The Portuguese government and its EU partners have made significant strides in terms of investments in digital infrastructure. As 2023 comes and goes, nearly every household has had fixed broadband and 5G cell service rolled out across the country. Thus, residents of Portugal were able to access streaming content, play online games, and enjoy other forms of entertainment on high-speed internet.

These improvements have also been introduced in the global technology space. Portugal, being right on the Atlantic Ocean, makes it a key hub as about a quarter of the world’s undersea internet cables land there, and 92% of homes have fibre-optic broadband, which is some of the best in all of Europe. These improvements have drawn considerable interest, most notably with the tech conference Web Summit relocating to Lisbon in 2016, where it’ll remain until at least 2028.

Portugal is now considered a central tech hub.


Digital News & Media Consumption Trends

Portuguese residents now obtain their news primarily from online outlets, including social media, search engines, and other aggregators. This is the way they consume it, more so than visiting a news site directly. In fact, roughly 40% of the Portuguese population gets their news from their Facebook feed. Additionally, Google or Sapo funnels users to other sites.

Compared to other countries, Portugal has a high rate of indirect news access, indicating that access to this technology surpasses that of more traditional media formats.

With these changes, local news outlets have adapted by transitioning from traditional media, such as TV and newspapers, to online platforms, including apps and YouTube, as well as premium membership-based platforms. That said, paying for news in Portugal isn’t a common practice, as only 11% of internet users in Portugal do so.

Many outlets rely on free or ad-supported models.

Now, companies are seeking to simplify sharing and building social followings to remain competitive.


The Streaming & Online Entertainment Shift

With the rise of technology and internet access in Portugal, so too has streaming. In fact, over 1.2 million users in Portugal pay for Netflix, which is roughly a 10th of the population. On-demand content now complements or completely replaces traditional television.

The public broadcaster RTP expanded RTP Play for live and catch-up content. Additionally, YouTube remains a staple for accessing vlogs, music, and more.

Regarding podcasting, approximately 38% of people in Portugal listen to podcasts. On top of that, email newsletters have become another great way for Portuguese residents to stay up-to-date with topics or their favourite creators.

This type of behaviour online was only further amplified during the COVID-19 pandemic, and subscriptions to things essentially doubled, and things like free to play casino games were also more likely to be searched for.

Today, even older generations in the country have become more accustomed to apps and smart TVs.


Cultural and Global Impact

Portugal now has content that reaches a global audience, be it Netflix content or other creative projects like video games or animations.

Today, Portuguese is the fifth-most used language on the internet and the third-most used on Facebook worldwide. Thus, content created can capture a large audience across countries like Brazil, Africa, and more.

Some creators will go as far as making bilingual or subtitled content to broaden their scope even more.

Platforms that use noticias en digital (digital news), whether in English or Portuguese, are assisting in new ways to bring media news to people more quickly than ever.

Thus, there’s a two-way street: Portugal exports its culture to the world while it imports more global content.


Challenges and What’s Next

While there’s been a lot of progress, there are some challenges that Portugal faces in sustaining and growing its digital entertainment hub:

Local vs. Global: With access to global content also comes competition. It'll be important for the country to keep its cultural voice. This could be done by requiring platforms to invest in Portuguese productions, similar to the “Netflix tax” that International Tax Review discussed.

Privacy and Regulation: There are strict EU digital policies like GDPR and the Digital Services Act in the country. There’s a balance between complying with this and not stifling innovation.

Emerging Trends: There are plenty of new technologies like AI, immersive content, and the gamification of things. These will certainly define the next generation of online entertainment. Embracing these innovations will be key for Portugal to remain competitive. Investment is likely needed.

Final Thoughts

Portugal rose from slow internet to now some of the fastest speeds around the world. This has opened doors and opportunities in the online entertainment space, unlike anything before.

In just one decade, it became possible to stream video, surf social media, and join online gambling communities.

From here, as Portugal continues to iron out its path, fast connections, the talent, and policies looking forward will continue to help it further cement itself as a content hub for Europe.

There are challenges ahead, but how do you see Portugal’s digital landscape continuing to evolve? What are some things you’re most excited about?

Share your thoughts below.