Telefónica Group is rapidly bulking up the content available on its OTT video platform across Latin America as it develops a serious play for bundled services in the region.

  • In-house content expected to deliver Hispanic appeal.
  • Hollywood represented through Viacom deal.
  • Telefónica also building relationship with Netflix.

Telefónica Group’s Movistar+ television unit launched the Movistar Series channel in the Latin American market. The new channel offers pay-TV and Movistar Play streaming app subscribers premium content generated by Telefónica’s growing production unit.

The channel launched during mid-February 2018 in Chile, Colombia, and Peru, with plans to add Argentina, Costa Rica, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Panama, and Uruguay by end-2018.

  • Portuguese-speaking Brazil is a notable exception from the list of countries set to receive Movistar Series. However, the Brazilian operating business usually tends to operate differently from other units in the region, and is currently in the midst of migrating a substantial cable and satellite television customer base to IPTV-based offerings.

Telefónica’s content-creating unit within Movistar+ has been active for around two years, and has created several Spanish-language series expected to have a broad appeal across Hispanic countries in the Americas, as well as in its domestic market. The launch of the channel in Latin America was described as a “natural step” for Movistar+, leveraging the distribution capabilities of the telco’s pay-TV businesses on the continent.

While Movistar+ is creating around a dozen of its own series a year, the new channel will also feature content from other production companies, including local drama series, documentaries, and films.

“ Movistar’s original series are not only in our own language, but also represent us and sound like us. They are local stories with a universal attraction. For example, ‘The Plague’ has surpassed the number of views of ‘Game of Thrones’, ‘The Walking Dead’, or ‘The Big Bang Theory’ on Movistar+. This fact demonstrates the relevance of local content for our clients. ”
— Domingo Corral, Director of Original Content, Movistar+.

A potential audience of multiple millions…

It is anticipated that around three million Telefónica pay-TV customers could be targeted in the region, as well as the wider base of mobile customers through OTT apps.

Movistar Series will be bundled with pay-TV packages where a fixed-line-driven pay-TV service is available. In other markets, Telefónica envisages including the channel alongside several other pay-TV channels as part of a mobile app-based “skinny” upgrade from free-to-air television. It would also then offer a top-tier pay-TV product that would add established premium channels in the region, such as Fox Plus and HBO Go as part of a bundle.

Viacom and RTVE content to support Telefónica’s bundle strategy

Further supporting Telefónica’s content plans for the Latin American market, US media network Viacom agreed a deal that will see it make its flagship channels, including Comedy Central, MTV, and Nickelodeon, available for streaming on the Movistar Play platform across Latin America.

As well as live streams, Viacom is also supporting on-demand access to its content, and Viacom’s own apps, such as MTV Play and Noggin, will also be available to Movistar Play customers as part of their subscription.

  • Viacom already had carriage agreements in place for its linear and on-demand content via Telefónica’s conventional pay-TV platforms. However, this latest deal, bundling streamed and on-demand content and entered into directly with a telco, was described as a global first for Viacom.

The media network noted that it will receive revenue from Telefónica on a per-subscriber basis in much the same way (and at around the same level) as it does under a traditional pay-TV contract. However, this deal is significant as a step towards widening OTT access to Viacom content as part of the media network’s plan to expand its target audience through the mobile platform. Deals with other carriers around the globe were said to be progressing, with the Telefónica agreement described as “just the tip of the iceberg”.

  • Spanish national broadcaster RTVE also agreed a deal that will enable Telefónica to stream its overseas channels on its mobile and pay-TV platforms. The channels Clan, Star HD, and TVE International, which cover children’s broadcasting, entertainment, and news, respectively, will be made available in Telefónica territories.
  • Accompanying the launch of the new channel and expanded content deals for Telefónica in Latin America, it was reported that a new big data-driven content recommendation engine was launched on the Movistar television platform in the region. The new engine, intended to help subscribers find the most relevant content, was developed by research unit Telefónica I+D, with the technology reportedly taking around one year to develop.

Meanwhile, Netflix set to land on Movistar+ in Spain

Telefónica is also said to be close to agreeing a deal with Netflix to integrate its portal into the Movistar+ platform, potentially making the Netflix content available as part of a subscription package billed by Telefónica.

