EU Country Profiles

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Country profile

Italy

Inhabitants: 60.03 million (2021)
Religions: Catholic (801,000 people), non-denominational (161,000 people), other (3,61,000 people)
Big cities: Rome, Milan, Naples, Turin, Palermo, Bergamo
Form of government: parliamentary republic
Head of State: President Sergio Mattarella (since 03.02.2015)
Head of the government: Prime Minister Giorgia Meloni (since 22 October 2022)
EU-member since: 1952 (founding member)
Unemployment rate: 9,5% (2021); 12,4% (2013)
Gross domestic product: USD 2.1 trillion (2021); USD 1.8 trillion (2013)
State indebtedness: 134.8% of GDP (2019); 133% of GDP (2013)

Advertisement costs total: 8.9 billion euros (2021); 7.2 billion euros (2012)
Average TV viewing time per inhabitant/day: 248 minutes
Large media and communication companies: MFE, Rai, GEDI Gruppo Editoriale SpA, RCS Media Group, Telecom Italia
Broadcasting fees: 90 euros/year (2022)

Italy was hit hard by the global financial crisis of 2007/2008, which was triggered by major international banks. The government's costs of refinancing its budget rose alarmingly at times, making bankruptcy seem impossible. Although yields on government bonds have since fallen back to pre-crash levels, the crisis has revealed structural deficits in Italy's economy and political system. Above all, the exorbitantly high youth unemployment rate clearly demonstrates how fragile the Italian economy appears to be. According to the European Statistics Office, youth unemployment was over 43 percent in 2014. Even though youth unemployment was only 23 percent in 2022, it is still significantly higher than in other age groups.

Since the financial crisis, Italy has experienced numerous changes of government. Between 2008 and 2022, nine different people held the office of Prime Minister. While the crisis was still going on, media entrepreneur Silvio Berlusconi was elected to his fourth term in May 2008 (only his second and third terms were consecutive). After two further Prime Ministers, Matteo Renzi of the Democratic Party took over the office of Italian Prime Minister from his fellow party member Enrico Letta in February 2014. Renzi, born in 1975, promised comprehensive reforms – but he, too, did not last two years in office.

Italian governments once again sought the support of right-wing parties, including Silvio Berlusconi and his Forza Italia, to support reforms to the labor market, legislation, and electoral law. Despite losing power and being convicted by courts as a result of various scandals, the long-time prime minister, billionaire, and media mogul still wields significant influence. Berlusconi, who served as Italy's prime minister in 1994/95, 2001-2006, and 2008-2011, managed to remain in office for years despite numerous scandals and trials – including charges such as tax evasion, mafia contacts, and prostitution involving minors. His media clout may also have contributed to his nonchalant political clout. The media empire he established, MediaForEurope (MFE, formerly Mediaset), still controls not only large parts of private television, but also companies in the advertising, production, and print sectors. In addition, there are strong ties to other European countries – for example, MFE currently holds shares in the German ProSiebenSat.1 Media SE.

Berlusconi's Forza Italia was again relevant in the new elections in Italy in autumn 2022. In October 2022, the ultra-right Fratelli d'Italia, with its leader Georgia Meloni, succeeded in electing a female prime minister, making her the first woman to head an Italian government. Since then, they have formed a government with Berlusconi's Forza Italia and the Lega Nord. With Meloni, Italy is said to have shifted to the right in much of Europe – she is accused of being close to fascism.

Italy is traditionally considered a country whose media system and culture are characterized by a prevalence of audiovisual media over the written word. In their highly acclaimed study of media systems in international comparison (2004), Daniel Hallin and Paolo Mancini classified it as a polarized-pluralist ("Mediterranean") country – in contrast to the democratic-corporatist ("Northern European") and liberal ("North Atlantic") models. In terms of average media usage, the press takes a particularly significant back seat to television in this ideal type and remains primarily an elite medium.

Historical foundations after 1945

After the end of the war, the previously severely affected and often politically compromised print sector consolidated. The largest daily newspapers “The Corriere della Sera”, La Stampa", "La Nazione", "Il Resto del Carlino", "Il Messaggero" and "Il Mattino" pursued a conservative line. In addition, there was an influential party press and church papers. Until the 1970s, the newspaper landscape hardly changed despite social upheavals. The founding of two progressive news magazines, "L'Espresso" and "Il Giorno", was an exception. In the following years, the scene was significantly expanded by the founding of the quality newspaper “The Republic” There was talk of an "awakening" of Italian journalism. Nevertheless, the sector fell into crisis, with many newspapers making losses. A press law was introduced in the early 1980s to support newspaper publishers and prevent excessive economic concentration.

