Traditional TV & Home Video - Spain

In Spain, revenue in the Traditional TV & Home Video market market is projected to reach US$4.02bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.01%, resulting in a projected market volume of US$4.02bn by 2029.
The average revenue per user (ARPU) in Spain is expected to amount to US$104.20.
In global comparison, most revenue will be generated the United States, which is projected to reach US$146.60bn in 2024.
The number of TV Viewers in Spain is expected to amount to 38.6m users by 2029.
User penetration in the Traditional TV & Home Video market market in Spain is expected to be at 81.4% in 2024.
The average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Spain is projected to amount to US$104.20 in 2024.
In Spain, the traditional TV and home video market is experiencing a gradual decline as streaming services gain popularity and reshape viewer habits.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in Spain is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: Spanish consumers have shown a strong preference for traditional TV and home video content, with a significant portion of the population still relying on broadcast television for their entertainment needs. This preference can be attributed to several factors, including the availability of a wide range of channels and programming options, as well as the cultural significance of television in Spanish society. Additionally, many consumers in Spain still value the communal experience of watching television with family and friends, which further contributes to the popularity of traditional TV.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in Spain is the increasing demand for streaming services. While traditional TV remains popular, there has been a noticeable shift towards online streaming platforms such as Netflix and Amazon Prime Video. This trend can be attributed to the convenience and flexibility offered by streaming services, as well as the availability of a vast library of content. Spanish consumers are increasingly opting for streaming services to access their favorite TV shows and movies, often binge-watching entire seasons in one sitting. Another trend in the market is the growing popularity of smart TVs. These devices offer built-in internet connectivity and access to streaming services, allowing consumers to easily switch between traditional TV and online content. The convenience and seamless integration of smart TVs have made them a preferred choice for many Spanish households, further driving the growth of the Traditional TV & Home Video market.

Local special circumstances: Spain has a strong tradition of producing high-quality television content, which has contributed to the popularity of traditional TV in the country. Spanish television series, known as "telenovelas," have gained international acclaim and have a dedicated fan base both domestically and abroad. The success of these series has not only boosted the local TV industry but has also generated interest in Spanish content among international audiences. Additionally, the Spanish government has implemented regulations to support the local TV and film industry. These regulations include quotas for the amount of European and Spanish content that must be broadcasted, as well as financial incentives for the production of local content. These measures have helped to promote the growth of the Traditional TV & Home Video market in Spain by ensuring a steady supply of high-quality programming.

Underlying macroeconomic factors: The overall economic stability and disposable income levels in Spain have also played a role in the development of the Traditional TV & Home Video market. Despite the economic challenges faced by the country in recent years, the Spanish economy has shown signs of recovery, leading to increased consumer spending. As a result, more households are able to afford television subscriptions and home video equipment, contributing to the growth of the market. In conclusion, the Traditional TV & Home Video market in Spain is experiencing growth and development due to changing customer preferences, such as the increasing demand for streaming services and the popularity of smart TVs. Local special circumstances, including the strong tradition of producing high-quality television content and government regulations supporting the local industry, have also contributed to the market's growth. Additionally, the overall economic stability and disposable income levels in Spain have played a role in driving consumer spending in the Traditional TV & Home Video market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.