LatAm | Page 16

LatAm_latam 09/07/2014 15:56 Page 11 overtake it in 2015. The number of primary DTT homes will rocket from 4.3m at the end of 2010 (3% penetration) to 27.1m in 2014 (18%) and onto 71.1m by 2020 (42.7%). There are signs that the economic boom may be faltering. The predicted economic slowdown in China has had an adverse knock-on effect for exports in Latin America, especially in countries such as Argentina. US sanctions have hit Venezuela. The positives are that Brazil is hosting both the World Cup (2014) and the Summer Olympics (2016), which will boost infrastructure build-out. Brazil, Mexico and Argentina dominate the region. Brazil alone will add 37m digital TV households between 2013 and 2020, with Mexico contributing an extra 15m and Argentina nearly 7m more. Digital TV households will also increase rapidly in the other 16 countries covered Insider's View Rohit Mehra, VP Americas, Conax, shares his thoughts on the LatAm market. l Business has been very strong in Latin America for Conax, over the last several years. Conax continues to take significant market share on cable and Satellite in the region and has sold over 10 million security clients. Conax serves almost all types of payTV operations - Cable, Satellite, MMDS, DVB T2, IPTV, OTT in the regions of Mexico, Caribbean’s, Central America and South America. l One of the key strengths that Conax now has over most of our LatAm competitors is the experience 16 LATAM Briefing in this report – collectively adding 34m digital homes between 2013 and 2020. Pay TV penetration will rise, but not as dramatically as digital TV penetration. Overall pay TV penetration will reach 53% by 2020, up from 41% at end-2013 and 29% at end2010. This means 28m more pay TV homes between 2013 and 2020, taking the total to 89m. Brazil will provide 11.6m of these additions and Mexico 6.4m. Puerto Rico will record 84% pay TV penetration by 2020, with five countries above 70%. However, three countries will be below 40%. Pay TV revenues in Latin America will be $4.5 billion higher in 2020 ($24.7 billion total) than in 2013. Satellite TV will continue to be the largest pay TV platform, with revenues reaching $17.6 billion in 2020, up from $14.2 billion in 2013. Cable TV revenues will be $6.1 billion in 2020, up from $4.8 billion in 2013. of deploying pre-integrated OTT, multiscreen solutions with best of breed partners for various sized operators. l We have learned that this is no 'walk in the park'. Every solution includes customisations at some level for services such as VoD, Catch-up TV, Network PVR scalability, content rights management, Meta data adaptations etcetera. These bespoke elements need to be LatAm HD subs top 12m T he number of HD channels in Latin America has seen constant growth over the past three years boosting the total number of HD subscribers across the region to 12.1m as of Q2 2013. A new report published by Dataxis reveals that the seven largest markets in the region – Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela – together counted 11.06m HD subscribers as of Q2 2013, representing 91.6% of the region’s total. The report, Evolution of HD Channel Offerings in Latin America, shows that Brazil accounted for 60.2% of total HD customers, followed by Mexico, Argentina, Chile, Colombia, Peru and Venezuela. Furthermore, research by Dataxis identifies 164 HD channels as of October 2013. Of the total, 124 channels were distributed exclusively via pay-TV networks, while the remaining 40 were domestic FTA HD channels also available on pay-TV HD packages. The report also shows there were 60 pay-TV operators with an HD offer as of October 2013, led by Brazil (with 15 HD operators); Argentina (with 12), Mexico (10), Chile (10), Venezuela (5), Colombia (4) and Peru (4). Dataxis reports that Mexico has the highest average of available HD channels, followed by Brazil, Colombia, Argentina, Peru, Chile and Venezuela. Brazilian media group, TV Globo, produces the highest number of HD channels, followed by Time Warner, News Corp and DirecTV. twinned with solid project management, partner management, solution fine tuning, and at the same time being able to meet Operator demands for the best user experience at the right time. Operators need 'agile development with quality control'. Conax now is able to offer operators sound consultancy through our experience and help them take a step by step approach to a successful business encompassing OTT and multiscreen solutions. l Conax will be announcing some new products at ABTA this year, one of them being a highly cost-effective preintegrated Live TV solution for tablets and mobile devices; 'Conax Go Live', which is based on HLS streaming. This product has been specially designed to strengthen medium and small sized operators with an 'off the shelf' Live OTT solution. This product will be particularly interesting for the many ISPs in the region who are entering into the pay-TV market and working with Conax on securing their IPTV platform. l It is a challenging time for pay-TV operators to find ways to retain and grow their subscriber base and adopt new monetisation methods. Under the Kudelski Group umbrella, Conax customers will gain additional confidence from strong security focus, integrated payTV ecosystems, solid regional support and a partner oriented solutions approach.