Greece

August 2017

Key takeaways

After a relatively slow start in January 2016, the rapid increase of Greek- subtitled content in the last year has given Netflix significant momentum for expansion in the Greek market.
The two main competitors, subscription/pay TV services Cosmote TV and Nova, still seem to have the edge with popular shows due to deals with major US studios.
With OTT provision being extremely limited in Greece prior to the arrival of Netflix, the extent of the disruption it will bring to subscription TV (and piracy) remains to be seen.
There are no signs of Netflix planning to invest on local film or TV production.

Market Characteristics

Greece is a small country of 11 million and a member of the European Union. Netflix entered the Greek market on 6th January 2016, in the company’s last push for worldwide expansion. With the effective absence of any prior OTT services in Greece, its main competitor is subscription (or pay) TV offered by DSL providers.

By 2017, traditional free-TV watching remains relatively high in Greece, despite the intensification of its endemic problems as a result of the post-2009 financial crisis, and the regulatory weaknesses that are still unresolved.[1] The state broadcaster ERT (Elliniki Radiofonia kai Tileorasi/Greek Radio and Television) was abruptly shut in June 2013 as part of the then government’s attempts to reduce public expenditure, rationalize the organisation’s functioning and satisfy the country’s creditors. Despite the fact that different PBS schemes were introduced to replace it (first DT/Dimosia Tileorasi; then NERIT/Nea Elliniki Radiofonia, Internet kai Tileorasi), the public uproar caused by the closure of the original organization led to the reinstatement of ERT two years later, after the election of a new government in January 2015.[2]

Private TV channels have existed in Greece since 1989, and they have overall attracted a larger percentage of viewers than state TV. However, since the financial crisis, the drastic reduction of their advertising revenue has led to some closures and a big drop of investment for original content and acquisitions.[3] Furthermore, the fact that they have operated in a semi-legal status since their inception has led to the (as-yet-inconclusive) attempt of the current government to change their legal status.[4] Public discourse about television has therefore been dominated by terrestrial television, its unresolved legal status and its political inflections. It should be noted that debates about the legality of the private channels were intensified by the pressure to comply with certain EU regulations. Among these was the digital conversion of terrestrial TV, which was completed in Greece in 2013, almost a year after the EU deadline.

Subscription TV appeared in Greece in 1994. The first pay TV company operating in Greece was FilmΝet, owned by a South African company (Multichoice) that had branches in other European countries too. In April 2008 Mutichoice sold their Greek pay TV business to Forthnet, and in June 2008 the brand disappeared from Greece and the Greek channels were renamed Nova Cinema. Forthnet is an internet provider and telecommunications company established in 1995 that launched subscription TV services in Greece in 1999 (initially focused on sports). Until 2016 Nova Cinema was the market leader in Greek pay TV.

Cosmote TV was founded 2009 as a subsidiary of OTE, Greece’s largest telecommunications provider (currently 40% owned by Deutsche Telecom). With 510,000 subscriptions in July 2017 it is currently the market leader.

Reports published in August 2017 (here and here) however, suggest that the company’s growth has recently stunted. The introduction of a 10% tax on pay-TV services (in addition to the 24% VAT) has been cited here and here as a key reason for such deceleration.

Other pay TV providers include Cyta Hellas and Vodafone TV. Average subscription prices range from 24.90 to 29.90 Euros per month.

By 2015 pay TV had penetrated 24% of the Greek market (950,000 subscribers), and has remained roughly stable since. This is similar to rates in other Southern European countries, but lower than elsewhere in Europe (see here and here).

In terms of content, Cosmote has exclusive deals with three of the major US studios (Disney, Paramount, Universal) which gives it a competitive edge, while Nova has, among others, exclusive rights for Game of Thrones. Some content – such as the FoxLife Greece channel – is shared among subscription channels. While both Nova and Cosmote have a history of investment in Greek film production, Cosmote is currently the most active in this regard, having recently launched the documentary channel ‘Cosmote History’, which is dedicated to Greek history and culture.

Until the arrival of Netflix, OTT services and VoD were very undeveloped in Greece. One such site is Greek producer/distributor/exhibitor Odeon’s VoD platform Pame Odeon, which offers access to all the catalogue of the Greek distributor on a TVOD model. However, evidence suggests that it has had little impact. Illegal downloading and/or streaming has been very widespread in Greece.[5]

Regulation

The arrival of Netflix has not provoked any specific policy debates in Greece.

