Development of the German media market: Opportunities and challenges for US media firms

Due to technological development and economic pressures, deregulation of the West European broadcasting market during the 1980s has led to an enormous increase in the number of television channels. The opening of the markets to commercial interests and the demand for TV software (programming material) at the same time give media companies diverse opportunities to become active across frontiers. Being the biggest broadcasting and advertising market in Western Europe, Germany has become an interesting target for foreign companies. The introduction of digital television in the summer of 1996 and further liberalization of ownership regulations have made entry into the German broadcasting market even more attractive. This article describes the development of the German TV sector and analyzes opportunities, restrictions, and consequences of international and particularly U.S. activities in the German market.