Newspapers also faced increasing competition from television after the Italian Constitutional Court authorized private TV stations for the first time in 1976, albeit on a limited basis. Previously, the state broadcasting monopoly in the form of Rai had remained unchallenged for decades. Rai had developed into a system closely aligned with the governing parties, which increasingly damaged the broadcaster's reputation. Proportional representation led to a de facto division of television programming: Rai 1 was considered the mouthpiece of the Christian Democratic Party, which continuously provided the Prime Minister from 1945 until the 1980s. Rai 2, founded in 1961, reflected the interests of the Socialist Party. Rai 3, created in 1979, eventually fell to the opposition Italian Communist Party.

In the mid-1970s, private TV networks – mergers of local broadcasters – began to organize beyond the RAI channels and consolidate in the following years. Initially, five major players established themselves, three of which were controlled by major publishing houses: Prima Rete Indipendente (Rizzoli), Italia 1 (Rusconi), and Retequattro (Mondadori). These were joined by STP/RV, owned by the Parmalat dairy company, and Canale 5, owned by Milanese construction entrepreneur Silvio Berlusconi. In a takeover and consolidation game, Berlusconi was able to outdo his competitors in the 1980s and establish a dominant market position. With his holding company Fininvest, he acquired Retequattro and Italia 1. After Rizzoli and Parmalat shelved their private television plans, Berlusconi controlled the vast majority of the market. He benefited not least from the lack of antitrust restrictions. In 1984, television surpassed the press in advertising spending for the first time.

The 1990 Media Law (Legge Mammí) cemented the duopoly of Rai and Fininvest's television division Mediaset in the Italian television market. Only after the turn of the century, with the advent of the internet and pay TV, did the sector regain momentum.

Following the 1990 Media Law, various Italian governments aimed for stronger regulation of television and more competition in private TV. In 1997, a center-left government passed the Maccanico Law, which, among other things, established the media regulatory authority AgCom was created. This was followed in 2004 by the Gasparri Law, which was passed by the government under Prime Minister Berlusconi and was accordingly the subject of clearly expressed reservations.

In particular, a new basis for calculating market power in the media sector primarily benefits the Fininvest holding company, critics say. The government under Prime Minister Romano Prodi (2006-2008), not least under pressure from the European Commission and the OSCE, launched a new legislative initiative aimed at curbing Mediaset's market power. However, the so-called Gentiloni reform could not be completed. With the digital switchover, which was completed in Italy in 2012, at least the shortage of analog terrestrial frequencies has been resolved. However, despite a multitude of new broadcasters, Rai and MFE (formerly Mediaset) still dominate free-to-air television.

Nevertheless, one can speak of a small revolution in media pluralism in Italy: Internet, mobile communications, and social media have increased rapidly in the country over the past two decades. Around 80 percent of Italian households now have broadband internet (as of 2023). With the increasing importance of the internet and social media, television no longer has a singular, overriding relevance in Italy, even though it still plays a significant role as an audiovisual medium.

Italy's largest media groups

Rai – Radiotelevisione Italiana

Radiotelevisione Italiana (Rai) was formed from the merger of SA Radiofono of the Marconi Company and Società Italiana Radio Audizioni Circolari (SIRAC) of RCA to form the Unione Radiofonica Italiana (URI) in 1924. URI received sole broadcasting rights and was replaced in 1927 by the Ente Italiano per le Audizioni Radiofoniche (EIAR), whose shareholders included General Electric, the Società Idroelettrica Piemontese (SIP), and Fiat. Additional radio stations were established in various Italian cities, and an experimental television station was launched in 1937.

During Fascist Italy, Rai was closely linked to the government and served as a propaganda tool. In 1935, responsibility for radio programming passed to the Ministry of Press and Propaganda. After the end of World War II, Rai became part of the country's reconstruction and played an important role in disseminating news and information. In February 1945, EIAR was renamed Radio Audizioni Italia (Rai), and after the introduction of regular television in 1954, it was renamed Radiotelevisione Italiana. During the 1950s and 1960s, Rai became one of Europe's most important media companies, producing a wide variety of programs, including news, sports, entertainment, and educational programs.

At the beginning of the 1970s, criticism of political influence on Rai grew. With the first reform in 1975, control of Rai was transferred from the government to Parliament. The parliamentary commission was henceforth responsible for the general management and supervision of radio and television services, ensuring the broadcaster's pluralism. Rai's monopoly was also abolished by the Constitutional Court in 1976, opening the market to private broadcasters.

