Sky Gives Up In Spain

Comcast’s European Sky operation is closing down its OTT streaming service in Spain in late summer 2020, after failing to gain more than 100,000 subscribers in almost three years.

The service launched in September 2017 offering a mix of 12 live channels along with TV series, movies and documentaries on demand for €10 a month. Later, more channels were added and the price cut to €6.99 a month in a desperate attempt to gain momentum, but the service was still crowded out by a combination of the big global players, especially Netflix, Amazon Prime Video and HBO Espana, along with local providers such as Rakuten TV. The eventual entry of Disney+ and Apple TV+ among others then helped persuade Sky to cut its losses and pull out.

This contrasts with Sky’s success in its established European markets, that is the UK, Ireland, Austria, Germany and Italy. In all those cases strong market share was gained through satellite TV reinforced by exclusive rights to premium sports, making subscriptions very attractive to relevant fans. On the back of that. Sky was able to take a healthy stake in the burgeoning OTT markets, starting with TV Everywhere offerings to existing DTH subscribers and then standalone as well. The Spanish experience shows how difficult it is for a foreign operator to come in and compete in OTT alone both with indigenous and major global players on a diet of TV shows and movies with relatively few hot tickets.

Spain itself is an expanding and dynamic OTT market with 6 million total subscribers now, so Sky was correct to identity the potential opportunity. But that market has come to be dominated by the three big US owned SVoD players, and Netflix in particular, rather like the Spanish speaking Latin American countries. Between them Netflix, Amazon Prime Video and HBO Espana hold 91% of the Spanish OTT market by number of subscriptions, according to S & P Market Intelligence. Netflix accounts for 63%, Amazon 16% and HBO 12%, with the rest shared between Rakuten TV, Telefónica SA's Movistar+ Lite, DAZN and Mediaset Espana Comunicación SA's Mitele Plus, plus a few other small local players.

You might also like...

The Sponsors Perspective: Delivering OTT With The MediaKind Universe

The MediaKind Universe represents our portfolio of solutions and services, designed to offer the best of media technology to cater to the needs of our customers’ workflows. Content owners, broadcasters, service and pure OTT providers will discover how our solutions c…

The Sponsors Perspective: Broadcasters Now Need To Care About Quality Viewing Experiences

Thanks to Over-the-Top (OTT) streaming video, content owners and broadcasters have a very different relationship with the end consumer – often a direct one.

Core Insights - Leveraging Cloud Operations For Live Broadcast

More broadcasters are seeing the benefits of moving their operations to the cloud, especially as we are becoming more reliant on remote working. But the transition isn’t necessarily a linear move and hybrid working practices help us balance the u…

Essential Guide: Multiviewers For Flexible Operations

IP and COTS infrastructure designs are giving us the opportunity to think about broadcast systems in an entirely different manner. Although broadcast engineers have been designing studio facilities to be flexible from the earliest days of television, the addition of…

Working Remotely Means Different Things To Different People, But Everyone Benefits

Cloud computing is helping a myriad of professional organizations expand their reach and implement new types of IP workflows that were not possible previously. It has also allowed media companies to work virtually anywhere.