Press release
Pay-TV in Latin America: Multiplay Service Bundling and Investment in FTTH/B to Drive Service Adoption
Summary
At a regional level, the market has been expanding at a fast pace over the last several years, mainly supported by improvements in average GDP per capita levels in most markets and the availability of affordable service offerings, such as prepaid DTH/satellite connections, which have helped to improve service among groups of the population previously excluded. However, relatively low service penetration levels suggest that there is still substantial room for growth.
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Key Findings
- Despite we expect DTH/satellite and cable to remain as the most popular pay-TV technologies during the 2016-2021 period, we anticipate both technologies will progressively lose weight to IPTV. This trend will be supported by operators investments in FTTH/B, which have been increasing over the last several years in response to the growing demand for faster Internet connectivity, as well as to support the launch of convergent service offerings, where media and pay-TV services play a key role.
- Incumbent telecom operators in Argentina and Mexico have been historically banned from launching pay-TV services in order to prevent the market concentration the market concentration that would occur if operators with substantial market power were allowed to launch pay-TV services. The expected liberalization of the pay-TV market in these two countries will create greater incentives for fiber investments, supporting the eventual launch of IPTV services.
- The demand for OTT video services will experience a strong uptake over the next five years, a trend that most pay-TV service providers see as a long-term challenge to their traditional pay-TV business. As a result, a number of pay-TV operators in the region have launched or are in the process of launching their own OTT platforms, while others are establishing partnerships with pure OTT players such as Netflix.
- Telecom operators are increasingly leveraging multiplay service bundles as a tool to increase pay-TV subscribership and better compete with cable operators, traditionally well established in this market
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Synopsis
Pay-TV in Latin America: Multiplay Service Bundling and Investment in FTTH/B to Drive Service Adoption', a Telecom Insider by Pyramid Research, provides an executive-level overview of the pay-TV market in Latin America, with forecasts of key indicators up to 2021. It delivers deep quantitative and qualitative insight into the pay-TV services market, analyzing key trends on service adoption, and the main drivers and challenges for pay-TV services to grow in the market, mainly focusing on the impact of competitive, regulatory, demand and technology forces.
It provides in-depth analysis of the following:
- Market size and forecast; a look at the total market size and forecast for pay-TV services in Latin America, with an overview analysis on selected countries.
- Drivers and Challenges; an overview on the key drivers and challenges impacting the pay-TV market in Latin America under regulatory, competitive, demand and technology perspectives;
- Case studies; this section details the business model and strategy of three pay-TV service providers in Latin America to succeed in this market;
- Key findings and recommendations; the Insider concludes with a number of key findings and a set of recommendations for cable operators, pay-TV service providers, and regulators.
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ReasonsToBuy
- This Insider Report provides a comprehensive examination of the pay-TV service providers business models in Latin America to help executives fully understand market dynamics, determine what works and what doesnt, formulate effective product development plans and optimize resource allocation and return on investments.
- This Insider Report provides a five-year forecast of the pay-TV market in Latin America, developed using Pyramid Researchs rigorous bottom-up modeling methodologies, to enable executives to effectively position their companies for growth opportunities and emerging trends in demand for their products.
- Three case studies illustrate the findings of the report, providing insight into particular situations in the pay-TV market; this will help the reader understand both the challenges confronted in the real world and the strategies employed to overcome those challenges.
- The report discusses concrete opportunities in the pay-TV market, providing a number of actionable recommendations for cable operators, pay-TV service providers, and regulators.
Table of Contents
Introduction: Global and regional pay-TV market context4
Pay-TV market worldwide
Pay-TV market in Latin America
Drivers and challenges: The impacts on the pay-TV market in Latin America11
Competitive market challenge
Regulatory market challenge
Demand market driver
Technology market driver
Market details: Case studies21
Chile: Movistar Chile
Mexico: Izzi
Regional: DIRECTV
Conclusions: Key findings and recommendations
Appendix: Acronyms and definitions
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