Europe’s Consolidation Conundrum: Bigger Isn’t Always Better

As Netflix, Amazon, and YouTube continue their relentless march towards global domination of the TV market, European broadcasters are scrambling to adapt – or perish. A burst of deal-making in recent years has seen major players like Sky and ITV merge with local competitors, while German conglomerate RTL is expanding its reach through a combination of free-to-air and pay-TV networks.

The driving force behind this consolidation wave is the threat posed by global platforms. European TV companies are no longer just competing against each other for audience attention – they’re now fighting a battle on multiple fronts against Netflix, YouTube, Amazon, Disney, TikTok, Google, and Meta. These tech giants have deep pockets, advanced advertising infrastructure, and an unparalleled reach across borders. “Broadcasters’ audiences are clearly declining,” notes Enders Analysis’ Cleodie Kilgour, “which puts ad revenues under pressure while production costs continue to rise.” Consolidation is seen as a way for European broadcasters to build scale, share costs, and compete more effectively in this increasingly crowded market.

However, what exactly does it mean to be big? In the past decade, broadcast viewing has shrunk dramatically among younger audiences. The UK’s public service broadcasters lost 60 minutes of daily viewing per person between 2015 and 2025, while Germany’s linear TV viewership fell by nearly a third since 2019. Meanwhile, content costs are skyrocketing – in the UK, high-end scripted television budgets have increased by two-thirds over the same period.

This leaves broadcasters facing a stark reality: they’re being squeezed from both sides by declining ad revenue and rising production costs. National champions like RTL and ITV/Sky are betting that combining pay and free TV networks will give them the scale needed to compete with global platforms. But does bigger always mean better? In an era where audiences are increasingly fragmented across multiple platforms, what’s to say that a combined Sky/ITV play would be able to reach a wider audience than each of its constituent parts?

Moreover, consolidation is only half the story. As European TV companies merge and partner with global platforms, they’re also ceding control over their own destinies. MFE (the Berlusconi family’s MediaForEurope) has acquired several major European networks in recent years – but at what cost? Are these deals merely a desperate attempt to stay relevant in a rapidly changing market, or do they mark a genuine shift towards a more pan-European advertising giant?

The dust is settling on this consolidation wave, and it’s clear that Europe’s TV landscape will never be the same again. But as we watch these behemoths grow and merge, we’d do well to remember that bigger isn’t always better – and sometimes, it’s not even necessary. As Cleodie Kilgour puts it, “partnerships alone are not enough” – what European broadcasters really need is true scale to remain competitive.

The evidence suggests that consolidation is a double-edged sword. While it may provide some short-term benefits in terms of cost savings and shared resources, it’s also likely to lead to a further homogenization of content and a loss of local distinctiveness. As we move forward into this brave new world, one thing is certain: Europe’s TV companies will have to adapt – or risk being left behind.

The stakes are rising, and the question remains unanswered: what does the future hold for European broadcasting? Will consolidation lead to a more efficient, streamlined industry that can compete with global platforms? Or will it merely hasten the decline of local TV networks and the erosion of public service broadcasting?