Mexico to top 5MN OTT subs this year


Gabriel Miramar-Garcia

| 08 September 2015

Mexico will reach five million over-the-top (OTT) subscribers by the end of 2015, largely surpassing Brazil, Colombia and Argentina.

According to Dataxis, Mexico has the most developed IP and TV everywhere multiscreen television platforms and the highest investment of the region. Taking OTT services like Netflix and Clarovideo, and movies rentals and purchases added together, the Mexico online video services market will reach $370 million in revenue in 2015 and $809 million in 2018.

Mexico is the only country of the region where pay-TV operators succeeded in splitting premium TV everywhere services (such as DISH online or Sky Bluetogo Video Everywhere) and billing them separately, the firm said.

Mexico's Clarovideo is the Latin American OTT company that produces the largest amount of original content, similar to Netflix in the United States. Moreover, the Clarovideo and Telmex broadband package has brought a growth of almost half million in trimestral subscribers during the first half of the year. At the beginning of January, Netflix had a 64% market share and Clarovideo 32%. At the end of June, Carlos Slim's company had reached a 39.7% market share, while the American company fell to 55.7%

The cutthroat competition in the broadband market is one of the drivers of OTT uptake. According to Dataxis estimates, Mexico had 14 million broadband connections at the end of June: Grupo Televisa is now the second player with 16.4% of the market, including Televisa subs; Telmex broadband subscribers have decreased from 70% market share at the beginning of 2014, to 63.4% in 2015.