Keywords

1 Introduction

While many users continue to watch traditional TV, new technologies and modes of transmission have emerged, creating new forms of media that challenge the dominance of television. From the era of traditional television to the present form of streaming services, such as the Over-The-Top (OTT) model exemplified by platforms like NETFLIX, the media landscape has experienced significant changes. Media organizations continuously evolve and actively compete for audience attention [1]. For instance, satellite television, introduced in the 1980s and gaining popularity in the 1990s, began to gain traction as an alternative to traditional television broadcasting [2].

New media formats, like cable television and IPTV, have emerged alongside technological advancements. The latest development is the OTT streaming model, revolutionizing content consumption [3]. In Greece, satellite TV, along with IPTV, was the primary mode of broadcasting before the rise of OTT streaming. This study explores the transition from satellite TV to current OTT streaming models in Greece. In doing so, this study follows a chronological approach, covering the period from 2001 to the present day, and analyzes various sources, ranging from relevant literature to data from reputable organizations.

2 The Evolution of Subscription Services

Since the 1990s, technological advancements in the media sector have precipitated a radical transformation in the consumption of television content, leading to the gradual shift from traditional television to the era dominated by pay-TV. This transition has been made possible by the convergence of various groundbreaking technologies [4]. The proliferation of digital broadcasting technologies, such as Direct-to-Home (DTH) satellite systems and the expansion of cable infrastructure, has significantly improved the availability and quality of television content [2, 4]. Alongside these developments, the emergence of interactive and on-demand services, such as video-on-demand (VOD), has further revolutionized the viewing experience. Viewers now have access to a diverse range of channels and specialized content, empowering them with greater control over their viewing preferences [5, 6].

Cable television has been a transformative force in the television broadcasting landscape, revolutionizing the way viewers access and consume content. Unlike traditional linear TV, cable TV relies on a network of cables to directly distribute television signals to households. This technology offers numerous advantages, including superior signal quality, expanded channel capacity, and the integration of interactive services [7]. Furthermore, cable systems possess a higher channel capacity that leads to diversity of content, offering viewers a multitude of options to cater to their individual preferences [6, 7].

On the other hand, Direct-to-Home (DTH) technology, also known as Direct Broadcast Satellite (DBS) technology, has revolutionized television broadcasting by allowing households to receive satellite TV signals and services directly through personal antennas. It serves as a competitive alternative to cable TV, offering high-quality signals and a wide selection of channels. The key advantage of DTH over cable is its extensive coverage without the need for additional infrastructure development. Satellite TV is well-suited for distributing numerous High-Definition Television (HDTV) and Ultra High-Definition Television (UHDTV) channels [2, 7].

Satellite TV and Cable TV were for many years popular in terms of pay TV culture, as subscription services. However, advancements in telecommunications have led to the convergence of media and technology, enabling consumers to access television and video content through various broadband networks [8]. Internet Protocol Television (IPTV) has emerged as a popular subscription-based service, delivering multimedia content over IP-based networks. Broadband service providers utilizing DSL and fiber networks have been at the forefront of deploying IPTV to their customers [9].

The television industry, has undergone a significant transformation, transitioning from traditional cable and satellite models to the emergence of Internet Protocol Television (IPTV) and the subsequent rise of Over-the-Top (OTT) platforms. OTT channels have gained widespread acceptance, offering consumers convenient access to television and video content through fixed and mobile broadband networks [10]. Platforms like NETFLIX have disrupted the industry by directly delivering professionally produced TV series and films to viewers’ devices over the internet [11]. In conclusion, the continuous advancements in media technologies have revolutionized the way we consume television content, from the introduction of cable and satellite TV to the emergence of IPTV and the disruptive force of OTT platforms. This transformative journey has redefined the television industry, providing viewers with a diverse and personalized viewing experience.

3 Methodology

The methodology employed in this study is a historical analysis that aims to examine the evolution of pay TV subscription services in Greece. The research covers the period from 2001 to the present day, focusing on the progression from satellite TV to online video streaming and the emergence of IPTV services provided by major Greek telecommunications companies. Additionally, the study investigates the impact of international Over-The-Top (OTT) platforms, such as NETFLIX and AMAZON PRIME VIDEO on the Greek market. This long-term perspective enables the study to capture the gradual progress and major disruptions that have occurred in the pay TV sector over the years.

To ensure the validity and reliability of the research findings, the study relies on a combination of relevant literature and data from specific sources, including Statista, the European Audiovisual Observatory, and the Nielsen Measurement Company. Overall, 12 reputable sources were analyzed. These sources provide valuable statistical data, market reports, and industry insights that are essential for conducting a comprehensive analysis of the evolution of pay TV subscription services in Greece. The research design follows a chronological approach, recording the evolution of pay TV services in Greece over three distinct periods.

