Big cash injection for Rakuten TV
November 26, 2018
From David Del Valle in Madrid
Streaming platform Rakuten TV, known in Spain as the Japanese Amazon, is changing its business model – with a massive capital injection – to compete head-on with the likes of Netflix and HBO.
Rakuten TV will now rely on new movies and pay-per-view content to reverse its losses and try to gain market share.
CEO of Rakuten, Jacinto Roca, said that the company will make “an unprecedented” investment to be announced within a month, according to Economia Digital. Japanese billionaire businessman Hiroshi Mikitani has invested €130 million over the last few years in Rakuten. However, the company is far from profit with losses of €19.8 million in 2017.
In Spain, the platform, which acquired Wuaki.TV in 2012, is finding it difficult to establish a presence in a very competitive market, with Netflix and Movistar currently leading there with over two million subscribers each.