The performing arts market - Italy

1.2 Global Market Analysis

The global performing arts market, which include both independent artists and performing companies, was estimated at $***.** billion in ****, and it is expected to reach $***.* billion by ****, growing at a CAGR of *%. In particular, the scope of the market under analysis is based on the offer of independent artists and performing art companies' services, and it also includes all the related goods provided by entities which are related to performing in artistic productions, creating cultural works, and providing technical expertise. Therefore, a number of different categories of people are included in the scope of this market, including independent actors, authors, directors, writers, speakers, costume designers, and cameramen. The graph below reports the global size of the main sorts of performing art that can be related to the market under analysis. Naturally, the figures reported are higher than expected, given that each of the art markets under consideration also encompasses factors that fall outside the scope of this analysis. 

Cultural Industry - Global Figures World, ****, in Billion USD. Source: ****

Analysing the graph above, it can be inferred that the global market for performing arts can be segmented into visual arts and performing arts. In particular, the former category includes all the art works ...

1.3 The Italian Market for Performing Arts

In a country like Italy, where culture is considered to be one of the most rooted values for the society, performing arts represent an essential sector for the economy. Taking into consideration the data disclosed by SIAE (***), the number of exhibitions and the revenues of such a market remained high even during ****, despite all the downsides of the pandemic and the negative effect that it exerted on a sector like this. 

Types of Exhibition - Number of Performance Italy, ****, in Units. Source: ****

Among the categories under consideration, Italian people showed particular interest for cinema in ****, which is the sort of exhibition that attracted the largest audience. Cinema is followed by travelling shows and sports, while theatre and exhibitions rank right after with a similar number of spectators.

  Types of Exhibition - Audience Italy, ****, in Million Units. Source: OsservatorioDelloSpettacolo However, in terms of revenues, the ranking is different, given the fact that some categories of performing arts, although attracting a larger audience, are cheaper than others - especially cinema. Naturally, the convenience of some of them can also be considered as one of the reasons why they are preferred to others.   Types of Performance - Revenues Italy, ****, in Million Euros. Source: ...

1.4 Import and Export Analysis

Dealing with performing arts, it is difficult to estimate the number and value of exhibitions "exported or imported", meaning the quantity of spectacles of Italian artists abroad or that of foreign artists given in Italy. However, it is worth considering the instruments, apparatus, and models that are designed for demonstrational purposes (***) and the trades of such categories of goods that Italy carries out with other countries. In particular, in terms of exportation, Germany ranks first for the value of goods exported, representing **% of a global exportation value of ***.* billion Euros. However, considering the graph below, it is possible to infer that exportations are highly fragmented among other countries, given that each of them covers just a marginal percentage of the total amount realized.

Performing Arts - Exports of Instruments, Apparatus and Models Italy, ****, in %. Source: ****

Germany is also the main importer for Italy in terms of the products under consideration, followed by China and France. However, even in the case of importations, their total value is fragmented among countries, given that Germany - ranking first - represents only **.*% of a total value of ***.* billion Euros, followed by all the other countries.

  Performing Arts - Imports of Instruments, Apparatus and Models Italy, ...

1.5 Covid-19 Impact

**** has been a critical year for the market of performing arts. According to the Italian Minister for Culture, Dario Franceschini, as restrictions were released due to the worsening health situation, the market under consideration started undergoing a continuative contraction. To fully understand the severity of the situation, it is enough to consider the following figures: a decrease in the total number of performances by **%, a deterioration of profits in the sector by **%, and a decrease in the dimension of the audience by **% [***].

Before the pandemic hit the world economy, the players in the Italian market for performing arts were moving towards a steady increase in the price of performances, with the scope of gaining enough funds to be invested to meet the needs of their customers. Therefore, the main aim of such a strategy was to maximize the occupancy rate for each show, through the attraction of a larger audience, lured in by the increased variety and quality of services.

