For several years now, the German media landscape has been undergoing profound changes driven by digital technology, the rise of streaming platforms, and pressure on traditional broadcasters. In 2024, a major turning point will accelerate this transformation: the end of the Nebenkostenprivileg.
German television, whether public or private, now finds itself at the crossroads of new legislative and financial challenges. As for landlords, they can no longer systematically include cable fees in rental charges, and this change is set to take effect in 2024. For many households, this implies a transition to other reception methods, whether DTT (terrestrial), satellite, Internet television (IPTV), or subscriptions to streaming services.
In this article, we will take a detailed look at the situation, then analyze the impact of this new regulation on the media industry and consumers. Finally, we will see how Mediamix, as an agency specializing in media mix planning and optimization, can draw insights from this change to support its clients in Germany—and more broadly in Europe—in their advertising and marketing strategies.
Current Situation
Historical Context of the TV License in Germany
The German audiovisual landscape is characterized by two main pillars:
- Public broadcasters (ARD, ZDF, Deutschlandradio), financed by the television license fee (€18.36/month).
- Private channels, supported by advertising and subscriptions.
Until now, millions of German households automatically paid cable fees through their rental charges, without having a choice of TV reception method. From July 2024, this obligation disappears, paving the way for a complete overhaul of television access in Germany.
The Emergence of New Platforms and the Questioning of the Status Quo
With the rise of streaming (Netflix, Amazon Prime Video, Disney+, etc.) and the expansion of Internet television (IPTV), consumers are demanding more freedom in how they access TV content. The “classic” model, where terrestrial television or cable were the only dominant channels, has long been outdated.
Viewers are shifting to digital:
- Streaming boom: 50% of households subscribed to platforms (Netflix, Amazon Prime, Disney+) in 2022, compared to 20% in 2015.
- Fragmented TV consumption: More freedom means audiences are increasingly dispersed across different channels.
- A need for flexibility: Consumers want to choose where and how they watch content, without imposed constraints.
Data from the research firm Statista and other organizations confirm that the share of households subscribing to streaming services in Germany has skyrocketed from around 20% in 2015 to more than 50% in 2022.
Political and Legislative Decisions
After several debates and consultations, the German government decided to challenge the Nebenkostenprivileg, deeming it detrimental to competition and to consumers’ freedom of choice regarding TV reception methods. As part of the modernization of telecommunications legislation, both the Bundestag and the Bundesrat voted for a reform that progressively ends the automatic billing of cable fees through rental charges.
Concretely, from July 1, 2024, landlords will no longer be able to include these fees in the Nebenkosten (ancillary costs). Each tenant will be free to subscribe, if they wish, to a cable, satellite, DTT, or independent streaming offer. This reform therefore compels the entire market—operators, landlords, broadcasters, and consumers—to rethink their business models and television consumption habits.
Consequences
The end of the Nebenkostenprivileg in Germany heralds a notable reconfiguration of the TV ecosystem. For a media agency, this change is not merely a legal matter: it represents a strategic turning point for all advertising campaigns that have so far targeted a largely captive audience via cable television.
Greater Audience Fragmentation
Without the automatic billing of cable, households will be able to choose more freely how they receive their TV signals—satellite, IPTV, DTT, or streaming. In practice, this means thatthe audience, which was previously concentrated on a mandated cable service, will now be dispersed across various platforms. For advertisers and their media agencies, the challenge will be to develop a more agile mix media: they will need to diversify their advertising inventories to maintain optimal coverage and avoid “blind spots” resulting from the loss of some traditional cable viewers.
New Creative Opportunities and More Precise Targeting
This fragmentation is not just a constraint; it opens the door to more segmented and better-targeted advertising more segmented and better-targeted advertising. Households switching to IPTV or connected TV (CTV) offer environments where messages can be tailored based on geographic, demographic, or even behavioral criteria. Advertisers thus have the opportunity to rethink their creatives, personalize their spots, and develop interactive formats that boost audience engagement.
Modernizing TV Strategy
For a media agency, guiding clients through this transition means optimizing advertising budgets to account for an increasingly volatile audience. Traditional television still has significant reach, especially during major events (sports, high-profile media occasions). However, the explosion of streaming and on-demand content necessitates a multichannel strategy, where linear TV advertising coexists alongside digital platforms.
Ultimately, the end of the Nebenkostenprivileg requires advertisers to rethink their TV approaches in a more refined, flexible, and creative way. Media agencies have a crucial role to play in reinventing advertising strategies, ensuring precise targeting, and proposing innovative formats—turning this legal obligation into an opportunity for growth.
Trends Linked to This Regulatory Change
Certain effects are already visible in audience figures: the use of linear television is decreasing, which leads to a drop in GRPs (Gross Rating Points). However, media strategies have not yet fully adapted to this change—prices remain high, and booking plans are saturated. This results in fewer GRPs for the same or even higher prices. This trend has strongly characterized the market since early January, but it is unfortunately not possible to say how long it will last.
Media Strategies Are Slow to Adapt
While this is a real observation, some brands are already anticipating by incorporating more digital elements into their media mix (IPTV, CTV, programmatic).
Rising Costs and Reduced Effectiveness
This phenomenon could be temporary. If linear TV continues to lose audience share without adjusting prices, advertisers will massively shift their budgets to other channels, forcing broadcasters to review their rates.
A Trend to Watch
The future remains uncertain, but consumption trends suggest the continued rise of streaming and IPTV, making a strong rebound of linear TV unlikely.
Conclusion
The new German regulation ending the Nebenkostenprivileg in 2024 is part of a broader movement reshaping the television and audiovisual market. It reflects consumers’ desire for greater freedom and transparency, as well as lawmakers’ intention to foster competition.
For traditional cable providers, this is a challenge: they now have to win over individual households, whereas in the past, their contract was made with a single landlord. For landlords, this marks the end of a longstanding privilege that allowed them to impose a cable TV solution—but it is also an opportunity to rethink the quality and modernity of their properties. For advertisers, it means an audience spread across multiple platforms, requiring advanced expertise in planning and targeting.
Yet this shift is not merely a constraint: it paves the way for further innovation from operators, broadcasters, and advertisers alike. Streaming services can strengthen their presence, targeted advertising can develop further, and competition can generate new business opportunities.
Mediamix is positioned at the heart of this upheaval to support its clients in Germany and beyond, helping them design and implement advertising strategies that are both effective and compliant with the new standards.
Evolve Your Strategy Today!
To adapt to the end of the Nebenkostenprivileg and fully capitalize on the growing fragmentation of audiences, a flexible and innovative approach is essential. Contact the Mediamix team today: we will audit your current campaigns, propose a media plan tailored to the evolving German market, and guide you in turning these transformations into growth opportunities.
