Spain: Smaller DTT channels face bankruptcy
April 30, 2018
From David Del Valle in Madrid
The dominance of the Mediaset-Atresmedia duopoly – with over 85 per cent of the Spanish TV ad market and 50 per cent of audience ratings – is driving smaller DTT channels to bankruptcy with millions in losses and low ratings.
Nationwide DTT channels such as Trece, DKiss and TEN have seen combined losses of €44 million in just two years. TEN has lost €12 million and is seeking an International partner to lease the licence. Trece has lost €22 million and DKiss, €10.5 million.
Real Madrid TV is also a very difficult financial situation. With an annual budget of €30 million, the channel is only taking an average 0.3 per cent audience share and plans to reshuffle the programming including teleshopping to make it profitable.
All these channels are paying around €5 million a year for a SD licence, and €7 million for a HD signal in Real Madrid’s case. That means around 60 per cent of the annual costs of these smaller DTT channels with only €300 million of the ad pie to share among smaller DTT channels, Regional TVs and pay-TV channels. By contrast, Mediaset and Atresmedia are controlling a segment worth around €2 billion a year.