EU Telecoms vs. U.S. Tech Giants: A Streaming Story in the Netflix Age

In today’s world of modern telecommunications, European telecom operators have joined the battle against major US companies to secure digital sovereignty—a term that refers to the control and ownership of digital platforms and services.

When Netflix, along with Amazon Prime and Disney Plus, began transforming the film industry through media distribution, it felt like the first season of a hit series. Europe’s response to this shift is now playing out like the next season.

Here’s how leading EU telecom companies are crafting their strategies to compete with the dominant U.S. tech giants.

Also Read: Ofcom Urges Online Platforms to Address Sensationalized Content Following UK Unrest

The Streaming Tsunami: A New Era of Competition

The emergence of streaming empires has brought about a wave of changes that have completely transformed how we consume movies and television shows.

European telecom operators are not just responding to changes but shaping the narrative, such as Deutsche Telekom. The company is showcasing its strength with its media investments, particularly its cooperation with ProSiebenSat.1, which owns the Joyn streaming company. Since the beginning of this year, all Deutsche Telekom customers with the new MagentaTV can enjoy complimentary access to Joyn’s content. Viewers can stream shows and movies from ProSiebenSat.1 Media SE’s platform directly through MagentaTV using the latest Deutsche Telekom hardware, including MagentaTV One and MagentaTV Stick, all at no additional cost. The move towards more in-house productions and fewer ‘U.S. imports’ (films and series) should also pay off in the medium to long term.

Katharina Frömsdorf, CEO of Joyn, stated, “With the launch of the Joyn app at Deutsche Telekom, MagentaTV customers can now watch our free content more easily than ever before, just in time for the start of some popular and beloved series. Through this partnership, we are opening up additional reach for Joyn’s free streaming offer—which has corresponding marketing potential. We are thus creating an even more attractive offer for MagentaTV customers.”

Telefónica‘s significant progress in its core business portfolio is a testament to its commitment to quality. The company has moved away from foreign exaggerated narrations and deafening Hollywood sounds, instead focusing on superior choice productions that resonate with users domestically. The launch of Movistar+ is a prime example of this commitment, marking the debut of a new television content platform that merges Canal+ and Movistar TV. With this move, Telefónica has reentered the media landscape, positioning itself as a significant player in the television industry in Spain and Latin America.

Domingo Corral, Director of Fiction and Entertainment Content at Movistar+, explained the importance of domestic content for streaming platforms, “We offer sports, international and Spanish cinema and series, and TV programmes. We invest in innovative content, and our fiction content is closely rooted in our culture. A good example of the latter is the series La Mesias. We are Netflix’s alternative in Spain and aim to continue being that. Netflix produces a lot of content, but we are a very relevant player in the Spanish market, making ten fiction series per year, eight non-fiction series, TV programmes and, from now on, six features a year.”

How to Win Together: Strategic Alliances

In the monumental fight for digital survival, it is vital to form partnerships as they strengthen businesses. Orange has created formidable partnerships with content creators and technology innovators to provide whole service packages—this strategy combines broadband internet access, television services, and exclusive streaming content into one attractive unit that challenges U.S.-based corporate giants.

For instance, Orange has staked its bets with Canal+, widely acknowledged as a leading premium cable channel and producer in Francophone nations. Orange offers superior homegrown material through this collaboration, such as on-screen acclaimed French series and movies from European countries. Additionally, this approach positions Orange well within the reach of Francophone populations and those seeking films made in Europe.

Orange’s establishment of OCS (Orange Cinéma Séries), a suite of French pay television networks, is a testament to the commitment to supporting local talent. OCS features a blend of American blockbuster films, HBO series—thanks to a long-standing partnership with HBO—and original European productions. Through OCS, Orange actively supported local filmmakers and series creators, helping French content gain international recognition. It was stated this year that Canal+ Group had received conditional approval from the anti-trust board to acquire Orange Studio and OCS, Orange’s film and pay-TV operations.

Orange’s partnership with Studio 4, a French web series platform supported by France Télévisions, demonstrates a similar advancement. This collaboration allows Orange to distribute and promote innovative digital content and concise, cutting-edge web series that resonates with younger, digitally savvy audiences.

The company’s collaboration with ARTE, a Franco-German TV network known for its cultural programming, further enhances its service bundles with intellectually stimulating and artistically rich content. This includes documentaries, films, and series co-produced with European partners, appealing to an audience that values cultural and educational content.

Furthermore, Orange’s partnership with BBC Studios extends its reach across Europe, offering customers access to renowned British series and documentaries. These are often co-produced with European partners, ensuring a diverse, high-quality content lineup that is sure to entertain and satisfy customers.

