Sanremo Festival 2026 faces unprecedented tension between Italian record labels and RAI, with threats to halt collaboration with the Italian music industry overshadowing preparations.

Sanremo Festival 2026, which also serves as Italy’s Eurovision national selection, is now at the center of a financial storm threatening its very character. Major record labels in Italy have entered tense negotiations with the national broadcaster, RAI, demanding a dramatic increase in reimbursement for participating artists.

According to reports, the demands amount to an additional €150,000 per artist. The implications? The next Sanremo Festival could take place without some of the biggest names in Italian music – but that is not the only threat.

Sanremo at a Crossroads: Money or Collapse

The current situation raises a broader question: can Sanremo, long regarded as a cultural institution and not just an entertainment show, continue in its current format? Industry insiders warn that without a budget increase, participation is not financially viable. The current reimbursement for a single artist stands at about €62,000 – an amount that has already risen by 12% since 2024, but still does not cover production, accommodation, staff, travel, promotion, or the musical investment itself.

According to sources familiar with the industry, actual expenses range from €120,000 to €150,000 per performance, and sometimes even more. Artists performing as groups or duos receive only a symbolic supplement – €3,000 for each additional member. For young and unknown artists, the gaps are even starker: they are entitled to just €25,000 – barely enough to cover accommodation and flights.

The Beloved – and Most Unprofitable Night: Cover Night in Jeopardy

The harshest criticism is aimed at the cover and duet night – one of the festival’s traditional highlights. Despite its popularity with audiences, the budget for this evening is extremely limited: invited Italian artists receive only €4,000, while international guests get €8,000. Many artists refuse to participate, forcing record labels to absorb the costs themselves.

What exacerbates the problem is that these joint performances are often not officially released, reducing the labels’ return on investment and failing to generate lasting musical value.

Advertising Ban Forces Artists to Hide Sponsors

To the financial issues is added the matter of advertising. According to national broadcaster rules, it is forbidden to promote brands without a direct agreement with the broadcaster – even outside the Ariston Theatre building. A notable case mentioned is that of Tony Effe, who was not allowed to showcase his commercial partners even at related events.

Record labels argue that this restriction limits artists’ creative and business freedom and prevents them from securing external funding to cover participation costs. This reduces the feasibility of participation for those without multi-million-euro backing.

Is Sanremo Heading for a Boycott?

According to the Italian press, record labels are considering instructing their artists not to participate if their demands are not met.

“For the labels, Sanremo is only 1% of annual revenue. But for the artists, it’s a force multiplier. If no solution is found, they might pull the plug.”

It was stated on a popular Italian TV show.

If a boycott does occur, it would be a severe reputational and financial blow to the 74-year-old festival, which has not only launched stars but also selected Italy’s Eurovision song every year since 2011 (with rare exceptions).

Personal Analysis: More Than Money – A Question of Identity

As someone who has watched dozens of Sanremo editions live, I can attest to one thing – the festival is unlike anything else in the European music scene. The blend of Italian formality with stage excitement, the rich history alongside contemporary pop, is what creates its magic. But this magic relies on a delicate balance of partnerships, prestige, talent – and, of course, money.

Eurovision fan communities, especially in Israel, are reacting with concern. In conversations held in EuroMix groups, it’s clear that the audience sees Sanremo not just as a local competition, but as an integral part of the Eurovision landscape. Many point out that some of the decade’s greatest moments – such as Mahmood’s performance in 2019 – were born from this very format.

Without Change, Sanremo 2026 Will Be a Shadow of Its Former Self

The ball is now in the hands of the national broadcaster. The festival will go on, but the question is with whom.

Without a comprehensive solution that includes realistic expense reimbursement, advertising flexibility, and adaptation to the technological era, Sanremo risks losing its leading artists, its young audience, and its place at the heart of Italian cultural life.

Italy at Eurovision 2025

“Volevo essere un duro” (translated as: “I Wanted to Be Tough”) is the song performed by singer Lucio Corsi, which came second at the 75th edition of the Sanremo Festival. The song was written by the singer himself along with Tommaso Ottomano. This was the singer’s first-ever appearance at the festival. The song is performed in Italian. The song finished fifth in the grand final with 256 points.

Italy returns to the Eurovision Grand Final Top 5 after last year achieving “only” seventh place.

Eurovision 2025: This was Italy’s 50th participation in Eurovision. Italy joined the contest in 1956, was one of the seven founding countries, and has won three times over the years. Italy’s most recent victory was at Eurovision 2021 with the song “Zitti e buoni” performed by the band Måneskin.