The Italian film and audiovisual industry, with 10,968 active enterprises, represents 0.2 per cent of the total number of enterprises in Italy and generates an added value of EUR 6.59 billion. The number of enterprises and their productivity are growing, but not in added value in volume. These are among the conclusions of the report ‘The Film Industry and Artistic Attractiveness in Italy’ edited by Francesco Baldi, Lecturer of the International Master in Finance of Rome Business School; Massimiliano Parco, Economist, Centro Europa Ricerche and Valerio Mancini, Director of the Research Centre of Rome Business School.
Production is mainly concentrated in Rome (23.3%), Milan (16.6%), Turin (3.4%) and Naples (3.3%), and employs over 60 thousand people. Despite a slight decrease in added value in 2022 (-0.8%), the sector continues to contribute significantly to the economy, with a positive impact on local productions and the internationalisation of Italian cinema.
In the decade 2012-2022, the number of film enterprises increased by 25.8%, with an average annual growth rate of 2.9%. Micro-enterprises increased by 29.4% (0-9 employees), while large enterprises increased by 38.5%. At the same time , small enterprises (10-49 employees) decreased by 19.6%. These changes led to a sharp increase (+2.7%) in the weight of micro enterprises in the total number of enterprises in the film and audiovisual sector, amounting to 94.5% in 2022.
Despite the difficulties posed by digitisation and changing consumption patterns of audiovisual content, with the exception of 2015 and the pandemic year 2020, films produced for cinema in Italy have increased significantly over the last decade. Between 2012 and 2023, the increase was 236 films produced (from 166 in 2012 to 402 in 2023; +142%). In particular, 402 films were produced for the cinema in 2023 compared to 353 in 2022, an increase of 13.8%.
‘The problem,’ says Massimiliano Parco, ‘is that the increase in the number of Italian films produced has not, however, generated a corresponding increase in terms of revenues’.
In the audiovisual sector, between 2020 and 2023, the number of Italian audiovisual works produced increased by 143 products, 104 for TV (+128%) and 39 for the web (+162.5%). The share of Italian audiovisual products for distribution on web platforms in the total increased from having a modest weight of 9.5% (9 out of 95) in 2015 to 34% (63 out of 185) in 2023.
However, the industry faces challenges such as catching up with cinema audiences, which is still below pre-pandemic levels, despite an attendance growth of 58.6% in 2023 compared to the previous year. The sector’s productivity has been on a downward trend over the past ten years, due to an increase in employment without a corresponding increase in added value, although the sector has maintained productivity levels above the Italian average. In 2022, the approximately 11,000 Italian companies in the film and audiovisual sector recorded an added value of EUR 6.59 billion, a decrease of 0.8% compared to 2021. From 2012 to 2020, the sector’s added value dropped by 24.4%, with an average annual decrease of -3.4%, and has not yet returned to the 2017 level of 6.64 billion.
For Francesco Baldi, ‘the industry is called upon to respond with investments in distinctive film experiences that can compete with digital platforms, seeking a balance between tradition and innovation’.
Italy is not only an epicentre of cinematic excellence, it is also one of the most sought-after cultural destinations in the world. The country recorded a record 57.7 million visitors to its state-owned museums and archaeological sites in 2023, an increase of 22.7% over the previous year. Cities such as Rome, Florence and Venice continue to be privileged locations for art tourism, with events such as the Venice International Film Festival and the Rome Film Festival helping to promote Italian culture on a global scale.
For Francesco Baldi, ‘these events not only celebrate film production, but also attract an international audience, bringing direct and indirect economic benefits to accommodation facilities and businesses.
Indeed, ‘the artistic beauties Italy enjoys will continue to play a key role in attracting visitors from abroad,’ says Massimiliano Parco. But to continue to be an attractive destination for film production and projection, Italy needs technological innovation, support for independent productions, and an increasing openness to international markets. It is therefore necessary to focus on three strategic axes: innovation, internationalisation, and enhancement of the cultural heritage.
“Investments in technology and digitisation will make productions more competitive and able to dialogue with new generations, while greater openness to the global market can expand the visibility of Italian cinema beyond national borders. Finally, the synergy between film festivals and cultural promotion can turn into an effective territorial marketing tool, enhancing Italy’s attractiveness and stimulating new forms of cultural tourism,’ Valerio Mancini concludes.