Digital television and the internet are fundamentally changing media markets. Consumers have access to an increasing amount of news, information and entertainment. In addition to traditional media companies such as publishers and broadcasters new players enter the market as content producers, packagers, marketers and distributors. These changes threaten the position of traditional broadcasters. This paper explores the ways in which broadcasters have responded to these challenges and identifies opportunities and bottlenecks for broadcasters' development of digital media services. Based on desk research and case studies it points at audiovisual archives and distinct criteria for quality and editorial standards as the main assets of traditional (public service) broadcasters. Copyright issues, regulatory constraints on public service broadcasters and differences between broadcast and internet culture are among the main bottlenecks. © Springer-Verlag Berlin Heidelberg 2007.