It appears the agreement between the two companies will initially apply to Spain, but there may be scope for a further expansion to the pay-TV markets of Latin America.

While the deal has not yet been finalised, Netflix can be seen making similar deals elsewhere — in late-February 2018, the UK’s leading pay-TV operator Sky announced it is to include Netflix access on its Sky Q platform, and resell Netflix subscriptions to its base.

Image: Telefónica Audiovisual Digital S.L.U..

Table of Contents

EXECUTIVE BRIEF

GROUP

Management update

FY17: Álvarez-Pallete a man on a mission [p6]

  • Table 1: Telefónica, selected financial data, FY17
  • Opex savings at the heart of digital change
  • Vilá in the field, Abasolo deals in the nitty-gritty

Countries: Europe slow and steady, LatAm picks up pace [p8]

  • Table 2: Telefónica Group, performance by unit, FY17
  • Table 3: Telefónica Hispanoamérica, performance by country, FY17
  • Table 4: Telefónica Group performance against guidance for 2017

Guidance: revenue goal smashed, but caution remains [p11]

  • Telefónica brings along its friends
  • More partners to come

MWC

AURA promising the future, UNICA delivering it [p12]

  • Comment: wannabe killer app rounded up with usual suspects
  • One year on, and AURA is out in the world
  • Telefónica in the game for efficiency and loyalty
  • Telefónica picks up fellow travellers on data ownership drive
  • MWC 2019: Network know thyself

Network slicing presented as latest UNICA breakthrough [p17]

  • Telefónica illustrates the diverse capabilities of a single future network
  • UNICA head in the clouds
  • New Huawei MoU on E2E
  • Table 5: People movement highlights
  • Figure 1: 5G Momentum Index: Telefónica global ecosystem, to February 2018

GLOBAL RESOURCES

5G

Telefónica and Huawei flag 5G-V2X tests for autonomous driving [p21]

  • Pitting 5G vendor against 5G vendor
  • Growing focus on 5G for connected and autonomous cars
  • Telefónica racing Vodafone on V2X progress

O2 promises 5G test bed at the O2 [p23]

  • TIWS heralds virtualisation hubs across global infrastructure

Nokia bolsters Telefónica links with German partnership [p24]

DIGITAL SERVICES

ElevenPaths

ElevenPaths and McAfee partner to secure home routers [p26]

Weve

Weve launches location verification service [p27]

Alliances

Telefónica partners UN’s FAO on agri-commerce [p29]

  • Forecasts and softer skills also to be fostered
  • New notifications solution launched for developers
  • Telefónica backs blockchain research group

LATIN AMERICA

Regional

Huawei brings 4.5G+ to Latin America [p32]

  • 4.5G Evolution promises immediate and longer term benefits
  • Tech City collaboration crosses continents
  • Germany (and China) 1, Spain (and Finland) 0

Telefónica brings content to LatAm OTT play [p33]

  • A potential audience of multiple millions…
  • Viacom and RTVE content to support Telefónica’s bundle strategy
  • Meanwhile, Netflix set to land on Movistar+ in Spain

Brazil

Probe launched into Telefónica’s fine swap agreement [p35]

Colombia

Government’s Coltel exit edges forward [p37]

  • Telefónica takes Colombia to World Bank arbitration
  • Messenger among latest zero-rated apps as AURA reaches Chile

Mexico

Telefónica considers fixed broadband options for Mexico [p38]

  • Opportunity for Telefónica to expand in growing market

EUROPE

Germany

Telefónica teams with Vodafone for fibre backhaul [p41]

  • Serving 5G and the greater good
  • Vodafone picks up short-dated spectrum as part of deal

Mobile Connect to see German launch [p42]

Spain

Orange commits to Telefónica fibre spend [p43]

United Kingdom

Giffgaff to offer loans and financial management app [p44]

O2 to offer digital ID authentication against cyber-threats [p45]

FURTHER READING

INDEX

Index

Symbols

3GPP 23
5G Automotive Association 22
21st Century Fox
– Sky plc 19, 34, 39

A

Advanced 5G Network Infrastructure for Future Internet Public-Private Partnership (5G PPP) 23
AI 12, 30
Allianz SE 42
Alphabet
– Google 12
– – Android 30
Altán Redes 39
Amazon 12, 14
América Móvil 37, 39
– Claro 35
– Telcel 39
– Telmex Internacional (Carso Global Telecom SAB)
– – Teléfonos de México (Telmex) 39
Anatel 35, 36
Anschutz Entertainment Group (AEG) 23
Apple 38
– iOS 30
Asus 43
AT&T 22, 39, 43
– DirecTV 39
Audi 22
Axtel 39

