Broadcasters ask for measures against 'unfair' international competition
The two major Flemish commercial TV broadcasters are asking for government support against international competitors. According to DPG Media and Play Media, without a support policy, around 700 jobs are at risk in the media sector.
Play Media, which broadcasts the Play channels, and DPG Media, owner of VTM, are normally competitors, but are joining forces to lobby for protective measures, citing "unfair competition" from major international players such as Google, Netflix and TikTok.
“We are not complaining and whining,” said Dirk Lodewyckx, general manager of Entertainment at DPG Media. He says Flemish broadcasters have made considerable efforts to adapt, including launching their own streaming service, Streamz, creating ad-supported on-demand platforms and investing heavily in local television programmes. However, these efforts have not been enough to offset the challenges posed by international competitors.
Decline in advertising revenue
A study commissioned by the two companies shows that, without policy changes, Flemish commercial broadcasters could face structural financial losses by 2026. They are faced with declining advertising revenue and subscription income while the costs of producing TV programmes continue to rise.
“We are bound by very strict regulations, such as the recent ban on gambling advertising. While we understand the rationale, it has cost us millions in revenue, which has shifted entirely to big tech,” Lodewyckx said. Meanwhile, platforms like TikTok and YouTube expose children to gambling ads embedded in games or videos, bypassing local regulations.
“If advertising regulations are only enforceable for local players but not for international platforms, money and viewing attention will inevitably shift,” said Jeroen Bronselaer, CEO of Play Media. He added that this would create a less responsible advertising environment and urged policymakers to avoid imposing further restrictions on local broadcasters.
Request for new measures
One proposal to level the playing field is a tax benefit for companies that advertise with local media, similar to the tax shelter system that provides tax exemptions for investors in films or games. “It’s not a flat subsidy but a win-win,” Lodewyckx said.
Another issue is the visibility of Flemish TV. Global tech companies often secure deals to pre-install apps like Netflix and YouTube on smart TVs and devices, giving them a significant advantage. Flemish broadcasters lack the resources for such agreements and are calling for regulations that would require television manufacturers to include Flemish TV apps as standard.
Without such policy changes, the consequences for local media could be severe. Falling revenues and rising costs may force broadcasters to reduce orders from production companies by 25 per cent, cut back on entertainment and news programming and result in the loss of 700 jobs or 10 per cent of the sector’s workforce.
“Our goal is to ensure that Flemish media remains visible, sustainable, and competitive in a globalised market,” Bronselaer said.
#FlandersNewsService | © PHOTO BELGIAN FREELANCE
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