More than a quarter of Mexican consumer watch video online, with smartphones being their primary device for consumption. OTT is playing an increasing role among consumers in Mexico where just 46% of households have a pay-TV subscription.
A new study found that nearly two thirds of users – 62% -- watch video on smartphones, with YouTube being the content most users, more than 90%, say they’ve watched.
But, PCs also play an important role in the Mexican video ecosystem, according to the study from Planning Quant for Mexico’s telecom regulator, IFT, as some 52% of online video viewers do so on laptops and desktops. Tablets are used to view online video by 17% of users and TVs just 8%.
After YouTube, Netflix clocks in as the second-most-watched video platform, with 20% of those users watching the SVOD service, followed by ClaroVideo at 6%.
As for pay-TV, 61% of non-subscribing households blame high prices for not signing up to a service. Just how significant pay-TV penetration is in Mexico is up for debate. While Planning Quant contends only 46% of HH have a pay-TV service, a report from Dataxis in April estimated the penetration at 57% in 2015, up 4% Y/Y.
A recent Business Bureau report, meanwhile, shows the average Mexican consumer watches nearly as much Netflix content – some 9.8 hours a week – as they do pay-TV content, 10.2 hours, indicating strong OTT traction. According to one report, OTT revenues for Mexico’s telecom operators alone were up some 60% in 2015 to more than $470 million.
Regardless, with 17.99 million pay-TV subscribers in Mexico, only Brazil – with 19.2 million subscribers – has a more robust market in Latin America.
In March, Dataxis reported that the Latin American pay-TV market had nearly 70 million subscribers. Brazil’s uncertain economy – and pressure from OTT services – has cause Brazil’s market to stall and, in fact, lose ground in recent quarters.
Following Mexico, Argentina has 8.47 million subscribers, Colombia 5.12 million and Venezuela 4.83 million.
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