EXCLUSIVE INTERVIEW | PAY TELEVISION | CABLE OPERATORS
“The decline in the subscriber base has been alarming and we do not know what the bottom is. Argentina is in a worse position than other countries in these negative effects.”
“Content providers are competition on some of the platforms, reserving exclusive content. But there is no decrease in the cost of content proportional to the loss of quality and the drop in subscribers, applying policies that belong to a competitive scenario that no longer exists.”
“The presidency of Javier Milei and the change in Argentina’s policy and the expectations of the cable operators, small and medium-sized companies that are members of the RED”
The President of RED INTERCABLE of Argentina, Lucio Gamaleri, with 250 small and medium-sized companies that reach more than 500 towns in the interior of Argentina, in this interview with Amanda Ospina, Director and Editor of TVMAS, talks about the challenges and also the current situation with the local political and economic situation.
Argentina in the 1990s, the expansion of cable TV led the country to an unprecedented phenomenon in Latin America, and in 1996 it had become the fourth country in the world in terms of the number of cable TV subscribers, only surpassed by Canada, the United States and Denmark.
Changes in consumer habits and ease of access to various forms of entertainment and information on various platforms, paid or free, have modified and hit the cable operator sector (pay TV) not only in this country, but in much of the world.
Let’s talk about this tsunami of legal platforms, complemented by illegal content in different formats. What were the waves that caused cable TV in Argentina to fall in this way?
The reduction of the subscriber base was the first alarm and I could tell you that premium products were the first affected – and even replaced. The fall in the subscriber base has a constant rhythm and we do not know what the floor is. And let’s add that content providers are competition on some of the platforms and reserve exclusive content. But there is no decrease in the cost of content proportional to the loss of quality and the decline and they continue with minimum policies in a competitive scenario that no longer exists.
The vertiginous emergence of OTT platforms, how much has it modified the map of the cable TV business cable operators?
A lot. Many OTT platforms that integrate legal content buy from the same providers, with more flexible pricing policies as new customers. The impact of this scenario varies between countries, depending on the penetration of pay TV, the purchasing power of consumers and the fight against piracy. With all these changes, Argentina has a worse position than other countries with a negative effect.
Given this scenario, what are the effects for the small companies that RED INTERCABLE brings together in Argentina?
It is enormous. The effect is highly detrimental due to the lack of scale, the difficulty in negotiating with content providers individually, the absence of financing to continue with a plan and long-term investment in an industry that requires the essential resources when carrying out a restructuring.
What is the lifeline for restructuring and bringing these 250 medium and small companies of Red Intercable forward?
On the one hand, the adaptation of the prices of content providers to a new competitive reality; On the other hand, the need to accelerate technological transformation in a scenario without long-term financing for Small Business Enterprises (SMEs) and, finally, cooperation and investment for the eradication of piracy, to mention the most urgent.
The drastic change in the country’s policy today under the presidency of Javier Milei and the current economy. What are the expectations of the SMEs that the RED integrates?
The expectation is to access long-term financing with interest rates that support the investment process. The reduction of the tax burden, especially in a scenario of high piracy. The normalization of the import of equipment. A transparent administration of the Universal Fund, which gives priority to historical funds, and which strengthens the remote areas of lower density and greater economic complexity to have a return on investment in logical times.
“In short, in addition to a recompositing of the macro, a look at the SMEs that operate in low-density and sparsely populated towns that need to access the same services as the inhabitants of the largest cities.
Finally, the President of RED INTERCABlE says that the main benefit of joining the RED is taking advantage of the synergy of the group. “None of the companies could obtain the commercial agreements -mainly in content- that result from consolidating affiliates in the representation exercised by the RED on their own.
Lucio Gamaleri is a businessman and has been part of Red Intercable since its beginnings, serving as Executive Director and Vice President, positions in which he carried out projects and strategic alliances for the company, especially in the area of Content. He is a member of ATVC and Vice President of the board of directors.
Gamaleri’s objective is to facilitate the incursion into new services linked to connectivity, preserve the management autonomy of each company and generate sources of work in the communities in which it is present.
Redacción TVMAS