El Pais reports that such a move would help it monetise its growing content portfolio, which now only appears on Movistar+.
Quoting sources familiar with the project, it adds that the platform would use a similar formula to Netflix, HBO or Sky, employing a online video streaming service with an à la carte option and targeting customers in European countries outside Spain that do not have access to Movistar+. Although the service would not be available in Latin America, it would content produced in the region by Telefónica subsidiaries, such as the one in Peru.
The service would be made available both directly to end users and through other pay-TV operators.
El Pais notes that Spain has recently seen an significant increase in internet TV services, with Neflix, which made its debut in late 2015, having been joined by Amazon and HBO. Sky’s OTT platform will make its debut in the second half of this year and AMC is also preparing to launch a service in the country.
Telefónica is the leading pay-TV operator in Spain with around 4 million subscribers. It plans to invest some €70 million in producing its own content this year.
Netflix is becoming increasingly popular in Spain and was viewed by around 540,000 homes, or 3.4% of the total with internet access, as of the end of last year.