Spain's highly competitive over-the-top market had another year of strong growth in 2019 as paid subscriptions reached 6.0 million, boosted mainly by the adoption of Netflix Inc. and the availability of high-speed fixed broadband.
Three international players have managed to draw 91% of the total customer base, with the rest belonging to Rakuten TV Europe S.L.U.'s Rakuten TV, Telefónica SA's Movistar+ Lite, Access Industries Inc.'s DAZN, Mediaset España Comunicación SA's Mitele Plus and a few others.
Spain has one of the lowest multichannel penetration rates in Western Europe. Low multichannel uptake coupled with investments in fiber broadband have put it on the map for pay TV and OTT players looking to expand their operations. Global players like Netflix and WarnerMedia were initially targeting households that did not subscribe to a pay TV service by offering exclusive content not available in linear platforms. The slow but steady increase in multichannel penetration has led to streaming players seeking distribution partnerships with local operators to extend their footprint to pay TV homes.
Spain is one of Europe's most dynamic markets for OTT sports, with a plethora of options primarily focused on streaming live soccer, the nation's premier sport. On the other hand, multichannel operators tend to bundle sports packages, resulting in higher annual average revenues per user that include fixed broadband and mobile.
An analysis of the sports services available in Spain shows that traditional multichannel and OTT providers are targeting different demographics. Multichannel providers offer multiscreen functionality and a guaranteed high-quality broadcast, often up to 4K, usually as part of a bundle. This results in cost savings for the average consumer at a fixed contract term of 12 or 18 months, which can be well suited to larger households that consume a variety of content. OTT services, on the other hand, offer month-to-month subscriptions that younger individuals or smaller households may prefer.
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European Subscription OTT Video 5 Year Outlook