Germany's Media Landscape Evolves: Streaming Dominates Growth Projections

The German media industry is undergoing a transformative shift, with audio and audiovisual media revenues projected to rise by 4.3% in 2024, reaching a staggering €16 billion. This growth is primarily driven by the surge in subscriptions and advertising revenues in the audio and video streaming segments, according to the latest annual autumn forecast from VAUNET, the German Media Association.

Unlocking the Future of German Media: Streaming Leads the Charge

Streaming Dominates the Landscape

The audio and video streaming segments are poised to be the primary engines of growth in the German media industry. Subscription and advertising revenues in these sectors are expected to be the driving force behind the projected 4.3% increase in total revenue, reaching €16 billion by 2024. This surge in streaming-related revenue underscores the shifting consumer preferences and the growing demand for on-demand, personalized content.As the streaming landscape continues to evolve, the competition among providers is intensifying. While this differentiation is sharpening the competitive landscape within the industry, it is also intensifying the pressure in the competition with the unequally regulated global tech giants and the well-funded public broadcasting system. Policymakers will play a crucial role in ensuring a level playing field and fostering an environment that allows commercial media companies in Germany to thrive.

Radio and Teleshopping Maintain Steady Growth

While the streaming segments are the primary drivers of growth, the traditional media channels are also contributing to the overall positive outlook. Radio advertising is expected to see a 2% increase, reaching €713 million in 2024, while the teleshopping segment is anticipated to experience a slight upturn of 1%, reaching €2.3 billion.These figures highlight the resilience of the German media industry and its ability to adapt to changing consumer preferences. The continued growth in radio advertising and teleshopping revenues suggests that traditional media channels still hold a significant place in the hearts and minds of German consumers, even as the streaming revolution takes hold.

Television Revenues Remain Stable

In contrast to the double-digit growth in streaming video advertising, television advertising revenues are expected to remain stable at the previous year's level of €3.6 billion. This stability in television advertising revenues underscores the enduring appeal of traditional broadcast media, even as consumers increasingly turn to on-demand and digital platforms.The television subscription segment is also projected to remain stable at €2.2 billion, indicating that German consumers continue to value the content and services provided by traditional television providers. This stability in television revenues, coupled with the growth in streaming, suggests a media landscape that is evolving to meet the diverse needs and preferences of the German audience.

Paid Content Drives Revenue Growth

The revenue from paid content, including pay-TV, video-on-demand, and paid audio, is expected to rise by 5% in 2024, reaching €7.5 billion. This growth is primarily driven by the continued expansion of the paid video-on-demand segment, which is projected to see a 10% increase, reaching €3.4 billion.The paid audio segment is also expected to contribute to the overall growth, with a 5% increase in revenues, reaching €1.9 billion. This trend underscores the growing consumer appetite for high-quality, curated audio content, whether it be music, podcasts, or other audio-based offerings.The stability in the pay-TV segment, at €2.2 billion, suggests that traditional television providers are still able to maintain a strong foothold in the market, even as streaming services continue to gain traction.

Advertising Revenues Poised for Growth

The German media industry's advertising revenues are also expected to see a significant boost in 2024, with a projected increase of 4.6%, reaching €6.2 billion. This growth is driven by the continued expansion of the audio and video streaming advertising segments, which are expected to see double-digit growth of 10% and 17%, respectively.The radio advertising segment is also anticipated to contribute to the overall advertising revenue growth, with a 2% increase, reaching €713 million. This stability in radio advertising revenues underscores the enduring appeal of traditional radio among German consumers.The television advertising segment, on the other hand, is expected to remain stable at the previous year's level of €3.6 billion. This stability in television advertising revenues suggests that traditional broadcast media continues to play a crucial role in the German media landscape, even as consumers increasingly turn to digital and streaming platforms.Overall, the projections for the German media industry's advertising revenues in 2024 paint a picture of a dynamic and evolving landscape, where traditional media channels and emerging digital platforms coexist and contribute to the industry's growth.