telephone wants to fight for a football client in the first season in almost a decade in which he won’t have exclusivity. streaming giant Blindness will offer its five games per day directly through its platform. Against this background, a group chaired by Emilio Gaio in Spain has launched a new tariff package that will replace Fusion. separating this premium content from more expensive connectivity packages and separating it based on competition (La Liga and Champions). Of course, she took a risk by setting the price: 43 euros net (with a mandatory 10 “extra” euros), higher than what some analysts had set at the time.
A telecommunications company bets on football customers. Currently, an estimated 1.5 to 1.7 million customers have contracted with Movistar Fusion. with this content in packages worth more than 120 euros, which means a very relevant annual payment. The “retirement” of Fusion also had a goal: to change its position in this market, where it will compete not only with Orange, but also with Dazn. The latter managed to win 45% of La Liga matches over the next five seasons. And that has led, according to industry sources, corresponding risk for telecommunications. Potential customer shift towards cheaper products that they can pair them with those 5 Dazn games or even without football.
This meant that, firstly, an unprecedented decision was made: to separate football into a separate package. This ended a model in which many customers who bought the most complete packages “subsidized” those who wanted football in a certain way. Operator used lower the front door, which allows contracting basic connectivity packages with 300 MB fiber optic cable and mobile line. With MiMovistar, Fusion’s replacement, the lowest bet with “king of sports” is 108 euros compared to the current 120 euros.. But that would be with worse connectivity: slower internet speeds and no unlimited data.
Another solution is related to the offer configuration. If Dazn does not buy Telefónica’s rights to the regulated wholesale market, it will only have 45% of La Liga matches. In order to try to protect themselves, not only a special football package was created, but also divided into two: La Liga for 30 euros or the Champions League for 20 euros.. As explained by other sources in the pay TV sector, the broadcaster could only offer five games purchased from Dazn on its own. But he decided to go further in this fragmentation.
This division meant that The “magic potion” had to be taught: the price placed on football. Until now, this has been a secret, as it has been included in larger packages and not taken apart. Now he noticed €43 net plus Movistar Essential package (cinema, series and 80 thematic channels) costing 10 euros, which is mandatory. With the same services, the most complete football and connection packages do not have a very current discount (Fusion Total has a price without promotion of 162 euros, almost the same as the combination with the same conditions and connection in the new MiMovistar).
For the first time, the operator splits the price for football (53 euros per month), which has a risk: there is a certain perception of a price increase.
These 43 euros (more than 10 “extra”) well above what some analysts attribute to football. in Fusion accounts lately. British investment bank New Street Exploration A few years ago, he reflected this in a report: they charged a price of 25 euros on the invoice. Those 53 euros that he will now demand from anyone who wants all football is including VAT and from thematic channels. Excluding taxes and additional costs, the “net” price can be about 40 euros. Compensate 1.125 million euros paid by the operator for all rights (800 million from La Liga and 325 million from Champions) will need to significantly increase the current customer base.
This transparency in football prices comes with a certain risk: that the customer has a certain perception of high cost. Including content in a €120 package is not the same as knowing that its annual value is over €600. In this context Dazn has the ability to squeeze in price. It has yet to unveil seasonal rates (today it charges €13 per month), but it is logical that it is trying to be more aggressive given that the agreement with Telefónica and possibly Orange significantly reduces financial risk after allocating $480 million over the next five years to be able to broadcast their matches. However, the economic situation of the British is not particularly rosy.. On the same Wednesday, the profile publication The Information indicated that it lost $1,000 million in 2021 (on a revenue of $1,400 million), and is expected to close this year with red numbers of $900 million.
Beyond football, Telefónica Spain wanted also introduce this flexibility in other tariffs. This has already been done by its most direct competitors, Orange and Vodafone. This will reduce the monthly bill for customers who want to cut back on the services included in their packages by offering “special” service packages such as alarms, digital health or, in the near future, energy distribution. But when ordering such services, there are no big discounts. Operator president Emilio Gaio points out to La Información that this packet fragmentation has a primary purpose: containment of the outflow of customers with “average value” (neither premium nor “cheap”). “This is to keep customers who don’t want to go for the ‘low cost’, but today’s toughness is pushing end prices up,” he says.
This is the commission box. But in a sector like telecommunications, especially advertising, the key will be the aggressiveness of the discounts.. This giveaway will give a little more opportunity to make specific discounts on small content packages or related services. According to market sources, conditions will tighten in the coming months as the merger between Orange and Másmóvil does not go into effect for at least a year. The first match point will be played this summer against Dazn. And Guyo’s team already has artillery.
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