Over the last 12 months, the Italian entertainment and media market has been shaped by five main trends.

• Audiovisual transactions have become more selective and structured, partly as a result of the reform of the Italian film and audiovisual tax credit regime, which introduced tighter eligibility criteria, spending controls and reinforced distribution requirements. This has made financing, recoupment and delivery provisions increasingly important in production and co-production agreements.
• International productions continue to view Italy as an attractive shooting and co-production jurisdiction, supported by tax incentives for foreign productions and by strong local production services.
• AI has become a key contractual issue, particularly in relation to copyright ownership, training of AI systems, use of performers’ likeness and transparency obligations.
• Anti-piracy enforcement has intensified through AGCOM’s Piracy Shield system, although concerns remain around overblocking, due process and compatibility with EU digital regulation.
• Media transactions increasingly involve data, platforms and digital exploitation models, with greater attention to rights clearance, platform liability, windowing, revenue sharing and the monetisation of IP across multiple channels.

Business activity in Italy continues to grow across several segments of the entertainment and media industry.

Long-form streaming series remain the most active format, driven by global platforms investing in premium local content with international appeal. Italian producers are increasingly structuring projects as international co-productions to diversify financing and maximise worldwide distribution.

The creator economy is another rapidly expanding area. Brands are investing more heavily in influencer marketing, creator-led content and social media productions, leading to increasingly sophisticated agreements covering IP ownership, image rights, exclusivity, AI-generated content and advertising compliance.

Live entertainment has experienced a strong recovery, with growing investment in concerts, festivals and immersive experiences, often accompanied by the exploitation of ancillary rights, merchandising and digital content.

The podcast market continues to expand, particularly in documentary, news and branded content, although it remains smaller than other major European markets.

Video gaming is one of the fastest-growing creative industries, supported by increased investment, public funding initiatives and greater collaboration with film, television and publishing through transmedia projects.

Finally, demand for content capable of generating value across multiple platforms – including streaming, social media, gaming and live experiences – continues to reshape both production and licensing strategies.

Over the last 12 months, deal-making in the Italian entertainment and media sector has become more disciplined and risk-driven. Investors and financiers are placing greater emphasis on rights ownership, chain of title, completion guarantees and delivery obligations, particularly following the reform of the Italian audiovisual tax credit regime.

International co-productions remain a key feature of the market, with Italian producers increasingly partnering with foreign studios and platforms to diversify financing and expand global distribution.

Artificial intelligence has also emerged as a central transaction issue. Agreements increasingly address the use of AI in content creation, copyright ownership, performer consent, training of AI models and data usage.

Finally, intellectual property is increasingly viewed as the core asset in transactions. Buyers and investors are placing greater value on exploitable catalogues, adaptable formats, franchises and multi-platform rights capable of generating long-term revenues across streaming, broadcasting, publishing, gaming and live entertainment.

The Italian market has seen a growing use of hybrid compensation models combining fixed fees with contingent remuneration linked to the commercial performance of a project. While traditional net profit participation remains relatively uncommon due to its complexity and limited transparency, gross receipts, adjusted gross revenue and success-based bonuses tied to distribution milestones or platform renewals are increasingly negotiated, particularly in international co-productions.

In addition, participants are seeking greater contractual transparency through enhanced reporting obligations, audit rights and more detailed definitions of deductible costs and recoupment waterfalls. These provisions have become increasingly important in transactions involving streaming platforms and multiple distribution windows.

Although traditional financing sources – including broadcaster pre-sales, public funding and tax incentives – remain central to the Italian market, financing structures have become more diversified over the past year.

International co-productions continue to grow as producers seek to combine public incentives from multiple jurisdictions with private investment and platform financing. At the same time, rights-based financing has become increasingly important, with lenders placing greater emphasis on the value of intellectual property, distribution agreements and contracted revenue streams.

Private equity, family offices and specialised media investors are also showing greater interest in premium content with international exploitation potential, particularly where projects are supported by established talent or proven IP.

