LATAM pay-TV revenues rocket over $22 billion barrier

DetailsJuan Fernandez Gonzalez | 08 February 2015

2014 seems to have been yet another positive year for the pay-TV industry in Latin America, with the main markets growing steady and the smaller ones following the pace. Now Dataxis adds an even more interesting figure, estimating the yearly revenue for the sector is over $22 billion.

According to the latest market report published by the analyst firm, 2014 revenues were up to $22,700 million, meaning the sector has grown more than 10% during the last 12 months.

Looking at the local figures published throughout the year by the different national telecom authorities, markets such as Brazil and Argentina have kept growing, although tending to stabilise, while other countries such as Colombia, Chile and smaller territories like Ecuador have shown they still have room for growth.

Regarding the access technology, direct-to-home (DTH) has recorded the highest revenues, gathering 54.6% of the whole, while cable remains with 44.3%. IPTV is still residual in the Latin American business and, in spite of showing growth, it still has not reached 1%.

“Even though IPTV continues to be a development option, it exceeded the million subs barrier in 2014, which verifies a certain scale profit after the build-up and consolidation of some projects in Brazil, Chile, Colombia and Mexico,” explained Carlos Blanco, senior analyst and head of research to the company's site NexTV Latam.

Dataxis also projects growth for the coming years, with pay-TV revenues amounting to $27.5 billion in 2018.

“DTH will continue to grow at the same rate as prepaid services and the new low-cost models. Meanwhile, cable tends to become an option with a high strategic value, since it is the way that several operators present themselves to the market as an multiple integrated services option”, added Blanco.