Italian audiovisual content investment declined by 7.4 percent to €2 billion in 2025, marking the first drop since 2018. The Italian audiovisual producers association (APA) attributes the downturn to government tax credit reforms and a continued shift in audience consumption toward streaming platforms, which now account for 43 percent of the market.
The contraction in Italian audiovisual content investment signals a volatile transition period for one of Europe's major production hubs. As the government overhauls tax incentives, local independent producers face a liquidity crunch that favors larger international players with deeper pockets. This shift coincides with streaming platforms capturing 43% of the market, forcing a realignment of original IP strategies to compete with global American studios and social platforms. The decline in traditional fiction spending suggests that local broadcasters are losing their grip on high-value production cycles. Watch for the upcoming APA data on linear television value to see if VOD officially overtakes traditional broadcast revenue in 2026.
Italian audiovisual content investment dropped 7.4% to €2 billion in 2025, marking the first sector contraction in seven years. Driven by tax credit reforms and a shift toward VOD, this decline creates a liquidity crunch for independent producers while streaming platforms now command a significant 43% share of the Italian market.
Total spending on cinema, TV, and VOD production in Italy decreased by 7.4% to €2 billion in 2025.
Streaming platforms currently command a 43% market share in Italy, with projections suggesting they may soon surpass the value of linear television.
The decline is attributed to government tax credit reforms, uncertainty regarding public funding eligibility, and a rapid consumer shift toward VOD platforms.
Investment in fiction production dropped to €740 million, while spending on scripted productions for TV and VOD fell to €122 million.
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