Romania's media and entertainment industry is set to grow by 2.5% this year compared to 2023, to a value of EUR 4.43 billion. According to the PwC Global Entertainment & Media Outlook 2024-2028 (GEMO) report, most segments are expected to register increases this year.

In 2024, Romania will have the lowest estimated growth rate of the media and entertainment industry among the countries in the Central and Eastern Europe region included in the report. For example, in Poland and the Czech Republic, the sector would advance by 4.9% this year, and in Hungary by roughly 3.9%.

Forecasts show that the growth rate will remain low until 2028, between 2.5% and 1.3%.

"If in the years before the pandemic, we witnessed significant increases in certain segments, such as streaming services and internet advertising, as well as a strong return for cinema, in the period 2024-2028, we will witness a moderation in growth rates. Advertising, especially on the Internet, will remain one of the most dynamic sectors in the coming years and will become an important part of the business models of companies in the media and entertainment industry," said Florin Deaconescu, partner and leader of the services team dedicated to the Technology, Media and Telecom sector at PwC Romania.

This year, 10 segments were analyzed in the report for Romania, and the largest percentage increases are estimated for internet advertising - 13% and Over-the-top - OTT streaming services (Netflix, Disney+, etc.) - 12%. At the opposite end are printed newspapers and magazines, which will remain at the same level.

The film industry is estimated to grow by 6% this year to EUR 60 million, a slightly lower rate than the one recorded in 2023, of 7%.

The streaming services - OTT market in Romania continues to have a good evolution, with an estimated growth of 12% this year, to reach a value of EUR 206 million. Romania remains the smallest OTT market in Central and Eastern Europe despite impressive growth rates in recent years. Growth will stay at a similar level until 2028, with the segment to reach total revenues of EUR 272 million.

Meanwhile, PwC forecasts show that Internet connection services (fixed and mobile) in Romania will register the lowest growth rate of total service revenues in Central and Eastern Europe, at only 0.6% in the period 2024-2028. In 2024, the forecasted growth is 1% compared to 2023, to EUR 2.4 billion. By 2028, 5G will account for 73.7% of mobile phone connections in the Romanian market.

Internet advertising will increase by more than 13% year-over-year in 2024, to EUR  322 million, and will continue to grow at an average rate of 9% until 2028. The fastest-growing category in this sector is Internet video advertising, with an average growth of 13% expected during the forecast period.

Google and Meta lead the Romanian market, just like in many other markets in the world. Google takes most of the revenue from search advertising, while Meta is the main player in the social advertising space.

Television (advertising plus TV subscriptions) will grow by 2% this year compared to 2023, to revenues of EUR 876 million. Traditional operators will continue to see significant growth in subscription and advertising revenues until 2028, with the market expected to exceed EUR 900 million.

The radio, music, and podcast segment will continue to grow in 2024, with an advance of 2.8% compared to last year, to EUR 36 million, and is estimated to rise to EUR 39 million in 2028.

Sales of newspapers, printed magazines, and books will stagnate this year and in the next five years at EUR 158 ​​million, PwC also said. Book sales in Romania will remain constant at EUR 107 million in the period 2024-2028, with print representing more than 97% of the total. However, digital solid market growth, averaging 9.2%, could boost this sector.

irina.marica@romania-insider.com

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