, adding it to MFE\u2019s growing European stable that already includes Mediaset, Italy\u2019s top commercial TV group, and Telecinco, Spain\u2019s number two commercial network.<\/p>\n

Read more Paramount Says It Has Secured All Global Clearances to Close WBD Deal \u2026 Except for That Pesky Lawsuit<\/a><\/p>\n

\n\tRegulators have so far prevented a similar tie-up in France \u2014 an attempt at a $4.1 billion merger between the top two commercial networks, TF1 and M6, was abandoned in 2022 \u2014 but the trend is clear. Europe\u2019s broadcasters are trying to get bigger and fast.<\/p>\n

\n\tThe logic behind the wave of broadcast consolidation \u2014 and, to a degree, the parallel M&A boom in the European production sector, evidenced by the recent $8.5 billion mega-merger between Banijay (Survivor<\/em>, Peaky Blinders<\/em>) and All3Media (The Traitors<\/em>, Call the Midwife<\/em>) \u2014 is clear. Being big enough to compete against national rivals is no longer enough. European TV companies are now in a fight for eyeballs with Netflix, YouTube, Amazon, Disney, TikTok, Google and Meta, global platforms with global technology, global advertising infrastructure and balance sheets that dwarf even the largest European TV groups.<\/p>\n

\n\t\u201cBroadcasters are no longer competing just with each other but also with global streamers, YouTube and social platforms for audience attention and revenue,\u201d says Enders Analysis\u2019 Cleodie Kilgour. \u201cBroadcasters\u2019 audiences are clearly declining, which puts ad revenues under pressure while production costs continue to rise. Consolidation is therefore a way to build scale, share costs and compete more effectively in a market increasingly dominated by global tech and streamers.\u201d<\/p>\n

\n\tThe numbers explain the urgency for legacy broadcasters to get big fast.<\/p>\n

\n\tBroadcast viewing remains large across Europe, but it is shrinking quickly, particularly among younger audiences. In the U.K., daily viewing of public service broadcasters on TV fell from 153 minutes per person in 2015 to 88 minutes in 2025. Among 16-34-year-olds, it collapsed from 95 minutes to just 21 minutes. In France, linear TV viewing among 25-49-year-olds has more than halved since 2015. In Germany, daily viewing among 14-69-year-olds has fallen sharply since 2019.<\/p>\n

\n\tBut content costs are moving in the opposite direction. In the U.K., the median budget per minute for high-end scripted television has risen by roughly two-thirds over the past decade. In France, the hourly cost of TV drama, excluding soaps, rose 66 percent between 2015 and 2024.<\/p>\n

\n\tThat leaves broadcasters squeezed from both sides: fewer young viewers, weaker advertising, higher production costs and global platforms bidding up talent, sports rights and audience attention. The old European model \u2014 nationally regulated broadcasters using linear advertising to support news, drama, entertainment, regional coverage and public-service obligations \u2014 was not built for this market.<\/p>\n

\n\t\u201cConsolidation is a rational response to the challenges facing legacy broadcasters,\u201d Kilgour says. \u201cEuropean networks need scale within their own markets to fund flagship productions, accelerate digital transformation and secure critical prominence on CTV [connected TV] platforms. Partnerships alone are not enough. Broadcasters must achieve true scale to remain competitive.\u201d<\/p>\n

\n\tBut Europe\u2019s TV consolidation wave is not just one story. It is several. National broadcasters are merging to build scale at home; MFE is trying to build a pan-European advertising giant; and others are partnering with the global platforms they once saw as existential threats.<\/p>\n

\n\t\tNational Champions: RTL and Sky\/ITV\t<\/h2>\n

\n\tIn Germany and the U.K., RTL and ITV\/Sky are betting that domestic champions, if they are big enough and combine pay and free TV, broadcast and streaming, can compete with the international invaders.<\/p>\n

\n\tAlready, the combined RTL+ and Sky Deutschland streaming platform reaches some 12.4 million paid subscribers across German-speaking Europe, making it the third-largest streamer in the region.<\/p>\n

\n\t\u201cThis brings us within striking distance of Netflix and Amazon in this market,\u201d RTL CEO Clement Schwebig told The Hollywood Reporter<\/em>.<\/p>\n

\n\tOn the advertising side, RTL\/Sky reach nearly 69 million German homes, 87 percent of the total population.<\/p>\n

\n\t\u201cOur strategy is to combine the strengths of free TV, pay TV and streaming, of advertising, subscription and distribution revenues into one powerful ecosystem with unmatchable reach,\u201d said Schwebig.<\/p>\n

