Yankee: Multi-channel services, new advertising formats and new direct business partnerships between content providers and advertisers are posing a tremendous threat to the core business of European commercial broadcasters. As a result, European free-to-air (FTA) broadcasters are facing a severe decline in advertising revenue. To retain these budgets and margins, broadcasters must refocus their traditional business model and explore new and emerging TV distribution and merchandising options.

European Commercial Broadcasters Must Diversify to Retain Advertising Revenue, published recently, FTA broadcasters also face significant cost pressure from analog switch-off and the transformation to digital transmission. On average, only 30% of most European broadcasters’ revenue comes from channels other than advertising. This means that broadcasters must better understand the changing demand of advertisers to claim greater reach of target audiences while also securing their revenue and margins. In today’s on-demand world, European broadcasters should begin exploring alternative broadcasting methods to generate greater revenue.

European broadcasters cannot escape from the branded entertainment and advertisers demand for cross-media platforms. FTA broadcasters should prepare content for digital switch to Internet, IPTV and mobile as well as create new, scalable cross-media platforms while advertisers and brands engage with TV broadcasters to explore new ways to research and interact with consumers.

• Even with lower production costs, the demand for HDTV is on the rise. To compete in a pan-European or global market, production houses should engage with global brands that have restrictions in their core markets to develop global entertainment programs.

• Europeanbroadcasters_9_18_06.htm"> Diversification of European regulatory branches is no longer contemporary

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