LatAm OTT Video Booming

June 2, 2016
According to Digital TV Research, OTT TV and video revenues in Latin America will reach $3.59 billion in 2021, up from $32 million recorded ...

According to Digital TV Research, OTT TV and video revenues in Latin America will reach $3.59 billion in 2021, up from $32 million recorded in 2010 and more than triple the $1.15 billion in 2015.

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 taken 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 America Movil's Claro Video, Telefonica's Movistar Play, HBO Go, Televisa's Blim and Millicom's Tigo Play," Murray said.

SVOD (subscription VOD, such as Netflix) is expected to remain the region's largest OTT revenue source, contributing $2 billion by 2021 (58% of the total), up from next to nothing in 2010.

The research house estimates there will be 31.87 million SVOD subscribers in the region by 2021, up from 12,000 in 2010 and 11.22 million at end-2015.

The fast take-up of SVOD is expected to adversely affect download-to-own (also known as electronic sell-through, or EST) buying patterns, albeit less so than in the rental sector.

The move toward SVOD services is expected to stifle the pay-per-view or rental market as they provide similar consumer propositions. However, OTT TV and video rental/pay-per-view revenues are still expected 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 in 2015. Free-to-air catchup viewing is not expected to be as prevalent as it is in other regions such as Europe.

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