LATAM second-line markets present pay-TV opportunities

DetailsJuan Fernandez Gonzalez | 27 May 2015

With the Latin American boom cooling down, the big pay-TV markets seem to be reaching saturation point, while countries such as Ecuador, Guatemala, Peru and Costa Rica, will see more growth opportunities in the near future.

According to Business Bureau's chief operating officer, Christian Peralta, the pay-TV industry is going to contract over the coming years, but will still be delivering growth figures. Indeed, there will be over 83 million legal pay-TV subs in the region by 2019, almost 20 million more than the current figures show.

But growth won't be capitalised on by the leading markets, which will be affected by financial losses and industry challenges such as cord-cutting. Growth will be led by countries like Peru, whose economy will be growing at 12% through 2019; Costa Rica and Guatemala, with growth rates over 9%; and Ecuador, growing by 7-8%.

However, Brazil will still lead Latin America's pay-TV market in 2019, closely followed by Mexico, as these two markets represent too high a percentage to be overtaken by smaller countries.

According to Peralta, specific conditions will power growth in the regionīs smaller markets. With lower poverty and unemployment rates, more people will be able to pay for TV, while direct-to-home (DTH) platforms are bringing the services to rural and remote areas.

In addition, competition has decreased service prices, and income distribution has improved in most of the countries. Overall, there will be cheaper services for a wider audience who will be able to afford them