Pay-TV in Latin America: Multiplay Service Bundling and Investment in FTTH/B to Drive Service Adoption

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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.

Scope

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.

Reasons to Buy

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 doesn’t, 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 Research’s 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.

Telefonica
Movistar
America Movil
Claro Video
Movistar play
Millicom
Tigo
DIRECTV
Izzi
SKY Mexico
SKY Brazil
Televisa.

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

Table

EXHIBIT 1: Pay-TV subscriptions market share by region, 2016e

EXHIBIT 2: Pay-TV household penetration, 2016e

EXHIBIT 3: Pay-TV subscriptions by country, Latin America, 2016-2021

EXHIBIT 4: Pay-TV accounts and CAGR in selected Latin American countries, 2016 vs. 2021

EXHIBIT 5: Breakdown of pay-TV accounts by technology, Latin America, 2016

EXHIBIT 6: Breakdown of pay-TV accounts by technology, Latin America, 2021

EXHIBIT 7: Cable pay-TV subscriptions, analog vs. digital, 2016

EXHIBIT 8: Total pay-TV revenue, Latin America, 2015-2021

EXHIBIT 9: Pay-TV average monthly ARPS, Latin America, 2016

EXHIBIT 10: Main factors affecting the growth in the pay-TV market, Latin America

EXHIBIT 11: TVoDand SVoDaccounts, Latin America, 2015-2021

EXHIBIT 12: SVoDvs. pay-TV penetration of HH, Latin America, 2015-2021

EXHIBIT 13: Examples of OTT initiatives launched by pay-TV operators and integrated telcos

EXHIBIT 14: Selected pay-TV regulations restricting operator’s entry and participation in the pay-TV market

EXHIBIT 15: Telefonica’s pay-TV revenue and account share, Latin America Q1 2015-Q2 2016

EXHIBIT 16: Share of 3p and 4p over total bundles in selected Latin American markets, 2016 vs. 2021

EXHIBIT 17: Residential IPTV as a share of FTTH/B broadband accounts, Latin America, 2016-2021

EXHIBIT 18: IPTV penetration of pay-TV in selected countries, Latin America, 2016 vs. 2021

EXHIBIT 19: Examples of OTT initiatives launched by telecoms operators across the region

EXHIBIT 20: Movistar Chile’s pay-TV offerings, 2016

EXHIBIT 21: Pay-TV revenue as percent of total telecoms revenue, Movistar Chile, Q1 2015 –Q3 2016

EXHIBIT 22: Movistar’s pay-TV connections by technology, Chile 2015-2021

EXHIBIT 23: IzziTV customer interface and the Izzigo app

EXHIBIT 24: Basic standard tariffs for pay-TV services in Mexico

EXHIBIT 25: Evolution of paid SVoDaccounts, 2015-2020

EXHIBIT 26: DIRECTTV pay-TV subscriber market shares, Panamericana, 2016

EXHIBIT 27: DIRECTV broadband operations in Latin America

EXHIBIT 28: DIRECTV Argentina, double-play service promotion, 2016

Figures

EXHIBIT 1: Pay-TV subscriptions market share by region, 2016e

EXHIBIT 2: Pay-TV household penetration, 2016e

EXHIBIT 3: Pay-TV subscriptions by country, Latin America, 2016-2021

EXHIBIT 4: Pay-TV accounts and CAGR in selected Latin American countries, 2016 vs. 2021

EXHIBIT 5: Breakdown of pay-TV accounts by technology, Latin America, 2016

EXHIBIT 6: Breakdown of pay-TV accounts by technology, Latin America, 2021

EXHIBIT 7: Cable pay-TV subscriptions, analog vs. digital, 2016

EXHIBIT 8: Total pay-TV revenue, Latin America, 2015-2021

EXHIBIT 9: Pay-TV average monthly ARPS, Latin America, 2016

EXHIBIT 10: Main factors affecting the growth in the pay-TV market, Latin America

EXHIBIT 11: TVoDand SVoDaccounts, Latin America, 2015-2021

EXHIBIT 12: SVoDvs. pay-TV penetration of HH, Latin America, 2015-2021

EXHIBIT 13: Examples of OTT initiatives launched by pay-TV operators and integrated telcos

EXHIBIT 14: Selected pay-TV regulations restricting operator’s entry and participation in the pay-TV market

EXHIBIT 15: Telefonica’s pay-TV revenue and account share, Latin America Q1 2015-Q2 2016

EXHIBIT 16: Share of 3p and 4p over total bundles in selected Latin American markets, 2016 vs. 2021

EXHIBIT 17: Residential IPTV as a share of FTTH/B broadband accounts, Latin America, 2016-2021

EXHIBIT 18: IPTV penetration of pay-TV in selected countries, Latin America, 2016 vs. 2021

EXHIBIT 19: Examples of OTT initiatives launched by telecoms operators across the region

EXHIBIT 20: Movistar Chile’s pay-TV offerings, 2016

EXHIBIT 21: Pay-TV revenue as percent of total telecoms revenue, Movistar Chile, Q1 2015 –Q3 2016

EXHIBIT 22: Movistar’s pay-TV connections by technology, Chile 2015-2021

EXHIBIT 23: IzziTV customer interface and the Izzigo app

EXHIBIT 24: Basic standard tariffs for pay-TV services in Mexico

EXHIBIT 25: Evolution of paid SVoDaccounts, 2015-2020

EXHIBIT 26: DIRECTTV pay-TV subscriber market shares, Panamericana, 2016

EXHIBIT 27: DIRECTV broadband operations in Latin America

EXHIBIT 28: DIRECTV Argentina, double-play service promotion, 2016

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