European TV operators record growth despite recession, Pay-TV outperforms ad-funded groups

Private TV operators in Europe recorded overall growth in 2012, despite the backdrop of EU recession. The 20 biggest TV media firms posted organic growth of 1.9 percent, while the EU experienced a 0.3 percent drop in GDP last year.

Pay TV outperformed TV groups funded by advertising, with the pay-to-view firms recording an overall growth rate of 3.7 percent. Meanwhile, TV companies mainly funded by advertising posted a 1 percent drop in revenues over 2012, according to the latest figures from the European Audiovisual Observatory, published earlier this week. American groups also seem to be performing better than the competition in Europe: some 43 percent of the overall market is accounted for by groups majority owned by US shareholders. These US groups together recorded a 2.9 percent growth rate. The European Audiovisual Observatory found that pay-TV services have retained their popularity despite the recession and managed to win new clients and/or sell more services to existing clients. These groups include cable operators and satellite packagers, such as Sky in the UK, Germany and Italy, Vivendi in France and Poland, Prisa in Spain, Zon Multimedia in Portugal. The Pay-TV groups are also often involved in providing telephone and internet services and are exploiting the opportunities offered by mobile devices more and more, providing content anywhere to smartphones and tablets. Those funded mainly by advertising appear to be big investors in the production of television show and films, according to the European Audiovisual Observatory. editor@romania-insider.com