LATAM OTT revenues to hit $1.13BN by year end
DetailsJoseph O'Halloran | 22 June 2015
As those familiar with the market will attest, Latin America is ramping up over-the-top services and the momentum will lead to OTT revenues of $1.13 billion by the end of 2015 says Digital TV Research.
And as revealed in Americas OTT TV & Video Forecasts, a report analysing 13 key countries in the region, the growth will persist over the next five years with revenues reaching $2.91 billion by 2020. As an example of just how fast the market is growing, the analyst notes that LATAM over-the-top revenues amounted to just $37 million in 2010.
Of the predicted $2.126 billion in revenues to be added between 2014 and 2020 in the region, Brazil is projected to contribute $938 million and Mexico $437 million. Moving from where revenues will be added to how, Digital TV Research estimates that there will be 24.05 million SVOD (subscription video on demand) homes by 2020, up from 10,000 in 2010 and an expected 9.84 million by end-2015. From the 17.38 million SVOD home additions between 2014 and 2020, Brazil will likely supply 7.24 million and Mexico 3.32 million. Colombia will overtake Argentina to take third place in 2016.
"SVOD will remain the region's largest OTT revenue source; contributing $1,745 million by 2020 – up from next to nothing in 2010," added Simon Murray, principal analyst at Digital TV Research and author of Americas OTT TV & Video Forecasts. "Pan-regional services such as Netflix, Clarovideo and Movistar are making an impact and are adding a competitive edge to the SVOD sector." Digital TV Research added that by 2020, 15.9% of the region's TV households will likely subscribe to a SVOD package, up from only 4.8% by end-2014. Puerto Rico (22.5%) and Chile (20.0%) will have the highest penetration by 2020.