As a result of the coronavirus, the Italian TV market is expected to lose 400 million euros this year, according to the new ITMedia Consulting report The TV market in Italy 2020-22. The pay-TV is the only resource that grows, while advertising drops by 13%.
Even in a context of marked recovery, in the period 2020-2022 the process is going to even accelerate, completing the transformation of the sector with Broadband TV, thanks to the video streaming, will exceed half of the Italian homes, with an average annual growth of more than 30%.
Pay-TV will surpass free-to-air TV for the first time in the history of Italian television in the HHs penetration. In terms of resources, the market will resume growth thanks above all to the significant increase in pay-TV revenues and the partial recovery of advertising, still lower in 2022 in full value compared to 2019. This is made possible by the explosion of BBTV services, by the entry of Sky as a network triple player operator and above all by the SVOD, which will record a CAGR of 31% in the time period.
Sky, Mediaset and Rai, while remaining dominant overall (over ¾ of the total combined), will however sell substantial shares to the Other Operators, which will reach almost 2 billion euros in revenues. Mediaset in particular, while collecting over half of national TV advertising investments, records revenues of less than 20% of the total (almost half compared to Sky in 2020).
Traditional broadcast TV now senses the looming and very dynamic presence of online streaming services, where the strategies of important international operators are focusing, through the new ways of using VOD with linear and non-linear content in broadband TV and where the main operator Sky is spending its efforts to develop new business strategies to better confront with the new internet-based players.
Operators who rely solely on consolidated models are therefore penalized: the significant growth of new entrants shows how they are able to exploit more than others the opportunities offered by technological evolution and the changing needs of demand, translating them into an attractive offer to the public, increasingly oriented towards personalized use, multi-platform, multi-screen, even on mobile.