LATAM millennials are cord-cutters, cord-nevers
DetailsJuan Fernandez Gonzalez | 13 January 2015
Although not an established trend yet, pay-TV in Latin America appears to be facing an upcoming generation of cord-cutters and cord-nevers. While many still have a cable platform at home, an increasing percentage of under-30s have abandoned traditional pay-TV for an over-the-top (OTT) platform.
cordAccording to a Business Bureau Media report, 12% of people between 20-30 and 13% under 20 have recently left their pay-TV subscription to start paying for other kinds of content platforms, including video-on-demand (VOD) and OTT services. In addition, 11% of those under 20 and 9% of Latin Americans between 20-30 are considered cord-nevers, meaning they've never had a pay-TV subscription.
But the trend is not exclusively seen with millennials. Nearly one out of ten adults over 30 are also cutting the cord in Latin America, with an average 6% never having paid for TV.
The Internet is becoming the top choice through which to watch audiovisual content, with over eight in ten connected Latin Americans regularly using the Web to watch movies and series.
OTT and VOD services are also becoming strong players in the region, according to the report. Nearly 34 million Latin Americans have paid for content on-demand - a figure which includes both subscriptions to OTT services and one-time VOD consumption - while nearly 35 million having used a TV everywhere service, representing a 137% growth since the last similar report two years ago.
Netflix is the leading platform in the region, gathering 15% of OTT subs – another 13% are said to have used the free trial period but decided not to pay for it. Claro Video (4.8%) and Telefónica (1.4%) are the second and third operators regarding subscriptions, while Google Play and Apple TV are leading for one-time content rental.