Subscription television signal distribution service - 1st half 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 the first half of 2020 (1S2020), around 89.3% of households had the subscription television (TVS) signal distribution service, 3.3 p.p. more than in the same period of the previous year.

The number of subscribers to the subscription TV signal distribution service reached 4.15 million, 165 thousand more (+4.1%) than in the same period of the previous year. This is the largest annual growth in absolute and relative terms recorded since 2016.

Optical fibre surpasses two million accesses

The growth of the service was due to the offers based on optical fibre (FTTH), which recorded 263 thousand subscribers more than in the same period of the previous year (+14.8%), surpassing two million accesses.

FTTH continued to be the main form of access to this service (49.0% of total subscribers), followed by cable television (31.9%), satellite direct to home (DTH) (11.1%), and telephone line (ADSL) (8.0%), as has been the case since the beginning of 2018.

Impact of COVID-19

In the 1S2020 there was simultaneously a slowdown of the downward trend of the number of DTH and ADSL subscribers, and an upward trend of the number of FTTH subscribers. This evolution could be associated to the impact of COVID-19 on the activity of the providers and on the needs of the users. Reference should also be made to the possible effect of the reduction of the monthly payment of 3P offers by satellite that occurred in the semester under review.

It should also be recalled that the process of digital terrestrial television (DTT) switchover of frequencies started on 7 February 2020 and was suspended on 13 March 2020 due to the constraints associated to COVID-19.

Shares per provider

At the end of the 1S2020, MEO became the provider with the largest share of subscribers to the subscription TV signal distribution service (39.8%), followed by the NOS Group (39.7%), Vodafone (16.7%) and NOWO (3.7%).

Vodafone and MEO were the providers that, in net terms, captured most subscribers in relation to the same period of the previous year, with their shares having increased by 0.9 p.p. and 0.3 p.p., respectively. On the other hand, a reduction occurred in the shares of the NOS Group (0.9 p.p.) and NOWO (0.3 p.p.).

The concentration level in terms of traffic, measured by the Herfindahl-Hirschman index, although high, fell slightly in relation to the previous year. The current trend of 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 shown insignificant reductions.