In the 1980s, a legislative decree was passed that the broadcaster's board of directors would henceforth be elected by the parliamentary commission. The commission would elect all 15 members of the board; the president and CEO would be elected by the shareholders' meeting. Later, in the 1990s, further reforms led to greater political independence for Rai, initiated through stronger oversight by independent bodies.

In 2007, the then Minister of Communications, Paolo Gentiloni, presented a bill, which was later rejected, that would have completely reformed the public broadcasting sector. Among other things, it would have included a new supervisory board consisting of 11 members appointed by parliament, civil society, and Rai employees. The goal was to minimize political influence on Rai.

On July 4, 2012, Rai, like other Italian broadcasters, permanently shut down all analogue channels. From then on, programs are available only via digital terrestrial, satellite, and streaming over the internet. Tests of the DVB-T2 standard began the following year.

In 2016, the new "Rai license fee" came into effect. From now on, the license fee will be collected via the electricity bill in 10 installments from January to October. It amounts to €90 annually (as of 2022), and quarterly and semi-annual payments are also available. All taxpayers are liable, but only one per household. In 2018, Rai participated in the European Alliance co-production partnership with the German broadcaster ZDF and the French broadcaster France Télévisions.

To address the educational difficulties caused by the COVID-19 pandemic, Rai Cultura, in collaboration with the Ministry of Education, launched the multimedia educational offering "La scuola non si ferme" in 2020. The first phase of the transition to the new digital terrestrial television (DVB-T2) began on October 20, 2021. Thematic channels (Rai 4, Rai 5, Rai Movie, Rai Premium, Rai Storia, Rai Sport, Rai Scuola, Rai Gulp, and Rai Yoyo) are being converted to MPEG-4 format. In addition, Mux 2 was decommissioned, and services were transferred to the two remaining national multiplexes.

MFE – MediaForEurope

The Mediaset media group (now MFE) was founded in 1978 by Silvio Berlusconi as a subsidiary of the Fininvest holding company. The group has been listed on the Milan Stock Exchange since 1996, with Fininvest as the majority shareholder. The company was the first private broadcaster to broadcast a uniform program throughout Italy and, after the Luxembourg company RTL Group, the second in Europe. Over the years, the Italian media giant has not only established itself in its own country but has also increasingly influenced the European media market. For example, MFE is now also active in Spain, where, through its subsidiary Mediaset Investimenti, it holds 50.13% of the television channel Telecinco, which was co-founded by Berlusconi and became the largest television broadcaster in the Spanish market. In addition, MFE holds over 25% of the shares in ProSiebenSat.1 Media, the parent company of ProSieben and Sat.1, in the German market.

MFE's ties even extend to one of the world's largest advertising agencies, which primarily, but not exclusively, produces advertising for television. The largest companies are Publitalia 80 for the Italian market, Publiespaña for the Spanish broadcaster Telecinco, and Publieurope for the other markets.

The high concentration of the free-to-air television market in Italy is reflected in the dominant position of the two major players, MFE and Rai. The two media companies have a combined market share of over 80 percent – a top figure in Europe. The low level of competition in the sector is also a result of the unhindered expansion of Mediaset (now MFE) in the 1980s. Taking the entire TV market into account, i.e., including free TV, especially pay TV and digital on-demand services, MFE (31.9 percent) and RAI (36 percent) together account for a 67.9 percent market share. Discovery has a 7.4 percent market share, Comcast/Sky has 6.2 percent, and Cairo Communication/La7 has 3.7 percent.

TIM – Telecom Italia

Telecom Italia (TIM) is the largest telecommunications company in Italy, offering a wide range of telecommunications and internet services, including fixed-line telephony, mobile telephony, broadband internet, and television. The company was founded in 1994 and is headquartered in Rome.

TIM operates a nationwide network of fiber optic and copper cables, enabling both voice and data transmission. The company is also active in the mobile communications sector, offering 4G and 5G services. In addition, TIM also operates a television service called TIMVISION, which is accessible via the internet.

In 2015, Telecom Italia Media, until then an independent media company but already 77.7% owned by Telecom Italia, was fully integrated into TM.

GEDI Editorial Group SpA

GEDI Gruppo Editoriale SpA is an Italian media company headquartered in Turin, best known as the publisher of the news magazine L'Espresso and the daily newspaper La Repubblica. The company also operates in digital communications, radio, and television. The majority shareholder is the Exor holding company of the Italian Agnelli family.

The company was founded in 1955 under the name Società Editrice L'Espresso, with Adriano Olivetti as the majority shareholder. In 1957, Carlo Caracciolo became the company's majority shareholder, and Arrigo Benedetti and journalist Eugenio Scalfari also joined the shareholder structure.

