Pay-TV services in Brazil are hot, hot, hot

Gabriel Mirarmar-Garcia ©RapidTVNews | 10-05-2012

Pay-TV is heating up in Latin America with the rollouts of more satellite capacity, additional cable MSO services, ongoing IPTV buildouts and soon, video-over-LTE initiatives.

Parks Associates' latest global research finds that overall, Brazil is outpacing Russia, China, and India in its growth rate for pay-TV subscriptions. During 2011, pay-TV service subscriptions in Brazil increased by almost a third (30%), while and broadband service subscriptions grew by 20%, Parks has revealed.

By comparison, service growth in Russia and China is at or below 20%.Meanwhile, the country's household discretionary spending for movies, music, and games is nearly double that of China.

"While digital home opportunities are available in several emerging markets, the growth in Brazil is phenomenal," said Brett Sappington, director of research at Parks Associates. "The country is seeing the emergence of new broadband homes that are able to receive these products and services for the first time. Netflix, Samsung, and other major companies are moving quickly to capitalise."

Continued economic improvement in the country has increased demand for CE, and more than one-fourth of Brazilian broadband households pay for an online video streaming service. Netflix recently entered this market, and LG Electronics plans to roll out its Google TV in Brazil in the near future. However, there is already intense competition from incumbents' VOD offerings. Operators, including Oi (Brasil Telecom), Net (Net Servicos de Comunicacao), Telefonica Brazil, and GVT, have increased their investments in infrastructure, expanding the availability and scope of services available to consumers.