Futuresource Reveals Post-Pandemic Comeback in the Italian Video Market

Futuresource’s latest Video Insights: Italy report shows a positive future outlook for the Italian video market after a strong recovery in 2021. The SVoD and digital transactional sectors will drive the long-term growth of consumer, spend with Amazon playing a pivotal role in the development of EST and iVoD in Italy.  The reopening of cinemas and a fresh raft of Hollywood releases will continue to aid in the growth of entertainment spend as the box office recovers.  

SVoD is Here for the Long Run  

“The pandemic had a positive impact on the SVoD market, which remains the key growth driver of the Italian video market,” states Morris Garrard, Futuresource Consulting’s Media & Entertainment Market Analyst.

Morris continues, “In addition, consumer spend on total video entertainment is projected to increase to record levels in 2022, as it approaches €4bn, and is forecast to reach €5bn by 2025.  SVoD, alone, is projected to account for 40% of consumer spend on video entertainment by the end of the forecast period.”

While Netflix is expected to remain the largest SVoD platform in Italy by the end of 2021, the market is becoming increasingly competitive, with the addition of Disney+ and Discovery+ (via TIM Vision) in the last 2 years, as well as Paramount+ expected to launch in 2022.  The new wave of AVoD is still quite fresh to Italy and in the early stages. BVoD remains significant, with 58% of Italian respondents using the services monthly, according to Futuresource’s Living With Digital survey, with most using the platforms of key broadcasters Rai and Mediaset.  

Amazon's Expansion Leads Transactional Digital Video 

Futuresource Consulting’s research also shows how Amazon has rapidly grown in significance in the transactional digital video market, already claiming the market leading position following its 2020 Italian launch. Growth is forecast in both the EST and iVoD segments, driven in part by Amazon’s entry, however the Pay-TV VoD and packaged video markets are set to continue declining across the forecast period.

Box Office Recovery   

“The part-recuperation of the Italian box office began in 2021 as cinemas reopened alongside blockbuster releases such as No Time to Die and Spider-Man: No Way Home, Italy's top-grossing films of 2021, though remains far below the pre-pandemic level.” After falling from €660m in 2019 to below €200m in 2020 because of cinema closures and social distancing measures in Italy, the theatrical segment is projected to earn account for close to 90% of the 2019 benchmark by 2025. Heightened caution around returning to theatres and the expected increased availability of PVoD is expected to inhibit a full recovery.  

For further information on Futuresource Consulting’s Video Insights: Italy report or to make a purchase, please contact Leon.morris@futuresource-hq.com

About Futuresource Consulting

Futuresource Consulting is a market research and consulting company, providing its clients with expertise in Professional AV, Consumer Electronics, Education Technology, Content & Entertainment, Professional Broadcast and Automotive. Combining strong methodologies and unsurpassed data refinement with in-depth market knowledge and forecasting, Futuresource delivers the latest insights and technological developments to drive business decision-making. 

About the author

Morris Garrard

Morris Garrard is a Market Analyst at Futuresource Consulting, working within the Media & Entertainment team. Morris leads a number of projects within the Video Insights report series, covering the waterfront of video entertainment in multiple international markets. Morris also works on Futuresource’s biannual ‘Living With Digital’ Consumer survey.