According to information released by telecommunications giant Telefónica on July 1, Movistar is to discontinue its satellite TV service (DTH) in Venezuela by the end of 2022. As a result, the withdrawal of the company from the Venezuelan DTH market will coincide with its exit from the Brazilian market, a decision announced one month ago.

Telefónica notes that its agreement with Media Networks for the use of the satellite enabling the provision of the DTH service, in force until the end of 2022, has been extended neither in Venezuela nor in Brazil. Though owned by Telefónica, Media Networks is run by Hispasat. Movistar Venezuela issued a press release explaining that “the satellite on which it is supporting its pay broadcast service, satellite TV, will no longer be available, which implies the cessation of this line of business.” So far the company has not revealed whether the contractual situation with Media Networks and Hispasat is the same in the other South American countries where it operates.

In its statement, Telefónica explains that this action is added to the technological renewal route that the brand has set out internationally. The company seeks “long-term sustainability through innovation and digitalization for the benefit of all social and productive sectors that leverage our platforms.”

Movistar’s spokespeople highlight that “there is a worldwide trend towards streaming TV, through fixed connectivity networks and infrastructure.” “For more than two years Movistar has maintained the management of the TV service only for existing clients; in that period, 44% have migrated to other audiovisual content options.”

Finally, Movistar Venezuela asserted that “the company will keep its commitment to connect Venezuelans by focusing on mobile phone, Internet and business digital services.”