DTH drives growth in Brazilian pay-TV market

DetailsJuan Fernandez Gonzalez | 08 December 2014

With figures pointing to the stabilisation of the pay-TV market since the beginning of 2014, there is still room for growth in Brazil, with direct-to-home (DTH) driving the industry to near 20 million subs in October.

According to latest figures published by the country's telecom authority Anatel, Brazil reached 19.65 million accesses in October, meaning almost 30% of homes have pay-TV. The greatest penetration rates are in the country's largest cities, with Sao Paulo and Rio de Janeiro nearing 50% penetration, only beaten by the Distrito Federal, with 57%.

The market is clearly topped by satellite technology, with over six out of ten subs paying for a DTH platform. During October, satellite services added 150,000 new subscriptions and currently hit 12.17 million homes.

Cable is the second most used option, adding 60,000 subs and reaching 7.4 million houses, meaning almost 40% of the country pays for cable. The importance of fibre-to-the-home (FTTH), micro-wave broadcasting (MMDS) and UHF-band TV is residual, showing very low figures.

Regarding operators, Telmex (Claro, Embratel, NET) and Sky/DirecTV are comfortably occupying the first and second position respectively, with Telmex reaching 10.4 million subs and Sky 5.6 million. Nevertheless, there is change coming for operators when Telefónica completes its purchase of Vivendi's GVT. According to current figures, the Spanish telco and GVT will gather a total of over 1.6 million accesses, almost a 10% share, replacing OI as the country's third largest operator.