 SPAIN | CASE STUDY |
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| Telecommunications and Media Outlets Continue to Drop |
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The final numbers in fixed and mobile telephony, internet, broadcast TV, pay TV and radio, published in the CMT's Regional Economic Report 2011, don't lie: Spain is having a hard time.
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The Regional Economic Report 2011 published on Tuesday by the president of the Telecommunications Market Commission (CMT), Bernardo Lorenzo, provided an accurate outlook on the current situation of Spain's media industry, and how it's been affected by the economic crisis.
All in all, the numbers are down. The telecommunications industry's total income decreased 4.6% during the year to 37.9 billion euros.
While the retail revenue of mobile broadband increased 23.5% (2.4 billion), the decrease in the rest of the services was stronger: income for fixed telephony was down 9.2% (5.2 billion), mobile telephony dropped 8.6% (11.02 billion) and fixed broadband was down for the first time ever by 1.2%, reaching 3.4 billion euros.
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TV AND RADIO
According to the report, the industry's turnover reached 4.12 billion euros in 2011; 6.7% less than the previous period. If you add the grants in public radio and TV, overall income reaches 6.4 billion euros.
The CMT indicated the main cause of this decrease in the industry's overall earnings is the drop in advertising on TV and radio, which was down 10.1% in 20111, reaching 2.3 billion euros. The broadcast TV industry's advertising decreased 13.1% to 2.02 billion while pay TV's income grew 1.4% to 1.7 billion, with radio down 3.6% to 391.5 million euros.
The total amount of pay TV subscribers continued to increase in 2011 (32.540 more we added for a total of 4.52 million), although cable and satellite TV registered a decrease in the number of users. While it lost 16,671 subscribers this year, the leading pay TV platform was still Cable+, which ended the year with 1.72 million clients. Meanwhile, DTT was the industry with the highest growth, with a total of 2.1 billion euros.
As far as ad sales go, the leading operator was Mediaset Spain, which following its Alliance with Cuatro, scored 42.2% of the total (816.7 million euros). Antena 3 placed second with 616.4 million euros and 31.8% of the total. Between the two, they accounted for 74% of the total ad sales.
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Where Everything Grows