The implementation of COVID-** restrictions has hit very hard the prospective of expansion for such a market. In fact, even after the lift of restrictive measures, the sector under analysis was not immediately able to go back to its normal activity, ...

2.1 Demand Overview

Taking into consideration the total dimension of the audience for performing arts in Italy, it is possible to see an almost constant trend in the number of people attending and participating in exhibitions, performances, and other sorts of entertainment in the last * to * years. Naturally, such a constant development of the number of participants was doomed to plunge in **** when, because of the pandemic, all theatres, cinemas, and expositions were shut down by the government's restrictions. As described in the paragraph before, **** has been a critical year for the market under consideration, and, in the graph below, it is possible to visually assess the negative impact that such a catastrophe has exerted on the sector under analysis.

Total Audience - Performing Arts Italy, ****-****, in Million Units. Source: ****

Recalling what outlined in the introduction, cinema seems to be the most preferred form of performing art for Italians. The graph below shows the evolution of the audience for this sort of art. Developing the analysis further, it is possible to see that in **** the number of people visiting cinemas decreased dramatically: the main reason behind such a negative trend is given by the fact that, at the beginning of ****, the streaming platform ...

2.2 Demand Drivers

Among the drivers for the demand of performing arts, the educational level and background of individuals play a relevant part in the attractiveness that consumers feel about cinemas, theaters, exhibitions and other forms of art. It has indeed been demonstrated that, among visitors to theaters and cinemas, the vast majority is represented by people with a higher socio-economical status: around **.*% of graduated people against **.*% of people with diplomas of compulsory schooling, and **.*% of wealthy people against **.*% of people with economic difficulties.

Therefore, the level of education is highly relevant in determining the appreciation for performing arts. In ****, among people aged ** and over, **.*% of graduates went to the cinema and theaters at least once in a year, against **.*% of high school graduates and only **.*% of those with at most a middle school diploma. The influence of the educational qualification can be observed for all age groups and appears to be stronger in the case of more frequent cinema or theater visits: individuals with a secondary school-leaving certificate or less who go to cinemas or theaters seven or more times a year are *.*% compared to *.*% of those with a diploma and **.*% of those with a university degree or more.

The table below shows ...

2.3 Geographical Distribution of Demand

The following map shows the distribution of the overall audience of performing arts in **** per macro-region [***]. In particular, the data used to build the map are referred to the following categories of performing arts:

Cinemas; Theaters; Concerts; Sports; Dance; Travelling shows; Exhibitions.

2.4 New Trends in Demand

As explained in section *.*, COVID-** exerted an enormous impact on the performing arts market. Despite all the negative consequences that the pandemic has imposed on the sector under analysis, a sudden change of context has also represented an opportunity for the development of new genres and the emergence of new authors.

The pandemic crisis has highlighted that the attitude of audiences and operators is moving towards the development of hybrid models, which propose - alongside a cultural offer in presence - a digital offer on an increasing number of platforms and with formats that are partly being explored. We can therefore expect a structural development of a multi-channel strategy on the part of operators and the emergence of new formats, new authors and leading products alongside the consolidation of genres that use combinations of expressive forms, platforms and payment methods in articulated and original ways to satisfy the needs of large segments of the public [***].

In an interview to Gianluca Diegoli (***), some examples of the hybrid models explained above have emerged [***]. The following list includes the most relevant:

"Call my name" - dance exhibition made by a professional dancer streamed through WhatsApp. "Genoma Scenico" - sort of experiment which mixes ...

3.1 Structure and Dynamics of the Market

Taking into consideration the ATECO code **.** - creative, artistic, and entertainment activities - the following chart represents the main legal forms adopted by the companies in the sector. It is possible to see that the general partnership (***).

Performing Arts - Legal Entities Italy, ****, in %. Source: ****

Furthermore, considering the period from **** to ****, the number of entities belonging to the sector under analysis has increased, growing by **.*% over the period under analysis. 

