OTT TV and video revenues in Latin America [for 18 countries] will reach $3.59 billion in 2021; up from $32 million recorded in 2010 and more than triple the $1.15 billion in 2015, according to the Latin America OTT TV & Video Forecasts report.
Simon Murray, Principal Analyst at Digital TV Research, said: “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.”
He continued: “Launched across the region in September 2011, Netflix is already established. However, substantial SVOD competition is now a reality from the likes of America Movil’s Claro Video, Telefonica’s Movistar Play, HBO Go, Televisa’s Blim and Millicom’s Tigo Play.”
SVOD [subscription video on demand] 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.
The Latin America OTT TV & Video Forecasts report estimates 31.87 million SVOD subscribers by 2021, up from only 12,000 in 2010 and 11.22 million at end-2015.
The fast take-up of SVOD will adversely affect download-to-own [DTO also known as electronic sell-through (EST)] buying patterns, albeit less so than in the rental sector.
The move towards SVOD services will stifle the pay-per-view or rental market as they provide similar consumer propositions. However, OTT TV and video rental/pay-per-view revenues will still expand rapidly, climbing from $100 million in 2015 and to $295 million in 2021.
Advertising on OTT sites (AVOD) will bring in $727 million by 2021 – up from $266 million on 2015. Free-to-air catch-up viewing is unlikely to be as prevalent as it is in other regions such as Europe.
For more information on the Latin America OTT TV and Video Forecasts report, please see the Broadband TV News webshop.
