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%).
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.
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.
Despite expected strong growth in Latin American pay-TV subscriber numbers of more than 16%, revenues are forecast to grow just half as much, as competition between providers -- and from OTT services -- and bundling of home services combine to constrain video service prices.
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.
The over-the-top gold rush in Latin America – specifically Mexico – continues this week as Fox Networks Group is making its Fox+ SVOD platform available as a standalone play on the Dish OTT service in Mexico.
The service features more than 500 movies monthly and 350 TV series and won’t require users to have a pay-TV service to access content.
Nearly a quarter of consumers surveyed in Brazil and Mexico said they intend to join to the subscription video service in the next year, according to a new poll, while just 8% of the respondents said they haven’t heard of the subscription video company.
The Piper Jaffray survey found that 7% were subscribers at some point, but canceled.
Woeful times for Brazilian pay-TV operators as the political and economy turmoil – and expanding over-the-top options -- continue to push subscribers away to the tune of a 460,130 customer decline in 2015.
Dataxis reports that operators tallied 19.12 million subscribers at the close of 2015, compared to 19.57 a year earlier.
Satellite services accounted for 58.4% of total pay-TV households (HH), but Dataxis reports the the sector has been slipping of late.
Mexican mass media company Televisa is rolling out the region’s latest “Netflix killer,” an SVOD service known as “Blim” designed to take advantage of booming online video consumption in Latin America.
The service will feature sports, entertainment, news, soap operas and films. It launched this week with an exclusive for the new James Bond movie, Spectre; part of which was filmed in Mexico City.
Belt tightening has prompted Yahoo to close its offices in Argentina and Mexico, although it said it has plans to continue to operate in Latin American through its offices in Brazil and Coral Gables, Fla.
The news was first reported in Tech Crunch.
A Yahoo spokesperson confirmed the move and attributed the decision by the struggling Internet company on an effort to focus on “maximizing growth.”
Mexico’s pay-TV industry saw strong subscriber growth in Q2 2015, adding more than 437,000 new customers to finish the quarter at 16.98 million subscribers. The industry added 1.54 million subscribers Y/Y, growing 10% over the past 12 months.