B

Bank of America Corp. 37
BMW 22
BNP Paribas 37

C

CaixaBank 19
Carrier Blockchain Study Group 30
China Mobile 18, 43
China Telecom 43
Cisco Systems, Inc 22
CityFibre 9
Competition and Markets Authority (UK) 44
Correos 44

D

Daimler 22, 42
Deutsche Bank 42
Deutsche Telekom 15, 18, 22, 42, 43
– T-Mobile 43

E

Ericsson 12, 15, 17, 22, 30, 42
– 5G-ConnectedMobility 22
Erste Bank 19
Etisalat 30
European Union
– European Commission 19, 22

F

Facebook 12, 13, 14, 38
– OpenCellular 14
– Telecom Infra Project 14
– WhatsApp 38
Far EasTone 30
Ficosa 15

G

Grupo Clarín 36
Grupo Santander
– Santander 19
GSM Association
– GSMA
– – Mobile Connect 42
GSM Association (GSMA) 42
– Mobile World Congress 6, 12, 42

H

HAND Enterprise Solutions 21
HBO 34
Hewlett Packard Enterprise 43
Huawei 12, 17, 18, 21, 22, 23, 32, 33
– Joint Innovation Lab 21

I

IFT (Mexico) 39
Intel 22, 26
ItsOn Inc 39

J

Juniper Networks 22

K

KT Corporation 30

L

La Liga 8
Lenovo 43
LG 30
LinkedIn 19

M

McAfee 26
Megacable 39
Microsoft 12, 18, 43
MTV 34
MVNOs 44

N

Netflix 33, 34
Netsia 12, 17
Nokia 22, 23, 24, 33, 47
NTT 22

O

O2 Arena 23
Oi SA 35
Omnicom Group, Inc
– Organic 6
Orange 8, 15, 18, 43
Origen Technologies 21

P

Parallel Wireless 14
Payfone 45
PLDT 30

Q

Qualcomm 22, 43

R

RateSetter 44
Regions
– APAC
– – Australia 43
– – China 18, 21, 22, 33, 43
– – Hong Kong 24
– EMEA
– – Europe 6, 7, 8, 19, 22, 26, 33, 40, 44, 45
– – Finland 33
– – France 43
– – Germany 8, 9, 13, 23, 24, 33, 41, 42, 43
– – Ireland 43
– – Spain 6, 8, 9, 14, 19, 22, 24, 26, 27, 29, 30, 33, 34, 36, 42, 43, 44, 45
– – Switzerland 43
– – UK 8, 9, 13, 19, 23, 24, 27, 34, 42, 44, 45
– Latin America 6, 7, 9, 14, 21, 26, 31, 32, 33, 34, 37, 38
– – Argentina 10, 13, 21, 33, 36, 42
– – Brazil 9, 13, 19, 21, 22, 24, 32, 33, 35, 36, 38, 42
– – Central America 29
– – Chile 10, 13, 21, 29, 33, 38, 42
– – Colombia 10, 29, 32, 33, 37, 42
– – Costa Rica 33
– – Ecuador 33, 42
– – El Salvador 29, 33
– – Guatemala 29, 33
– – Mexico 10, 21, 24, 32, 33, 38, 39, 42
– – Nicaragua 29, 33
– – Panama 33
– – Peru 10, 21, 33, 42
– – Uruguay 33, 42
– – Venezuela 11, 19
– North America
– – USA 21, 24, 43, 45
Repsol 19
Royal KPN 15
RTVE 34

S

Samsung 18, 22
SAP 21
SIAE Microelettronica 22
SK Telecom 22
Softbank
– Sprint 30, 43
SoftBank 30
Spotify 38
Sprint Nextel 30, 43
Starbucks 39
Swisscom 43
Swrve 30

