VIDEOAGE Italian TV Affairs April 2016 Television Before And After Netflix. Traditional TV Still Running Ahead By Luca F. Cadura talian television is undergoing a great meantime, the switch-off from an analog to a TVHH (out of a total 22.7 million), of which change ... again, but this time in a surprising digital TV standard increased the opportunities 100,000 are paying (starting at eight euro per Idirection. The transition to digital terrestrial for Free-to-Air players (as well as for a new month) and 150,000 are still utilizing the free and the rise of on-demand players today offer competitors in pay-TV). Immediately, RAI and promotion available since its launch last October. Italian viewers a rich and competitive landscape, Mediaset started occupying as many digital As for programming, it consists mostly of library which they’ve never had before. Throughout the channels as possible in a defensive move to material, with little original Italian programs, years, three main phases in the changing Italian prevent other players to move in with scale. like the locally produced Suburra, currently in TV landscape can be identified: To a certain extent they succeeded, keeping production. RAI after Mediaset in the 1980s. The first out (or making life very difficult for) the small big change was brought by Silvio Berlusconi’s independent operators. However, RAIset couldn’t Therefore, “traditional” may still be the Mediaset TV networks. After almost 30 years manage to rake up everything. Today there’s essential word to describe the Italian TV diet: of monopoly, state television, RAI found itself Discovery Italia, which is the third TV group by Italy is the country with the oldest population in challenged by young, daring and dynamic cumulative audience shares, achieved through Europe. For example, last February, Italy had its networks. The country opened up to U.S. content bold acquisitions and aggressive TV offerings own Super Bowl-type show, Sanremo the song and started feeling the power of being able to that includes three Free-to-Air channels. In competition that gets very high ratings. One choose its daily diet of entertainment programs. terms of audience, Discovery ranks after RAI and couldn’t imagine a more traditional show: the Mediaset, but before Sky. RAI didn’t take the competition seriously at archaic annual ritual on RAI has been repeated the beginning, since the economics of the state So much for “traditional” linear TV. But for the past 66 years. While talking about Netflix networks were (and still are) protected by a tax what about SVoD and, in particular, Netflix? and expecting traditional TV shows to decline in on every Italian household. So, there was no Italians have been waiting a long time for this popularity, the latest Sanremo — broadcast on incentive to be the best in town, since the revenue new evolution. Interestingly enough, while the five consecutive nights, four hours a day — got streams flew in anyway. country already had very strong on-demand more than 50 percent of share. Italians perceived RAI as the institutional TV offerings by the usual suspects — Infinity by broadcaster, the place to watch the news and Mediaset and Sky On Demand, as well as other So, for now, Italian television after Netflix is get “serious” information. Berlusconi’s channels rich VoD propositions like the OTT channel very similar to the one before Netflix. The real bet were the entertainment side: more fun, music, Chili TV — expectations for the new entrant, for the time being, is still on traditional linear TV. dancers and commercials. The ’80s were the Netflix were high. At least among that part Luca Federico Cadura leads Kenturio, a media golden age of Italian TV. Mediaset opened fire of the population that is up-to-date with the and marketing strategic consulting company he and, belatedly RAI responded with a lot of international media phenomena. The rest of experimental television that brought to Italians Italians probably still think Netflix is a relative of founded. Previously he spent 15 years at NBCUniversal a new relationship with the TV screen: the place the cartoon character, Asterix… . Italy, producing and distributing the company’s branded networks (Studio Universal, Diva Universal, to be informed and improve their knowledge. Such expectations may have been too high: Steel, E! Entertainment, Television became the place for fun and for the SVoD market was already well served, best setting the topics they would discuss the day content already gone and Netflix was bringing Syfy, Style, Calle 13, after at a bar with their friends, while sipping the in just a great brand and a couple of desirable Hallmark Channel in Italy shortest coffee in the world. shows. The rest is below expectations. It will and Universal Channel in RAI and Mediaset after Sky Italia in probably improve in the next months and years, Spain Greece and Turkey). the 1990s. Once the two big players — RAI but Italians haven’t seen the expected (and Before joining the television and Mediaset, then derisively called “RAIset” — feared) shock to traditional TV. arena he worked at found their equilibrium, dividing the TV revenue In terms of Netflix subscribers, there are no advertising agencies Saatchi pie that benefitted both (the television tax went official figures, but they are estimated at 250,000 & Saatchi, Ayer and Grey. to RAI, and the bulk of advertising revenue went to Mediaset), a newcomer came to break all the rules ... again: Rupert Murdoch’s Sky. The Italian “Traditional” TV Universe Given the already very rich TV environment in a country used to getting television for free — According to the Confindustria Radio TV Association, last year in Italy there were from football (soccer) to films — pay-TV had a 406 national television networks that broadcast on digital terrestrial channels and/ very tough start. It required time, investment and or satellite (Sky and Tivusat) for both free and pay services. There were eight fewer a very aggressive strategy to make Sky the player national channels than in 2014, but the number still included the 55 channels that it has now become — a player whose revenues are today higher than those of RAI and Mediaset. broadcast in non-Italian languages. No one would have placed a bet on a strong pay- Of those national channels, 163 were free (of which 130 were terrestrial), while 243 TV market in Italy (not even Mediaset), but Sky were pay. invented a new way of entertainment for an upper class and highly demanding TV audience. Today, As for local terrestrial TV stations, it is estimated that the total number of “call Sky is perceived as the must-have accessory for letters” (e.g., TVQ, TVN, Tele Venezia, etc.) is 500. Being digital, each local TV “call any household. If one doesn’t have it, it’s only letter,” carries several channels (some their own, other for a fee). The number of because one cannot afford it, not because it is not channel owners, however, is fewer than 500 (but not yet documented), since many worth the price. broadcasting companies’ own several “call letters.” RAIset after Netflix in the 2000s. In the

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