Competition on the Belgian TV market is on the up as streaming services become increasingly common. This has led to multiple announcements about new content ventures in recent weeks. Proximus is working with Disney+, Orange has put its focus on football and Telenet is preparing its own SVoD service. The increased focus on content is due to the fact that the Belgian television market showed subscriber losses for a third consecutive quarter in the second quarter of 2020, according to Telecompaper’s latest Belgian Total Communications Market report.
The number of TV subscriptions decreased by 7,000 in Q2, comparable to the decline in the previous two quarters. The total number of TV subscribers on the Belgian market went to 4.548 million at the end of June, a decrease from the peak of 4.70 million at the end of the third quarter of last year. TV revenues in Q2 managed to increase by more than 1.6 percent year-on-year, but fell by 1.9 percent on a quarterly basis.
The decline in Q2 may be partly due to the suspension of live sports during the coronavirus outbreak, a factor cited by Telenet, the largest television provider in Belgium. However, the longer-term pattern may be the first signs of a 'cord cutting trend' in Belgium. The many announcements of new content in recent weeks suggest that operators are preparing for more pressure on subscriber numbers. These announcements include:
- Telenet and DPG Media set up the Streamz joint venture to develop an SVoD service for the Flemish market. Telenet also reportedly plans to rename its Four, Five and Six TV channels to the "Play" name used for its premium content offerings and to launch a new streaming app for the channels.
- Proximus entered into a partnership with Disney+ ahead of the launch of the streaming service in Belgium in mid-September. Subscribers to the "All Stars" premium TV packages - introduced in March to bundle streaming and standard TV content - will receive the first year of Disney+ for free. The Disney+ app will also be integrated into the Proximus set-top box, just like Netflix.
- Orange has put its focus on the new football season. The company was the first to announce a deal to distribute the new Eleven Sports channels for Belgian football, and this is strongly reflected in Orange's latest marketing campaign.
The announcements follow recent reports that Belgians are catching up in the streaming market, with more and more consumers watching video online. The annual Digimeter survey found that a full 40 percent of Flemish households use Netflix, and Orange said Netflix usage increased by 45 percent this spring during the coronavirus lockdown measures.
"A further decrease in the number of television subscribers is probably inevitable, with the annual price increase at Telenet in October a possible trigger," said Marion ter Welle, research analyst at Telecompaper for Belgium and co-author of the Belgian Total Communications report. "To offset the drop in subscriptions, operators need to focus on increasing ARPU with premium services and taking some of the growing revenue in the streaming market."
The quarterly Belgian Total Communications Market report offers all the latest KPIs and trends for the fixed, mobile and TV markets in Belgium, including revenues, connections and multi-play subscriptions for all the major operators. The latest edition of the report is available for purchase on the Telecompaper website. To receive a customised analysis, please contact research@telecompaper.com.
