Apple TV takes OTT leadership in Spain

Editor ©RapidTVNews | 19-10-2011

Even though Apple TV remains probably the one element of Apple’s business whose performance is not stellar, Spain is proving a hugely profitable territory for the over the top (OTT) service.

News research from SNL Kagan calculates that Apple TV is by far the most popular stand-alone OTT box in the Spanish market, given its comprehensive licensing of TV and film content for the iTunes video library. Apple has secured a variety of popular premium movie content, including U.S. and international titles. As of September 2011, Spanish iTunes users had access to a movie library of 1,463 titles produced by major Hollywood studios and local film companies in standard and high definition.

The analyst says that even though online retail services including iTunes are not seen as viable substitutes for pay-TV, Apple nevertheless could play a major role in the Spanish OTT landscape, accelerated by the launch of its second-generation Apple TV in September 2010 equipped with iTunes movies. Apple TV features Wi-Fi and Ethernet connectivity, HDMI and USB ports, and support for HD video delivery. With its price tag of €119.00, or 0.53% of Spain's 2010 gross national income per capita, Apple TV, says SNL, is affordable for most local households, which should help uptake.
The research identifies Boxee Box as a ‘noteworthy market entrant’, even if it was regarded as lacking premium content availability to Spanish users as of September 2011 beyond YouTube and Twitter. Making a comparison with the prince of Apple TV, Boxee Box cost €229.00 in the Spanish market as of September 2011, more than 60% higher than retail prices in North America. Upfront costs coupled with a lack of premium content are regarded by SNL as barriers for take-up in Spain.