Pay-TV signal distribution service - 3rd quarter 2021

Executive summary

TV subscribers grew by 3.2% and 94.9% of families enjoy this service

In the 3rd quarter of 2021 (3Q2021), 94.9% of households had subscribed to a pay-TV signal distribution service, up 4.5 percentage points (p.p.) from the same quarter of the previous year. This growth resulted not only from the increase in the number of accesses, but also from the statistical effect of the decrease in the number of private households (-1.9%).

The number of subscribers to the pay-TV signal distribution service was 4.3 million, up 133 thousand (+3.2%) on the same period of the previous year, the lowest percentage growth since the end of 2017.

Fibre optic with 55.7% of Pay-TV subscribers

Service growth was due to offers supported on fibre optics (FTTH), which registered 295 thousand more subscribers than in the same quarter of the previous year (+14.0%), reaching 2.4 million subscribers. This growth resulted not only from the acquisition of new customers, but also from the switching of customers that were previously supported on other networks to FTTH.

FTTH has been the main form of access to this service since 2018. In 3Q2021, FTTH represented 55.7% of total subscribers, followed by cable TV (29.7%), satellite TV - DTH (9.6%) and ADSL (5.0%).

Provider shares

In 3Q2021, MEO was the provider with the highest share of Pay TV subscribers (40.6%), followed by the NOS Group (38.0%), Vodafone (18.0%) and NOWO (3.3%). Vodafone and MEO were the providers which, in net terms, attracted the largest number of subscribers compared to the same period of the previous year, having increased their shares by 1.0 p.p. and 0.5 p.p., respectively. On the other hand, the shares of the NOS Group (-1.2 p.p.) and NOWO (-0.3 p.p.) decreased.

In the residential segment, the NOS Group maintained the highest share (39.1%), followed by MEO (39.0%), Vodafone (18.3%) and NOWO (3.6%). The shares of Vodafone and MEO increased (+1.0 p.p. and +0.5 p.p., respectively), while the NOS Group and NOWO registered decreases (-1.0 p.p. and -0.4 p.p., respectively).

The level of concentration, as measured by the Herfindahl-Hirschman index, although high, decreased slightly quarter-on-quarter. The current trend towards lower concentration started in 2013 with the launch of Vodafone’s triple play offer supported on FTTH. There have been no significant changes in concentration levels since 2015.