HBO España was launched as a stand-alone VoD platform in May 2016 and reached 414,000 Spanish households at the end of June 2017.
Prepaid plans are a good way for operators to gain customers who, mainly for budgetary reasons, want the flexibility and short-term, non-binding nature of such offers. The down side, from an operator’s point of view, is the relative impermanence of prepaid customers. Converting such customers to long-term subscribers has always been a priority with operators, and the current HBO promotion from Vodafone Spain is intended as a means of getting prepaid customers to stay on longer. And if they do, there is more chance that eventually they could be converted to postpaid.
One year’s worth of cost-free access to HBO España is quite a generous offer, in our view. To keep it, though, new subscribers need to remain in their prepaid plans. So there is a significant incentive here for them to keep subscribing for at least a year. That is ample time for them to form a relationship with the operator that they may well wish to continue and even deepen in the future.
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