Vodafone offers Vodafone TV, a versatile streaming platform available across several European markets, including the UK, Spain, Germany, and Italy. Vodafone TV provides a comprehensive entertainment experience by combining live TV channels, on-demand movies, and popular TV series.

BT Group provides BT TV, a robust streaming and television service available in the UK. BT TV offers a unique combination of live TV channels, extensive sports coverage, and a vast library of streaming content.

Both of the aforementioned entities integrate with popular streaming apps, allowing subscribers to easily access platforms like Netflix, Amazon Prime Video, and YouTube directly through the respective interface.

Also Read: Investment of Nearly GBP 150M Set to Boost UK’s Wireless Infrastructure Strategy

Navigating the Labyrinth: Regulatory Challenges and Adaptation

European telecom operators face stringent data privacy, net neutrality, and market competition regulations. They must adeptly navigate these regulatory documents, focusing on transparency and consumer rights. By turning compliance into a competitive advantage, they build trust and loyalty in a landscape where privacy and security are paramount.

The first, and perhaps the most complex, challenge is data privacy, shaped by the stringent rules of the General Data Protection Regulation (GDPR) established by the European Union. For telecom companies venturing into streaming, these regulations are not a hurdle but an integral part of their operations. The real challenge lies in maintaining a seamless user interface experience while ensuring the security of all collected data.

Another challenge that awaits telecom companies is net neutrality. Under the watchful eye of European authorities, operators must ensure that their streaming services do not favor their own content over others. While limiting the exploitation of infrastructure, these regulations also push telecom companies to innovate and find legal ways to operate within the constraints, showcasing their adaptability and resilience in a competitive market.

Market rivalry remains a challenge as well. The European Commission has examined an enduring history of mergers, acquisitions, and market behavior to end monopolistic behavior. With this in mind, telecom companies must exercise utmost caution in their operations, especially when creating partnerships with content suppliers or trying to combine streaming services with what they had previously offered. This need for caution underscores the importance of careful planning and execution in a competitive market.

Also Read: Europe’s Current Digital Sovereignty: Focus on Cloud Computing

Telecom and Streaming Converge

European telecom companies are leveraging their advanced infrastructure and technological capabilities to challenge U.S. tech giants in the streaming industry. By focusing on innovations like 5G network slicing, Deutsche Telekom and CTHINGS.CO are setting the stage for more efficient urban infrastructure, which can enhance content delivery networks (CDNs) and improve the streaming experience across Europe. This infrastructure enables telecom companies to offer superior quality of service, making them more competitive in the digital entertainment market.

In another example, Telefónica and MATSUKO are pushing the boundaries of immersive media with 5G, edge computing, and AI-driven holographic meetings. This technology not only showcases the potential for interactive content but also reinforces the ability of European telecoms to create new, engaging streaming experiences that could rival those offered by U.S. giants like Netflix and Amazon Prime.

At the same time, the EU is considering regulations that would require big tech companies to contribute to the costs of updating telecom networks. This move would further empower European telecom operators by ensuring that the burden of infrastructure costs is shared, enabling them to maintain and enhance their networks without being outpaced by U.S. competitors.

Furthermore, GBI’s focus on boosting submarine network performance with Ciena’s GeoMesh Extreme and Nokia’s demonstration of PSE-6s coherent optics with Colt in a European optical network showcase the ongoing enhancement of Europe’s digital backbone. These advancements ensure that European telecoms can handle the high bandwidth demands of streaming services, providing a competitive edge in delivering high-quality content.

In-flight connectivity agreements, such as the one between Viasat and Deutsche Telekom through the European Aviation Network, highlight the diversification of services that European telecoms are pursuing. This capability allows for seamless streaming even in the skies, further expanding their reach and service offerings.

Finally, the partnership between T-Mobile and Nokia to optimize the scalability and efficiency of 5G HSI services is a critical development. By enhancing their 5G networks, European telecom companies can offer a more robust streaming service, ensuring that they can compete effectively with U.S. tech giants in delivering high-quality, high-speed content to consumers across various platforms.

Telecom Review Connectivity Analysis: Europe’s Subsea Cable Infrastructure: Security, Collaboration, and Expansion Initiatives

The Next Season

As U.S. tech giants navigate the digital frontier, European telecom operators must act as nimble and inventive challengers. They are not just standing still; they are changing the plot’s rules through diversification, strategic alliances, and a relentless focus on enhancing customer experience.

The adaptability, innovativeness, and collaboration of the “cast” will continue to shape the ongoing clash of titans in the digital age. As European telecom operators step up to the challenge, it’s clear that the dynamics of this market are not just changing, but also becoming more intriguing. We can look forward to the next season of this epic rivalry.