According to Digital TV Research, OTT TV and video revenues in Latin America will reach $2.91 billion in 2020, up from $37 million in 2010 and the $1.13 billion expected in 2015. From the $2.126 billion in revenues expected to be added between 2014 and 2020, Brazil is expected to contribute $938 million and Mexico $437 million.
Simon Murray, principal analyst at Digital TV Research, wrote: "SVOD will remain the region's largest OTT revenue source, contributing $1.745 billion by 2020 - up from next to nothing in 2010. Pan-regional services such as Netflix, Clarovideo and Movistar are making an impact and are adding a competitive edge to the SVOD sector."
The research house expects there to be 24.05 million subscription VOD homes in Latin America by 2020, up from 10,000 in 2010 and an expected 9.84 million by end-2015. From the 17.38 million SVOD home additions expected between 2014 and 2020, Brazil is expected to supply 7.24 million and Mexico 3.32 million. Colombia is expected to overtake Argentina to take third place in 2016.
By 2020, 15.9% of the region's TV households are expected to subscribe to a SVOD package, up from 4.8% by end-2014. Puerto Rico (22.5%) and Chile (20.0%) are expected to have the highest penetration by 2020.