Acording to Bloomberg T erra plans to expand into Europe offering online films and music this year, starting with Spain and Portugal.
The media company, a unit of Telefonica SA (TEF), will introduce music service Sonora in Spain by the end of next month, followed by film service SundayTV in the fourth quarter, said a spoke person to Bloomberg. The spoke person also announced that Terra is in talks with music companies and film studios including Vivendi’s Universal Music Group, News Corp. (NWSA)’s Fox, Walt Disney Co. (DIS) and Time Warner Inc. (TWX)’s Warner Bros. to boost the content offered through Sonora and SundayTV, the person said. With about 1,100 employees, Terra is also looking for an Iberian head from such companies as Facebook Inc. (FB), Google Inc. (GOOG) and Microsoft Corp. (MSFT).
Terra has annual revenue of about $500 million, mainly from advertising and the more than 1 million paying subscribers of Sonora, SundayTV and other services including e-mail and computer security in Latin America. The company in February broadcast live Brazil’s Carnival of Bahia in Spain.
Terra’s expansion in Europe will put the company in competition with Spotify Ltd., the London-based online music provider, and Netflix Inc., (NFLX) the world’s largest video- subscription service. In Spain, it will face competition from Google, Microsoft and Promotora de Informaciones SA, Spain’s largest media company.