Research
offering third party OTT,
most of the players are
Millicom branches but also
TIM Brazil among others.
Both groups have 591m
connections, representing
86% of the total.
With the rise of LTE
and the extended base of
smartphones, mobile actors LatAm were not associated to
a traditional Pay-TV operation
or an OTT offer. However, this
target group handled only
46m of lines representing
6.7% of the total.
are the ideal partner for
OTT. Furthermore, mobile
companies can solve billing
and collection problems
which hinder the adoption of
OTT in LatAm.
OTT remain an effective
way to access the video
business for mobile actors.
Dataxis quarterly tracks 170
mobile actors and 79 are
linked to traditional Pay-TV
operation. This group owns
59% of the mobile market,
much less than the group of
mobile actors associated with
OTT.
For the third quarter of
2017, 78 mobile operators in Revenues from OTT TV
episodes and movies for 19
Latin American countries will
grow by $4 billion (€3.45bn)
to $6.43 billion in 2023;
up from the $2.47 billion
recorded in 2017, according
to analyst firm Digital TV
Research.
The firm’s Latin America
OTT TV & Video Forecasts
report suggests that the top
five countries will generate
$5.32 billion in revenues by
2023 – or 83% of the regional
total. SVoD will remain the
region’s largest OTT revenue
source; contributing $4.42
billion by 2023.
Analyst: LatAm OTT
revenue up $4bn
Source: Digital TV Research
22 LATAM Briefing
“We forecast 48.24 million
SVoD subscribers by 2023;
more than double from the
21.14 million recorded at
end-2017,” advised Simon
Murray, principal analyst at
Digital TV Research. By 2023,
28.4 per cent of the region’s
TV households will pay for an
SVoD package, up from 13.2
per cent by end-2017.”
“Puerto Rico (53.5 per cent)
and Mexico (51.8 per cent) will
have the highest penetration
by 2023. These two countries
are the only ones in the
region where Amazon Prime
operates.”
Benefiting from the
availability of Amazon Prime,
Mexico will become the SVoD
subscriber leader in 2019
despite having 60% of the
population of Brazil. Mexico will
account for 36% of the region’s “Given its continuing
economic and social
problems, Brazil lost one
million pay-TV subscribers
between 2015 and 2017,”
advised Simon Murray,
principal analyst at Digital
TV Research. “Its peak year
of 2014 will not be bettered
until 2023.”
“Mexico recorded
impressive growth in 2016,
but its pay-TV subscriber
count fell in 2017. It will
continue to decline until
a slow recovery starts in
2020. The 2023 total will be
just under the 2016 peak.
However, it’s not all bad news
as Claro and Telefónica will
enter Argentina and Mexico,
although this is likely to
involve OTT.”
Mexico overtook Brazil
in 2016 to become Latin
SVoD subs by 2023, with Brazil
bringing in a further 27%.
Netflix, Amazon Prime Video,
Blim, Movistar Play, Claro Video,
Crackle and HBO will together
account for 91% of the region’s
paying SVoD subscribers by
end-2023.
Netflix will remain the largest
pan-regional SVoD platform by
some distance, with an expected
23.99m paying subscribers in
2023 – or half the region’s total
(down from a two-thirds share
in 2017). America’s largest pay-TV
market, despite Brazil having
twice as many TV households
as Mexico. Brazil has been
losing subscribers since
November 2014. However,
Brazil will regain top slot in
2023 – just.
Pay-TV revenues in Latin
America [subscriptions and
PPV] will grow by only 1.0%
between 2017 and 2023 to
$19.74 billion.Revenues will
fall in 2017, 2018 and 2019
before a slow recovery begins.
Brazil ($7.01 billion in
2023) will remain the top
country by pay-TV revenues
by some distance, followed
by Mexico ($2.49 billion) and
Argentina ($2.49 billion).
Brazilian subscription
rates are much higher than
Mexican ones. Brazil’s 2023
total will be lower than 2017
and the peak year of 2014.
Two operators dominate
pay-TV in Latin America.
Claro/América Móvil had
13.91m pay-TV subscribers
(down by 500,000 on the
previous year) by end-2017
and DirecTV/Sky had 21.31m.
These two companies
accounted for nearly half of
the region’s pay-TV subs by
end-2017.
Analyst: LatAm pay-TV
decelerates
Although the economic
recession waned somewhat in
2017, the Latin American pay-
TV sector was still affected.
According to the eighth
edition of the Latin America
Pay-TV Forecasts report from
Digital TV Research, the
number of pay-TV subscribers
was flat year-on-year.
Fewer than 5m additional
pay-TV subscribers are
expected between 2017
and 2023 – bringing the
total to almost 76m. Pay-TV
penetration will not climb
beyond the current 44% of TV
households.