Until Law 4481 about the protection of IP rights was voted by the Greek Parliament in July 2017, net neutrality had been uncontested – even if no official position had been published in this regard. Article 52 introduces the right for ISPs to block websites that stream unlicensed material should a rights holder files a complaint and the site operators do not comply. This has the potential of reducing piracy, and opening up the path for more OTT content providers in Greece.[6]

The only restrictions the company faces in its operation regard the pre-sold territorial rights of particular content – especially to Cosmote TV and Nova. An interesting anomaly that emerged at the service’s launch in Greece was the fact that some Netflix originals (notably House of Cards) were broadcast via satellite for Cosmote TV (and later on free TV channel SKAI) while also being available through Netflix (thus reducing Netflix’s appeal for the existing subscribers of Cosmote TV).

Viewing Habits

No data is available regarding viewing patterns. However, the fact that there is limited take up of smart TVs (4K resolution) in Greece (largely because prior to Netflix there was no available material to stream in super-HD and take up of VDSL[7] connections is relatively limited), suggests that PCs, tablets or mobile phones may be the screens that dominate watching. Cheap devices such as Google Chromecast 2, as well as games consoles, have been promoted as ways to access Netflix on the television screen.

Internet Pricing and Availability

The current broadband standards in Greece are ADSL2+ and VDSL2. The availability of super HD content via Netflix will likely increase the adoption of VDSL. The main DSL providers in Greece are Cosmote, Cyta Hellas, Forthnet-Nova, Vodafone Greece, Wind, and Data Telecoms. The first four also offer subscription TV bundles. Indicative prices range: in Cosmote – from around 34 Euros per month (for a VDSL connection up to 30 Mbps) to 67 Euros (for VDSL up to 50 Mbps and full pack satellite Cosmote TV); in Wind – 17 Euros per month (for an ADSL connection up to 24 Mbps) and 23 Euros (for VDSL).

Netflix subscriptions are offered in three pricing packages: 7.99 Euros (SD, one screen), 9.99 Euros (HD/1080p, two screens), 11.99 Euros (HHD/4K, four screens), with the most popular being the second. (The third package requires VDSL connection).

Content

The arrival of Netflix was highly anticipated. However, limitations in the content initially offered were immediately noticed and negatively commented on. The available library was less than a third than the US: 28.35% of TV series (328 series vs 1157); and 31.35% of films (1440 films vs 4593).

Data for preferred content is not available. However, the delayed availability of the fourth season of House of Cards was highly criticized (especially in the light of the similar pricing for the service in Greece and the US), suggesting the popularity of the show in Greece.

Consumer and Press Reaction

The main perceived problems were the narrowness of its catalogue and the lack of availability of Greek subtitled content. This limited the initial take-up of Netflix to users who were fluent in English and those who could read subtitles either in English or in other languages (French, German, Spanish).

However, the company responded quickly, and a year and a half after its entry in the Greek marketplace there is a marked increase of both available content (including material offered in high definition 4K), and subtitled films and series. This has dramatically improved perceptions of the company and there are now expectations that Netflix will rapidly reach the mainstream.

Subscriber Estimates

The company does not release subscriber numbers, but ISPs identify a steadily increasing traffic related to the Netflix servers in the ‘rush hours’ of 18.00-02.00.

I would like to thank Yannis Skopeteas and Kostas Farkonas for kindly responding to my requests for information in order to compile this report.

Notes

[1] Reliable data about viewings are hard to find: http://thefaq.gr/tora-synelifthisan-i-ypefthyni-tis-eterias-agb-gia-chiragogisi-tis-agoras/ Such lack of transparency is partly evidence of the murky landscape in which policy debates operate.

[2] On the closure and re-opening of ERT: http://www.bbc.com/news/world-europe-22879269 ; http://www.bbc.com/news/world-europe-33090373 .

[3] Among the channels functioning in 2017 are Alpha, ANT1, SKAI, STAR, MEGA. Alter closed in 2013.

[4] According to many commentators, the semi-legal status of the channels has given indirect political power to their owners who have been informally colluding with governments. The attempt by the current government to reduce the number of licenses to 4 through auctioning them has been deemed illegal by the country’s highest court, reverting the situation to its unresolved status quo. (https://www.thepressproject.gr/article/89034/Posa-kanalia-anoigoun—Posa-kanalia-kleinoun)

[5] See Papadimitriou, Lydia (2018) “Film Distribution in Greece: Formal and Informal Networks of Circulation since the Financial Crisis” in Screen (59:4, Winter 2018).

[6] The law will be put into operation a few months after its vote by parliament, so its effects cannot be assessed until later.

[7] VDSL refers to very-high-bit-rate DSL. This is faster than ADSL.