VAUNET revises 2023 revenue forecast downward • Clear signals needed from central and regional government • “No further strains on media providers”

In Germany, just as in many other countries, the current global political climate is continuing to cause uncertainty among businesses and consumers, casting a shadow over the advertising sector. This is evident in the trajectory of advertising revenues in commercial media.

For 2023, total revenues of audio and audiovisual media in Germany are projected to rise by 3.1 %, totalling €15.5 billion (2022: €15.1 billion). This growth is largely driven by revenues from subscription services and advertising within the streaming domain. Concurrently, VAUNET anticipates a modest 1.1 % dip for the year in net advertising revenues across all audio and audiovisual media, i.e. radio and TV advertising as well as advertising on audio and video streaming. Television advertising is set to bear the brunt of this decline, with revenues expected to fall by 6 %. While radio advertising will see a mild uptick, and the streaming sector is poised for substantial double-digit growth, neither will match the numbers projected in spring. These are the key findings of the 2022 revenue statistics and the 2023 projections for the German audio and audiovisual media market presented today in Berlin by VAUNET (German Media Association), the umbrella organization for commercial media.

Frank Giersberg, Managing Director of VAUNET, commented: “Our data underscores the significant economic weight of the audio and audiovisual sectors. At the same time, however, we can see how dependent the advertising-funded media in particular are on the general economic development. This dynamic further erodes their competitive stance against public broadcasters as well as major global tech companies. Given this backdrop, we strongly urge lawmakers to steer clear of imposing further strains on this industry, opting instead to bolster its competitive edge.”

Claus Grewenig, Chairman of the Board at VAUNET and Chief Corporate Affairs Officer RTL Deutschland, stated: “The rich variety of commercial media can’t be taken for granted. Its existence largely hinges on a viable monetization framework. Our sector simply can’t shoulder added pressures, such as those proposed in federal government initiatives concerning advertising restrictions on certain food products or investments obligations in film funding. It’s imperative for both national government and federal states to send unambiguous signals. After all, the plurality and professional journalism of commercial media not only offer dependable guidance but also buttress our democracy – a foundation we cannot jeopardize.”