Telefónica looks to Netflix model
Juan Fernandez Gonzalez
| 11 June 2014
First came the exclusive sports rights for pay-TV, then the purchase of Canal+, and now Telefónica intends to launch a VOD catalogue including most of the platform's programmes and networks.
The Spanish telco is on its way to becoming a video company, as its president César Alierta has announced.
According to Expansión, Telefónica aims to transform Movistar TV to become a kind of Netflix model. In this future platform, which will be ready in the coming months, customers will be able to watch on-demand all the movies and series scheduled in Telefónica's platform.
The Spanish telco aims to make Movistar TV's offer more flexible so premium content won't necessarily be tied to a concrete premium subscription and will be available as single VOD pieces.
The plan is also to secure its current subscriber portfolio - which comprises over 700,000 people already - and drive them to its recently deployed fibre-to-the-home (FTTH) network and its triple-play and quad-play services.
Telefónica's business in Spain has been falling in recent years while the telco was paying more attention to the growing Latin American market. But since January 2014, the company is focusing on a field which had been secondary up until now: pay-TV.
After several moves to reinforce its position in the TV sector, the deal with Prisa to get to control of Canal+ and its 1.7 million customers was the final step to become the leader of the Spanish market.