\n\tA combined ITV\/Sky play would copy this approach in the U.K., pairing Britain\u2019s top commercial free-to-air broadcaster with the nation\u2019s largest pay-TV operator. Sky also operates extensive broadband and mobile services, further extending its reach.<\/p>\n

\n\tA recent report by Enders Analysis estimated that, combined, Sky and ITV would command around 31 percent of broadcast TV viewing in the U.K. and roughly 18 percent of total video viewing once streamers and YouTube are included. The merged group would reach around 20 million U.K. households weekly, compared with Netflix\u2019s 16 million.<\/p>\n

\n\tOn the advertising side, Sky and ITV combined would account for an 18.3 percent share of U.K. TV and streaming viewing in May, according to BARB, the official ratings body. That\u2019s just behind YouTube with 18.6 percent.<\/p>\n

\n\t\u201cWe believe that having the combination of our two organizations in order to invest in better ad technology and better choice advertisers is good for brands,\u201d Sky CEO Dana Strong said, announcing the merger in July. \u201cBrands want digital, they want choice, they want more digital advertising capability powered by data.\u201d<\/p>\n

\n\tThe RTL and Sky\/ITV \u201cnational champion\u201d approach argues that being a big fish in a small national pond is better than being a slightly bigger fish in a global ocean. The contention is that European media and advertising markets remain stubbornly local, with audiences still devoted to domestic news, sport, soaps, entertainment and language.<\/p>\n

\n\t\u201cThe future is not linear versus streaming,\u201d said Schwebig. \u201cThe future is exclusive, local content distributed across every platform where our audiences want to spend their time \u2026 We have something that very few companies have: brands that speak to our local audiences and create an emotional connection with them \u2014 some of them even every day.\u201d<\/p>\n

\n\tFor RTL, that\u2019s shows like long-running soap Good Times, Bad Times<\/em> or the Got Talent<\/em> entertainment format from in-house production company Fremantle. Most of ITV\u2019s local hits \u2014 Love Island<\/em>, Britain\u2019s Got Talent<\/em> \u2014 are also produced in house, from production arm ITV Studios. The Sky deal does not include ITV Studios, which will be spun off as a stand-alone company, though it will still have a multi-year programming deal to continue to supply the ITV network.<\/p>\n

\n\t\tMFE\u2019s Pan-European Bet\t<\/h3>\n

\n\tMediaForEurope (MFE), the European TV group controlled by the Berlusconi family, also wants to get bigger, but its approach is entirely different. Instead of building one big national TV giant, MFE is attempting to create the first truly pan-European broadcasting group.<\/p>\n

\n\tMFE now controls the No. 1 or No. 2 commercial network in three of the top five European markets: Italy (Mediaset), Spain (Telecinco) and Germany (ProSiebenSat.1). The ambition is to create a European ad platform large enough to sit across the table from Google.<\/p>\n

\n\t\u201cMediaForEurope says, \u2018We want to gain scale across Europe, and then we will be able to pitch global advertisers on the same footing as Google,\u2019\u201d says independent analyst Fran\u00e7ois Godard. \u201cSo they can tell these global advertisers: \u2018We might not cover the globe, but we do most of Europe.\u2019 And if we were in a single country, we wouldn\u2019t sit at that table.\u201d<\/p>\n

\n\tMFE\u2019s European network still has some major gaps, with no presence yet in the U.K. or France.<\/p>\n

\n\tIf M6, currently owned by RTL, is again put on the market in France, Godard says, \u201cMediaForEurope will certainly be a candidate for buying it.\u201d<\/p>\n

\n\t\tIf You Can\u2019t Beat Them, Join Them\t<\/h2>\n

\n\tConsolidation is not the only response to platform power. Increasingly, Europe\u2019s broadcasters are collaborating with the streamers that disrupted their business models.<\/p>\n

\n\tSome partnerships are straightforward bundling or carriage arrangements. RTL+ bundles HBO Max and Disney+ with its German service. ITVX and Disney+ share select titles with each other in curated branded rails: \u201cA Taste of Disney+\u201d on ITVX, and a \u201cTaste of ITVX\u201d on Disney+. Public broadcaster France T\u00e9l\u00e9visions last year agreed to let Amazon carry its streaming service france.TV on Prime Video in France.<\/p>\n

\n\tMore significant is the deal between France\u2019s TF1 and Netflix. In the first-of-its-kind collaboration, rolled out this summer, Netflix in France carries live broadcasts and on-demand content from TF1 and its on-demand platform TF1+.<\/p>\n

