Atresmedia and with Prosegur , the company that leads the private security sector in Spain, are part of the company's strategy to win over investors. However, the telecommunications company's intentions are even more ambitious and long-term than they might seem at first glance.
As for audiovisual content, Telefónica is aware that its strong commitment to televised football does not guarantee perpetual success . And not because the public will tire of the 'king of sports' in Spain, but because, due to its high cost, it may be difficult to maintain this offer in the medium term. Although this is obviously a problem that other telecos face.
Furthermore, by joining forces with Atresmedia, Telefónica is taking a qualitative and quantitative leap in its commitment to film and series content. This will not only allow it to feed its own platforms, but also to offer content to third parties and even to make co-productions. For its part, Atresmedia, which is making a name for itself in the Spanish audiovisual market with blockbusters such as La casa de papel, will now be able, thanks to the agreement, to take on even more ambitious productions: by com albania phone number ining their production resources, the two groups will reach 200 million annually.
to create a major European content hub in alliance with Germany's ProSiebenSat
Both companies are aware of the huge success that streaming platforms such as Netflix, HBO and Amazon Prime Video have had in Spain , and which will soon be joined by Disney+. And not only that: Mediaset, Atresmedia's great rival, is trying to create a major European content hub in alliance with the German company ProSiebenSat.
It should also be noted that the American digital giants are playing in a different league. Just look at their budgets: Netflix plans to invest around $13.5 billion in content in 2018 (it has spent $46 billion since 2010), while AT&T, owner of HBO and which will launch its HBO Max platform in the spring, will spend around $14.3 billion, according to the bank RBC Capital Markets, which estimates that Amazon and Apple TV+ will invest around $7 billion this year. But what Telefónica can achieve is a touch of local differentiation , which its competitors Vodafone and Orange cannot match.
And what does Prosegur have to do with all this?
Beyond the content, the agreement with Prosegur also has beneficial effects on future demand. First, because the more services a telecom sells to a household, the more difficult it is for that household to change operator, so that churn (the change from one operator to another) is reduced. But, in addition, the agreement means entering a market that in Spain is growing at a good pace , above 10% annually and whose penetration, estimated at 7% of households, is well below the average of other countries such as the USA (20%), which promises sustained growth.