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Italian Content Investment Decline Attributed to Tax Credit Ambiguity

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Italy's content production sector experienced a significant downturn in 2025, with investments falling due to regulatory uncertainties and evolving viewership habits.

Uncertainty Stifles Italian Content Sector Growth

Content Investment Plunges Amidst Regulatory Delays

In 2025, investment in Italy's film, television, and streaming content production saw a notable decline of 7.4%, settling at €2 billion ($2.24 billion). This reduction primarily affected scripted projects and is largely attributed to the Italian government's hesitation over domestic tax credits, coupled with the industry's ongoing transition from traditional linear broadcasting to streaming services. The report from the Italian TV producers' association APA, presented during Rome's MIA market, underscored these critical factors.

Impact of Tax Credit Ambiguity on Producers

Following a period of growth, Italian producers faced an unexpected slowdown in 2025. The right-wing government's prolonged indecision regarding modifications to tax incentives for domestic film and TV production created an environment of uncertainty. While international production rebates remained unaffected, the domestic policy vacuum severely hampered producers' ability to plan, increased financial burdens, and squeezed profit margins. This situation disproportionately affected smaller companies, leading to liquidity issues and limiting future investment capacity. Recent developments indicate some relief, as the application window for the new tax credit has reportedly reopened.

Unscripted Content: A Pillar of Italian Broadcasting

Despite the challenges in scripted production, unscripted content continues to be a cornerstone of Italian broadcasting. Last year, Italian producers generated over 17,000 hours of original, first-run unscripted programming, with independent productions accounting for 59% of these titles. Streaming platforms in Italy have also expanded their unscripted offerings, showing a 51% increase in titles and a 30% rise in total hours.

Factual Entertainment and Game Shows Lead Unscripted Growth

Within the unscripted genre, factual content demonstrated the most significant expansion, with a 36% increase in hours. The number of domestic factual titles adapted from international formats also doubled. Game shows are experiencing a resurgence on linear networks, securing prominent slots in both early evening and primetime schedules.

Scripted Originals: Growth with a Local Focus

The number of scripted originals in 2025 grew by 9%, reaching 101 shows for the season. However, this growth was primarily driven by 74 smaller domestic series for linear networks, which typically do not achieve broad international distribution. The number of Italian originals provided by streamers remained consistent with 2024, with 27 titles, most of which were designed for local audiences. Despite this, some Italian scripted content, such as Lux Vide’s “Sandokan,” BiBiFilm’s “La Preside,” Picomedia’s “The Sea Beyond,” and Aurora TV’s “Il Paradiso delle Signore,” attracted substantial viewership on both linear and streaming platforms.

Streaming's Ascent and Microdramas' Emergence

Mirroring global trends, linear television's market share in Italy is steadily declining, while streaming platforms continue to expand. The streaming segment, which constituted 21% of the market in 2020, has now grown to 43% and is projected to surpass linear television in value in the near future. Additionally, microdramas are gaining traction in Italy, with platforms like ReelShort, DramaBox, NetShort, and DramaWave ranking among the top entertainment apps. The first original Italian microdrama, “Tutto in una notte,” produced by Fascino PGT, featuring 54 episodes, has been released on WittyTV and social media, marking a new frontier in content consumption.

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