15/09/2022 - In 2021, Netflix injected about half of global streamers’ investments in Europe, but other players have now started to catch up

Netflix's The Crown, a prime example of a global streamer investing in European original content

Last week, the European Audiovisual Observatory published a new report titled “Investments in Original European Content: A 2011-2021 analysis”, authored by Gilles Fontaine.

The document explores the evolution of the financing of original European content by broadcasters and global streamers since 2011. In the study, the term “original content” refers to all categories of original works (encompassing fiction, documentaries, game shows, talk shows and so on), whilst “European” refers to EU27, the UK and Norway.

The analysis is based on a dataset provided by the British firm Ampere Analysis and combines two different categories of data – namely, profit-and-loss expenses for broadcasters, and cash investments for global streamers.

The report highlights five key takeaways. First, total investments in original European content increased sharply with the entry of the global streamers in the European market, topping €17.4 billion in 2021. Moreover, “The growth of investments accelerated from 2015 until the pandemic and strongly rebounded in 2021.”

Second, the streamers’ investments were accompanied by what the report defines as an “interesting knock-on effect […]. Facing new competition and new standards for TV shows, private broadcasters also increased their investments while public broadcasters faced budget constraints,” the study finds.

Third, the global streamers’ share of investments in European original content grew rapidly to 16% in 2021, and their investments in original European production grew faster than their acquisitions.

Fourth, Netflix now accounts for “more than half of the global streamers’ investments in European original content, down from 92% in 2019, as other streamers, notably Amazon Prime, have increased their investments” and have started to catch up.

Fifth, Spain is the main beneficiary of the streamers’ investments (with a share estimated at 38%, which compensates for the low level of investments by the country’s pubcasters). Meanwhile, the role of the UK as the leading market for the production of original European content has been reinforced, as 30% of investments in original European content go to British works. Furthermore, pubcasters “are particularly invested in original content in Denmark (74%), Germany (57%) or the Netherlands (61%)”.

You can access the full report by clicking here.