An entirely new company is being created that brings the best of British television directly to the consumer.
Everyone in the media world has now realized that it will be exciting this autumn. The streaming wars are announcing themselves. Silicon Valley took the initiative and became a great new customer for Hollywood. But when Netflix and Amazon came up with their own originals, love quickly cooled off. As usual, the American studios were slow to come up with a new answer, but Disney led the way. Disney +, ESPN +, Hulu, Peacock (from NBCU), HBO Max, and so much more: the number of new streaming services is skyrocketing. Big Tech is also launching through Apple TV + and consumers can no longer see the forest for the trees….
In the midst of all this American violence, broadcasters, who almost all serve a local market, have to find a new answer. For many, that means setting up their own streaming service. Broadcasters have to transform themselves from business-to-business to business-to-consumer companies and that is a completely different game. Painful reforms are the result, whereby these companies have to cut their own flesh and set up entirely new business activities at the same time. Without a doubt a complex operation.
The big question is of course how relatively small local players can hold out against the big Americans. Not only Big Tech is coming in, Hollywood is also pushing at the gate. This was clear to a number of Dutch visionaries years ago: especially Bert Habets and Henk Hagoort immediately understood that they had to join forces to fight Big Tech and Big Hollywood together. But they did it in a polder, without harming their own interests, and did not step over their own shadow. NLZIET was born, but it is a half-hearted product in which the individual organizations mainly continue to promote their own services (Videoland, NPO Start, Kijk).
How different things are now in neighboring countries. Britbox will be launched in Great Britain this autumn. After several years of practice in the United States, this new service is being launched on a grand scale. Not a portal that facilitates the individual, national SVOD platforms: an entirely new company is being created that brings the best of British television directly to the consumer. The majority of the local players have now changed tack and are participating in this admirable initiative. After all, they know: only by making substantial change can they face Big Tech and Big Hollywood!
Things are going a bit slower at our Eastern neighbors, mainly because the legislator forbade cooperation between P7S1 and RTL for a long time. But P7S1 also jumped over its own shadow and started the new platform Joyn together with Discovery this summer. ZDF also joins this consortium with its content, which proves once again that commercial and public organizations can work well together when it really gets tough. The superlative: in France, TF1, M6 (the local RTL channel group) and the public broadcaster start the joint streaming platform Salto. For a long time, the legislator was an obstacle, but in the end understood that local players will not survive without such partnerships. In the fight against Big Tech and Big Hollywood, the French government discarded earlier principles and gave this initiative the green light.
It is all the stranger that in the puny Netherlands the three broadcasters self-interest prevail over the common. NLZIET is in danger of becoming a stillborn child because the three players would rather compete with each other than arm themselves against Big Tech and Big Hollywood. Maybe the parties will change their mind, but now it looks like a missed opportunity. That must be possible in the Netherlands with its strong creative industry.
In recent years, money seemed to be endless in the media world. The advertising markets were booming after the COVID crisis, funding for public broadcasting remained largely untouched, and the marketing machines of new video streaming platforms worked overtime. Investments in content were skyrocketing, there was insufficient staff to complete all productions, and the sky seemed to be the limit.
How different things are now. Market leader Netflix, for example, has reduced content investments by a third. Advertising markets have also come under pressure, particularly in Germany. Finally, politics has again started to interfere with broadcasting contributions: in the Netherlands, the budget for public broadcasting was cut by €150 million, and other countries are also pausing to reassess.
It is therefore unsurprising that all media organizations have started to watch their spending. Some have even implemented drastic budget cuts. A good example is Warner Bros. Discovery, where one initiative after another has been announced to achieve billions in savings. The cause is the enormous debt burden the company carries. It must be said that this policy is paying off: the debt has been reduced by a third in three years. A remarkable achievement. It’s hardly surprising that financial engineering played a key role in this process. However, the fact that it is done so openly is. One example: a film like Batgirl, which was already in post-production, was completely written off. The costs were booked "below the line," meaning they did not appear in the profit figures. The reason: the series was considered "non-core business." This kind of accounting trick is being adopted by more media companies.
Another interesting aspect is the funding of public broadcasters. In the Netherlands, under the leadership of the then-almighty Harry Kramer, the broadcasting fee was incorporated into general taxation around the turn of the millennium. It was deemed that the fee was outdated, so it was abolished, and public broadcasting was then funded from general government funds. This had significant disadvantages for public broadcasting: politics could now directly interfere with its financing. The result is well-known: public broadcasting has been facing significant cuts in recent years.
