Spain's net increase in OTT users exceeds pay-TV net increase
A report issued by IHS Markit Company shows that in 2016, the Spanish OTT platform increased more users than pay-TV services.
The above chart shows that in 2016, OTT and VOD services had a net increase of more than 500,000 users, while pay-TV services only increased nearly 300,000 users.
Although the number of pay-TV subscribers in Spain has been increasing over the past two years, its share of paying services is still very low compared with other European countries, because more than two-thirds of households only use free TV as their choice for video entertainment.
The report released by IHS Markit in Madrid shows that under such circumstances, the low share of pay TV has attracted new competitors, initially RakutenTV (ie former Wuaki.tv) in 2012, Netflix in 2015, and then beINConnect, HBOEspaña, and AmazonPrimeVideo in 2016. Less than a month ago, Sky also released its own OTT platform in Spain.
IHSMarkit also stated that the increasingly fierce competition in the weak market has led to a 15% drop in Spanish video revenue between 2011 and 2016.
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