Big screen bounce and a streaming surge as Italy’s video entertainment market heats up

Italy’s video entertainment sector is finding fresh momentum, with total consumer spend set to rise 4% to €4.3 billion in 2025, and streaming revenue overtaking Pay-TV for the first time. That’s according to Futuresource Consulting’s latest Italy Video Insights report, which paints a market shifting decisively towards digital services, while maintaining strength across cinema and key adjacent formats.

“There’s a renewed sense of energy running through Italy’s video landscape,” says Rachel Mitchell, Research Analyst at Futuresource Consulting. “Streaming continues to power ahead, but what’s especially striking is the breadth of recovery from last year’s weakened release. The wider ecosystem is seeing cinema admissions climbing, improved conditions in digital rentals, and a more stable transactional segment. These combined forces point to a sector that’s stepping into its stride.”

Streaming surges beyond Pay-TV

SVoD remains the market’s leading engine of growth, continuing its multi-year upward trajectory, with revenues rising 12% in 2025. Consumer adoption is expanding as households take more services, advertising-supported tiers gain traction, and platforms invest in local originals. Netflix, Amazon Prime Video, Disney+, and TIMvision collectively anchor the market, with aggregators such as TIMvision and Sky boosting service stacking and smoothing access across platforms. 

“Price adjustments, richer content slates and a more diversified range of tiers are making streaming both more accessible and increasingly premium at the same time,” says Mitchell. “As a result, Italy is tracking towards long-term digital expansion.”

Box office leans into a stronger slate

After a subdued 2024, Italy’s box office is firmly on the front foot, supported by a deeper and more consistent Hollywood release schedule. The arrival of major franchises and family titles is lifting admissions, while audience confidence continues to improve after the disruptions of recent years. Futuresource expects the recovery to strengthen further into 2026, fuelled by another wave of high-profile international releases. 

Pay-TV declines, but maintains strategic weight

Although Pay-TV continues its gradual contraction, it still represents a sizeable share of consumer spend, at €1.7 billion in 2025, down 4% year-on-year. Satellite remains the backbone of the sector, though it is under mounting pressure from digital-first services and sports-rights fragmentation. 

IPTV, meanwhile, is edging upward as broadband penetration grows and multi-service bundles become more compelling. Aggregation, app upgrades and cross-service integration remain central to Pay-TV’s retention strategy.

A market shaped by diversification

While small in comparison, Italy’s transactional video category is stabilising, helped by a stronger slate of new releases and ongoing retailer promotion. Digital formats continue to dominate, with Amazon leading the market, and collaborative initiatives such as the introduction of Mega Movie Week further encouraging consumer uptake. 

“Across all formats, our projections show that the Italian video entertainment sector will maintain steady growth over the medium term,” says Mitchell. Streaming, cinema and digital transactions are collectively leading the charge, and helping to push the overall market towards €4.9 billion by 2029, and an average annual growth rate of 4%.

“Italy’s story is one of a connected ecosystem, where multiple sectors are gaining strength together and consumers are curating their entertainment experiences on their own terms.”

About Futuresource

Futuresource Consulting provides the insights that power the world’s leading technology and media companies. For more than 30 years the firm has combined rigorous data, sector expertise and a forward-looking view of market change. Its syndicated research, consulting services and industry partnerships span consumer electronics, entertainment, Pro AV, education and emerging technologies.

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