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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