In the 1960s and 1970s, the company gained national and international attention for its investigative and critical reporting, particularly through the weekly newspaper "L'Espresso." In the 1980s, the company expanded through acquisitions and the founding of new publications, such as the newspaper "La Repubblica."

In the following decades, GEDI Gruppo Editoriale SpA continued its expansion and increased its presence in the digital sector. In 2016, for example, the planned acquisition of Italiana Editrice, a company that publishes the daily newspapers La Stampa and Il Secolo XIX, was announced. On March 9, 2017, the Italian antitrust authorities approved the merger. The merger created Italy's largest newspaper publisher. At the same time, the publishing group began selling the local newspapers Il Centro, La Città, L'Alto Adige, and Trentino. On May 8 of the same year, the shareholders' meeting approved the change of the company name from "Gruppo Editoriale L'Espresso SpA" to "GEDI Gruppo Editoriale SpA."

RCS Media Group

The RCS Media Group is an Italian media company founded in 1927 as "A. Rizzoli & Co." and headquartered in Milan. The company operates in the publishing sector and owns a variety of well-known newspapers, magazines, books, and digital products.

The company's best-known publications include the daily newspapers "Corriere della Sera" and "La Gazzetta dello Sport." The RCS Media Group is also active in the book publishing business, publishing works by renowned Italian authors such as Umberto Eco and Andrea Camilleri.

Like other print media publishers, RCS Media Group has struggled with declining print circulation and advertising revenues, as well as competition from digital media, in recent years. Since then, the company has been striving to diversify and adapt to the market by introducing new digital products and services such as e-books and online subscriptions.

Fig. I: Average market shares of Italy's largest TV broadcasters in 2021

Source: Stoll (2022)

Internet

As in many other European countries, the proportion of internet users in Italy has increased significantly over the past decade. 84 percent of Italians were online in the past 12 months (as of 2022), compared to 55 percent in 2012. Furthermore, more than 91 percent of households have an internet connection in 2022, compared to 69 percent in 2013.

According to analytics services, major American online services dominate the list of most-visited websites in Italy. Google, YouTube, Facebook, Wikipedia, and Amazon share the top spots. The first Italian provider, the online edition of the newspaper of the same name, La Repubblica, ranks eighth.

Table I: The most visited websites in Italy, February 2023

RankWebpage:DescriptionParent company
1.Google.comSearch engineAlphabet Inc.
2.YouTube.comVideo portalAlphabet Inc.
3.Facebook.comSocial networkMeta Platforms, Inc.
4.Google.itSearch engineAlphabet Inc.
5.Wikipedia.orgEncyclopediaWikimedia Foundation
6.Amazon.ite-commerceAmazon.com, Inc.
7.Instagram.comSocial networkMeta Platforms, Inc.
8.Repubblica.itNewsGEDI Editorial Group SpA
9.Diretta.itsportLivesport Ltd.
10.Ansa.itNewsAgenzia Nazionale Stampa Associata

Source: Similarweb.com

media regulation

In the 1940s and 1950s, Italy experienced strict state control over the media, particularly television and radio. The Broadcasting Acts of 1948 and 1954 stipulated that broadcasters should be publicly owned and subject to state control. However, the 1960s and 1970s saw a liberalization of media regulation, particularly with the introduction of private television from the mid-1970s onward. The television monopoly of the state broadcaster Rai was loosened, and private television stations received broadcasting licenses.

In the 1980s and 1990s, media regulation in Italy became increasingly politicized, resulting in a concentration of media control in the hands of a few entrepreneurs. Former Prime Minister Silvio Berlusconi, himself a media entrepreneur, was accused of influencing media regulation to benefit his own interests.

The Autorità per le garanzie nelle comunicazioni (Agcom) was created in 1997. It acts as the regulatory authority for Italy's communications sector. Agcom regulates and supervises the telecommunications, audiovisual, print, and, since the late 2000s, postal services. With the convergence of various media toward digital distribution, the authority's responsibilities have also changed; it is modeled on the models of Ofcom (United Kingdom) and the FCC (USA). The organization also includes a Viewers' Council and an Ethics Commission. An important tool of Agcom is the Integrated System of Communications (Sistema Integrato delle Comunicazioni, SIC), which is used to determine the market shares of sectors and companies. The SIC covers audiovisual media (including the internet), publishing, the press, news agencies, advertising, cinema, merchandise, and sponsorship.

In recent years, media regulation in Italy has gained renewed importance, particularly with the introduction of new laws regulating social media and online content. In 2018, the "Decreto Dignità" was passed, which, among other things, restricts advertising for gambling and betting and strengthens workers' rights in the media sector.

Sources/Literature

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