Urgent Call for Action in Central and Eastern European TV Industry
Central and Eastern Europe’s traditional television networks are at a critical juncture where they must innovate swiftly or face losing their viewers to major digital platforms such as Netflix and YouTube.
This warning comes from Sam Barnett, CEO of Central European Media Enterprises (CME), who spoke during a keynote interview at the NEM conference in Dubrovnik, Croatia. Barnett highlighted the intense competition from American streaming services and the challenges posed by digital advertising platforms.
“American streamers are becoming dominant forces in the industry,” Barnett stated. “Local media plays a crucial role in resisting platforms like YouTube, which are draining advertising revenues to the U.S., and streamers who are set to take over the market.”
He added that the geographical and cultural diversity within Central and Eastern Europe, characterized by multiple languages and distinct cultural nuances, serves both as a challenge for media consolidation and as a strategic advantage against large American streaming corporations. This diversity creates significant entry barriers, offering local players a greater opportunity than ever before.
The Unique Digital Landscape of CEE
The Central and Eastern European region is distinctive in the entertainment sector, having transitioned to digital more slowly compared to other regions, according to recent studies by Ampere Analysis and others.
This slow transition, combined with strong pay-TV retention and generally smaller economic markets compared to Western Europe, has resulted in less investment by platforms like Netflix and Prime Video in local original content. However, Barnett noted that this trend is starting to shift.
“Our corporate strategy rests on four pillars: premium content, defending linear TV, rapidly expanding our digital offerings, and strengthening local brands,” Barnett emphasized. “Without a strong digital strategy, our relevance will diminish rapidly.”
When BBC News moderator Kasia Madera inquired how companies like CME can compete with the substantial budgets of platforms like Netflix, Barnett responded, “They’re not spending $18 billion in this region,” indicating a window of opportunity.
Barnett described the competition as a “battle of resistance,” advising, “If you’re resisting, be like a small country with large mountains, not a flat and expansive one.” He pointed out that while major streamers are focusing on larger markets like Germany, France, and eventually Poland and Asia, they will take time to fully penetrate the CEE market, presenting an opportunity for local media to strengthen their offerings.
“Can we further invest in developing our local premium content, perhaps using AI or other innovative methods, to ensure we’re producing world-class content? This way, we become the go-to for local content when global giants eventually expand here,” he added.
Barnett, who previously served as CEO of the Middle Eastern media giant MBC, has consistently advocated for collaboration among CEE’s traditional media outlets to counter the influx of American streaming services. This strategy was first revealed in his initial interview as CME’s CEO with Deadline in December and reiterated today at NEM.
“Linear TV will continue to hold significant value in delivering news, live events, sports, and major shows. However, we cannot afford to neglect digital platforms. We need local media to work together to foster growth and resist being overshadowed by international streaming services,” Barnett concluded during his address to conference attendees.
Daniel Hayes is a business journalist with a focus on market trends, startups, and corporate strategies.
His sharp analysis and investigative reports make complex financial topics accessible to all readers.
