LONDON: The European television market had a value of €78.1 billion ($111bn; £67bn) last year, with advertising revenues contributing the biggest single portion of this total, Oliver & Ohlbaum Associates reports.

According to the research firm, TV adspend reached €28.3bn in 2007/08, compared with €26.7bn derived through pay-TV subscriptions, and €17.8bn generated via licence fee revenues.

Expenditure on content totalled €35bn in this period, including €18.4bn spent on commissioning new material, €10.4bn on film and TV acquisitions, and €6.2bn on sports rights.

Mark Oliver, chief executive of the company, said "this TV advertising downturn is likely to be much worse than the dotcom fall-out in 2001/02."

"The depth of the recession means that broadcasters' investment in content is threatened - they can't absorb a 20% fall in revenues on 15% or 20% margins," he added.

Data sourced from C21; additional content by WARC staff