A recent report from Nielsen suggests that nearly a quarter of pay-TV subscribers in Latin America could cut the cord.
The ratings agency said more than two-thirds of Latin American consumers currently use a VOD service, with about 23% using the services more than once a day.
Free and ad-supported services are predominant in the region, Nielsen said, with nearly 80% of consumers using freemium or AVOD services.
That high penetration of VOD services is reducing the amount of time viewers are watching pay-TV, and, Nielsen said, some 37% VOD subscribers think quality-price ratio is better than for pay-TV.
Subscription video-on-demand (SVOD) does have a significant foothold in several countries in the region, with 28% of Mexican consumers subscribing to at least one service, followed by Colombia (25%) and Brazil (23%).
“Latin American viewers’ habits are changing, they are now on control of what they watch, and how and when they watch it,” the Nielsen report said. “And advertisers are also using the different platforms and technologies to reach potential customers in newer and more creative ways.”
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