Satellite pay television, another victim of streaming

However, the growth of this industry would be eclipsed by the 30.2 million subscribers that video streaming already has, according to information from ENDUTIH. Within the restricted television industry, the companies that are dedicated to marketing this service, but via satellite, are the ones that face the most challenges in gaining customers.

Dish, for example, is one of the satellite pay TV companies that has seen its market share decline in the last four years. At the end of 2020, the cable company had 8.5% of the clients in this segment, but at the end of 2023, it only had 4.3%, according to figures from the Federal Telecommunications Institute (IFT).

Until the arrival of the streaming boom, the packaging of triple play services (internet, telephony and pay TV) was the main attraction for this type of companies. But this formula has worn out and companies now package their channels with those of streaming platforms; However, the bet has not brought the expected results either.

Jesús Romo, an analyst at the consulting firm Global Data, previously commented to this medium that satellite television companies face greater challenges because subscriptions are experiencing a period of accelerated changes due to new forms of content distribution. In addition, access to programming via streaming has become easier, with less need for complicated installation processes.

To access Dish or Sky service, companies must install an antenna that allows signal reception in homes. However, in some cases, installation can be complicated, which could be a barrier for the satellite television company to increase its subscriber base.

“There are users who, for example, cannot install an antenna because they live in apartments where it is almost impossible to install it, or in some residences, we observe that, sometimes, this type of installation may not be compatible with housing structures” Romo said.

Costs and contents, the other factors

Behind the slowdown in the pay TV market is also the economic factor. Companies in the industry are the ones that increase their prices the most annually, because the programming or channels for their programmatic grid are purchased in dollars, and the extra costs are passed on to subscribers.

Another factor is the loss of content. Satellite pay television has gradually seen the elimination of programs on its channels because entertainment companies have opted to move their productions to streaming platforms. Dish has been facing the loss of sports content for two years due to the departure of Fox Sports channels.

Both variables have decreased the attractiveness of pay TV and increased the preference for streaming where, with a single account, users can access a vast library of entertainment for a lower price than that of the cable companies.

“Price has become one of the reasons or the main reason for not contracting pay television compared to other types of entertainment services,” said Oscar Díaz, head of the Media and Audiovisual Content Unit of the IFT in the presentation of the National Audiovisual Content Consumption Survey 2024 (ENCCA).

For experts, the options that satellite cable companies have are to find a way for users to easily access their services and present pay television channels in a more modern way.