Pay TV subscriptions drop for the first time since 2009

For the first time since 2009, Malta's pay TV sector reported a drop in the overall number of subscriptions, with more consumers showing a preference for bundled services combining a broadband connection with their television packages.

But this increase in Internet Protocol TV (IPTV) subscriptions was insufficient to compensate for the declines in Digital Terrestrial TV (DTTV) subscriptions and cable-based TV subscriptions.

Pay TV is delivered to households and businesses using cable, aerial broadcast or through Internet broadband.

But the industry also faces tough competition from black-market satellite TV outfits and the proliferation of the Dreambox satellite receiver, which is connected to a dish on the roof and the Internet. The Dreambox receiver uses card-sharing and illegal software patches to transmit satellite TV to a number of users, and is especially sought after by football fans wanting access to the Sky UK or Sky Italia packages.

"Any commercial entity, irrespective of the sector in which it operates, has to contend with competition from illegal practices present in its market," a spokesperson for the MCA told MaltaToday.

"Pay TV is no exception. The market for content provision and distribution is currently going through major structural changes and facing both legal and illegal competition over various channels, primarily today from over-the-top online sources.

Full report in MaltaToday's print edition