SERIES MANIA: As broadcasters fight for advertising revenue, TV fiction production slows and on-demand services reshape content distribution, the European audiovisual landscape is evolving fast, delegates in Lille hear today.

The European television and audiovisual industry is undergoing profound shifts, driven by evolving viewer habits, intensifying competition between broadcasters and digital platforms, and the increasing dominance of on-demand services.

So says the Key Trends 2025 report from the European Audiovisual Observatory (EAO), which was unveiled today at Series Mania in Lille. Susanne Nikoltchev, exec director at the EAO, discussed the report’s findings with Manuel Alduy, head of cinema and international development at France Télévisions; Carolina Lorenzon, director of international affairs for Mediaset-owned RTI; and Gilles Fontaine, head of the market information department at the EAO.

The report provides a comprehensive analysis of the changes affecting the European television and audiovisual industry, shedding light on the forces shaping content creation, distribution, advertising and regulation across the sector.

One of the report’s central themes is the growing battle for video advertising. As subscription-based streaming services mature and hit saturation in many markets, advertising has become a key battleground. Traditional broadcasters, video-sharing platforms (VSPs) and new AVoD entrants are all vying for their share of ad revenues.

Broadcasters are expanding their free on-demand services in an effort to retain viewers and maintain ad income, while VSPs such as YouTube have already secured a significant foothold, capturing 24% of the video advertising market in 2023.

This is a dramatic shift, considering that broadcasters still controlled 76% of the sector, but as the report makes clear: “VSP advertising revenues [are] growing much faster than broadcasters’, and broadcaster advertising revenues [are] declining significantly in real terms.” Meanwhile, streaming services like Netflix and Disney+ have introduced ad-supported subscription tiers, further fragmenting the advertising market and forcing traditional players to rethink their strategies.

The evolving television market is also reflected in production trends, with TV fiction experiencing a downturn after years of steady growth. “TV fiction production in Europe has reached a turning point,” states the report, as 2023 saw a 6% drop in the number of new titles, along with a decline in episode count.

However, this does not mean interest in scripted television is waning. High-end TV series – those with between three and 13 episodes per season – continue to dominate, accounting for the majority of new titles. “Well over half of the titles produced in 2023 were high-end TV series, a 105% increase since 2015,” the report notes, reinforcing the industry’s shift towards more premium, serialised content.

At the same time, shorter formats are gaining traction. Many new high-end series are limited to a single season, says the report, and episodes themselves are getting shorter, often running between 36 and 65 minutes. This is, in part, an effort to manage rising production costs and inflation, ensuring that budgets remain viable while still producing compelling, high-quality programming.

Public broadcasters continue to play a crucial role in scripted content, commissioning 55% of all TV fiction titles in Europe in 2023. Private broadcasters, by contrast, are more focused on long-running formats such as daily soaps and telenovelas, which allow them to maintain a steady stream of content without the high costs associated with short-run, high-end dramas.

The Key Trends 2025 report highlights the increasing role of coproductions in European audiovisual content, particularly in television fiction and film. With rising production costs, tightening budgets and the need for broader market appeal, coproduction has become an essential strategy for both broadcasters and streaming platforms looking to maximise resources and reach wider audiences.

One of the most significant findings in the report is that coproductions now account for 10% of all TV fiction titles produced in Europe. These are largely high-end scripted series and TV films, rather than long-running soap operas or daily dramas, which are typically commissioned within a single market. The demand for premium storytelling, increased budgets and cross-border collaboration has fuelled this shift, as producers seek to leverage financial incentives and talent from multiple territories.

The report underscores that coproductions also ensure content can travel across different markets. European public broadcasters, private networks and global streaming services are all investing in coproductions as a way to boost production value, access larger talent pools and secure international distribution deals. As the report states: “On average, over 100 TV fiction coproductions are produced in Europe each year, almost exclusively high-end TV series and TV films.”

This aligns with broader industry trends, where global streaming platforms such as Netflix, Prime Video and Disney+ are increasingly partnering with European production companies to develop original content that caters to both local and international audiences. The report highlights that streaming services, despite their growing market share, still rely on local expertise to create content that resonates with different cultural and linguistic audiences.