Finally, producers are increasingly adopting multi-platform exploitation strategies, combining theatrical release, streaming, television, international sales, licensing and ancillary rights to diversify revenue sources and strengthen the overall financing structure.

International co-productions require careful co-ordination of legal, commercial and cultural expectations from the outset. The key is to establish a clear contractual framework addressing ownership of intellectual property, financing obligations, creative control, delivery requirements, recoupment waterfalls, governing law and dispute resolution.

Particular attention is given to ensuring compliance with the legal requirements of each jurisdiction, especially where public funding, tax incentives or treaty co-production status are involved. Rights clearance and chain of title must also be carefully aligned across all territories.

From a practical perspective, many challenges stem not from differences in law but from different business practices and decision-making processes. These issues are best addressed through detailed governance mechanisms, clear approval procedures, transparent reporting obligations and regular communication among the parties. Early alignment of commercial expectations significantly reduces the risk of disputes during production and exploitation.

The pandemic prompted a lasting reassessment of risk allocation in production agreements. Although COVID-19-specific clauses are now less common, contracts continue to include more robust force majeure provisions covering pandemics, government restrictions and other unforeseen events affecting production.

Producers, financiers and distributors now place greater emphasis on completion guarantees, production insurance, delivery obligations and contingency planning. Agreements also contain more detailed provisions governing production delays, budget overruns, cast availability and replacement, as well as the allocation of additional costs resulting from unexpected disruptions.

Risk allocation has therefore become more balanced and comprehensive, with parties seeking greater contractual certainty through clearer definitions of responsibilities, notification procedures and termination rights, while preserving sufficient flexibility to address unforeseen production challenges.

Not applicable in this jurisdiction.

Although the SAG-AFTRA and WGA strikes did not directly affect the Italian legal framework, they have had a significant indirect impact on negotiations involving international productions and US counterparties.

Italian producers and talent are increasingly encountering contractual provisions addressing the use of artificial intelligence, digital replicas, performer consent, data usage and the protection of copyright in AI-assisted productions. Agreements also place greater emphasis on transparency regarding the exploitation of content by streaming platforms and on the scope of rights granted for future technologies.

In cross-border productions, parties are paying closer attention to compliance with applicable guild, collective bargaining and labour requirements, particularly where US talent or financing is involved. As a result, international production agreements have become more detailed, reflecting evolving industry standards and a greater focus on protecting creative contributors while accommodating technological innovation.

In Italy, non-traditional content creators such as podcasters, YouTubers and influencers are generally not subject to the same guild structures that apply to the film and television industry. However, as creators increasingly collaborate with broadcasters, streaming platforms and production companies, they are becoming subject to more formal contractual and labour frameworks.

The main legal issues concern the classification of working relationships, ownership of intellectual property, image rights, exclusivity obligations and the commercial exploitation of content across multiple platforms. Where productions involve international partners – particularly US studios or streamers – compliance with applicable guild or collective bargaining requirements may also become relevant, especially if professional writers, actors or directors are engaged.

As the creator economy continues to mature, contractual standards are becoming more sophisticated, with greater emphasis on rights allocation, AI-related provisions, advertising compliance and revenue-sharing mechanisms.

Yes. Tax incentives remain one of the principal drivers of audiovisual production in Italy and continue to attract both domestic and international projects. Italy's tax credit system has supported significant investment in film, television and high-end series, making the country an attractive location for production and co-production.

However, the reform of the Italian audiovisual tax credit regime introduced over the past year has had a significant impact on the market. The new rules provide stricter eligibility criteria, enhanced compliance requirements and greater scrutiny of production costs and distribution commitments. As a result, producers, financiers and investors are placing increased emphasis on due diligence, contractual compliance and accurate documentation to secure access to public incentives.

While the reforms have increased administrative complexity, they are expected to strengthen the transparency and sustainability of the incentive system over the longer term.

