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.
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.”
North, Central and South Americas recorded their first pay-TV subscriber loss even, according to the quarterly informitv Multiscreen Index, a modest 290,000 customers, but a loss nonetheless.
Operator American Movil is trolling for new customers in Latin America, rolling out a free streaming service called Claro Video Básico in a number of markets.
The service, on the same website as its SVOD and TVOD offerings, has a very limited catalog of some 500 titles, including content for kids, movies, short films and documentaries and sports. It does include Claro Video’s original productions La Hermandad and El Torito.
As Netflix’s subscriber growth in the United States, where the streamer already is in 45 million households, slows, it should come as no surprise that the bulk of its future growth is expected to come from its international business.
In fact, IHS this week forecasts that not only will growth be more rapid globally moving forward, but that the number of international subscribers will surpass U.S. subs by 2018.
Mid- and high-end smartphone sales are accelerating globally, said researcher GfK, with high-volumes of device sales expected from emerging markets like Africa, parts of Asia and China.