Industry Report: Market trends
ITMedia report: the Italian TV market recovers in 2016
by Camillo De Marco
- The television market is showing strong signs of recovery, seemingly closing the period of deep structural crisis in the sector definitively. In 2016 total revenue grew to €404 million overall, up 5% on 2015. Confirming this is the "Il Mercato Televisivo in Italia: 2016-2018" (lit. "The Television Market in Italy : 2016-2018") report compiled by ITMedia Consulting, which has been analysing the evolution of the market in detail for years, providing forecasts for the years to come.
The advertising sector is showing comforting signs of recovery after a long period of recession, thanks to a series of factors: the recovery of mainstream channels (Rai in particular); the growing offering, increased competition and the consolidation of big international players in thematic channels and digital terrestrial television, and the increase in online revenue. This contributed to a rate of growth of around 6% in 2016, leading television to represent 40% of total revenue in 2016, overtaking advertising on pay-TV channels.
The market is being transformed by technological innovations: personalised multi-platform and multi-screen offerings, thematic channels, and non-linear on-demand services (VOD) are becoming increasingly important components of television consumption. According to ITMedia Consulting’s forecasts, over the next two years access to broadband TV will triple, making this the main means of consumption in 1.6 million homes compared to the current 900,000.
Despite the fall in DTH and DTT services, Pay-TV is set to grow by 1%, thanks to broadband TV, which is leading the market, growing by an average of 60%, whilst Mediaset and Rai will continue to share 93% of the market even though they will lose two percentage points due to the development of operators in free digital terrestrial “thematic” channels and broadband TV. Other operators will grow to hold 9% of the market, with the entrance of VOD operators such as Netflix.
Advertising will grow beyond all other sectors, increasing by 2% and benefitting above all from a boost from thematic channels and online content. In advertising, Mediaset will remain the main operator, holding over half of the sector, despite falling from a share of 57% in 2016 to 55% in 2018. In pay-TV, Sky’s leading share of the market will remain intact, despite a small drop from 77% to 74% of the market. The share of the market held by other operators, led by VOD and Netflix will grow, going from 3% in 2016 to 7%.