Italy's entertainment and media market grew to €54.9 billion in 2025, with OTT streaming revenue increasing by 14.6% to €3.2 billion. As linear pay-TV revenue declines, Sky Italia is pivoting its strategy toward IPTV and content aggregation to mitigate subscriber churn.
The double-digit growth in Italian streaming revenue signals a permanent shift in the Mediterranean market, forcing legacy players to abandon high-cost satellite infrastructure. Sky Italia’s aggressive price cut for Sky Stream hardware illustrates a defensive pivot toward becoming a software-centric aggregator rather than a traditional broadcaster. While linear TV maintains a temporary stranglehold on advertising budgets, the projected rise of OTT to €4.5 billion by 2030 suggests a looming reallocation of commercial spend toward digital platforms. Watch for whether Sky’s mobile and fixed broadband bundling successfully stabilizes its subscriber base at the forecasted 4.05 million household plateau.
The broader streaming services shuttered or merged during the recent consolidation wave highlights the competitive pressure facing regional players as they transition away from legacy infrastructure, a trend also seen in French broadcasters budget shortfall as digital competition intensifies. Similar pressures are forcing BBC channel closures as public service broadcasters attempt to navigate the shift toward digital-first distribution. The Mediawan production strategy further underscores how European entities are scaling content to compete with global platforms, while the Italy Connected TV audience reflects the rapid adoption of non-linear viewing habits in the region.
Italy's OTT streaming revenue grew 14.6% to €3.2 billion in 2025, driving the total media sector to €54.9 billion. This growth forces legacy broadcasters like Sky Italia to pivot toward IPTV and software-centric aggregation, as linear pay-TV revenues decline and digital platforms increasingly capture the market's long-term commercial potential.
Italy's OTT streaming revenue reached €3.2 billion in 2025, marking a 14.6% increase.
Sky Italia reduced Sky Stream setup fees from €99 to €19 to accelerate its transition from satellite infrastructure to IPTV aggregation.
AVoD is the fastest-growing video segment in the region, with a projected 8.2% CAGR through 2030.
OTT subscription revenue is projected to become the top industry revenue driver by 2029.
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