In its Entertainment & Media Outlook in Italy 2022-2026, PwC predicts that total E&M revenues in Italy will rise at a CAGR of +9.6% to reach EUR 40.8 billion in 2026. The growth is roughly doubled compared to last year's forecast, confirming the strong recovery trend after the decline in revenues registered in 2020 due to the pandemic outbreak. Total OTT revenue grew by 56 per in 2021, with continued Covid-19 lockdowns increasing the time Italians were spending at home seeking entertainment. OTT revenue growth will slow compared to pandemic levels but remains high at a +14.6% 2021-2026 CAGR. TVoD revenues will play a smaller role due to the widespread success of SVoD, which will account for 95% of OTT market revenues by 2026. Netflix continues to lead an increasingly competitive streaming market in Italy, followed by sports platform DAZN.
Traditional TV market revenues decreased -6.5% in 2021 due to the difficult macroeconomic environment and the shift away from pay-TV and towards the OTT sector. The decline will continue over the forecast period at a -0.9% CAGR. Increasing competition for key content rights from the OTT sector has led to more “cord-cutting”, with many opting for the flexible non-contract terms of streaming services. This trend will see pay-TV revenues decline at a -1.5% 2021-2026 CAGR. TV advertising revenue showed strong signs of recovery from the pandemic in 2021, with 18% year-on-year growth. The continued shift in viewing habits away from broadcast content and towards on-demand, catch-up and OTT services will contribute to the sector contracting at a -1.2% 2021-2026 CAGR over the forecast period. Broadcast channels still dominate 93.3% of total TV advertising spend, although this will fall back to 89.8% by 2026 as online TV advertising continues to expand. Pay-TV advertising will decline at a -6.3% CAGR over the forecast period. Online TV advertising revenues will overtake pay-TV ad spend in 2022.
Source: https://advanced-television.com/2022/12/05/italy-entertainment-revenues-to-grow-9-6-annually/
