Convergent cable packages drive down Mexico's pay-TV


Juan Fernandez Gonzalez

| 22 August 2015

While Mexico's general prices have been rocketing during the past few years, pay-TV remains without significant changes, mostly due to increasing competition and the convergent packages offered by cable operators, according to an analysts note from The Competitive Intelligence Unit.

theciudata“Measured comparing with other prices, the average cost of the basic pay-TV package in Mexico is the bottom of the Latin American region, reaching a $22.2 level of purchasing power parity (PPP, a digit used to determine the relative value of different currencies)”, said the note.

Behind this trend, the analysis points to the arrival of low-cost packages mostly provided by cable operators, which have increased competition. Also, growing convergent offers like triple play, including TV, voice and Internet, have contributed to reduce the price and increase pay-TV penetration.

Following figures from the end of 2014, Mexico's pay-TV is near to 50% penetration, meaning more than 15 million subscriptions.

According to the analysts, the new market conditions have even contributed to price reductions by the market's largest players, such as Telmex.