Who are the winners and losers in Romania’s entertainment & media industry in 2020

The growth rate of Romania's media and entertainment industry will decelerate to 0.26% this year, from over 8% in 2019, due to the restrictions imposed by the COVID-19 pandemic.

The market value will reach EUR 2.613 billion, according to the 21st edition of the PwC Global Entertainment & Media Outlook 2020-2024 (GEMO) report.

Estimates show a return to growth in 2021 at an average annual rate of 6.76% by 2024.

"Romania is the least affected by the COVID-19 crisis among the Central and Eastern European markets included in the report and the only one that will grow in 2020," the report said.

The other countries in the region are expected to report declines in 2020 compared to the previous year: Hungary by 7%, Poland by 5%, and the Czech Republic by 5%.

In Romania, as elsewhere, the cinema industry is the hardest-hit by the pandemic. With cinemas closed for five months and ticket revenues lost, the film industry will report a decrease of 58% to EUR 26 million. By 2024, however, the sector is predicted to return to EUR 58 million, which will still be below the 2019 level of EUR 62 million.

Another segment that has lost due to the pandemic is the outdoor advertising market (-25%), which will reach a value of EUR 25 mln this year. However, the prospects until 2024 show a return of up to EUR 43 mln.

The B2B media sector, which includes business information, directory advertising, trade magazines, professional books, and trade shows, will post a decrease of 13.7% to EUR 194 million but will recover in the coming years at an average growth rate of 3.27% per year. The pre-crisis decline in Romania's printed newspapers and magazines sector has deepened during the pandemic, by 13% to EUR 62 million this year.

Both the television and the video content consumed at home will have slight decreases this year, estimated at 6%, with revenues falling to EUR 465 million. This is the second largest segment in Romania in terms of revenue generated, after internet access.

In this context, TV advertising revenues are also expected to decrease by 7%, to EUR 295 million, but then increase from next year, reaching EUR 388 million by 2024.

Meanwhile, the OTT services market (Netflix, HBO Go) in Romania will have the highest growth in the media and entertainment market this year, of 32% to EUR 29 mln. The segment will continue to grow in the coming years, with an average annual rate of 16.5%, to EUR 48 mln in 2024.

The second-highest growth in the market is estimated for the segment of video games and e-sports (electronic sports), of 19% to EUR 136 million this year and rising to EUR 195 million in 2024.