Europe’s entertainment landscape is undergoing a profound transformation, marked by the rapid rise of streaming services and evolving consumer preferences. A trio of recent reports from Futuresource Consulting delves into the video entertainment markets in Spain, Italy, and Poland, offering insights into the factors driving this digital evolution.

Unveiling New Opportunities in European Entertainment

Streaming's Ascendancy in Southern Europe

The surge in streaming revenues has become a defining trend across Southern Europe. In 2024, Spain witnessed a remarkable 16% increase in streaming revenue, closely followed by Italy with a robust 14%. This growth can be attributed to several strategic moves by major platforms like Netflix and Disney+. Increased investment in localized content, strategic price adjustments, and the introduction of ad-supported tiers have all played pivotal roles in attracting more subscribers.Moreover, these platforms are not just expanding their user base but also enhancing viewer engagement. For instance, Netflix’s emphasis on producing Spanish-language series has resonated well with local audiences, fostering a deeper connection between the platform and its users. Similarly, Disney+ has leveraged its vast library of family-friendly content to capture a significant share of the market. These initiatives highlight the importance of tailoring content to meet regional tastes and preferences.

Polska's Prudent Approach to Streaming Expansion

Poland stands out for its measured approach to the streaming revolution. While the country experienced double-digit growth in 2024—reaching 12%—the pace is expected to slow down to a steady 3% annual increase through 2028. Polish households typically subscribe to an average of 2.1 streaming services, slightly below the figures in Spain and Italy. This cautious expansion reflects a more deliberate consumer behavior, with new entrants carefully evaluating the value proposition of each service before subscribing.Despite this slower growth, Poland’s market remains dynamic. The launch of Amazon’s transactional store has introduced a fresh dimension to the digital entertainment landscape. This move has catalyzed substantial growth in Electronic Sell-Through (EST) and Transactional Video-on-Demand (TVoD), indicating a growing appetite for flexible viewing options. Futuresource Consulting anticipates that this trend will continue, driven by increasing consumer demand for diverse content delivery methods.

Challenges and Resilience in Box Office and Transactional Markets

While streaming services thrive, the box office and transactional video sectors faced challenges in 2024. Spain and Italy, which had seen a post-pandemic resurgence in theatrical attendance, encountered flat or declining revenues. This downturn affected transactional video, especially in regions where retail distribution remained stagnant. However, Poland bucked this trend with a notable boost from Amazon’s transactional store, leading to double-digit growth in EST and TVoD.Looking ahead, the outlook for 2025 is more optimistic. An improved slate of film releases is expected to reinvigorate both theatrical and digital transactional markets. Industry experts predict that a stronger lineup of movies will draw audiences back to cinemas and stimulate renewed interest in purchasing or renting films online. This shift underscores the cyclical nature of consumer preferences and the adaptability of entertainment industries to changing market conditions.

Pay-TV's Enduring Role in Consumer Entertainment

Amid the rise of streaming, pay-TV continues to hold its ground as a vital component of consumer entertainment spending. In Poland, pay-TV penetration remains high at 69%, contributing significantly to the total market revenue. Strategies such as bundling SVoD services with traditional packages have helped mitigate cord-cutting tendencies and maintain customer loyalty.In Spain and Italy, pay-TV still commands a substantial share of the market, albeit slightly lower than in Poland. Bundled subscription deals that integrate leading streaming services into pay-TV offerings have been instrumental in stabilizing this segment. These integrated packages offer consumers a comprehensive entertainment experience, combining the best of both worlds—traditional linear programming and on-demand streaming.

Navigating Fragmentation and Identifying Common Ground

Europe’s entertainment market is increasingly fragmented, with different countries and sub-regions advancing at varying paces. Yet, beneath this diversity lie common threads that savvy industry players can exploit. By understanding these interlocking patterns, companies can identify new opportunities and tailor their strategies to maximize impact.For example, the universal appeal of localized content and the effectiveness of bundled services highlight shared consumer preferences across Europe. Recognizing these trends allows businesses to develop targeted marketing campaigns and innovative product offerings that resonate with diverse audiences. As the digital entertainment ecosystem continues to evolve, staying attuned to these underlying similarities will be crucial for success.