In the first quarter of 2024, streaming subscriptions in Italy grew by 12.5 per cent, surpassing pay-TV subscriptions for the first time and accounting for 20.4 per cent of total revenues.

According to Mediobanca Research, the Italian broadcasting sector experienced modest growth of 1.6 per cent in 2023, reaching €8.9 billion in turnover.

All sectors saw a positive performance, with free-to-air TV growing by 0.2 per cent to €4.8 billion, radio by 4.9 per cent to €0.6 billion, and pay-TV by 3.0 per cent to €3.4 billion. Traditional pay-TV subscriptions declined by 4.9 per cent, albeit at a slower pace than previous years. Conversely, SVoD expanded by 10.4 per cent and now represents 53 per cent of pay-TV revenues, or €1.8 billion, up over 38 per cent compared to five years earlier.

Rai, Sky, and Mediaset account for approximately 70 per cent of the national TV market share but online platforms are steadily gaining ground, capturing 20 per cent of the audience in 2023 (+13 per cent compared to 2019).

The three major players also achieved 77 per cent of total turnover of the sector, with Rai leading (€2.7 billion, +0.3 per cent on 2022), followed by Sky (€2.1 billion, +2.3 per cent ) and Mediaset (€2 billion, +2.5 per cent ).

Profitability remains a challenge, with the sector as a whole operating at a loss (-1.4 per cent EBIT margin), as intense competition from streaming giants like Netflix and DAZN put pressure on margins.

Italy continues to have the lowest public service license fee among the major European countries (€0.25 per day per subscriber), which is also lower than the average of €0.34. German public TV (€0.60 per day) and UK public TV (€0.51) are much more expensive for taxpayers.

Mediobanca Research forecasts a 2 per cent revenue growth for the Italian broadcasting sector in 2024 driven by advertising and continued streaming expansion. However, the pace of subscription growth is anticipated to slow down as the market matures and consumer spending power is impacted. The future will likely see increased competition in AVoD and hybrid models.

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Tags: dazn, italy, netflix, RAI, vod