Globally, subscription video on-demand (SVOD) is on a rocket trajectory and Latin America is deeply in the mix. While Netflix, Amazon and Hulu have been the leaders of subscription video on-demand growth, an increasing array of subscription services – there are more than 100 in the U.S. and Canada alone – are seeing fast subscriber growth and adoption across demographic groups.
Consumers’ appetite for live sports streamed online is continuing to create opportunities for leagues and teams around the world to expand their audiences and create new means to monetize their product. An array of sporting events from the Olympics to the Premiere League have found that audiences have grown increasingly accustomed to watching live sports online.
Growing consumer spending power and affordable multiplay service bundle are fueling the adoption of prepaid satellite pay-TV services (DTH) in Latin America, especially among consumers who previously were not able to afford service offerings.
That new class of subscribers, in turn, is influencing operators to invest in expanded networks, especially fiber-to the-home (FTTH).
Brazilian telco Oi is partnering with Sony and HBO/MAX to offer premium content to its pay-TV and broadband subscribers.
Oi is offering Sony’s Crackle and HBO Go unbundled to Oi subscribers.
The SVOD services are being used as value added services to broadband subscribers specifically, regardless of whether or not they subscribe to Oi’s pay-TV service.
Pay-TV service penetration in Latin America and the Caribbean has reached 57%, according to a new report, with Argentina having more than 87% or its TV homes subscribed to a service, the most in the region.
The report, from the Organización de Telecomunicaciones de Iberoamérica (OTI), found that Puerto Rico has the next highest pay-TV penetration in the region (68%), followed by Uruguay (61%), Mexico (57%) and Costa Rica (54%).
Brazil’s pay-TV subscriber numbers grew Q/Q during the third quarter by 47,000, the first gains the sector has shown in at least seven quarter. And, although those numbers represent a decrease of 558,000 (almost 3%) from a year ago, the slight upward tick is, hopefully, a sign of things to come.
Brazil’s 18.96 million pay-TV subscribers makes it the second-largest in Latin America, behind only Mexico.
Revenues for the Mexican pay-TV industry were up nearly 23% year-over-year in Q3, increasing to $953 million. Much of that growth is attributable to continued subscriber growth in the country as operators bundle services to decrease churn and increase customer loyalty.
But pay-TV operators are also rolling out inexpensive content packages and, perhaps more importantly, making it easy to access video-on-demand services and OTT.
Opera TV is helping SVOD service Claro video expand its presence in Latin America’s growing market, helping Claro streamline its app development and deployment efforts.
The number of subscription video on-demand users in Latin America is expected to hit 31.81 million by 2021, a 161% increase from the 12.19 million subscribers in the region at the end of 2015. Nearly one-in-five TV households will subscribe to an OTT service, up from just 11% this year.
Brazil’s pay-TV woes continued in August with Y/Y subscriber numbers falling to 18.9 million from 19.6 million in 2015, the National Telecommunications Agency (Anatel) reported. The 3.5% decline puts the industry down about 673,000 customers, as a sluggish economy and increased number of OTT users continue to take a toll.
When compared to July 2016, the number of pay-TV subscribers was down by 20,737.
Telefónica has reaffirmed its commitment to drive Peru’s digital transformation, promising to spend $3 billion expanding products and services there by 2020.
Chairman José María Álvarez-Pallete said the Spanish multinational would bolster its IoT investments in the areas of health, education and security, among others, saying “We are convinced that digital life is an essential part of being human.”