Romania’s media and entertainment industry is expected to grow by 2.5% this year compared to 2023, reaching €4.43 billion. Most segments are expected to see an increase this year, according to PwC’s Global Entertainment & Media Outlook 2024-2028 (GEMO) report.
Romania is expected to have the lowest estimated growth in the media and entertainment industry among the countries in the Central and Eastern European region included in the report in 2024. For example, in Poland and the Czech Republic, the sector is expected to grow by 4.9% this year, and in Hungary by around 3.9%.
Forecasts suggest growth will remain low through 2028, ranging from 2.5% to 1.3%.
“While in the years before the pandemic we saw a significant increase in certain areas such as streaming services and internet advertising, and cinemas also generated good revenues, we will see a slowdown in growth rates between 2024 and 2028. Advertising, especially on the internet, will remain one of the most dynamic sectors in the coming years and will be a key part of the business models of companies in the media and entertainment industry,” said Florin DeAconescu, partner and leader of PwC Romania’s services team dedicated to the technology, media and communications sector.
This year’s report analyzes 10 segments for Romania, with the biggest increases predicted for internet advertising at 13% and OTT streaming services (Netflix, Disney+, etc.) at 12%. On the flip side, printed newspapers and magazines are expected to remain at the same level.
The film industry is expected to grow by 6% this year to reach 60 million euros, slightly lower than the 7% growth rate recorded in 2023.
The Romanian streaming services – OTT market continues to perform well, with an expected growth of 12% this year, reaching €206 million. Despite impressive growth rates in recent years, Romania remains the smallest OTT market in Central and Eastern Europe. Growth is expected to remain at a similar level until 2028, with total revenues for the segment reaching €272 million.
Meanwhile, according to PwC forecasts, Romania’s internet connection services (fixed and mobile) will see the lowest growth in total service revenue in Central and Eastern Europe in the period 2024-2028, with only 0.6%. In 2024, growth of 1% is predicted compared to 2023, amounting to €2.4 billion. By 2028, 73.7% of mobile phone connections in the Romanian market will be 5G.
Internet advertising is expected to grow by more than 13% year-over-year to reach €322 million in 2024, and continue to grow at an average rate of 9% through 2028. The fastest growing category in this sector will be internet video advertising, which is expected to grow at an average rate of 13% over the forecast period.
As in many other markets around the world, Google and Meta lead the Romanian market: Google earns most of its revenue from search advertising, while Meta is a major player in the social advertising space.
Television (advertising and TV subscribers) is expected to grow 2% this year compared to 2023, reaching revenues of €876 million. Traditional operators are expected to continue to see strong growth in subscriber numbers and advertising revenues through to 2028, with a market size exceeding €900 million.
The radio, music and podcasts sector is expected to continue growing in 2024, increasing 2.8% year-on-year to reach €36 million, before rising to €39 million in 2028.
PwC also said that sales of newspapers, print magazines and books will stagnate at €158 million this year and over the next five years. Book sales in Romania will remain stable at €107 million between 2024 and 2028, with print accounting for more than 97% of the total. However, strong digital market growth, averaging 9.2%, could boost the sector.
irina.marica@romania-insider.com
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