Advanced Television

Telefónica cuts pay-TV prices

December 19, 2012

From David Del Valle in Madrid

Telefónica has cut prices for its pay-TV service Movistar Imagenio and included it in a bundled package branded ‘Movistar Fusion’ in its latest attempt to combat the high churn rate.

The company is also launching a new entertainment package called ‘Paquete Ocio’ with TV series and films for €12 a month.  The fee for its sports package – with football matches from the Spanish League, the Champions League and some other international tournaments – has been reduced to €20 instead of €22.90. The Family package will cost €29.90 a month.

The move comes at a time when the Spanish pay TV market is in decline with Telefónica’s pay TV customers falling six per cent year-on-year to 760,000 as of the end of September. The government’s decision to hike VAT to 21 per cent from 8 per cent from September worsened the situation.

Telefónica recently launched Movistar Fusion, a TV, Internet, fixed line and mobile bundle in an effort to boost subscriptions and retain subscribers. The company gained 35,470 new broadband customers in the first month of the bundled package offer according to data from CMT, Spain’s telecoms regulator, though it continued to lose mobile clients.


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