Telefónica IPTV and OTT TV growth offset by Latin America DTH decline

Telefónica’s pay TV numbers overall were flat in the year to June, recording growth of only 0.4% to reach 8.8 million, despite solid growth in IPTV and from its OTT TV offering in Latin America.

IPTV numbers grew 16%, while the Movistar Play OTT service in Latin America grew by 59% to reach 1.2 million subscribers.

Overall pay TV numbers fell in the first two quarters of the year after recording growth last year.

Video revenues for the second quarter were €756 million, up 6.1%.

In Spain, pay TV numbers grew by 4% year-on-year to 4.106 million, with 11,000 additions in the quarter, despite the end of the football season. Convergent customers now account for 92% of pay TV subscribers in Spain.

Internationally, Telefónica saw strong IPTV growth in Germany from its small base, with 31,000 net adds representing growth of 33%. However, pay TV numbers in Brazil fell by 9.5% to 1.46 million. Pay TV numbers is southern Spanish-speaking America fell by 13% to 594,000 despite a 44% increase in IPTV numbers as a result of a decline in satellite TV customers.

Pay TV numbers in northern Spanish-speaking America fell by 8% on a lower focus on DTH in Colombia that was not offset by growth in IPTV, which is still in pilot mode in that country.

Higher content costs weighed on Telefónica’s results, contributing to a 6% hike in operating expenses over the quarter along with other factors.