T

TBCASoft 30
Technologies
– 2.5G 39
– 3G 39, 42
– – 3.5G 41
– 4G
– – LTE 9, 14, 17, 23, 24, 32, 33, 36, 38, 39, 41, 42, 43
– 5G 9, 12, 15, 17, 18, 21, 22, 23, 24, 32, 33, 41, 47
– Broadband 9, 26, 36, 38, 39
– eSIM 43
– Ethernet 45
– FTTH 36
– GPS 27
– GSM 42
– high definition (HD) 34, 42
– IP 42
– IPTV 9, 33
– LPWA 15, 29
– LTE-A Pro 24, 32, 33
– M2M 32
– MIMO 22, 24, 32
– NB-IoT 29
– OpenStack 21
– R&D 18
– SIM 14, 42, 45
– SMS 45
– TV 9, 14, 34, 36
– UMTS 42
– V2X 21, 23
– VoLTE 42
– VoWi-Fi 42
– Web Services 14
– WLAN
– – Wi-Fi 42, 45
Telecom Argentina 36
Telecom Italia 19, 43
– Telecom Italia Mobile 19, 35
– TIM Brasil 19
Telefónica Group 6, 9, 11, 19, 21, 22, 23, 26, 29, 30, 33
– Associates and investments
– – Telecom Italia 19, 43
– Digital services
– – AURA 7, 12, 13, 14, 15, 38
– – Axonix 27
– – ElevenPaths 14, 26
– – Go Ignite 18
– – Innovación Alpha 27
– – LUCA 15, 19
– – M2M 32
– – Open Future 18, 26, 27
– – OTT 33, 34, 39
– – Statiq 27
– – Talentum 30
– – Telefónica I+D 27, 29, 34
– – Wayra 29
– – Weve 27
– Directors
– – Guad Solé, Jordi 19
– Europe
– – E-Plus 8
– – Germany 26, 42, 47
– – giffgaff 19, 44
– – Giffgaff 44
– – O2 6, 9, 13, 14, 19, 23, 26, 27, 42, 44, 45
– – Spain 22, 26, 33, 43, 44, 45
– – Telefónica Deutschland 8, 24, 32, 33, 41, 42
– – UK 6, 9, 12, 14, 19, 23, 27, 44, 45
– Executives
Abasolo, Laura 7
– – Alierta, César 7
– – Alonso, Chema 12
– – Álvarez-Pallete Lopez, José María 6, 7, 9, 10, 12, 13, 14, 15, 17
– – Barclay, Danny 45
– – Blanco, Enrique 17, 21
– – Casas, Jose Luis 19
– – Caton, David 19
– – Corral, Domingo 33
– – Evans, Mark 12, 14
– – García, Juan Carlos 32
– – Gebara, Christian 12
– – Haas, Markus 41
– – Laurita, Daniela 19
– – Pérez, Pedro Pablo 26
– – Rodríguez Zarco, José Luis 19
– – Sadler, Julie 19
– – Sinclair, Tom 19
– – Vilá, Ángel 7
– Ex-executives
– – Escrig, Miguel 19
– – Gentil, Bruno 19
– Global Resources
– – Telefónica Business Solutions 42
– – Telefónica International Wholesale Services 24
– – Telxius 22
– – UNICA 12, 15, 17, 18
– Latin America 34
– – Brazil 9, 12, 19, 22, 35, 36, 38
– – Chile 29, 38
– – Colombia 37
– – Mexico 38, 39
– – Vivo 13, 22
– Movistar+ 14, 18, 33, 34
– Products and services
– – Movistar+ 14, 18, 33, 34
– – Movistar Play 33, 34
– – Movistar Series 33, 34
– – netzclub 42
– – O2 Priority 14
– – pay-TV 8, 9, 14, 33, 34, 36
– Telefónica Educación Digital 27
Televisa 39
Telstra 43
Twitter 38

U

United Nations 29
– Food and Agriculture Organization 29

V

Verimi 42
Verizon Communications 43
Viacom 33, 34
Vodafone Group 8, 9, 22, 23, 41, 42, 43, 44
– Germany 41, 42
– Spain 43, 44
– UK 9
Volkswagen Group 18, 22
– SEAT 15

W

World Bank 37
– ICSID 37
– International Center for the Settlement of Investment Disputes (ICSID) 37
– International Centre for Settlement of Investment Disputes 37

Z

ZTE 22

About

About Telefónicawatch

Report: #124
Published: February 2018
Next report: March 2018
For more information visit: Telefónicawatch