Mexican pay-TV subs rush for OTT, online video

DetailsJuan Fernandez Gonzalez | 19 June 2015

In a market still dominated by linear cable and satellite pay-TV platforms, over-the-top (OTT) and online video consumption has soared in Mexico, with 42% of subscribers now using OTT platforms for video/audio or watching video via free or paid online services.

According to The Competitive Intelligence Unit (CIU), there are more users consuming online content for free than are paying for TV, and OTT subscribers (11% of the whole) represent half of cable TV subs (23%), which, according to the CIU, highlights the change in consumption model and the competition OTT presents to traditional pay-TV.

However, the figures aren't so impressive when it comes to income and revenue generation. 70% of the audiovisual industry's income is generated by cable and direct-to-home (DTH) operators, while OTT platforms account for 8% and free online video services generate 19%.

"The growing use of Internet-based services, increasing network capacity and the proliferation of connected devices are driving new models of consumption, through multiple platforms and services," commented Ernesto Piedras, managing director of the CIU. "For us, it's clear that the video market is no longer the property of pay-TV."

Mexico has recently been predicted to become one of the leading OTT markets in the near future.