Portugal's subscription TV market grows in Q2 2011

According to Portugal’s Autoridade Nacional de Comunicações (ANACOM), in June, the total number of subscribers to the subscription television service in Portugal reached about 2.85 million, increasing by 42 thousand compared to the first quarter and by 197 thousand compared to 2nd quarter 2010.

The service’s main growth drivers were offers supported over optical fibre (FTTH/B) and offers supported over the public switched telephone network (xDSL/IP). Products supported over FTTH/B accounted for about six out of every ten new customers in net terms, while xDSL products were chosen by about three out of every ten new customers (net). Meanwhile around 10% new customers opted for DTH.

Cable TV distribution services, with 1.428 million customers, represented 50.2% of total subscription television subscribers – declining 0.7 percentage points from the previous quarter, while DTH, with 676 thousand customers, represented 23.7% of the total; “Other technologies” (xDSL/IP and FWA) had 551 thousand customers, representing 19.4% of the total. The weight of optical fibre (FTTH/B), comprising 192 thousand customers, increased by about 0.8 percentage points and now represents 6.8% of total subscribers.

There were 72.2 subscription television subscribers reported per 100 private households.

As at the end of the quarter, Grupo ZON/TV Cabo continued to have the largest share of subscription television subscribers (55.8%), and PTC remained the second largest operator with 32.3% of subscribers. Cabovisão remains the third largest operator with a share of 9.2 percent.

In the period being reported, separable revenues from the subscription television service totalled about 303 million euros, a decline of 9.1% over the same period of 2010. Of this total, about 58.3% of revenues were derived from cable TV, 30% from DTH and the remaining 11.7% from other technologies. These revenues are derived from stand-alone offers or multiple-play bundles which include a separable television component. All DTH revenue are separable, as are a significant portion of cable revenues, whereas other technologies include a much larger component of non-separable revenues.

Non-separable revenues with respect to bundles of services which include the subscription television service were reported at 158.3 million euros, approximately 64.4% more than in 2009, derived mainly from triple-play bundles – the combination that has grown most in terms of subscribers compared to 2nd quarter 2010.

Pay TV subscribers (thousands):

                   2Q09   3Q09   4Q09   1Q10   2Q10   3Q10   4Q10   1Q11   2Q11
                  -----  -----  -----  -----  -----  -----  -----  -----  -----
Cable             1,452  1,452  1,452  1,448  1,440  1,437  1,438  1,428  1,428
 - Digital          667    737    788    869    958  1,014  1,074  1,100  1,118
Satellite (DTH)     597    624    645    654    657    670    670    671    676
FTTH                  6     12     31     58     84    113    143    168    192
Others (IPTV)       317    356    401    438    470    496    523    538    551
                  -----  -----  -----  -----  -----  -----  -----  -----  -----
                  2,372  2,443  2,528  2,598  2,651  2,716  2,775  2,805  2,848

ANACOM has also released its latest “State of Communications” report with reference to 2010.

The “State of Communications” report provides an analysis of the state of communications in 2010 and sets out to explain the sector’s development over the course of the year. The report also takes a view of the last five years, seeking to give context to the developments, trends and innovations which have occurred in the sector.

Number of Pay TV subscribers:

                                 2004  2005  2006  2007  2008  2009  2010
                                 ----  ----  ----  ----  ----  ----  ----
Cable                            1343  1400  1421  1489  1475  1452  1438
Satellite                         375   394   436   484   586   645   670
Other (FTTH, IPTV, DVB-T, etc.)     0     0     3    42   225   432   666
Mobile TV - Monthly average                                            64

More: Statistical report; State of Communications 2010