Vodafone, Orange consider Netflix partnership to compete with Telefónica

DetailsJuan Fernandez Gonzalez | 23 July 2015

Spain's second and third largest telcos, Vodafone and Orange, are considering possible distribution agreements and shared offers with subscription video-on-demand (SVOD) platform Netflix to compete with Telefónica within the pay-TV and video industry.

Netflix which intends to launch in Spain in October 2015, doesn't require any partners to deploy its services across the country, as it works over-the-top (OTT), but according to El Economista, an agreement with the two telcos would strengthen Netflix's deployment within the market.

Vodafone and Orange have both have seen how competition within the VOD and pay-TV arenas has become stronger after Telefónica purchased Canal+, which has over 3.5 million subs, and its online platform Yomvi.

Due to the high market concentration, Telefónica is being forced by the regulator CNMC to sell 50% of its broadcasting rights to any telco or operators requesting it. This makes it difficult for Vodafone and Orange to offer original content, something Netflix could provide.

According to industry sources, both telcos are open to deals with Netflix, while developing their own, standalone platforms.