LATAM digital TV market to double to 152MN homes by 2020

DetailsEditor | 17 March 2015

Some countries in the region may be plagued by economic uncertainty, but Latin America will remain a hot spot for digital TV over the next five years at least says a Digital TV Research study.

The Digital TV Latin America Forecasts report predicts that by 2020 there will be 152 million digital TV households in the region, which would represent substantial growth from 17.9% penetration of TV homes at the end of 2010 to just over 50% at the end of 2014, and onto 93.6% by 2020.

Of the 19 countries covered in the forecasts, Brazil is set to add 28 million digital TV households during this time frame, with Mexico contributing 11 million more and Argentina nearly five million. Puerto Rico, the first country to reach complete conversion, Panama and Uruguay will be the only countries to reach complete digital conversion by 2020.

In terms of the business the growing penetration will bring, Brazil will remain the top country by pay-TV revenues, amassing $8.6 billion, followed by Mexico with $5.6 billion and Argentina $2.3 billion. These three countries will collectively take almost three-quarters of business.

Overall for the region's pay-TV industry, revenues will grow by $2.6 billion between 2014 and 2020. Satellite TV will continue to be the largest pay-TV platform, with revenues reaching $16.7 billion in 2020. Cable TV will add a further $5.9 billion with a growing digital cable TV sector's revenues surpassing analogue cable in 2014. IPTV will also pass analogue cable in 2020. Nearly ten million pay satellite TV households are set to be added between 2014 and 2020, taking penetration to a quarter of TV households by 2020. However, the analyst noted that much of its fast growth has already taken place.

In terms of homes, the report states that free-to-air (FTA) DTT is projected to overtake pay satellite TV as the leading digital platform by 2016. The number of primary DTT homes will rocket from 4.2 million at the end of 2010 to 68 million by 2020 for a 41.9% penetration.

About 18.2 million digital cable subscribers will be added between 2014 and 2020, taking penetration to a fifth of TV households, while IPTV is forecast to climb from 1.3 million subscribers in 2014 to 6.8 million by 2020.