The entertainment and media (E&M) industry in Romania is expected to grow by 10% annually to reach a total value of 3.4 billion euros in 2022, which will lift it above the pre-combat level. pandemic (2.53 billion euros in 2019), with most segments expected to grow, according to the 23rd edition of the PwC “Global Entertainment & Media Outlook 2022−2026” (GEMO). The growth rate is similar to last year’s 11%, and forecasts show the industry will continue to grow at 6-9% per year through 2026.
Regionally, Romania has the second fastest growing media and entertainment industry among the Central and Eastern European countries included in the report. For example, the sector is expected to grow in Poland by 10.2% this year, in Hungary by 7.85% and in the Czech Republic by 7.45%.
Winners vs losers in 2020 and predictions for 2021
With the lifting of pandemic restrictions, the movie industry began to recover. Last year, the Romanian media and entertainment market registered record growth, with an increase of 68% to 25 million euros. This year’s growth is expected to be even higher, at 83% to €46 million, but it will fall short of the pre-pandemic level of around €60 million.
The on top The (OTT) services market (e.g. Netflix) in Romania recorded the second highest market growth last year by 29% to 44 million euros. It will continue to grow this year at a slower pace, estimated at 18% to reach 52 million euros. Romania remains the smallest OTT market in the Central and Eastern European (CEE) region despite impressive growth rates in recent years. This year marked the launch of two new services on the Romanian market: HBO Max and Disney+.
Spend on Internet access is the largest segment of the industry, with 37.5% of the market. It increased by 7% to 1.16 billion euros in 2021 compared to the previous year, and the report indicates a 10% increase in 2022.
internet advertising grew by 35% to 500 million euros in 2021. This segment will continue to grow this year, by 14% to 569 million euros. Romania has the smallest Internet advertising market of the CEECs, but it is the fastest growing. The mobile sector dominates the market and accounts for 74.3% of total Internet advertising revenue.
The video games and esports also recorded a significant increase of 21% to EUR 213 million. For this year, an increase of 12% to 239 million euros is expected.
Sale of books stagnated last year at the 2020 level of €89m and are expected to reach €90m this year. The audiobook market in Romania seems to be growing and podcasts are already popular in the country. In 2021, two audiobook services were launched in Romania: Echo and Voxa.
television and video content consumed at home increased last year by 3% to reach 539 million euros, but it is expected to stagnate this year. This is the second largest segment in Romania in terms of revenue generated, after Internet access.
TV advertising revenues increased by 11% to 332 million euros last year and are expected to reach 360 million euros in 2022.
The B2B media The sector returned to growth last year, up 9% to 140 million euros, and the outlook is even more optimistic this year, with an estimated increase of 17%. This will take the segment to pre-pandemic levels.
Another segment that returned to growth last year is the outdoor advertising market up 17% to 30 million euros. The outlook for this year foresees an increase to 38 million euros.
Mainstream newspapers and magazines in Romania continued their decline of 8% to reach 46 million euros in 2021. A further decline of 2% is expected this year.
After declining in 2020, the radio, music and podcast segment grew by 11% to 27 million euros last year and is expected to climb 14% in 2022 to 31 million euros.
Globally, media and entertainment industry revenues are expected to grow 10.4% to $2.34 trillion in 2021.
