Open AccessExpansion of the core business of traditional media companies in Spain through SVOD services
Author(s) -
Gema Alcolea-Díaz,
Carles Marín Lladó,
Laura Cervi
Publication year - 2022
Publication title -
communication and society
Language(s) - English
Resource type - Journals
ISSN - 2386-7876
DOI - 10.15581/003.35.1.163-175
Subject(s) - diversification (marketing strategy) , business , revenue , marketing , core (optical fiber) , convergence (economics) , promotion (chess) , scope (computer science) , business model , advertising , two sided market , duopoly , industrial organization , economics , telecommunications , market economy , finance , network effect , politics , computer science , political science , welfare , law , programming language , economic growth
The strategic importance of the internet for television became evident in the early 2000s, even destabilizing its very concept and finally resulting in convergence towards a profound transformation of the sector. The introduction of global over-the-top (OTT) media services into local markets has led to strategic changes in multimedia groups. This study considers the subscription video-on-demand (SVOD) services of Atresmedia and Mediaset España, the two main traditional media organizations in Spain that form a duopoly in the country’s commercial television sector, with the aim of understanding and evaluating their positioning strategy in this market and the results obtained through the diversification of their core business. Based on an analysis of their content, price, and promotion policies and the results in terms of subscriptions and revenues, slight differences emerge regarding the strategy and scope of these two groups in their own environment in the sector. They compete for customers to achieve growth in the audiovisual market while seeking to retain a cross-media, multiplatform audience, as well as expand their core business of commercial linear television against a background of a reduction of advertising spend on television and the expected increase of hybrid financing models.