Latin American OTT market booms

by KingsMan Fri Jun 17, 2016 12:18 am

Latin American OTT marketThe importance of Latin America in the new world of TV has been demonstrated clearly in a report from Digital TV Research which has revealed a surging over-the-top (OTT) sector.

The Latin America OTT TV & Video Forecasts report projects that OTT TV and video revenues in 18 Latin America countries will reach $3.59 billion in 2021, more than triple the $1.15 billion recorded in 2015.

The report also estimates that by 2021 there will be 31.87 million SVOD subscribers up from only 12,000 in 2010 and 11.22 million at end-2015. It predicts that over the next five years, subscription video-on-demand (SVOD) will remain the region’s largest OTT revenue source, contributing $2,093 million by 2021 (or 58% of the total) – up from next to nothing in 2010.

Yet Digital TV Research cautioned that the fast take-up of SVOD will adversely affect download-to-own (DTO)/electronic sell-through (EST) buying patterns, albeit less so than in the rental sector. In addition, the analyst believes that the move towards SVOD services will stifle the pay-per-view or rental market as they provide similar consumer propositions.

On a brighter note, the Latin America OTT TV & Video Forecasts report that OTT TV and video rental/pay-per-view revenues look set to continue to expand rapidly, climbing from $100 million in 2015 and to $295 million in 2021. Advertising on OTT sites is expected to bring in $727 million by 2021 – up from $266 million on 2015. Digital TV Research adds that free-to-air catch-up viewing is unlikely to be as prevalent as it is in other regions such as Europe.

Commented Simon Murray, principal analyst at Digital TV Research: “2015 and 2016 are seminal years for Latin American OTT TV and video. Several high profile platform launches from some very well-positioned companies have already take place – with more still to come. Launched across the region in September 2011, Netflix is already established. However, substantial SVOD competition is now a reality from the likes of América Móvil’s Claro Video, Telefonica’s Movistar Play, HBO Go, Televisa’s Blim and Millicom’s Tigo Play.”

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