The European Commission is calling on the continent’s production companies to strengthen their finances, invest in long-term growth and retain ownership of their intellectual property as competition from US studios and streaming platforms intensifies.
European producers need to move beyond financing individual projects and focus on building stronger companies if they are to compete internationally, according to Giuseppe Abbamonte, the European Commission’s director for media policy.
Speaking at the MIA audiovisual market in Rome, Abbamonte said European businesses needed greater scale to compete with American studios, streaming services and digital platforms such as YouTube. Building sustainable companies, rather than concentrating solely on individual productions, would also help European producers retain control of their intellectual property.
Recent consolidation deals underline the pressure to scale up. Comcast-owned Sky has agreed to acquire ITV’s broadcasting and streaming operations for $2.1 billion, while RTL is combining its free-to-air broadcasting business with Sky Deutschland. MediaForEurope, meanwhile, controls German broadcaster ProSiebenSat.1.
Alessandro Usai, president of Italy’s producers’ association ANICA, said European production companies remained too small and risk-averse. Without stronger businesses, producers could struggle to finance ambitious projects or risk losing valuable intellectual property through acquisitions.
Cooperation between European markets is also being explored as a way to attract investment and support international growth. Italy and France have been developing joint initiatives, while proposals for a European investment fund and a digital platform to connect producers with international financing have also emerged.
Antonino Stefanucci said the industry needed to recognise culture’s economic value as well as its artistic importance. The global success of Hollywood productions and South Korean dramas demonstrates the commercial potential of content that reaches audiences beyond its domestic market.
The MIA market runs until October 23, bringing together industry professionals to discuss financing, production and the future of the European audiovisual sector.
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