MADRID - Adding another major territory to its European roll-out agenda, Netflix looks to be negotiating for a second-half bow in Spain either late summer or fall.
Per one source, Netflix has already closed deals with Hollywood major studios for Spanish rights with a start-date for product from Sept 1.
Citing "diverse sector sources," Expansion, a Spanish financial daily newspaper, claimed Saturday that Netflix is negotiating with Hollywood majors and independent distributors with an eye to launching in Spain in last quarter 2015. Expansion also cites sources close to television manufacturer LG confirming that its smart TVs will carry Netflix from September. Samsung also told the same newspaper that smart TVs will be Netflix-compatible this year.
Other sources are more cautious, suggesting that yes there are talks, but no Netflix studio deal is as yet in place for Spain.
Certainly, a Spain launch would be in line with Netflix's ambitious announcement this January that it aims to roll out its footprint to 200 countries in the space of two years, while maintaining profitability.
Netflix has come very close to a Spain launch before, visiting Spain in June 2011, and offering Spanish distributors contracts for content at sky-high prices. But Netflix pulled back, reportedly because of Spain's high piracy levels.
Since last year, when Spain was left out Netflix's six-new European country launch, at least two factors have changed, however.
Spain emerged late summer 2013 from recession and saw 1.4% GDP growth 2014 as consumer spending rebounded, exceeding analysts' expectations. Last March, telco giant Telefonica bought Spanish paybox Canal Plus in a $1.4 billion deal which still has to be approved by Spanish anti-trust authorities.
Adding 1.2 million net new pay TV subs in 2014, Telefonica now has 1.9 million customers and a 35% pay TV market share in Spain. Last December, Telefonica launched Movistar Series, a HD SVOD series service that has moved energetically to acquire series and market them to the public, announcing an eight-title deal with CBS Studios Intl. last month, which takes in "The Affair," "Madam Secretary" and "Penny Dreadful," and moving into original Spanish productions. If Netflix waits any longer, Movistar and Canal Plus' Yombi could corner Spain's SVOD market.
© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC
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