In film, coproductions have also become more common, particularly for independent European films that rely on financing from multiple countries. The report notes that coproductions have a much higher share of adaptations compared to non-coproductions, suggesting that content based on existing IP – whether books, previous TV series, or theatrical plays – is more likely to be developed across multiple territories. This is particularly true in markets such as France, Germany and the UK, where production incentives and funding structures encourage international collaboration.

With the continued rise of high-budget productions and the necessity of pooling resources across European markets, coproductions are expected to play an even greater role in the audiovisual sector moving forward. The challenge, however, remains  balancing creative and financial priorities across multiple stakeholders, ensuring content remains relevant in both local and global markets.

While TV fiction production may be slowing, the distribution landscape is becoming more complex, with linear TV no longer the dominant force it once was. The report highlights the growing importance of on-demand platforms, which now serve as a critical avenue for film and television exploitation.

A theatrical release remains an essential first step for many European films, with over 60% of all EU27 films broadcast on TV and available on SVoD platforms having first premiered in cinemas. However, VoD platforms – both SVoD and TVoD – are playing an increasingly central role in ensuring films reach audiences. In fact, 40% of films on SVoD and 45% of films on TVoD had originally been released theatrically, demonstrating the continued value of cinema in the distribution chain.

Despite strong production numbers, European films are finding it harder to succeed beyond their home markets. “Admissions to European films are becoming increasingly concentrated in their national markets and within Europe, while admissions to European films outside of Europe are experiencing a notable decline,” the report states.

In 2023, a staggering 92% of admissions to European films occurred within Europe, with 68% coming from national markets. This highlights the growing difficulty European films face in securing distribution and visibility internationally, particularly outside of Europe.

The problem is exacerbated by the fact that fewer European films are achieving blockbuster success. In 2023, only 41 European films surpassed one million admissions – a significant drop from the 72 films that reached this milestone in pre-pandemic years.

“The decline in European film admissions is partly attributed to the reduction in the number of European films that achieve over a million admissions,” the report warns. Instead, the market is shifting towards smaller, niche films that, while still finding an audience, are less likely to break through on a wider scale.

One of the major challenges facing both film and television producers is financing, with an increasing reliance on public incentives. “For the first time, production incentives became the second most important financing source, contributing 21% of total financing,” the report states, underscoring the growing dependence on government support. While public broadcasters and state-backed funds continue to play a significant role in financing European content, market fragmentation and economic uncertainty are making it harder for independent productions to secure the necessary funding.

Beyond the structural changes in production and distribution, the report also highlights the growing regulatory challenges posed by digital content creators. Influencers, who now play a significant role in shaping media consumption habits, remain largely unregulated in many European countries.

“Most EU countries lack a legal definition of the concept of ‘influencer,’” the report points out, which complicates efforts to impose advertising and content guidelines on social media personalities. While France and Spain have introduced regulations specifically targeting influencers, most countries continue to rely on existing media laws, often treating influencers as audiovisual media service providers. This creates a grey area where content creators are subject to some regulations but are not yet held to the same standards as traditional broadcasters.

As the European audiovisual sector moves further into 2025, it is clear the industry is facing both opportunities and challenges. Broadcasters must innovate to remain competitive against VSPs and AVoD services, while TV fiction producers are recalibrating their strategies to accommodate shifting viewer preferences and economic realities.

VoD platforms continue to grow in influence, shaping the way films and TV series reach audiences. Meanwhile, financing remains a concern, with production incentives and public funding playing an increasingly crucial role. And with the continued rise of digital-first creators, regulators are struggling to keep pace with the evolving media landscape.

For industry players, adaptability will be key. Success in this rapidly evolving environment will depend on the ability to embrace new business models, explore alternative financing strategies and leverage emerging technologies. Whether in production, distribution, advertising or regulation, the future of European audiovisual media will be defined by those who can navigate change while maintaining the industry’s unique creative and cultural identity.