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More than a half of Spanish population consumes on-demand TV
2020-01-28

By 2023, on demand video platforms project an income of 300 million euros in Spain.

During these last five years, the subscription-based streaming services have completely transformed the Spanish audiovisual landscape. The revenue from this sector, according to PwC, has been multiplied by four reaching 165 million euros in 2019. The successful arrivals of platforms like Netflix, HBO and Amazon Prime Video have forced the traditional leaders to re-invent themselves and adapt their content to the customer criteria.

Mediaset launched their subscription service last summer “mitele PLUS”, heavily specialized in football content after the company acquired the broadcasting rights of the major European tournaments and the Spanish National League. On the other side, Atresmedia forged an alliance with Telefónica in order to create a collaborative platform based on the production and distribution of their own content all around the world.

According to a recent study from YouGov, most of Spanish people already consumes TV content on demand and 2 out of 5 does it on a regular basis.

This paradigm shift completely alters the traditional business and commercial model since, one of the main changes stablished by on demand subscriptions is an advertisement reduction or exemption. However, this platforms user profile shares some virtues which can turn to be very profitable for the marketing industry.

In between the general audience, there is a segment that clearly stands out: the Heavy Users. 39% of this individuals affirm to enjoy watching adverts headlined by their favorite celebrities (in comparison with the 29% from the overall); in addition, 33% of them recommends products and services previously seen advertised to their friends and family (in contrast with the 25% from the overall) and 45% of them look up information about advertised products and services on their phones (in comparison with the 25% from the overall).

These statements evidence why the Heavy Users have consolidated themselves as the most important customer profile for the on-demand video platforms. This audience group, composed by middle-age men, englobes 25% of the population that consumes more than 11 hours a week on-demand video services, they are set apart by their eagerness towards these platforms and, in particular, towards their favorite content genre; they are also especially prolific at their social network usage and notably avid when receiving promotional content.

Taking into account all these aspects, marketing specialists should look for new business models and strategies in order to take advantage of this new market niche and build loyalty in a target which is more useful and loyal than average towards advertisement.

While business models like the ones from Netflix and HBO promote a non-intrusive advertisement policy, mainly based on product placement techniques; platforms such as Hulu, available in USA and Japan, still trust in classic video adverts being regulated by an intelligent method.

This way, we are immerse in a phase of experimentation that will allow us discover which one of this business variants ends up being more profitable and competent at building trust in an audience who is getting more and more exigent overtime.

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