\n\tTF1 is the test case. If it works \u2014 and TF1 has already declared the deal a success \u2014 most expect it will be copied by Netflix across Europe.<\/p>\n

\n\t\u201cTF1\u2019s partnership with Netflix goes deeper than typical streamer deals,\u201d Kilgour says. \u201cUnlike simply licensing a content library, integrating a third-party live channel into Netflix requires significant, expensive technical development. It\u2019s an effort unlikely to be spent on a single deal.\u201d<\/p>\n

\n\tBroadcaster-streamer tie-ups excite and unnerve networks in equal measure. They offer legacy networks reach, especially among younger viewers who are switching off broadcast TV and reluctant to switch to network-owned platforms.<\/p>\n

Read more \u2018Deli Boys\u2019 Canceled After Two Seasons on Hulu<\/a><\/p>\n

\n\tThe risk is dependence. If European broadcasters become content suppliers inside global platforms, they may lose control over viewer data, monetization and brand identity, the very things they are trying to preserve through consolidation.<\/p>\n

\n\tThis is the central tension in European television\u2019s new era. Broadcasters need global platforms to reach audiences. They also need sufficient scale to avoid becoming junior partners.<\/p>\n

\n\t\tThe Limits of Scale\t<\/h2>\n

\n\tThe question is not simply whether European media companies should get bigger but how much concentration the market can absorb.<\/p>\n

\n\tWith production costs climbing and advertising revenue falling, many see a threat to local production. If commercial broadcasters decline too far, who will step up to fund local drama, entertainment formats, news and current affairs programming? A March report by Enders Analysis argued that broadcaster consolidation may be necessary to sustain high-quality local content and high-reach news as viewing shifts online.<\/p>\n

\n\tIt\u2019s the counterargument to the one brought by opponents to the proposed Paramount-Warner Bros. Discovery merger, who see a danger in one company getting too much control over production and, with the combination of CNN with CBS News, too much sway over reporting the news.<\/p>\n

\n\tWhile the European Commission has greenlit the Paramount-WBD deal, there has been opposition in the U.K. In an open letter, actors Benedict Cumberbatch, Alan Cumming and Benedict Wong urged regulators to block the deal, arguing that the merged company, which in the U.K. would include the news operations of Channel 5 and CNN International as well as the CNN and CBS news archives, posed a threat.<\/p>\n

\n\t\u201cOne owner controlling this much of the news, and the truth, endangers the public in a way no ordinary consolidation does,\u201d they wrote. \u201cWhen separate owners run separate newsrooms, a story judged inconvenient by one can still reach audiences through another.\u201d<\/p>\n

\n\tThat cuts directly against the case made by Europe\u2019s broadcasters. For ITV, RTL, Sky and MFE, scale is framed as defensive: without bigger national or regional champions, European companies cannot fund technology, premium local content, sports, news or broadcaster streaming platforms.<\/p>\n

\n\tParamount-WBD shows where the argument becomes more complicated. At a certain point, scale stops looking like industrial survival and starts looking like concentrated cultural power.<\/p>\n

\n\tThe distinction will matter. Regulators may tolerate larger entertainment groups if they believe plurality safeguards are credible. They are likely to be more cautious when multiple newsrooms, archives and public-service outlets are gathered under one owner.<\/p>\n

\n\tFor Europe\u2019s broadcasters, Paramount-WBD is both useful and dangerous. It strengthens the argument that regulators must recognize global competition. It also reminds policymakers that not all consolidation is created equal. A merger that helps fund domestic drama, sports and streaming infrastructure may be viewed differently from one that concentrates newsrooms and public-service assets in the hands of a single owner.<\/p>\n

\n\t\tProduction Scale: The Supply Side Bulks Up\t<\/h2>\n

\n\tA similar consolidation logic is playing out on the production side, though the economics are different.<\/p>\n

\n\tBanijay\u2019s acquisition of All3Media created the world\u2019s largest independent production group, combining franchises including Big Brother<\/em>, Survivor<\/em>, MasterChef<\/em> and Black Mirror<\/em>, with All3Media properties such as The Traitors<\/em>, Gogglebox<\/em>, Fleabag<\/em> and Call the Midwife<\/em>.<\/p>\n

\n\tWhile the goal of the deal was not simply to get bigger, Banijay CEO Marco Bassetti told THR<\/em>, \u201cscale is increasingly important because our industry remains fragmented.\u201d<\/p>\n

\n\tParticularly in the non-scripted business, notes Godard, economies of scale can be substantial.<\/p>\n

