OTT sector to grow by over 900% in five years
Juan Pablo Conti ©RapidTVNews | 29-11-2011
Build it and they will come. That seems to be the key conclusion from a new report which aims at quantifying the true potential of the over-the-top (OTT) business opportunity in Latin America.
In Argentina alone there are already seven operators distributing films and TV series on a VOD basis via the Internet. In the wider Latin American OTT market, there are 15 projects in total, three of them (Netflix, Terra and Totalmovie) operating in several countries in the region.
The current situation is clearly one characterised by an explosion of new offerings, which this year reached an unprecedented pace of over one OTT launch per month.
Faced with such seemingly oversaturation of services, two questions remain unanswered. Firstly, how sustainable can each of these projects be? And, secondly, what will be the actual size of the OTT market?
While the former question will probably require at least a couple of years for a proper answer, the latter is already beginning to show early signs of being elucidated.
According to market research firm Dataxis, there are currently 1.25 million people subscribed to an OTT package in the region. Come 2016, that figure is expected to jump to 13 million subs, an increase of 924%.
The projection was made taking into account Latin America's seven largest pay-TV markets: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.
The study, titled Streaming Video – OTT and TV Everywhere, was announced a day before the start of the Dataxis-organised Fourth NexTV Latin America Summit 2011, which opens today in Buenos Aires, Argentina.