The video entertainment landscape in Europe is undergoing rapid transformation, with streaming services gaining ground, Pay-TV demonstrating resilience, and distinct regional patterns shaping market dynamics. Insights from Futuresource Consulting highlight four major trends set to define 2025 across Spain, Italy, and Poland.
STREAMING GROWTH MAINTAINS MOMENTUM
Streaming continues to dominate the European entertainment market, with Spain and Italy leading the charge. In 2024, streaming revenues in these two countries surged by 16% and 14%, respectively. This growth is fueled by increased investments in local content, strategic pricing adjustments, and the introduction of ad-supported tiers by major platforms such as Netflix and Disney+.
While Spanish and Italian consumers are increasingly stacking multiple subscriptions, the Polish market is taking a more cautious approach. New users are entering the subscription space but are selective about their choices. Even so, Poland recorded a 12% growth in streaming revenue in 2024, marking its second consecutive year of double-digit expansion.
BOX OFFICE AND TRANSACTIONAL VIDEO FACE CHALLENGES
The cinema and transactional video markets in Spain and Italy struggled in 2024 after a strong post-pandemic rebound, with revenues remaining flat or declining. Poland, however, defied the trend. Amazon’s transactional store drove significant growth in Electronic Sell-Through (EST) and Transactional Video on Demand (TVoD), resulting in double-digit increases in these segments.
Looking ahead, an improved film slate for 2025 is expected to boost both theatrical releases and digital sales across Europe, offering a potential turnaround for these sectors.
PAY-TV STANDS STRONG
Despite the meteoric rise of streaming, Pay-TV continues to play a significant role in Europe’s entertainment ecosystem. In Poland, Pay-TV dominates, accounting for 60% of the total entertainment market revenue. Spain and Italy, while exhibiting slightly lower shares at 47% and 44%, respectively, still rely heavily on this traditional model.
Bundled deals that integrate Subscription Video on Demand (SVoD) services into Pay-TV packages are helping sustain its popularity, demonstrating the adaptability of traditional platforms in the face of digital disruption.
REGIONAL VARIATIONS WITH COMMON THREADS
Although each market is evolving at its own pace, some universal themes persist. Streaming services are expanding rapidly, traditional entertainment models are adapting to new realities, and consumer preferences are becoming more sophisticated.
As the European video entertainment market continues to evolve, understanding these shifts and the nuances within individual regions will be essential for businesses aiming to thrive in this dynamic environment.
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