This framework analyzes the outline strategy of a mid sized SVOD provider in a competitive European market.

1. DELTAFLIX’S MARKET ENTRY STRATEGY- SPAIN
Inderpreet Kaur
27 April 2018

2. MARKET OPPORTUNITY- SVOD IN SPAIN
 Spain’s OTT Video market is one of
the most active in Europe.
 About 700,000 OTT video
subscribers, expected to increase to
2.7 million in 2022, representing
about 20% of TV households.
 Spain’s crowded OTT Video market
has both local and international
AVOD or freemium OTT video
services. However, competition in
the SVOD category is catching up
following the entry of Netflix, Sky,
and Rakuten.
2017 TV
Households
TV sets Smart TV Connected
TV
Smartphone
and tablets
Fixed
broadban
Spain 15 m 38 m 13 m 3 m 38 m 15 m

3. COMPETITION- SPAIN
OTT service name Service type/focus Content Key devices
Atresplayer Catch-up linear TV + SVOD Focuses on regional and mainstream content. Offers
movies and TV (on demand).
Smart TVs, PCs, Macs,
smartphones, tablets
Mitele Catch-up Content focus is regional, offers movies and TV (on
demand).
Smart TVs, PCs, Macs,
smartphones, tablets
Movistar Muti
Movistar TV Online
Movistar Go
TV Everywhere/
VOD
Original content focused on fiction, TV drama TVs, smart TVs, PCs, Macs,
smartphones, tablets
Yomvi Multiscreen service for pay-TV, OTT TV
service for non-pay-TV, linear channels
wide range of films, series, children's programmes, and
documentaries
Smart TVs, Android, iPad,
iPhone, PS3/PS4, Xbox 360,
iPlus
Vodafone Online TV
(previously Ono Online)
Vodafone Box
Multiscreen service for pay-TV, linear
channels, Multiscreen service for
Vodafone ADSL/fiber customers;
subscription VOD, transactional VOD,
and catch-up TV
PCs, Macs, tablets,
smartphones Smart TVs,
smartphones, tablets, PCs,
Macs, Xbox 360, PS3/PS4
Orange TV Multiscreen service for pay-TV customers
VOD, linear channels
Regional audio and video content including entertainment,
news, documentaries, movies, dramas etc
PCs, tablets, smartphones
A La Carta Catch-up PCs, Macs, smartphones,
tablets
Netflix OTT TV service; Regional and mainstream content, English and Spanish. Smart TVs, PCs, Macs,

4. MARKET ENTRY STRATEGY- CONTENT
0% 50% 100%
TV (on demand)
Movies
Kids
Live sports
Music video
UHD/4K
OTT video content by format,
Spain
Regional
25%
Mainstream
37%
Niche, Indie,
Anime
21%
Others
17%
Specific content focus for OTT
video, Spain
• Movies and TV On-demand are popular among Spanish VoD audiences.
• To keep wider content focus. Content preferences across various categories do not vary by
large in Spain.
• Deltaflix must consider alliances and partnerships with other platforms/broadcasters/media
houses to leverage regional and live content.
• Contract negotiations must aim for shorter content release window or same day content
release on Deltaflix’s platform.
• Frequency on content renewal is must for SVOD model.
• Both Long and short form content with focus on HD.
• Must consider hybrid subscription model (SVOD + TVOD). Market penetration pricing- low priced
monthly access for TV screens. Other options such as pay-per-view, daily, weekly and monthly
packs, and exclusive movie pass for content such as movies.
Genre
Content focus
Content format and service models

5. MARKET ENTRY STRATEGY- DISTRIBUTION (PLATFORM)
Smart TV STB Web Mobile Console
Supported
platforms
(Spain)
Must support Must support Low priority Must support Low priority
Additional notes 30% of total TV
sets are Smart
Pay-TV
penetration is low
at 40%. TV HH’s
are 99% of Total
HH’s
High content
piracy rate
Millennials spends
more time on
mobile platforms
Can add in
future
 The OTT platform should support multiple
devices including Smart TVs, STBs, Mobiles and
other portables.
 Allow users to switch between devices/ platforms
while watching same content.
 Leverage multi-device support for service pricing.
Must ensure multi-device support Deltaflix must consider partnerships
 Partner with free-TV and pay-TV operators to
offer SVoD in their content bundle.
 Platform integration deal with Telcom service
providers who have their own OTT VoD platform.

6. MARKET ENTRY STRATEGY- MARKETING
Joint marketing campaigns with local partners
Run joint TV and online campaigns with the partners (TV and Telcos) to increase brand re-call.
Promotional activities can include offering free weekly trials to customers on partner networks.
Use other online and offline mediums. New entrants can use Spanish radio to market and
promote the streaming service, using local language.
Leverage social media to engage with customers. Launch short video of most demanded
(popular) content or upcoming content to engage with prospects and existing customers.

7. FACTORS AFFECTING MARKET ENTRY
 Piracy- Content piracy is a big challenge in Spain. A large proportion of internet users still
download content from the likes of torrent.
 Technology- In a market like Spain, challenges are not restricted to content and catalogue,
access to technology will play a more important role. Service providers have already invested
in content delivery networks (CDNs) to maintain good video quality and minimized buffering
time.
 DeltaFlix should be ready to face tougher competition from competing platforms with
advanced user experience, content discovery and catalogue management capabilities.
 Partnerships and contracts- Deltaflix’s ability to secure partnerships for content and
distribution will be crucial for a successful entry. Contract negotiations with favourable
contact terms are difficult to achieve in an overcrowded market.
 Reviewing local regulations and laws on video distribution. Identify how over-the-top
providers are classified by the local authorities and laws applicable to them.

8. STRATEGIC GOALS- SPAIN
Short term Long term
 Secure partnerships for regional
content.
 Identify partners with a ready base
of subscribers. Expose platform to a
wider audience through free trials.
 Use data driven analytics to uncover
subscriber preferences. Shift strategy
to serving a focused audience over
due course.
 Early stage metrics should look at
subscriber engagement and
satisfaction, and churn.
 Evolve the nature of partnerships,
deeper integration of OTT Services
with those of service providers (TV/
Telcos) or partners.
 Know your customers and refine
your content catalogue. Innovation
with service bundling (multiscreen
access) and curation of package
bundles to increase revenues.
 Spain has average 2.5 TV screens per
household.