Both Sogecable and Telefonica have announced its full year results for 2002, which again showed how tough it is to operate in the Spanish pay-TV market, with subscribers for Sogecable’s Canal Satelite Digital (CSD) and Telefonica’s Via Digital slipping back below the two million mark. The two platforms ended the year with 1,996,000 million subscribers combined. At the end of 2001, the platforms had a combined 2,036,417 subscribers.

Via Digital had a tough 2002. It closed the year with 775,000 direct-to-home (DTH) subscribers, a four per cent decrease from the same stage last year. At times in 2002, it had over 810,000 subscribers, so the drop in numbers must be seen as disappointing. But, there was some good news for Via Digital ahead of the merger. It grew its revenues to 335.8 million euros ($368 million) for the year, a 23.3 per cent increase from 2001.

CSD had 1,221,000 subscribers as Dec. 31, 2002, of which 95.6 per cent subscribed to premium offers. CSD has suffered an increase in churn, but blames this on a new conditional access system initiated in April last year. It lost 9,369 subscribers between the end of 2001 and end of 2002. When you consider the tremendous growth BSkyB continues to have in the UK, the lack of growth in subscribers in Spain is not a positive sign.

These numbers are disappointing, and while the mix subscribing to premium packages has gone up, the results indicate slow DTH growth in Spain. CSD has been working hard to generate new subscribers. It launched a new basic offering in October last year for 22 euros ($24.3) per month in a bid to penetrate new market segments in Spain.

The numbers come ahead of the merger of the two platforms, with the deal to combine them likely to be closed in June of this year, as long as there is no further investigation by the European Commission. The merger would create a pay-TV powerhouse in Spain. — Mark Holmes