Broadband leads in Latin America, pay TV goes through a new stage

During NexTV Series Argentina, Carlos Blanco, Research director at Dataxis, offered an overview of the pay TV and OTT market in Latin America. According to the analysis, pay TV is going through a new phase and operators are focused on connectivity and content aggregation through multi-screens.
In this context, in Q417 broadband took the lead and outpaced pay TV in terms of subscribers. High-speed options (20 Mbps or more) have already reached a maturation level.
The pay TV market in Latin America is led by five groups (América Móvil, AT&T, Televisa, Telefónica and Telecom) that account for 66% of the market. Five countries account for 80% of subscribers (Mexico, Brazil, Argentina, Colombia and Venezuela).
Meanwhile, the OTT scenario tends to become more complex. Currently, there are at least 150 S-VoD platforms in Latin America but Netflix dominates the market. Given this, vertical operators and OTT aggregators appear while Mexico and Brazil are the most sophisticated markets. According to Blanco’s analysis, OTTs are proposed as a complement to pay TV and tend to equalize it in volume via “key-sharing”.
On the other hand, mobile operators become another relevant player in video market. Some 79 mobile operators have pay TV, but there are very few quadruple play offers. Only 45 mobile operators have S-VoD services. However, they account for 86% of the lines. In these cases, OTT S-VoD is mainly used as a tool to increase customer loyalty.