Movistar seeks new Netflix-type alliances
September 27, 2018
From David Del Valle in Madrid
Telefónica’s pay-TV platform Movistar is in talks with several video streaming services seeking a Netflix-style integration agreement to boost subscriptions.
The president of Movistar Plus, Sergio Oslé, has acknowledged that the company is involved in these negotiations, with Amazon Prime Video among others, to “boost commercial offers” aiming to increase the ARPU.
Movistar is implementing this strategy both in Spain and in Latin America where it has a combined subscriber base of 9.9 million homes, out of which 8.8 million are pay-TV subscribers and 1.1 million are OTT customers.
In Spain, Movistar Plus reaches 4 million homes and 12 million daily users with a pay-TV market share of 60 per cent. Nevertheless, Oslé forecasts an optimistic future in the Spanish pay-TV market with a current penetration of 34 per cent and a great potential. He said that the pay-TV take-up will increase data revenues and reduce by 25 per cent the churn rate.
In Latin America, Movistar is also confident of prosperous business opportunities due to the consumer demand and the low pay-TV and OTT penetration.