Pay TV subscribers in Portugal up 46.5 thousand in 3Q 2014

Tuesday, December 2nd, 2014

Subscription television service gains over 46,500 customers in Q3

According to Portugal’s Autoridade Nacional de Comunicações (ANACOM), at the end of 3rd quarter 2014, there were about 3.29 million subscribers to the subscription TV service in Portugal, 46.5 thousand more than in the 2nd quarter and 132 thousand more than in 3rd quarter 2013.

The growth in the service was principally driven by offers based on optical fibre (FTTH/B), with the number of subscribers to such offers increasing by 6.8% over the previous quarter, and offers based on xDSL and on DTH (satellite). The number of cable television distribution service subscribers fell by 0.8% over the same period.

As at the end of September, the cable TV distribution service represented 41.8% of all subscribers while xDSL represented 22.4% and DTH 18%. Optical fibre (FTTH/B) represented 17.8% of total subscribers and is the technology that has seen most growth.

Grupo NOS reported the highest share of subscription TV subscribers (44.5%). followed by PTC, Vodafone and Cabovisão with respective shares of 42.1%, 6.7% and 6.5%. Vodafone was the provider that added the largest number of subscribers in net terms during the quarter, making it the third largest provider of this service.

Total revenues from the subscription TV service (stand-alone and bundles that include this service) totalled 1.023 billion euros up to the end of September (an increase of 10.8% compared to the same period of 2013) – whereas quadruple/quintuple/triple- play bundles were the main drivers of revenue growth.

Average monthly revenue derived from bundles which include the TV subscription service increased by 2.8 euros/month (+8.1%) compared to the same period of 2013.

In the case of residential customers, when the subscription television service is acquired as part of a multiple-play offer which includes TV, fixed broadband and fixed telephone, average monthly expenditure is reported at 46.4 euros (declining 0.6% from the previous quarter). Average monthly expenditure falls to 39.7 euros in the case of bundles which include television and fixed broadband internet (5% more than in the previous quarter); and falls to 31.6 euros in the case of bundles which include television and fixed telephone (0.5% more than in the previous quarter).

In this period, about 17% of households with subscription TV channels had access to premium channels (a drop of 1.6 percentage points from the previous quarter), while 64% had access to more than 80 channels (an increase of 11.2 percentage points versus a year earlier).