Consolidation threatens Uruguay's pay-TV market


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Juan Fernandez Gonzalez

| 23 December 2015




As content producers and telecom players have consolidated, smaller operators in countries like Uruguay are finding it hard to keep pace with the industry’s development.



“In Uruguay there is a need for networks to consolidate,” explained Javier Ruete, CEO of Uruguay's TCC, speaking to Via Satellite. “The market has big players like Claro, Telefonica and DirecTV that have their own purchasing power. On the other side of the balance you have content dealers like HBO, FOX and the studios from Hollywood. They have been consolidating into very big groups. What we find is that all independent networks throughout Latin America need to get together in order to balance that negotiation power for purchase.”

The executive extends Uruguay's situation to the whole Latin American region, in which many small cable and satellite providers compete against a few pan-regional, or even international, players. Ruete believes the market should adopt a “strength in numbers” approach, which TCC intends to lead, so more companies are prepared to compete in their local markets.

LATAM's technological infrastructure is also highly polarised, with the largest cities having established cable and fibre networks and the rest of the region - especially remote areas - having to rely on satellite for connection.

This is no different in Uruguay, whose capital, Montevideo, has six cablecos targeting 1.5 million inhabitants. According to Ruete's, TCC looks to diversify its business through a direct-to-home (DTH) platform and will focus on satellite technology over the coming years.