As a result of the coronavirus, the market lost almost 400 million euros in 2020. Even in the context of marked recovery, in the period 2020-2022, the phenomenon appears destined to consolidate, accelerating the transformation of the sector with broadband TV with thanks to video streaming exceeding half of Italian homes, with an average annual growth of more than 30%. Pay-TV surpasses free-to-light TV for the first time in the history of Italian television and in terms of resources the market will resume growing thanks above all to the significant increase in pay-TV revenues.
This is made possible by the explosion of BBTV services, the entry of Sky as a network operator and above all by the SVOD, which will register a CAGR of 31.2% during the period considered. Sky, Mediaset and Rai, while remaining dominant overall (over 3/4 of the total together), will, however, sell substantial shares to the Other Operators, which will reach almost 2 billion Euro in revenues. Sky remains the main player in the market, but is in decline, as a result of the explosion of VOD services by new fierce competitors. This year's report shows that traditional TV and broadcast now senses the looming and very dynamic presence of online streaming services.
The significant growth of new entrants shows that they are able to take advantage of the opportunities offered by technological evolution and changing demand needs more than others. The result is a great process of restructuring and developing new business models, destined to reconfigure and change the skin in the coming years to the entire national television industry.
- Methodological Note
- The Market in 2020
Part I the Market
- Italian Television
Part II The Players
- Market Overview
- Other Operators
About the Publisher
A real tsunami hit the Italian television in 2020 as a result of the pandemic, accelerating its transformation. The market in 2020 experienced a strong contraction overall: -5%. Pay-TV is the only growing resource, strengthening its leadership over advertising (-13%). Even in a context of expected general recovery, in the next two years, from 2020 to 2022, the process is going to consolidate, with Broadband TV reaching 12.5 million homes in 2022, compared to 7.4 million in 2020, with a CAGR of above 30%. Pay-TV will surpass FTA TV for the first time in the history of Italian television.
In terms of revenue, the market is expected to grow at an annual rate of 5.4%, reaching € 8.5 billion in 2022. Advertising will also increase, even significantly (+ 6% annually), but will not return to the levels of 2019 even at the end of 2022. Despite the expected decline in the broadcast platforms as DTH and DTT, pay-TV will continue to grow at an average annual rate (CAGR) of 6.1%. This is made possible by the explosion of BBTV services, by the entry of Sky as a network operator providing triple-play services and above all by the SVOD, which will record a CAGR of 31% in the related period.
Sky, Mediaset and Rai will share more than 3/4 of the total television market. While remaining dominant, however, they will reduce their slice in the cake to the other operators, which will reach 23% of the total. Sky will remain the main player on the Italian TV market but will fall down -3%, as a result of the explosion of VOD services by new fierce competitors. Mediaset remains the main player in advertising, with 53% of the total. In pay-TV, Sky remains firmly the leader, while significantly reducing market shares, going from 74% in 2020 to 60% in 2022. Other operators are close to €2 billion, thanks above all to the VOD services, allowing them to go from 25% in 2020 to 39% in 2022.