No Match Found
While the E&M industry continues in its growth path and the Italian economy as a whole is being consolidated, fueled by the implementation of the National Recovery and Resilience Plan (NRRP) and expansive fiscal policies, the digital transition is being enforced and end-consumers ways of usage and consumption are becoming more mature.
However, there remains a clear volatility underlying the macroeconomic scenario that could slow down the overall industry growth, increasing the uncertainty felt in the market. Above all, the strict measures deployed to tackle the inflation are progressively reducing consumers’ purchasing power, while businesses are being more wary about their investments. In this picture, the E&M sector appears resilient by continuing its growth path, due to its ability to quickly adapt to changes in the environment, redesign value chains and ways of pursuing business.
In our Entertainment & Media Outlook in Italy 2023-2027, we predict that total E&M revenues in Italy will rise at a compound annual growth rate (CAGR) of +3.2% to reach €42.1bn in 2027. This year's forecast confirms the growth trend depicted in last year’s predictions, as proof of the sector's ability to return to generating value even in the midst of uncertain scenarios.
The Entertainment & Media market is undergoing a significant transformation, marked by the emergence of a number of segments that have the potential to enrich the user experience of consumers, coupled with the coexistence of more mature segments with a solid customer base.
The collaboration between these two dimensions will contribute to the creation of an ecosystem capable of engaging the user on numerous occasions and in different ways, digital and traditional.
Planned government initiatives and investments from the EU's post-pandemic recovery fund, in conjunction with a renovated movie offering, are supporting the sector's upturn, with the aim of bringing people back to cinemas or enriching their cinematic experience after the change in audiovisuals consumption during the pandemic period.
After the pandemic stop, live music confirmed itself as one of the sector’s biggest growth drivers, with both big international artists and smaller national performers attracting broad masses and making it to the top 10. Radio advertising revenue experiences a slow but steady increase, as well as the number of average daily listeners, with podcasts continuing to engage Italian listeners, although their contribution to the overall sector’s revenue is still quite limited, due to monetization models still not so consolidated.
OTT players are reviewing their business models in response to the drop in revenues after the peak during the pandemic period. Although losing share due to the expansion of Internet video advertising - which will also allow for new opportunities, due to increasing number of connected TVs -, traditional TV advertising maintains a predominant position, as traditional means still play a strategic role in ad campaigns.
The market will maintain its stability over the next years even if it will have to overcome the challenges related to the increase of production costs and a consequent reconfiguration of the supply chain.
Focus on advertising and digital properties, as players are changing their business models through investments in technologies, mixing it with the creative field.
The market will continue to cut costs and expand its digital and multimedia strategies, while maintaining its role as one of the most reliable and truthful sources of information.
Italy's B2B market growth will slow markedly as spending by companies at trade shows normalises following the unprecedented post-pandemic rebound, although a larger focus on business information will help the overall scenario.
Despite the well-known limitation in city centers, Italy's OOH market will continue to show double-digit growth even as the post-pandemic rebound fades, thanks to both a well-established physical inventory and an ever-expanding digital one.
In the new “cookie-less” scenario, the mobile sector dominates the Italian Internet ad market and is also the fastest-growing, with video and social media being important market drivers.
Significant market growth driven by social casual gaming where data suggests that Italy has largely retained the mobile gamers gained during the pandemic period. Esports will continue their growth also through sponsorship and partnership deals with major Italian brands and institutions.
The new wave of Generative AI is being driven by big tech companies, while generative AI start-ups are attracting substantial investment. Despite some initial difficulties related to privacy compliance, Generative AI platforms are proving promising in various creative and business sectors.
Italy’s VR market is set to grow thanks to the contribution of VR gaming content and the market release of affordable, premium quality VR visors, while in the AR sector most mobile AR revenue will come from in-app advertising and face filters on social media platforms.
As main telco operators keep investing in the development of faster and more reliable connectivity networks through private and public funds, telecommunications services will maintain their role of enabler for the consumption of E&M contents, as proven by the steady increase in data consumption figures.
An overview of the key highlights of 13 relevant market segments, in English as well as Italian.
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Maria Teresa Capobianco
Partner | Advisory e Technology, Media and Telecom Leader, PwC Italy