European commission publishes 2025 edition of the European Media Industry Outlook

IRIS 2025-9:1/3

Eric Munch

European Audiovisual Observatory

On 4 September, the European commission published the 2025 edition of the European Media Industry Outlook. The report explores demand and supply trends in the audiovisual, video games, extended reality and news media sectors with the aim to analyse their potential impact in the EU media markets.

The report notes that even though linear services still holding slightly more than half of the revenues, the EU’s audiovisual market faces major shifts in viewing habits as YouTube rivals subscription video on-demand (SVoD) watch time. Non-EU players dominate SVoD, with EU providers only representing 16% of the EU market. EU producers show resilience, achieving global hits and innovating through consolidation and digital transformation, in spite of fierce global competition and rapid AI-driven changes.

The report also touches upon video games, finding that the EU holds only 13% of global video games revenue and limited technological autonomy. Despite fragmentation and funding challenges, Europe boasts creative talent, strong startups, and innovative hubs. Its extended reality sector remains niche but excels in creative, industrial, and immersive applications.

The state of Europe’s news media sector is also explored in the report, which concludes that it faces declining revenues, competition from digital platforms, and the impact of AI-generated content. Traditional income streams remain dominant but shrinking, while digital gains are relatively modest. Most outlets now embrace online formats, AI tools, and new revenue models.

It provides a series of assets it considers to be key to allow European media to regain competitiveness. They include placing audiences and users at the core of their strategy, further embracing technological solution, investing to finance technological development, usage and innovation, and better exploitation of intellectual property.