Subscription television signal distribution service - 1st quarter 2020



This information is copyrighted to ANACOM

This information is copyrighted to ANACOM

Executive summary

The number of TV signal distribution service subscribers grew by 4.1% and 89% of households are customers of this service

In 1Q2020, about 89% of households had the subscription television (STV) signal distribution service, 3 p.p. more than in the same quarter last year.

The number of subscribers to the subscription TV signal distribution service reached 4.1 million, 160 thousand more (+4.1%) than in the same quarter last year. This is the largest annual growth in absolute terms recorded since 2016. This figure is, however, within the variation range resulting from the historical trend for this indicator.

The growth in the service was due exclusively to deals supported by optical fibre (FTTH), which registered a further 271 thousand subscribers year-on-year (+15.9%).

Optical fibre was the main form of access to the service; Evolution of DTH and ADSL may have been influenced by the State of Emergency

FTTH continued to be the main form of access to this service (48.0% of total subscribers), followed by cable television (32.2%), DTH (11.2%) and ADSL (8.5%), as has been the case since the beginning of 2018.

In 1Q2020, the decreasing trend in DHT subscribers, which has been recorded since 2016, lessened. In this quarter, the number of DTH subscribers fell by 4.7%, while it decreased by 9.1% one year ago. At least one provider recorded an increase in the number of subscribers to this technology. This evolution may have been influenced by the State of Emergency associated with COVID-19 that came into force on 18 March 2020 and was extended beyond the time frame of this report.

Likewise, the number of ADSL accesses was slightly above the forecast range resulting from the recent historical evolution. This evolution may also have been influenced by COVID-19.

We also recall that the process to change TDT frequencies began on 07/02/2020 and was suspended on 13/03/2020 due to difficulties associated with COVID-19.

Shares per provider

Although it dipped below 40% for the first time, the NOS Group was the provider with the highest share of subscribers to the subscription TV signal distribution service (39.9%), followed by MEO (39.7%), Vodafone (16.5%) and NOWO (3.7%).

Vodafone and MEO were the providers that, in net terms, had the largest number of subscribers compared to the same quarter last year, with their shares increasing by 1.0 p.p. and 0.3 p.p. respectively. On the other hand, there was a decrease in the shares of the NOS Group (-0.9 p.p.) and NOWO (-0.3 p.p.).

The concentration level, as measured by the Herfindahl-Hirschman index, although high, decreased slightly compared to the same quarter last year. The current decreasing concentration trend began in 2013 with the launch of Vodafone's triple play deal supported on FTTH. Since the start of 2018, the concentration level has only decreased slightly.