The European media industry is undergoing a radical transformation. Patterns of media use are changing and innovations in communication technology are altering the landscape.

Welcome to this European media sector report produced by 3i in co-operation with the Economist Intelligence Unit. This is the latest in a series of reports that examines the role of private equity and venture capital within key sectors of the European economy.

Consumers are increasingly seeking to access media on the move. They are using new technologies to control and personalise the content they receive and the frequency with which they receive it. These trends reduce and fragment audiences, but they also create opportunities for media companies to generate new sources of revenue. In response, many media companies are selling non-core assets and acquiring new businesses in fast-growing sectors. This is resulting in a wave of mergers and acquisitions (M&A) that will enable media players to strengthen their portfolios and position themselves for the challenges that lie ahead.

“Those companies that learn to exploit new technologies and changing patterns in media consumption have a huge advantage over those that don’t.”

Crevan O’Grady, Head of Media, 3i