Italy: Media & Entertainment to exceed €38bn in 2021

The Media & Entertainment industry in Italy will be worth €38.1 billion in 2021, up from €31.5 billion in 2016, accounting for a CAGR of 3.9 per cent.

According to the “Entertainment & Media Outlook in Italy 2017-2021” report from PwC, user spending will grow from €23.5 billion in 2016 to €28.9 billion in 2021 (CAGR 4.2 per cent).

TV and online will generate 68 per cent of the total Media & Entertainment market in 2021, with both segments growing by €5.5 billion compared to a market growth of €6.7 billion in the same period. Digital will account for 51.4 per cent of the total market in 2021, compared to 42.5 per cent in 2016.

Revenues from TV advertising (€3.26 billion) are still the most significant segment of the advertising market (€7.9 billion in 2016, going up to €9.2 billion in 2021) and will continue to increase at a modest rate (CAGR 3.8 per cent for 2017-2021), although the gap over Internet advertising revenue will continue to decline.

Revenues from the online Video segment (€362 million) will exceed those of the Home Video segment in 2019, growing 16.7 per cent (CAGR) in the next five years and reaching €362 million in 2021.

While the TVoD market remains solid, growth will come from SVoD platforms, with more and more subscribers attracted by seasons of original content and extensive catalogues.

PwC estimates that data traffic on smartphones will surpass data traffic of fixed broadband networks in 2017. Although many consumers still prefer access to high quality video content through fixed broadband connections (CAGR +13.8 per cent), data traffic on smartphones (CAGR +34.9 per cent) is the true growth driver of the segment that allows consumers to enjoy content anytime and anywhere.

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