Quarterly Television Monitoring
Despite of stiff competition and challenging macroeconomic environment in Western Europe, IPTV subscribers continue to increase quarter-on-quarter registering an approximate 4% growth while other platforms such as satellite TV exhibited minimal growth of less than 1% quarter-on-quarter and CATV base continues to contract in the region.
France remains to be the leading IPTV market in Western Europe and one of the largest worldwide with 14.5m base in 2Q14. France’s IPTV penetration to broadband base registered approximately 61% which is one of the highest penetrations in the region. Spain has seen some recovery in the IPTV market after significant customer slump over the past 7 quarters that saw players losing over 200 000 subscribers. Telefonica’s multiplay strategy under the Movistar Fusion offer has supported IPTV growth. Revamping the multiplay strategy (with aggressive marketing and branding strategy) has also been Portugal Telecom’s tool in maintaining IPTV subscriber growth. Cyprus, though a small market, has been gaining IPTV traction and already achieved 40% IPTV penetration to broadband base with bundled packs (e.g. TV+broadband, TV+broadband+fixed line) becoming a standard offer in the market.
While most markets continue to enjoy increasing IPTV base, Italy has seen dwindling subscriptions due to tough economic condition leading to consumer budget cuts coupled with competition from much cheaper alternative such as digital terrestrial TV as well as dominance of Sky Italia – main satellite player. Indeed, Fastweb and Wind have already stopped offering IPTV while Telecom Italia refocused its efforts to its OTT VoD offer called TIMvision.