Competition among European jurisdictions to attract audiovisual productions remains strong, with countries offering increasingly attractive tax credits, cash rebates and regional incentives. Producers are therefore structuring projects to maximise the combination of national incentives, treaty co-production benefits and private financing.

This competitive environment creates a number of legal challenges. Producers must carefully assess eligibility requirements, local spending obligations, cultural tests, state aid rules and reporting requirements in each jurisdiction. Cross-border productions also require careful co-ordination of financing structures, intellectual property ownership, chain of title and contractual obligations to ensure compliance with multiple legal regimes.

In practice, the availability of incentives is no longer the only deciding factor. Legal certainty, administrative efficiency and the predictability of approval and payment procedures have become equally important considerations when selecting the jurisdiction in which to produce.

Entertainment companies seeking to benefit from cross-border tax incentives should address legal and tax considerations at the earliest stage of project development. The production structure, chain of title, financing arrangements and allocation of intellectual property rights must all be aligned with the eligibility requirements of each jurisdiction.

Particular attention should be paid to treaty co-production rules, local expenditure thresholds, cultural tests, state aid restrictions and documentation requirements. Contracts should also clearly allocate responsibility for obtaining and maintaining incentives, managing compliance obligations and addressing the consequences of any reduction or recovery of public funding.

Where multiple jurisdictions are involved, careful co-ordination between legal, tax and production advisers is essential to avoid conflicts between different regulatory regimes and to ensure that the project remains eligible for the intended incentives throughout the production cycle.

Co-financing structures combining public incentives with private capital have become increasingly common in the Italian audiovisual sector. Rather than relying on a single funding source, producers are increasingly assembling financing packages that combine tax credits, selective public funds, broadcaster pre-sales, international co-production financing, distribution advances and private investment.

Private investors are generally more selective and focus on projects with proven intellectual property, experienced producers, international distribution potential and well-defined recoupment structures. At the same time, public funding bodies are placing greater emphasis on regulatory compliance, transparency and cultural eligibility.

As a result, financing agreements have become more sophisticated, with greater attention to security packages, priority of payments, recoupment waterfalls, completion guarantees and compliance with the conditions attached to public funding.

The principal challenge is establishing that the work satisfies the originality requirement necessary for copyright protection. Where content is generated autonomously by an AI system without meaningful human creative contribution, identifying the author – and therefore the copyright owner – becomes legally problematic.

Additional challenges include proving infringement where AI-generated outputs resemble pre-existing works, determining liability among developers, users and platform operators, and addressing evidentiary issues relating to the prompts, training data and creative process. Until clearer legislative or judicial guidance emerges, contractual allocation of rights and responsibilities remains the primary mechanism for managing these legal uncertainties.

Italy has not yet produced landmark court decisions specifically addressing copyright ownership or infringement in relation to AI-generated entertainment content. However, the issue is receiving increasing attention from courts, regulators and industry stakeholders, particularly in light of the implementation of the EU AI Act and the broader EU copyright framework.

Current legal debate focuses on the use of copyrighted works for AI training, the level of human creative input required for copyright protection, the use of performers’ voices and likenesses, and transparency obligations relating to AI-generated content. While several high-profile disputes are pending in other jurisdictions, particularly the United States, Italian practitioners are increasingly addressing these issues through contractual provisions rather than litigation.

As a result, entertainment agreements now routinely include clauses dealing with AI-assisted creation, ownership of outputs, warranties regarding training data, compliance with applicable legislation and the allocation of liability for AI-related risks, pending further judicial guidance.

The licensing of audiovisual content for AI training remains at an early stage in Italy, but it is rapidly emerging as a significant commercial and legal issue. Rights-holders are increasingly distinguishing between licences granted for traditional exploitation and those permitting the use of content for training, fine-tuning or developing generative AI models.

Producers, broadcasters and content owners are becoming more cautious and are seeking express contractual provisions governing AI training rights, compensation, permitted uses, duration and territorial scope. Many agreements now expressly exclude AI training unless separately negotiated.