\n\t\u201cLook at what Fremantle are doing in Portugal, they are producing, on the same set, multiple local versions of [ABC extreme mini-golf competition show] Holey Moley<\/em>, for TF1 in France, ITV in the U.K., and Amazon Prime in Germany. It\u2019s a cumulative effect because you can produce with higher margins that you can then use to invest in R&D, in a way a smaller local producer can\u2019t.\u201d<\/p>\n

\n\tEuropean scripted productions, in contrast, remain more local and limited in their international reach. A global series hit out of Europe \u2014 like Netflix\u2019s Adolescence<\/em> last year \u2014 is rare and the financial benefits for cross-border success tend to skew toward the streamer, not the production company.<\/p>\n

\n\t\u201cWe see only limited scale returns for large mergers in the content production space,\u201d says RTL boss Schwebig, noting that Fremantle\u2019s M&A strategy remains focused on \u201cIP-driven acquisitions of small and medium-sized production companies that strengthen our position in attractive genres and geographies.\u201d<\/p>\n

\n\tHe is notably skeptical of the argument that bigger is always better in production.<\/p>\n

\n\t\u201cLarge transactions among content producers are often complex and produce limited synergies,\u201d he said.<\/p>\n

\n\tBut Europe\u2019s producer merger mania isn\u2019t over yet. Following the Sky-ITV merger, the newly independent ITV Studios could also be a takeover target. In France, commercial TV giant TF1 is exploring selling off its production division, TF1 Studios, formerly Newen Studios.<\/p>\n

\n\t\tFrance and the Regulatory Wall\t<\/h2>\n

\n\tThe potential sale of TF1 Studios could also trigger the next big wave of broadcast consolidation, if it frees up TF1 to attempt, again, to merge with RTL-controlled M6.<\/p>\n

\n\tFrance remains Europe\u2019s great unresolved consolidation market. TF1 and M6 abandoned their proposed merger in 2022 after competition remedies made the deal unattractive. Since then, speculation has returned periodically: over Studio TF1, over M6, over whether French regulators and lawmakers will eventually accept that the market has shifted too far for the old rules to hold.<\/p>\n

\n\t\u201cWe continue to believe that consolidation is necessary if European media companies want to compete effectively with global technology and streaming platforms,\u201d Schwebig says. \u201cAnd we remain convinced that market consolidation will also happen in France sooner or later. Otherwise, the global players will dominate the European markets. [But] any significant consolidation move requires a change of the current French media law \u2014 and positive signals from the regulators.\u201d<\/p>\n

\n\tEven in the U.K., the Sky-ITV merger could face regulatory headwinds. ITV CEO Carolyn McCall admitted they are expecting \u201ca very through and comprehensive review [of the deal],\u201d which could take \u201c12 to 18 months.\u201d<\/p>\n

\n\tThe company is betting regulators will buy its argument that \u201cthe market has changed fundamentally,\u201d due to the rise of streaming and online platforms.<\/p>\n

\n\tThat is the central dilemma facing European television. There is broad consensus that consolidation is necessary. That bigger is not just better, it\u2019s essential for survival.<\/p>\n

\n\tBut Europe\u2019s regulatory framework was built for a different competitive landscape, for an era when the biggest threat to competition came from another national broadcaster, not a global platform.<\/p>\n

\n\tPolicymakers now face the opposite risk: that fragmented national markets leave European broadcasters too small to compete with companies operating at global scale. That without bigger national or regional champions, Europe\u2019s broadcasters will be too small to fund the content, technology and news infrastructure that made them matter in the first place.<\/p>\n

\n\tA report last year, from former European Central Bank chief Mario Draghi, suggested EU regulators should relax media merger rules to make them \u201cfit for the new realities\u201d of global competition. The question now is whether those changes can come soon enough and whether Europe\u2019s broadcasters can get big enough, fast enough to survive.<\/p>\n

Read more How Oscar Isaac and Carey Mulligan Brought Their Own Backstories to the Lindsay-Josh Fight in \u2018Beef\u2019 Season 2<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As Netflix, Amazon and YouTube reshape the global TV market, European networks and production companies are chasing very different kinds of scale.<\/p>\n","protected":false},"author":1,"featured_media":5304,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2,1053,3411,3412,1054],"class_list":["post-5305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting","tag-international","tag-itv","tag-rtl-group","tag-silvio-berlusconi","tag-sky"],"yoast_head":"\nEurope\u2019s Broadcasters Want to Get Bigger. 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