Despite a 7% growth in subscriber base, Spain’s pay-TV incomes actually dropped 2% in 2010 according to its Institute for the Studies on Enterprise (IESE).

The IESEs’ study basically underlined the fact that the downturn causing a fall of more than 20% in advertising incomes is now really biting the broadcast industry.

Between 2007 and 2009, the advertising incomes of the national private broadcasters dropped 26% while for public broadcasters the fall was even bigger (38.8%) due to the audience fragmentation, new media and finally the economic crisis.

The report also says that despite a 24% increase in private media advertisement for Corporación RTVE, after the removal of any kind of commercial advertisements, the customer fee before taxes per home fell from €66, 3 in 2009 to €41 in 2010.

This places Corporación RTVE among the least expensive to run European public broadcasters. At the top of this scale is the BBC with €152.60 after taxes per year.

The report adds that the future of pay-TV in Spain rests with high quality content that is personalised and flexible in the way it is received.