The pay TV market in Poland is an extremely interesting phenomenon. There are at least seven strong operators (nc+, Cyfrowy Polsat, Orange, UPC, Vectra, Multimedia, Netia), which generates a constant competitive battle. The apparent fragmentation of the market and economies of scale encourage acquisitions (Aster - UPC, Multimedia - UPC, Netia - Cyfrowy Polsat). Added to this is the competition of "challengers", or substitute products in the form of terrestrial TV or SVOD. The huge offer of TV stations (over 300) makes it easier for operators to negotiate with broadcasters, but also generates pressure from viewers. 

That is why ScreenLovers has, for the second time, examined the pay TV market in Poland. What changed? How did the entry of Showmax and Netflix influence the market? 
A research was conducted in January 2018 on a sample of 31 representatives of TV stations responsible for distribution, i.e. those who know the market perfectly and the challenges facing it (30 people participated in the previous survey 2017).

CPS (in the end) will not fall, and the advertisement (again) will increase

The first good news - according to the respondents in 2018 will be in terms of favorable revenues for the station. First of all, the trend of the decline in CPS (the price paid by operators for each subscriber) apparently stopped. Almost half of respondents say that CPS in 2018 will not change. And just a year ago, it claimed only 20%. The decline in CPS is expected by 40% of the respondents, but last year it was 57%.

In addition, the respondents look positively at the advertising market. According to over 70% of them, the advertising market in 2018 will increase, with the most likely increase being from 1-5%. This is a significant improvement in expectations - less than a third of optimists last year. This is undoubtedly a positive impulse for the market. Higher revenues from advertising may allow the stations to invest more ambitiously, which will ultimately translate into an attractive offer for viewers.

SVOD services are seen as the biggest threat to Polish pay-TV operators. Half of operators see such services, which include the newcomers Netflix and Showmax, as their biggest challengers.

The second biggest threat is DTT, which 27% see as a threat, while one fifth regard other pay-TV operators as competition. 57% expect to see cord cutting in the future. 18% believe it will be countered by the introduction of à la carte services. A significantly greater proportion of respondents (64%) also say that Netflix would prove to be the winner in its battle with Showmax (18%).