Additionally, focusing on the progression from satellite TV to OTT and IPTV services allows for a deep dive into the various technological shifts that have driven the changes in the content consumption. By following a chronological approach, the study can present a cohesive narrative of the pay TV industry's evolution in Greece, presenting a clear timeline of events and changes.

4 The Early Years of Pay TV Services (2001–2008)

Pay-TV in Greece traces its origins back to 1994, with the launch of the subscription service “Filmnet” by Multichoice. “Filmnet”, a terrestrial TV platform, provided two channels, one of films and the other on sports (Supersport). In 1999, “Filmnet” became known as NOVA satellite platform. In 2001, NOVA emerged as the dominant player in satellite television in Greece, enjoying a virtual monopoly in the market. Additionally, in 2001, ALPHA DIGITAL was introduced as a short-lived subscription satellite platform focusing on the transmission of live soccer games, giving emphasis to the Greek Super League. It operated by the Alpha TV channel [12, 13]. However, it ceased operations after a year. From 2002 until 2008, NOVA maintained its position as the only pay-TV service in Greece, operating without competition. It is important to note that cable TV is virtually non-existent in Greece, further solidifying NOVA's dominance during this period [12].

In 2001, the TV share of Satellite TV in Greece, according to the Nielsen Measurement Company, was 0.63%. However, there was a decline in 2003 and later. In 2007 it returned to 0.6% [14]. The Greek audience was not very familiar with these services, and TV shares were relatively small during this period.

Since 2007, IPTV development has gradually unfolded in Greece, with new players entering the satellite platform market, intensifying competition with the dominant player, NOVA. In 2008, NOVA underwent a significant transition when it was acquired by FORTHNET, an internet and telephony provider. During the same year, OTE, another telecom provider, launched a trial subscription service called Conn-x TV, leveraging IPTV technology through broadband ADSL connections. It's worth noting that Conn-x TV also offered a satellite package [13]. By 2008, there were three competing IPTV platforms: Hellas Online with HOL TV, Hellenic Telecommunications (OTE) with “Conn-x TV,” and ON TELECOMS with “ON TV.” Additionally, Vivodi Telecommunications offered its Cable TV package [15].

Table 1 shows the changing landscape of television consumption in Greece from 2004 to 2008. The number of satellite households increased from 398,000 in 2004 to 475,000 in 2008. In contrast, IPTV households started at 0 in 2004 and grew to 84,000 in 2008. Consumer spending on satellite services consistently increased, while IPTV experienced significant growth, reflecting a shift in viewer preferences towards IPTV as a viable alternative to traditional satellite TV.

Table 1 Satellite & IPTV expansion (in thousands): 2004–2008, compilation by the authors [15]
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5 The Market Opening (2009–2018)

By 2009, NOVA had around 300,000 subscribers in Greece and Cyprus. From 2009–2010, three competing IPTV platforms emerged, including HOL TV, Conn-x TV (later rebranded as COSMOTE TV), ON TV, and Vivodi Telecommunications’ Cable TV [15]. COSMOTE TV challenged NOVA’s satellite TV monopoly since 2010, experiencing significant growth in subscribers, outperforming NOVA [21, 22].

In 2016, Vodafone acquired HOL TV, launching “VODAFONE TV,” and Cyta entered the Greek market in 2013 with its IPTV service [12, 13]. In the same year, NETFLIX and AMAZON PRIME introduced the OTT model, and in 2018, Wind Hellas entered the market with “WIND VISION,” offering NOVA’s channels and NETFLIX, intensifying competition [13].

Based on Fig. 1 between 2013 and 2018, Consumer Revenues from VoD services experienced significant growth, increasing from 1.60 to 27.90 million. Meanwhile, IPTV Penetration Rates showed a more gradual increase, fluctuating between 2.98% and 3.07% during the same period. According to Table 2, between 2009 and 2012, the number of satellite TV households increased from 488,000 to 758,000, while IPTV households fluctuated from 160,000 to 69,000. Despite slight variations, IPTV subscriptions remained relatively low. Consumer spending on Satellite services grew over the years, reaching 179.2 million in 2012, while IPTV spending declined.

Fig. 1
A vertical dual bars graph plots consumer revenues from V o D services and I P T V penetration rate in percentage from 2013 to 2018 as follows. 2013 at 1.60 and 2.98%, 2014 at 3.50 and 2.98%, 2015 at 4.70 and 3.02%, 2016 at 7.80 and 3.06%, 2017 at 15.10 and 3.07%, and 2018 at 27.90 and 3.07%.