At the same time, the market is closely monitoring the implementation of the EU AI Act and the interaction between AI regulation and EU copyright law, particularly regarding transparency obligations and the use of lawfully accessible content for training purposes. Until clearer judicial guidance emerges, AI training rights are increasingly being treated as a distinct category of exploitation requiring specific contractual authorisation.

Unlike the United States, Italy does not have a residuals system based on guild agreements such as those negotiated by SAG-AFTRA or the WGA. Compensation for writers, performers and directors is generally governed by individual contracts, collective bargaining agreements and statutory remuneration rights under Italian copyright law.

However, the growth of streaming services has increased attention to fair remuneration and transparency in the digital exploitation of audiovisual works. Recent legislative developments implementing the EU Copyright Directive have strengthened authors’ and performers’ rights to receive appropriate and proportionate remuneration, together with enhanced transparency obligations and contractual adjustment mechanisms where the agreed remuneration proves disproportionately low compared with the revenues generated.

As streaming continues to reshape the market, contractual negotiations are increasingly focusing on digital exploitation rights, revenue-sharing mechanisms, reporting obligations and equitable remuneration, rather than on a US-style residuals model.

Revenue-sharing models for digital-first content are often more complex than those for traditional productions because revenues are generated across multiple platforms and monetisation channels, including subscriptions, advertising, sponsorships, licensing, social media, live events and merchandising.

The principal challenges concern the definition of revenue streams, the allocation of platform fees and marketing costs, access to performance data and the transparency of accounting. Where content is distributed through global digital platforms, creators and producers may have limited visibility over audience metrics and revenue calculations, making audit rights and reporting obligations particularly important.

As a result, agreements increasingly include detailed provisions on revenue definitions, payment schedules, data-sharing obligations, audit rights and the treatment of future exploitation models to minimise disputes as digital business models continue to evolve.

In Italy, this issue is primarily addressed through contractual interpretation rather than established case law. Where no express licence permits in-season stacking on affiliated or related streaming platforms, the prevailing approach is that the licensee may not assume such rights. Exploitation rights are interpreted restrictively, particularly where they concern new or additional modes of distribution.

For this reason, production and distribution agreements are increasingly drafted to define, with greater precision, the scope of digital exploitation rights, including simultaneous or sequential availability across linear television, proprietary streaming services, AVOD, SVOD and FAST channels. Parties are also negotiating more detailed provisions on exclusivity periods, holdbacks, windowing strategies and platform-specific rights.

Where agreements are silent, adding a new streaming exploitation model may require the consent of the rights-holder or a contractual amendment, particularly if the additional availability could affect the commercial value of existing licensing arrangements or the remuneration of underlying rights-holders.

In Italy, labour unions and professional associations do not have the same direct impact on streaming distribution costs as US guilds such as SAG-AFTRA or the WGA. Distribution costs are therefore less affected by residual payment obligations and more by statutory remuneration rights, collective bargaining agreements and copyright-related obligations.

However, international streamers operating in Italy – particularly those commissioning productions involving US talent or international co-productions – must often comply with foreign guild requirements, which can influence overall production and distribution budgets.

In the domestic market, cost drivers are increasingly linked to compliance with copyright legislation, transparency obligations, collective rights management, dubbing and localisation, accessibility requirements, and investment obligations applicable to audiovisual media service providers. As a result, distributors are placing greater emphasis on contractual allocation of these costs and on ensuring compliance across multiple jurisdictions and distribution platforms.

In M&A transactions involving entertainment companies, the principal legal focus is on the ownership, scope and enforceability of intellectual property rights. Buyers conduct extensive due diligence to verify chain of title, the duration and territorial scope of rights, talent agreements, underlying rights, music licences and any restrictions affecting future exploitation.

In transactions involving film or television libraries, particular attention is paid to the continued validity of distribution rights across different media and territories, the existence of reversion rights, royalty obligations and unresolved claims by authors or performers. The value of a library increasingly depends on its ability to be exploited across multiple platforms, including streaming, FAST channels, AVOD and international licensing.

