(Finance) – According to the study “PwC Entertainment & Media Outlook in Italy 2024-2028“, the Italian market ofEntertainment & Media (E&M) is set to achieve a value of 58.4 billion euros by 2028with a compound annual growth rate (CAGR) of 3.1% from 2023. In 2023, despite challenging global macroeconomic conditions, the sector recorded growth of 3.7%, reaching a total value of 50.1 billion euros.
Consumer spending, a major component of the market, will increase with a CAGR of 2.6% between 2023 and 2028reaching a total of 38.1 billion euros. Among the segments that will contribute most to this growth are the Video and the online betting and gaming sector, which will represent 16% and 12.6% of overall spending respectively.
Advertising revenues are also set to grow significantly, with a CAGR of 4.7% between 2023 and 2028. Starting from 12 billion euros in 2023, the advertising revenues will reach 15.1 billion euros by 2028, with the Video segment playing a central role, representing over 31% of total advertising revenues.
The PwC study analyses 14 key segmentsincluding cinema, music, radio and podcasts, linear TV and OTT, video games, online and Out-of-Home (OOH) advertising, as well as new emerging technologies such asartificial intelligence (AI), virtual reality (VR), augmented reality (AR) and the metaverse. The report highlights the importance of the digital component, which already represented 84% of total market revenues in 2023 and which will continue to grow with a CAGR of 4.6% until 2028.
In 2023, the E&M market recorded revenue growth of 3.7%, despite a global context characterized by macroeconomic challenges, including rising inflation and international instability. In the coming years, the E&M sector in Italy will continue to grow at a faster pace than real GDP, which is expected to increase by around 1% per year until 2028. This demonstrates how the sector is taking on a increasingly important role in the Italian economy, with growth that will average above 2% per year.
The expense Consumer saw a 2.1% increase in 2023, reaching 38.1 billion euros, with a strong boost from live events such as cinema and concerts. In particular, cinema was one of the fastest growing segments, with a revenue increase of 61.6% in 2023, thanks to a recovery in the Italian film sector and a strong offering of international films.
Maria Teresa Capobianco, Partner PwC Italia, TMT Leader, observes: “In 2028 the Italian E&M market will be worth 58.4 billion euros with a 23-28 CAGR of +3.1% compared to a global market with a 23-28 CAGR of +3.9%. The E&M market Italian is a local market influenced by global dynamicswhich expresses its maximum value by bringing cultures, interests and information into contact. Those who operate in this market are, on the one hand, committed to capturing the attention of users with commercial offers that reflect the desire for consumption, and on the other, are committed to proposing contents, offers and tools capable of further evolving the market and the habits”.
There digital transformation continues to play a key role in the evolution of the E&M market. According to PwC, strategic investments in areas such as Artificial Intelligence, virtual and augmented reality, and the innovation of digital business models will be essential in the coming years. The companies will have to adapt quickly to new trends and emerging technologies, ensuring an increasingly engaging and personalized consumer experience for an ever-evolving audience.
In particular, investments in Artificial Intelligence will have a decisive impactas they will allow us to optimize production processes, improve cost efficiency and create increasingly targeted and innovative content. However, attention will also need to be paid to regulations relating to advanced technologies, which could significantly influence the sector, especially in areas such as disinformation and privacy.
One of the most dynamic and growing segments is that of betting and gambling online games. In 2023, the market generated revenues of €4.8 billion and will continue to expand at a CAGR of 10.9%, reaching €8 billion by 2028. Sports betting and online casinos represent the main components of this market , with betting growing at a rate of 12.4% annually through 2028. The online casino sector will also maintain robust growth, with a CAGR of 10.4%, contributing significantly to overall market growth.
Filippo Schemoz, Partner TMT PwC Italia, comments: “The online betting and gaming market will continue its growth trend with CAGR 23-28 respectively of +12.4% and +10% for the two macro-components. In a context whose dynamics are strongly influenced by regulations and technological developments, operators will face the challenge of offering high-level digital experiences for an increasingly large and mobile-oriented number of users. In this sense, the digital transformation experiences observed in other sectors of the E&M sector can be a source of inspiration for market players”.