VoD revenues & IPTV penetration rate: 2013–2018, compilation by the authors [20, 21]

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Table 2 General data for subscription services: 2009–2012, compilation by the authors [16,17,18,19]
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6 The Streaming/OTT Era (2019–2023)

From 2019 to the present, Greece’s pay-TV market has seen significant growth, with the rise of international players and adoption of the OTT model, facilitated by 5G and fiber infrastructure development. Global streaming giant, NETFLIX, entered the market in 2016, gaining popularity by 2019, alongside the gradual growth of AMAZON PRIME [22]. NOVA launched “Nova Go” and “Novaflix,” later acquired by United Group and rebranded as EON TV in 2021, transitioning to OTT streaming [13]. COSMOTE TV also embraced the OTT model [13]. YOUTUBE PREMIUM, APPLE TV, and DISNEY + entered in 2019 and VODAFONE TV integrated Disney + and HBO MAX in 2022 [23].

Local platforms like ERTFLIX, CINOBO, and ANT1 + are also prominent. Currently, Greece has 12 active platforms, with NETFLIX being the most widespread [13]. The dynamic landscape reflects the growing prominence of OTT-based streaming platforms. According to Statista [24], the video-on-demand platforms showed impressive revenue and user base growth over five years, starting from 39.27 million euros in 2019 to 64.36 million in 2023, with user numbers increasing from 1.46 million to 1.69 million. This consistent upward trend highlights the platform’s successful performance in attracting and retaining users, leading to remarkable revenue growth.

7 Discussion and Concluding Remarks

The evolution of pay-TV services in Greece has undergone a dynamic and continuous process, transitioning from a monopolized market led by NOVA with satellite connections in the early 2000s, to a diverse landscape with 12 competing platforms [23] vying for user attention today. The absence of cable TV in the country played a significant role in sustaining NOVA’s dominance in the pay-TV sector for nearly a decade. However, in 2007, technological advancements catalyzed the entry of new platforms, primarily driven by telecom companies, offering video-on-demand services through the IPTV model. This shift introduced a different technological model of TV viewing, enabling local players like COSMOTE TV and NOVA to emerge as key competitors, providing both satellite and IPTV packages.

From 2009 to 2019, Greece faced a challenging fiscal and economic crisis with strict austerity measures impacting the pay-TV industry. While some platforms were forced to shut down, others adapted to the changing landscape [22]. In 2019, platforms like NOVA and COSMOTE TV began adopting the OTT model, while others like VODAFONE TV and WIND VISION made their debut in this sector. Concurrently, international giants like NETFLIX started gaining subscribers. From 2019 to the present, the market witnessed the entry of international platforms like DISNEY + and APPLE TV, alongside domestic players forming alliances and making acquisitions to stay competitive. For instance, VODAFONE TV provides HBO MAX and DISNEY. Overall, in 2023, a notable increase in consumer revenues and user subscriptions was observed.

Despite being a small market, Greece is adapting to global developments, and the competition has expanded, with various platforms gaining a share of the market. Additionally, the development of fiber networks like 5G contributed to their rising popularity. Looking ahead, Greece's subscription services industry is expected to continue evolving and innovating. Advancements in content quality and user experience, and pricing strategies will likely stem from the dynamic and competitive environment created by both domestic and foreign competitors.

The evolution of subscription services in Greece offers insightful insights for the media sector’s future. The value of flexibility and accepting technology changes is one of the important lessons. It is clear from the evolution of traditional satellite TV, IPTV, and ultimately the OTT streaming model that media organizations must continue to adapt in order to keep up with shifting customer demands and technical advancements. By embracing new transmission and distribution technologies, platforms like NOVA and COSMOTE TV were able to remain competitive. Furthermore, the success of foreign competitors like NETFLIX highlights the need to appeal to a worldwide trend and consider the impact of global players on the local industry.

The growth of subscription services presents challenges. To retain subscribers amid increasing competition, platforms must stand out with unique value. Media companies must innovate to meet changing preferences and technology. Success hinges on adapting to shifts and predicting customer needs. Advertising becomes crucial for long-term revenue, demanding tailored tactics to enhance user experiences and competitiveness. Data-driven ads resonating with specific audiences are vital.

In conclusion, this study has provided a historical account of the development of subscription services in Greece. The transformation from a single-platform monopoly to a diversified market with various OTT platforms showcases the adaptability and dynamism of the industry. While this study relies on reliable sources, it is essential to acknowledge the limitations of historical data and industry reports, calling for future research that employs statistical techniques and includes insights from market participants and industry leaders.