A New Era of Entertainment
Table of Contents
“According to the customer’s choice, the package will provide one of the ‘Netflix’ connection types—’Basic’, ‘Standard’, or ‘Premium’—which the customer will be able to choose based on his entertainment content consumption habits and preferences,” stated LMT representatives.Ingmārs Pūkis, LMT’s Vice President for Marketing and Business Progress, emphasized the company’s commitment to innovation. “LMT continues to improve its offer in order to provide customers with a diverse and convenient service experience,” he said. Meanwhile, Tet is set to introduce a combined TV content package, allowing customers to access Tet TV and Netflix under a single subscription. This eliminates the need for separate subscriptions, simplifying the process for users. Though, as Netflix apps are not integrated with Tet TV+ apps or Tet TV decoders, customers will need to use the Netflix app on their preferred devices, such as smart TVs, computers, tablets, or smartphones.
Netflix’s Global Reach
With over 282 million subscriptions across 190 countries, Netflix is a powerhouse in the streaming industry, offering a diverse range of high-quality entertainment and original content. This partnership marks a critically important step in expanding Netflix’s presence in Latvia, while also enhancing the value proposition of LMT and Tet’s services. Behind the Scenes: Ownership and Negotiations
the collaboration comes amid ongoing negotiations between the shareholders of Tet and LMT—the Latvian state and Swedish telecommunications company Telia. On December 18, 2024, the Latvian Cabinet of Ministers authorized the Ministry of the Interior to propose a buyback of all capital shares of Tet and LMT from Telia. Prime Minister evika Siliņa clarified that this buyback would not be financed by the state budget.Financial Performance
In 2023, LMT reported a turnover of 310.269 million euros, a 6.7% increase from the previous year, with profits rising by 0.6% to 32.069 million euros. The parent company’s turnover grew by 5.9% to 175.062 million euros, while profits surged by 20.6% to 34.864 million euros. On the other hand, Tet’s turnover declined by 9.5% to 295.753 million euros, with profits dropping by 40.1% to 15.226 million euros. The company itself saw a 19.1% decrease in turnover to 187.204 million euros and a 21.1% decline in profits to 18.987 million euros.Ownership Structure
Tet is jointly owned by the Latvian state through SIA ”Publisko aktivat gemanatājs ‘Possessor'” (51%) and Tilts Communications, a subsidiary of Telia Company (49%).Key Takeaways
| Aspect | LMT | Tet | |————————–|———————————-|———————————-| | Netflix Integration | Bundled with telecom services | Combined with Tet TV package | | Customer Choice | Basic, Standard, or Premium | Single subscription for Tet TV and Netflix | | 2023 Turnover | 310.269 million euros | 295.753 million euros | | 2023 Profit | 32.069 million euros | 15.226 million euros |What’s Next?
This partnership is poised to redefine how Latvian consumers access and enjoy entertainment. By combining the strengths of LMT, tet, and Netflix, customers can look forward to a more streamlined and enriched viewing experience. Stay updated on the latest developments in Latvia and beyond by joining us on Telegram or WhatsApp. This collaboration is not just a win for the companies involved but also a significant leap forward for Latvian consumers, who now have access to world-class entertainment at their fingertips.Latvian Telecom giants LMT and Tet Partner with Netflix to Revolutionize Streaming Services
In a groundbreaking move, Latvian telecommunications companies SIA “Latvijas mobilais telefons” (LMT) and SIA “Tet” have announced a strategic partnership with global streaming giant Netflix, effective promptly.This collaboration aims to integrate Netflix’s vast library of entertainment content with LMT and Tet’s telecommunication services, offering customers a seamless and enhanced viewing experience. To delve deeper into this exciting progress,we sat down with Dr. Anna Bērziņa, a telecommunications and media industry expert, to discuss the implications of this partnership.
A New Era of Entertainment
Senior Editor: Dr. Bērziņa, thank you for joining us. Let’s start with the big picture. How significant is this partnership between LMT, Tet, and Netflix for Latvian consumers?
Dr. Anna Bērziņa: Thank you for having me.This partnership is a game-changer for Latvian consumers. by integrating Netflix with LMT and Tet’s services, customers now have access to a vast array of high-quality entertainment without the hassle of managing multiple subscriptions. It’s a significant step toward streamlining the viewing experience and making premium content more accessible.
Senior Editor: LMT is offering Netflix as part of its bundled services. How do you think this will impact consumer behavior in Latvia?
Dr. Anna Bērziņa: Bundling services is a smart move by LMT. It not only provides added value to their existing offerings but also simplifies the decision-making process for consumers. By allowing customers to choose from Netflix’s Basic, Standard, or Premium plans, LMT is catering to diverse viewing preferences and budgets. This could lead to increased customer loyalty and satisfaction.
Simplifying the Streaming Experience
Senior Editor: Tet is introducing a combined TV content package with Netflix. However, Netflix apps aren’t integrated with Tet TV+ apps or decoders. How do you see this affecting user experience?
Dr. Anna Bērziņa: While the lack of app integration might seem like a drawback, it’s crucial to note that Netflix is widely accessible across various devices. Customers can still enjoy Netflix on their smart TVs, computers, tablets, or smartphones. The key advantage here is the convenience of a single subscription, which reduces the administrative burden of managing separate accounts. Over time, I wouldn’t be surprised if Tet and Netflix explore deeper integration to enhance the user experience further.
Netflix’s Expansion in Latvia
senior Editor: Netflix already has a massive global presence, with over 282 million subscriptions in 190 countries. How does this partnership support Netflix’s growth strategy in Latvia?
Dr. Anna Bērziņa: This partnership is a strategic move for Netflix to deepen its foothold in the Latvian market. By aligning with two of the contry’s leading telecom providers, Netflix gains access to a broader customer base. Additionally, integrating its services with LMT and tet’s offerings enhances its value proposition, making it more attractive to potential subscribers. It’s a win-win for both Netflix and Latvian consumers.
Ownership and Financial Implications
Senior Editor: This collaboration comes amid negotiations between the Latvian state and telia regarding the ownership of Tet and LMT.How might this impact the partnership’s long-term success?
Dr. Anna Bērziņa: The ongoing negotiations add a layer of complexity to the situation. However, the Latvian government’s commitment to acquiring Telia’s shares in Tet and LMT signals a desire to maintain control over these critical national assets. As long as the focus remains on delivering value to consumers, I believe the partnership with Netflix will thrive nonetheless of ownership changes.
A Shining Future for Latvian Consumers
Senior Editor: what are your thoughts on the financial performance of LMT and Tet in 2023? how might this partnership influence their future growth?
Dr. Anna Bērziņa: LMT’s strong financial performance in 2023, with a turnover of 310.269 million euros and a 6.7% year-on-year increase, positions it well for continued growth. Tet, on the other hand, saw a decline in turnover and profits, but this partnership could serve as a catalyst for revitalizing its market position. By enhancing their service offerings and aligning with a global brand like Netflix, both companies are well-positioned to attract and retain customers in a competitive market.
Senior Editor: Dr. Bērziņa, thank you for sharing your insights. This partnership certainly marks an exciting chapter in Latvia’s telecommunications and entertainment landscape.
Dr. Anna Bērziņa: Thank you.It’s an exciting time for Latvian consumers, and I look forward to seeing how this collaboration evolves.
