Sky Challenges Netflix in Spain with NOW TV
Sky are launching NOW TV in Spain for €10 a month and it looks like they could chip away at Netflix’s control of the market.
NOW TV has been chipping away at the on-demand streaming market and have managed to gain a sizeable share of the market from Netflix.
NOW TV has been competing against Netflix at their own game by offering a broad selection of original content and classic and new motives. They, along with Amazon’s Instant Video Service, have provided some much need competition to the market.
Sky are now gearing up to launch in Spain to challenge the near-monopoly of the market that Netflix has. The Sunday Telegraph are reporting that Sky see Spain as the perfect launching pad for opening up to the European market.
The €10 a month price tag of NOW TV is going to make it an attractive alternative (or possibly a supplement) for Netflix, which has been unchallenged in the Spanish market for a while now. It’s also believed that Amazon will be launching their Instant Video in Spain by the end of the year.
Research from Netflix has suggested that less than a third of Spanish households subscribe to a Pay-TV service, unlike the over two-thirds of British households that do. As such Spain has a large market for on-demand streaming services, even if Spaniards spend more time outside than inside thanks to the weather.
The weather gets colder during the winter though, even in Southern Spain. So millions of Spaniards will find it difficult to resist the allure of staying inside curled up on the sofa watching Netflix or NOW TV.
The cost has always been a factor for why Spaniards don’t purchase Pay-TV but the recovering economy makes the price tag of €10 for hours of entertainment good value.
Sky are taking on some risks by expanding into the Spanish market. Even though many Spanish bars use the Sky logo to advertise the footy they’ve got on the TV Sky doesn’t actually have satellite operation in the country. They made the decision several years ago to avoid trying to compete with the Spanish satellite operators Canal+ and Vivendi.