Parties also scrutinise compliance with privacy, data protection and regulatory requirements, as well as the availability of documentation supporting public funding or tax incentives where relevant. Representations and warranties relating to intellectual property ownership, copyright infringement, AI-related rights, litigation and regulatory compliance have become increasingly detailed, reflecting the growing importance of intangible assets in entertainment transactions.

From an Italian and EU perspective, the principal antitrust concerns relate to vertical integration rather than market concentration alone. Combinations involving network operators, content producers and streaming platforms may raise issues regarding access to premium content, foreclosure of competing distributors and discriminatory licensing practices.

Competition authorities are also increasingly scrutinising exclusive distribution arrangements, self-preferencing, bundling strategies and the potential impact on consumer choice and market access for independent producers and broadcasters. Particular attention is given to whether integrated groups can leverage control over both content and distribution to disadvantage competitors.

In addition, regulators are assessing the role of large digital platforms as gatekeepers under the EU Digital Markets Act, alongside traditional merger control rules. As a result, transactions increasingly require a broader competition law analysis, taking into account not only market shares but also data access, digital ecosystems, content exclusivity and the preservation of effective competition across the audiovisual value chain.

Representations and warranties relating to talent agreements have become increasingly detailed in entertainment M&A transactions, reflecting the importance of these contracts to the value of the target business. Buyers typically seek assurances that key agreements with writers, directors, performers and other creative contributors are valid, enforceable and have been entered into in compliance with applicable employment, copyright and collective bargaining rules.

Particular attention is given to the ownership and scope of intellectual property rights, moral rights waivers where permitted, image and publicity rights, compensation obligations, residual royalty claims, termination rights and change-of-control provisions. Buyers also seek disclosure of any pending disputes, claims relating to AI-assisted content or digital exploitation rights, and any restrictions that could affect the continued commercial exploitation of productions after closing.

These representations are commonly supported by specific indemnities and thorough due diligence on talent agreements, particularly where the transaction involves valuable film or television libraries, or ongoing productions.

When advising on entertainment M&A transactions, the primary objective is to ensure that the target company has a complete and enforceable chain of title and that its key talent agreements support the continued commercial exploitation of the relevant content.

This requires detailed due diligence of agreements with writers, directors, performers, composers and other contributors to verify the scope of rights granted, territorial and temporal limitations, approval rights, compensation provisions, termination rights and any change-of-control restrictions. Particular attention is also given to moral rights, image rights and compliance with applicable copyright and labour laws.

Legacy IP rights often present additional challenges, particularly where older agreements do not expressly address digital exploitation, streaming, AI-related uses or new distribution technologies. Buyers therefore seek robust representations and warranties, together with specific indemnities where gaps in the chain of title, unresolved rights issues or historical contractual ambiguities could affect the future value or exploitation of the acquired catalogue.

Audits and transparency have become central features of profit-sharing provisions in entertainment contracts. Parties are increasingly seeking greater clarity in the calculation of revenues, deductible costs, recoupment waterfalls and the timing of profit participation payments, particularly where content is exploited across multiple digital platforms.

Contracts now commonly include detailed accounting obligations, periodic reporting requirements, audit rights exercisable by independent accountants, document retention obligations and mechanisms for resolving accounting disputes. They also provide more precise definitions of gross receipts, permitted deductions and related-party transactions to reduce the scope for disagreement.

This trend has been driven by the growing complexity of digital distribution models and by increased expectations of transparency from authors, performers, investors and financiers. As a result, carefully drafted audit and reporting provisions are now regarded as essential risk-allocation tools in film and television transactions.

Non-compete clauses are generally enforceable under Italian law, provided they comply with the statutory requirements applicable to the relevant contractual relationship and are reasonable in scope.

In the employment context, post-termination non-compete agreements are subject to strict conditions. They must be in writing, limited in duration, territory and business activities, and supported by adequate financial consideration. Clauses that are excessively broad or unsupported by appropriate compensation are likely to be held unenforceable.

