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Boom time for LatAm video and OTT
OTT TV and video revenues in Latin America [ for 18 countries ] will reach $ 3.59 billion in 2021; up from $ 32m recorded in 2010 and more than triple the $ 1.15 billion in 2015, according to the Latin America OTT TV & Video Forecasts report.
Simon Murray, principal analyst at Digital TV Research, described 2015 and 2016 as“ seminal years” for Latin American OTT TV and video, with several high profile platform launches from some very well-positioned companies have already take place – with more still to come.
“ Launched across the region in September 2011, Netflix is already established. However, substantial SVoD competition is now a reality from the likes of America Movil’ s Claro Video, Telefónica’ s Movistar Play, HBO Go, Televisa’ s Blim and Millicom’ s Tigo Play,” he advised.
SVoD [ subscription video on demand ] will remain the region’ s largest OTT revenue source; contributing $ 2.093 billion by 2021( or 58 % of the total) – up from next to nothing in 2010.
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The Latin America OTT TV & Video Forecasts report estimates 31.87m SVoD subscribers by 2021, up from only 12,000 in 2010 and 11.22m at end-2015.
The fast take-up of SVoD will adversely affect download-to-own [ DTO also known as electronic sellthrough( EST)] buying patterns, albeit less so than in the rental sector.
The move towards SVoD services will stifle the pay-perview or rental market as they provide similar consumer propositions. However, OTT TV and video rental / pay-perview revenues will still expand rapidly, climbing from $ 100m in 2015 and to $ 295m in 2021.
Advertising on OTT sites( AVoD) will bring in $ 727m by 2021 – up from $ 266m on 2015. Free-to-air catch-up viewing is unlikely to be as prevalent as it is in other regions such as Europe.
LatAm pay-TV growth sluggish
Pay-TV revenues [ subscriptions and PPV ] in Latin America will grow by only 9 %( or up by $ 1.6 billion) between 2015 and 2021, according to the fifth edition of the Digital TV Latin America Forecasts report. Economic woes are one reason for this slowdown, but market maturity is another.
Satellite TV will continue to be the largest pay-TV platform, with revenues reaching $ 13.1 billion in 2021, up from $ 12.6 billion in 2015. Cable TV revenues will be $ 5.6 billion in 2021, up from $ 5.1 billion in 2015.
Simon Murray, principal analyst at Digital TV Research, said:“ Digital cable TV revenues overtook analogue cable in 2014 and IPTV will pass analogue cable by 2020. IPTV revenues will grow by the same amount as satellite TV and cable TV over this period.”
Brazil($ 7.3 billion in 2021) will remain the top country by pay-TV revenues by some distance, followed by Mexico($ 3.4 billion) and Argentina($ 2.2 billion). These three will collectively take two-thirds of the total for the 19 countries covered in the report. However, revenues will fall in Brazil, Puerto Rico and Venezuela.
Pay-TV penetration will reach 50.6 % by 2021, up from 45.0 % at end-2015 and 28.7 % at end- 2010. This means 14m more pay-TV homes between 2015 and 2021; taking the total to 82m. This compares to more than 27m pay-TV subscriber additions between 2010 and 2015.
Brazil will provide 4.7m of the additions between 2015 and 2021 and Mexico 3.7m. However, Brazil added 9.6m new pay-TV subscribers between 2010 and 2015, with Mexico bringing in a further 7.1m.
Puerto Rico will record 83 % pay-TV penetration by 2021, with four more countries [ Argentina, Honduras, Panama and Venezuela ] above 70 %. However, five countries [ Brazil, Dominican Republic, El Salvador, Guatemala and Peru ] will be below 40 %.
Extracting analogue cable, the number of digital pay-TV subscribers will rocket from 19.5m in 2010( 13.7 % penetration) to 52.3m in 2015( 34.6 %) to 80.9m in 2021( 49.8 %).
CryptoGuard launches first affordable end-toend OTT solution
CryptoGuard, a leading Swedish developer and vendor of CAS and DRM solutions, has experienced substantial growth in recent years and is one the fastest-growing companies in the CAS industry.
CryptoGuard Advanced Security card-based and cardless CAS solutions have been installed in more
than 30 countries, with a number of national operators selecting CryptoGuard CAS.
“ CryptoGuard ´ s flexibility, adaptability and customisation with a‘ pay-as-you-grow’ business model realises low entry costs and attractive OPEX savings. This makes it an attractive option for any size of operator to digitise their TV services and secure content revenues,” says Tobias Nyström, sales director
LATAM( below, left). CryptoGuard continues expanding its product portfolio for next-generation TV services and is launching an affordable complete end-to-end OTT solution- CryptoLITE™. Together with Cryptoguard’ s CAS and DRM solutions, CryptoLITE™ makes it possible even for small operators to becoming profitable with OTT services.
The features are catch-up, start-over TV, network PVR, linear TV and video on demand on devices such as smartphones, tablets, set-top boxes, Apple TV and Smart TVs. It supports any Android, iOS, Microsoft and Linux devices as well as all popular browsers. For linear content, DVB-S, DVB-C, DVB-T and IPTV are all supported. Native DRMs such as Microsoft PlayReady, Apple FairPlay and Google Widevine are supported. These DRMs are approved by major content providers and inexpensive to use for pay-TV operators.
Phone: + 33 626 60 02 91 tobias @ cryptoguard. com www. cryptoguard. com
14 LATAM Briefing