According to a report by Spain's IESE (Institute for Studies of the Enterprise), the country's pay-TV incomes dropped 2%, despite its subscriber base having grown 7% per year.
The study underlines that the downturn of more than 20% of advertising income does not compensate for the growth in the number of subscribers, whose quota went down 2% each year. Between 2007 and 2009, the advertising income of national private broadcasters dropped 26% while in the public broadcasters this downturn was even bigger (38.8%) due to audience fragmentation, new media and the economic crisis.
The report adds that in spite of an increase of 24% in advertisements in the private media, after the removal of any kind of commercial advertisement in the national public broadcaster Corporación RTVE, the cost before taxes of the public broadcaster per home went from E66 in 2009 to E41 in 2010. This places Corporación RTVE among the lowest-public-cost European public broadcasters. On the other side of the coin is the BBC, with E152 after taxes per year.
Finally the report analyses the pay-TV sector in Spain, stating that the future of pay television goes through being different by its quality content, which at the same time must be personalised and flexible in the way it is received. This will make pay-TV a key element in the new audio-visual panorama.