In the entertainment sector, non-compete provisions are also commonly included in agreements with performers, presenters, directors, producers and other independent contractors. These clauses are generally assessed under the principles of contractual reasonableness and proportionality. Restrictions should be narrowly tailored to protect legitimate business interests, such as the exclusivity of a production, confidential information or the commercial exploitation of intellectual property, and should not unduly restrict the individual’s ability to carry on their professional activity.

Artificial intelligence is currently having the greatest impact on entertainment contracts in Italy, while virtual reality, augmented reality and immersive experiences are generating more targeted contractual developments in specific sectors.

Entertainment agreements increasingly include provisions addressing the use of AI in content creation, ownership of AI-assisted outputs, the use of performers’ voices and likenesses, digital replicas, compliance with the EU AI Act, warranties concerning training data and the allocation of liability for AI-related risks. Many contracts also expressly regulate whether works may be used to train generative AI models.

In projects involving virtual or augmented reality, parties are paying greater attention to the ownership of digital assets, user-generated content, software licensing, data protection, cybersecurity and the exploitation of content across multiple platforms. More generally, contracts are becoming increasingly technology-neutral, allowing for the exploitation of content through future media and distribution channels while providing greater certainty regarding ownership and rights management.

In Italy, entertainment production companies are most commonly incorporated as limited liability companies (S.r.l.) or joint-stock companies (S.p.A.), with the choice depending on the scale of the business, financing requirements and governance structure. The selected corporate form should provide adequate liability protection while allowing flexibility for investment, co-productions and future growth.

From a contractual perspective, the company should establish clear ownership of intellectual property, implement robust chain-of-title procedures and adopt governance arrangements regulating decision-making, financing and rights exploitation. Compliance with tax incentive requirements and audiovisual regulations should also be considered from the outset.

Unlike the United States, Italy does not operate a guild signatory system based on organisations such as SAG-AFTRA or the WGA. Instead, producers must comply with applicable employment, copyright and collective bargaining rules, as well as industry-specific agreements where relevant. For productions involving international partners or US talent, however, compliance with foreign guild requirements may become a contractual condition and should be addressed during the structuring of the project.

The principal distinction lies in the scope of exploitation rights and the underlying commercial model. Many legacy distribution agreements were drafted before the emergence of FAST channels and do not expressly address this form of exploitation. As a result, rights-holders must carefully assess whether existing licences cover FAST distribution or whether additional authorisation is required.

From a business perspective, FAST channels rely on linear, advertising-supported programming, whereas AVOD and SVOD operate through on-demand access. This difference affects windowing strategies, exclusivity arrangements, revenue allocation and the valuation of content libraries. Producers and distributors are therefore increasingly negotiating platform-specific rights, holdback periods and more detailed revenue-sharing provisions.

Legally, agreements should clearly define the permitted modes of exploitation, advertising rights, territorial scope, reporting obligations and remuneration mechanisms. Particular attention should also be paid to rights clearance, music licensing and talent agreements to ensure that existing contractual permissions extend to FAST distribution and related advertising-based uses. 

Interactive entertainment formats require compensation models that reflect the greater complexity of user-driven content and the multiple ways in which a work may be exploited. Under Italian law, there is no specific statutory regime for interactive productions, so remuneration is primarily governed by contract, subject to applicable copyright and labour rules.

Agreements should clearly define the scope of rights granted, taking into account branching narratives, multiple endings, additional recordings and future updates. Compensation structures may combine fixed fees with performance-based remuneration where the commercial exploitation of the interactive format generates additional revenues or extended user engagement.

Contracts should also address ownership of interactive elements, approval rights for additional content, digital exploitation across different platforms, AI-assisted adaptations and transparency obligations relating to revenue reporting where variable compensation applies. Given the evolving nature of these formats, technology-neutral drafting and sufficiently broad exploitation clauses are increasingly important to accommodate future methods of distribution and monetisation.