Home entertainment in Italy: the online market is on the up
by Vittoria Scarpa
- According to the Univideo Report 2018, approximately one quarter of total revenues from the home video sector are derived from online sources, while sales of DVDs and Blu-Ray products are down
The online home entertainment market in Italy is growing, with sales hitting €85 million in 2017, accounting for a quarter of total revenues generated by the home video sector in its entirety, with an overall 10% increase in digital transactions compared to 2016 (EST - Electronic sell-through and TVoD - Transactional Video on Demand). These are the findings of the Univideo Report 2018 on the state of the audio-visual market in Italy, compiled by GfK Italy and presented yesterday in Milan.
According to research commissioned by Univideo - the Italian trade association representing digital and online audiovisual publishers - physical products (DVDs and Blu-Ray) continue to dominate the home video market (which registered total revenues of €340 million, down 10.8% on 2016), with revenues of €255 million at the close of 2017. DVD and Blu-Ray sales, however, are in decline, both via the traditional channels (down 14.7% on 2016) and on the high street (down 16.7% on 2016). A contraction in the rental market was also recorded - although there are still roughly 1 million people who hire these products on a regular basis, numbers have dropped compared to the 1.2 million recorded in 2016.
Standing out among the Top 10 most sold films of 2017, dominated by American titles, is the British-American production, Fantastic Beasts and Where To Find Them [+see also:
film profile], by English director David Yates, pipped to the post by Oceania in first place, but beating Rogue One, meanwhile, into third place. In 2017, 5 million people in Italy bought at least one home video product: 3.5 million took home a physical product, while 2 million purchased a digital product.
“These findings show how the home entertainment market is evolving”, observes Lorenzo Ferrari Ardicini, President of CEO and CG Entertainment. “Despite market contractions, physical products remain central to the industry itself, but also for consumers who choose their products wisely, based on their quality and the possibility of sharing them: these products are repositaries of knowledge and emotional experience which stay with us. At the same time, more and more of us are looking into, and ultimately purchasing, digital products, though on a more impulsive basis, dictated by how the consumer is feeling at the time”. He goes on to conclude that “it is, therefore, ever-more essential that we continue to expand our offering within this sector and that we increase the opportunities available for accessing audiovisual content in order to satisfy the needs of the general public. Although our audiences may change over time, the two things they are always looking for are emotional experiences and exclusivity”.
To read the full report, click here.
(Translated from Italian)
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