Joseph O'Halloran ©RapidTVNews | 26-08-2011

According to a new report from Digital TV Research, pay-TV revenues in Brazil are set to enjoy huge growth over the next five years, almost tripling to total $6.64 billion in 2016.

The analyst firm says that Brazil's economy is growing fast, leading to greater household income and a rapidly expanding middle class. The Brazil Digital TV Forecasts report notes that most major telcos in the country have launched DTH platforms, and will follow up with IPTV/triple-play packages in the near future.

Digital TV Research predicts that by 2016 pay-TV penetration will reach 35% of TV households which will be double the end-2010 figure. In other words this means 22.2 million subscribers compared with 9.77 million at end-2010. By 2016, Brazil is forecast to have 11.8 million pay-DTH households, giving an 18.8% penetration rate. This is double the present total, but growth is expected to decelerate as telcos place greater emphasis on IPTV services than on their DTH operations.

DTH revenues are forecast to grow by US$3 billion to reach US$6.6 billion in 2016. The research states that Brazilian DTH subscriptions overhauled cable as the most popular platform with considerable panache during the first six months of 2011. The analyst expects further change is ahead as the government will soon amend legislation to allow telco to offer full IPTV services. In all, the research predicts that by 2016, Brazil will have 2.3 million paying IPTV subs (3.6% TV household penetration). These IPTV homes will generate revenues of US$302 million.

Despite losing its most popular platform position to DTH, the cable sector is still growing – just not as fast as the other platforms. There will be 8.1 million cable subs (12.9% penetration) by 2016, up from 5.3 million (9.2%) at end-2010. Cable TV revenues will reach US$1.58 billion in 2016, up from US$1.09 billion in 2010.