Advanced Television

Italian TV market facing uncertainty

December 7, 2023

From Branislav Pekic in Rome

Despite reaching a value exceeding €8 billion in 2023, the TV market in Italy faces a future clouded by uncertainty due to inflation and signs of crisis within the streaming industry. This prediction comes from Rome-based ITmedia Consulting in its report The Television Market in Italy: 2023-2025.

While the TV market technically grew by 1.5 per cent in absolute terms, inflation of 5-6 per cent effectively cancels out any real progress.

Broadband TV should experience significant growth, reaching over half of all TV homes by 2025, signifying a major shift towards on-demand services and away from traditional linear TV.

By 2025, pay-TV is predicted to capture 61 per cent of the total market share, solidifying its dominance over free-to-air TV.

After a slow start, TV advertising is expected to finish the year slightly positive, though still below pre-pandemic levels. Online advertising is expected to drive slight growth, compensating for the decline in broadcast advertising.

Sky, Mediaset and Rai are projected to maintain their position as market leaders, capturing 70 per cent of the total market share.

Advertising is forecast to grow faster than pay-TV subscriptions, indicating a potential shift in revenue streams. Combining subscription and advertising models is becoming increasingly popular among industry players.

The migration to online pay-TV continues, albeit at a slower pace than in the past.

Video streaming is evolving beyond subscription-only (SVoD) models to include ad-supported services, creating a hybrid market.

Ad-supported streaming services are expected to experience significant growth, accounting for 41 per cent of total VoD revenues by 2026.

Companies like Netflix, Disney, and Amazon are expected to experience slower growth in the coming years. ITMedia Consulting forecasts a slowdown or even stagnation in SVoD growth over the next three years.

Video-sharing platforms and the video game industry are emerging as significant forces, influencing user behaviour and attracting advertising resources. Gamified VoD services are gaining traction as consumers seek more interactive experiences.

Categories: Articles, Broadcast, DTT/DSO, Games, Pay TV, VOD

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