  Performing Arts - Number of Legal Entities Italy, ****-****, in Units. Source: Istat Likewise, a steady increase has also been observed in the number of individuals employed in the sector, which grew by **.*% between **** and ****.    Numero di Addetti - Mercato delle Arti dello Spettacolo Italia, ****-****, in Valore Medio Annuo. Fonte: Istat Recalling what highlighted in section * - Demand Analysis - the positive trends in the numbers of entities and individuals for the ATECO code **.** - creative, artistic, and entertainment activities - can be explained by the high interest that Italian people show towards performing arts.

3.2 Fruition Channels

Dealing with the performing arts market, it is worth considering not only the total number of places where people can attend performances, but also that of supporting activities for performances themselves.

First and foremost, dealing with the number of fruition channels, it is worth considering the total number of cinema theaters in Italy, given that cinemas represent the largest category in the sector. It can be seen that the total number of cinema theaters (***) in Italy is slightly decreasing. This reflects what described in the previous part, related to the decrease in the dimension of the audience due to the upward trend in subscribers of streaming platforms.

Number of Cinema Theatres Italy, ****-****, in Units. Source: ****

On the other hand, considering the total number of supporting activities (***), as outlined in the graph below, it is possible to witness an increasing trend in the development of such activities in the country. Naturally, this reflects the importance that it is attributed to performing arts are in Italy, where culture constitutes a relevant component for the tradition and historical background of the country.

  Numero di Attività di Supporto alle Arti dello Spettacolo Italia, ****-****, in Unità. Fonte: Istat  

Therefore, an increase in the ...

4.1 Typology of the Offer

According to SIAE - Osservatorio dello Spettacolo - the main categories of activities belonging to the performing arts market can be summarized as follows:

Cinematographic activities; Theatre activities; Concert activities; Sport activities; Dance activities; Exhibitions; Travelling shows; En-plain-air activities.

The main trends related to these categories - total number of performances, audience, and revenues - for **** has already been presented in part *.* - The Italian Market of Performing Arts. Consequently, in order to assess the offer available in such a market, it is now worth to split each of those broad categories in the respective sub-categories.

Dealing with cinematographic activities, there are no relevant ulterior subdivisions which can be made: it is possible to think about different cinematographic experiences, such as traditional or *D ones, but they are not pertinent when it comes to the evaluation of the market under analysis. Instead, taking into consideration theatre activities, the following graph shows the proportion of the different sorts of performance that took place in the country during ****.

Tipologie di Performance Teatrali - Proporzione Italia, ****, in %. Fonte: OsservatorioDelloSpettacolo

Talking about concerts, they can be split into many different sub-categories according to musical genres. However, it has been proven that, in the Italian market, ...

4.2 Pricing

In order to assess prices in the market under consideration, it is necessary to recall the categories analysed in the previous part to have a complete overview of prices in Italy.

5.1 Regulatory Framework

In ****, the Italian Government approved a new regulation in matters of entertainment and performing arts (***). In particular, such a regulatory framework states that the Italian Government:

Promotes and supports entertainment, in the plurality of its various expressions, as an indispensable factor for the development of culture and as an element of cohesion and national identity, as an instrument for spreading knowledge of Italian culture and art in Europe and in the world, as well as a component of cultural and creative entrepreneurship and of the national tourist offer; Recognizes the formative and educational value of the performance, even to promote integration and to combat social hardship, and the value of artistic professions and their specificity, also ensuring the protection of workers in the sector; Recognizes the social utility of the performance.

In addition, the Government promotes and supports the activities of entertainment carried out professionally, characterized by the coexistence of artistic and technical professionalism and an audience, in a unique and non-reproducible context, and in particular:

Theatrical activities; The activities of opera, concert, choral; Popular contemporary music; Classical and contemporary dance activities; Traditional and contemporary forms of circus, as well as travelling show; Interdisciplinary and multidisciplinary activities, as an expression of ...

6.1 Segmentation

• UCI Cinemas
• The Space Cinema
• Cinelandia
• TicketOne
• TicketMaster
• Warner Music Group Italy
• Sony Music Italia