IPTV set to explode in Brazil

Juan Pablo Conti ©RapidTVNews | 20-01-2012

Television distributed via IP networks, a service currently offered by a single pay-TV operator in Brazil (TVA), will go from having just 21,000 subscribers today to 1.5 million in four years.
The forecast appears in a new, rather long-titled report (Brazilian operators target diverse and growing telecom market with creative offers), published earlier this week by Pyramid Research.
Together with the pay-TV sector, the research piece investigated the reasons behind the rapid development of mobile telephony in Brazil, a market with a penetration rate that already stands at 118% – yet is expected to keep growing and reach over 150% by 2016.
"Brazil has been experiencing a significant enrichment of the middle and lower classes, and more and more services are being customised to address that demand," said Vinicius Caetano, senior analyst at Pyramid Research.
Looking at the market dynamics involved in both the pay-TV and mobile phone markets in Brazil during the past year, Pyramid concluded that the services which succeeded the most were those that had a segmentation logic built into their strategies. In other words, those offers that were able to cater for a portion of the population that, in the past, were marginalised from accessing these services.
"The reality of Brazil has changed, and operators need to segment their strategies and adapt to the new characteristics of the demand," added Caetano. "With increasing user sophistication, there is no more room for one-size-fits-all strategies."