Brazil’s pay-TV industry sees small rebound from sub losses in Q2

By Jim O'Neill on Aug 16 2016 at 12:30 PM

After a lackluster first quarter that saw Brazil’s pay-TV subscriber growth come to a grinding halt and churn into losses, the country’s telecom regulator reports that Q2 has seen steady – albeit small – gains.

Anatel said pay-TV subscriptions – which dropped by 850,000 between April 2015 and April 2016 – had begun to rebound, growing 42,663 quarter-over-quarter, but still down about 204,180 since the end of 2015.

Anatel in May said Q1 losses were 162,000, with the biggest hits being taken by satellite pay-TV providers.

Anatel said total subscriptions stood at 18.91 million in June, with pay-TV present in just more than a quarter (26%) of Brazilian homes, and reported that satellite continues to see losses, about 67,114 in the second quarter. Fiber to the home (FTTH) services, meanwhile, gained 14,648 subscribers in the quarter.

The erosion of satellite’s market position has been ongoing, but it still accounts for more than 57% of the market.

Nevertheless, cord-cutting and cord-nevers are a growing problem in Brazil, the argest economy and pay-TV market in Latin America, as an increasing number of consumers are active downloaders of content. A recent report said 80% of Brazil’s Internet users download content.

Stay tuned.                                                             

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