The Sanremo Festival is also an economic resource: in 2022 it generated 60 million in revenues

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The Sanremo Festival (THE SPECIAL – THE LIVEBLOG OF THE FIRST EVENING – THE QUIZ) is a precious resource at an economic level not only for the music system, but also for businesses and the territory in which it takes place. It is enough to remember that in 2022 the event produced a total of 60 million euros in revenues: 42 million deriving from Rai advertising revenues, 18 million linked to the impact of the activities revolving around the event on the Ligurian territory. And in 2023 the numbers are expected to grow. The data emerges from “Economics of Show Business and Entertainment”, the Market Watch that Banca Ifis created on the occasion of the sponsorship of Casa Sanremo. The objective is “to photograph the state of health of the sector and measure its economic and social value”.

The recovery of the entertainment sector

The entertainment sector was among the hardest hit by the economic crisis linked to the Covid emergency but, the study carried out by Banca Ifis highlights, “it has been able to recover and return to growth by producing value”. The report states that in 2022 the Italian entertainment industry generated 54 billion euros in revenues, exceeding the 2019 level by 2%. In 2023, according to estimates, this positive trend should continue: growth of 3 %, reaching 55.8 billion euros in revenues at the end of the year. Towing the ascent is also music, which represents one of the sectors most appreciated by Italians. The study recalls how our compatriots listen to music for an average of 20.5 hours every week (up 1.4% compared to 2021) and that 75% say they feel less stressed when listening to their favorite song.

The impact of the Sanremo Festival

Returning to Sanremo, the Festival over the years has acquired more and more importance not only with regard to the musical aspect and popular culture. “It has turned into a real organizational machine capable of synergistically involving public administrations and private operators, generating economic and social value”, explains the studio. As mentioned, in 2022 the event generated 60 million euros in total revenues: 42 million attributable to Rai advertising sales, 18.4 million linked to the impact on the Ligurian territory. Suffice it to say that every year – including guests, organizers, staff and tourists – the Festival brings around 41,000 people to Sanremo and its surroundings. These attendances, underlines the study, have a strong impact above all on “accommodations (8.8 million euros), catering (2 million euros), shopping (2 million euros, including expenses at the Casino and event ticketing) and transport (0.6 million euros)”. In addition, Rai pays the Municipality of Sanremo around 5 million euros. The company, however, is one of the major beneficiaries of the Festival: in 2023 advertising revenue relating to Sanremo activities alone is expected to grow by over 9%, to 46 million euros compared to 42 in 2022. there is growing consensus that the event continues to gather, as evidenced by the average ratings figure which exceeds 10 million viewers for all 5 evenings”, underlines the report.

The economic impact of the entertainment industry

The research takes stock not only of Sanremo, but also of the economic impact of the entire sector. “The positive numbers of the Festival are just the tip of the iceberg of an Italian show and entertainment economy that has returned to health after the suffering of the two-year pandemic”, we read. In 2022, in fact, total revenues were 54.1 billion euros: +2% compared to 2019, the last year pre-Covid. And the weight that the sector has on the national GDP has returned to 1.5%, a value in line with the past. In particular, the “core activities” (publishing, entertainment products, ideation and production of entertainment, artists) in 2022 recorded revenues of 26.8 billion euros: +7% compared to 2019. The “functional activities” (dissemination of artistic content, repair and restoration, support for representations, sector media), on the other hand, recorded revenues of 27.3 billion euros: -2% compared to 2019. For 2023, the data are expected to be positive: “Looking to the future , according to data from Market Watch, the entertainment and entertainment sector is estimated to grow by 3% in 2023 with revenues expected at 55.8 billion euros, thanks to the momentum in the production and distribution of content, especially for television and cinema”.

The central role of music

Finally, the study underlines how the music sector plays a central role within the entertainment and entertainment sector. The Italian record market, from what emerges, is in good health: “The market value at the end of 2021 stood at 332 million euros, with a growth outlook of +18% in the first half of 2022 (latest data available). Numbers which, projected on an international level, make the Italian one the tenth record market by value”. But music for Italians also continues to have a strong social value. According to Market Watch, 75% of respondents feel less stressed when listening to their favorite song, 61% believe it is essential for mental health, 59% believe they are more productive when listening to it, 85% reveal that listen to it at work because it has a positive impact on mood, 89% do not do without it while training. As regards the methods of use, the physical object is becoming increasingly collectable: only 14% of the interviewees said they had bought a music CD in 2022 and 9% a vinyl in the 30 days preceding the interview. Instead, 70% explained that they listened to music through streaming services. The radio was chosen by 20% of the interviewees and shares the podium with listening through video streaming.