The current TV football war in Spain, with operators dropping prices and offering low cost promotions, is having a very negative impact on the financial results of the companies.
The president of Vodafone Spain, Francisco Roman, has warned that the Spanish football war “is undermining the value” of the content to the detriment of financial results. For example, Vodafone last year paid €300 million for the football content with a 65 per cent rise in costs. Accordingly the company decided not to offer more football as “it is non-viable” with just 400,000 football subscribers. Instead, the company is hedging its bets on cinema and TV series.
As a result, Movistar and Orange have ceased hostilities in an attempt to gain Vodafone’s subscribers, dropping prices and offering low-cost promotions. Notwithstanding, Vodafone has jumped on the same bandwagon with a 50 per cent off ‘forever’ promotion.