In the United Kingdom, they still use the old system of a television and radio license fee. Everyone who owns a TV must pay £169,50 annually. Many Brits are questioning why this mandatory fee still exists in an era of video services paid for directly. Interestingly, it is considered a legal offence to not pay the license fee. It’s no surprise that it’s now up to creative financial minds. It will be interesting to see what emerges from this: even a tax on broadband connectivity is being considered. A system that Spain recently dismantled. Financial engineering of hand has become the norm in both the public and commercial media domains...
Time for your columnist to once again take stock of the predictions he made at the beginning of the year. Post-dictions, if you will. This January, I put myself on the line with four predictions that, as it turns out, weren’t all accurate. Let’s review them.
Prediction 1 was that streamers would intensively engage with sports broadcasting rights, and prices would rise significantly. Along the way, I also suggested that the Formula 1 rights in the Netherlands would end up at RTL or Ziggo. As we now know, these rights remained with the streamer Viaplay, thanks to an ingenious deal in which Viaplay’s Scandinavian operations acted as leverage. Still, streamers have not yet aggressively conquered this market segment. Quality issues with the Italian Serie A and the Tyson vs. Jake Paul fight revealed that for mass events (which sports are), the streaming technology still falls short.
Prediction 2 concerned consolidation in the audiovisual media sector. I predicted that the Warner and Discovery merger would be surpassed. While Paramount was indeed acquired by Skydance and private equity fund Redbird IMI took over All3Media, these deals did not represent consolidation. In fact, it was fairly quiet on the acquisition front. The merger between Discovery and Warner caused so many issues—primarily due to the debt mountain the combined company accumulated—that other media companies chose to wait and see.
Prediction 3 revolved around the use of data in the media industry. I forecasted a significant increase in the use of data in our field. It’s undeniable that data usage will grow, even in programming decisions. The growth of the Dutch company CIA, led by Mark Ramakers and Hans Bouwknegt, shows that acceleration is indeed on the horizon. However, there’s no revolution in sight yet, and developments are progressing more slowly than I anticipated.
The fourth prediction focused on the position of public broadcasters in Europe. I argued that public broadcasters would retain their value and were headed for a bright future. In the Netherlands, the €100 million budget cut wasn’t as severe as expected. The proposed privatization of Channel 4 in the UK was put on hold by the Labour government, and the remarkable digital successes of broadcasters like SVT and NRK in Scandinavia were widely praised. ZDF and ARD in Germany are also in relatively good shape. Good news for public broadcasting!
What’s in store for 2025? First, we’ll find out whether the proposed consolidation in the Netherlands, through RTL’s acquisition by DPG Media, will be brought about. Meanwhile, the growth of streaming will continue unabated. Finally, it will become evident that millennials won’t return to traditional television, sticking instead to social media and streaming video. Broadcast, in its traditional form, will further lose significance, though mass reach will remain as relevant as ever.
And finally: generative AI is going to turn the media industry upside down. Guaranteed!
Meindert schopte het eerst van enquêteur tot directeur bij marktonderzoeksbureau Ipsos. Vervolgens stapte hij over naar de media en was hij in 2008 een van de oprichters van 3Rivers. Vanuit 3Rivers gaf hij talloze adviezen, implementeerde die idealiter ook en deed dit onder andere als ad interim directeur SBS Productions, director van content & productions bij RTL, mediadirecteur van KRO-NCRV en zakelijk directeur van de NTR.
Justine was eerst format-ontwikkelaar en eindredacteur bij producenten als SBS Productions, Eyeworks en IDTV. Vervolgens maakte ze de overstap naar de zender-kant en werd ze directeur bij Net5 en programma-coördinator bij RTL 5. Inmiddels leidt ze SimpelZodiak, het label van Banijay dat specialist is adventure, crime, factual entertainment en reality. Zo maken ze bijvoorbeeld Hunted, De Bauers, Expeditie Robinson, Ik Vertrek én misdaadprogramma’s van Kees van der Spek.
Wat voor structuren, processen en cultuur zijn essentieel om creativiteit te kunnen laten floreren?
Hoe kan je daarvoor juiste veranderingen aanbrengen in je organisatie?
En hoe combineer je creatieve vrijheid met de nodige verantwoordelijkheid en efficiëntie?