Argentina remains immune to cord-cutting

DetailsJuan Fernandez Gonzalez | 06 June 2015

While the use of over-the-top (OTT) platforms is rocketing throughout Argentina's homes, it doesn't seem to be driving cord-cutting, as pay-TV penetration remains the same in those homes as in the ones without streaming video services.

According to latest report on OTT from Argentinian consultancy firm Carrier y Asociados, over one million homes are consuming OTT video content in the country, both through standalone services like Netflix and through platforms bonded to pay-TV providers, such as FOX Play.

Argentinians have a clear preference for Netflix, the chosen service in 4 out of 5 homes with OTT services. While laptops are the most-used devices (62%) to watch video through the Internet, computers and smart TVs take second place (used in 56% of homes), followed by smartphones (26%) and tablets (20%).

The report highlights the relation between OTT and pay-TV, which for the moment is very friendly in the country. Although OTT's presence is more common in homes with premium pay-TV offers (like HD packages), no cord-cutting has been detected, driving the analyst firm to conclude OTT is still seen as a complement to pay-TV and not as a competitor.

Cord-cutting is not yet a strong trend in Latin America, although some reports are beginning to point to the behaviour being detected among millennials.