Traditional TV & Home Video - Italy

Revenue in Italy's Traditional TV & Home Video market market is projected to reach US$9.81bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.49%, leading to a projected market volume of US$10.05bn by 2029.
The average revenue per user (ARPU) in this market is anticipated to amount to US$204.20.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV viewers in Italy is projected to be 47.7m users by 2029.
User penetration within the Traditional TV & Home Video market market in Italy is expected to be at 81.9% in 2024.
The average revenue per TV user (ARPU) in Italy's Traditional TV & Home Video market market is projected to amount to US$204.20 in 2024.
In Italy, traditional TV and home video consumption is experiencing a decline as streaming platforms increasingly dominate viewer preferences and reshape media consumption habits.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in Italy has been experiencing significant growth in recent years, driven by changing customer preferences and the rise of digital streaming platforms. Customer preferences in Italy have shifted towards on-demand streaming services, as consumers increasingly value convenience and flexibility in their entertainment options. This trend is in line with the global market, where streaming services have gained popularity due to their vast content libraries and ability to offer personalized recommendations. Italian consumers are also attracted to the affordability of streaming services, as many platforms offer competitive pricing compared to traditional cable or satellite TV packages. In addition to streaming services, there is still a demand for traditional TV and home video products in Italy. This is particularly true for older generations who are accustomed to traditional broadcast television and physical media formats such as DVDs and Blu-rays. However, the growth in this segment is slower compared to the digital streaming market. The rise of digital streaming platforms in Italy can be attributed to several trends in the market. Firstly, the increasing availability of high-speed internet connections has made it easier for consumers to access streaming services on various devices, including smart TVs, smartphones, and tablets. This has led to a surge in the number of subscribers to streaming platforms, as people can now watch their favorite TV shows and movies anytime, anywhere. Another trend driving the growth of the digital streaming market in Italy is the expansion of international streaming services into the country. Global platforms such as Netflix and Amazon Prime Video have gained a significant presence in the Italian market, offering a wide range of local and international content. This has increased competition in the market and provided consumers with more choices, further fueling the growth of the streaming industry. Local special circumstances in Italy also contribute to the development of the Traditional TV & Home Video market. The Italian film and television industry has a rich history and is known for producing high-quality content. This has helped to attract both local and international viewers, boosting the demand for traditional TV and home video products. Furthermore, the COVID-19 pandemic has had a significant impact on the market, accelerating the shift towards digital streaming. With lockdowns and social distancing measures in place, consumers have turned to streaming services for entertainment, leading to a surge in subscriptions and viewership numbers. This trend is expected to continue even as restrictions are lifted, as consumers have become accustomed to the convenience and flexibility of streaming platforms. Underlying macroeconomic factors, such as the overall economic growth and disposable income levels in Italy, also play a role in the development of the Traditional TV & Home Video market. As the economy improves and consumer spending power increases, more people are likely to invest in home entertainment options, including streaming services and traditional TV and home video products. In conclusion, the Traditional TV & Home Video market in Italy is experiencing growth due to changing customer preferences, the rise of digital streaming platforms, local special circumstances, and underlying macroeconomic factors. The increasing popularity of streaming services, driven by convenience, affordability, and a wide range of content choices, has reshaped the market and is expected to continue driving its growth in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.