EU Policy Chief Calls for Massive Scaling to Counter Global Streaming Giants

A New Strategy for European Media

The landscape of the global entertainment industry is undergoing a seismic shift, and European production houses are finding themselves at a critical crossroads. Speaking at the MIA Market in Rome, Giuseppe Abbamonte, the European Commission’s director for media policy, delivered a stark message to industry stakeholders: if European companies want to compete with the juggernauts of Hollywood and Silicon Valley, they must get bigger.

Abbamonte’s remarks highlight a growing anxiety within the European Union regarding the cultural and economic sovereignty of its media sector. As streaming giants like Netflix, Disney+, and Amazon Prime Video continue to dominate the attention of global audiences, local producers are struggling to secure the capital and distribution scale necessary to match their reach. The solution, according to the EU, lies in consolidation and a concerted effort to foster "national champions" capable of operating across borders.

The Problem of Fragmentation

For decades, the European film and television industry has been characterized by a high degree of fragmentation. While this has fostered a vibrant, diverse, and culturally rich creative environment, it has also created an inherent weakness in the face of modern market pressures. Small and medium-sized enterprises (SMEs) dominate the sector, often lacking the financial reserves required to weather the long production cycles and the high-stakes marketing budgets required for global distribution.

"We must invest in companies," Abbamonte emphasized during his address. The current model, which often relies on fragmented national subsidies and small-scale private equity, is increasingly seen as insufficient. To bridge the gap, the European Commission is looking toward policies that encourage mergers, acquisitions, and the formation of larger consortiums that can leverage economies of scale.

Rethinking Financing Models

One of the most contentious issues discussed at the MIA Market was the role of foreign capital in European productions. While many local creators fear that reliance on US-based streaming platforms could lead to a "homogenization" of content, others argue that these partnerships are a necessary evil.

Abbamonte suggested that the path forward involves a delicate balancing act. The EU is currently evaluating ways to:

• Incentivize cross-border co-productions that allow companies to pool resources.
• Encourage private investment into European-owned media groups to prevent hostile takeovers by foreign entities.
• Standardize tax incentives across member states to make the European market more attractive for institutional investors.
• Protect intellectual property rights while ensuring that local creators retain a larger share of the value created by their work.

The Role of AI and Tech in Production

Beyond simple consolidation, the European Commission is also looking at how technology can serve as a force multiplier. As the cost of high-quality visual effects and post-production continues to rise, AI-driven tools are being viewed as a potential equalizer. By investing in European tech startups that specialize in media production software, the EU hopes to reduce the overhead costs for local studios, allowing them to produce high-end content at a fraction of the current price.

However, this technological pivot requires significant capital expenditure. Abbamonte’s call to action is not just directed at government bodies, but at the private sector. The message is clear: European investors must stop viewing media companies as risky, small-scale ventures and start seeing them as strategic assets with global growth potential.

Looking Ahead: The Future of European Cinema

The road ahead will not be easy. The European media landscape is protected by a complex web of cultural regulations, language barriers, and differing national interests. Yet, the pressure to evolve is mounting. Without a shift toward larger, more resilient entities, the risk is that Europe will become merely a service provider for global platforms, rather than a creator of global hits.

As the EU continues to refine its media policy, the focus will likely remain on structural growth. Whether or not these changes will satisfy the creative community—which often values artistic independence over corporate size—remains to be seen. For now, the directive from Brussels is clear: in the era of global streaming, scale is the only path to survival.