Pay television slows down in Latin America

Cable television income barely grows in the next five years, going from 5.1 billion in revenue in 2015 to just over 5.6 billion in 2021.

Revenue from pay television subscriptions in Latin America will grow at a rate of 9%, reaching $1.6 billion, between 2015 and 2021, according to the fifth edition of the Digital TV Latin America Forecasts report. Economic problems are one of the reasons for this slowdown, although the maturity of the market is another aspect that also weighs.

According to the Digital Tv Research study, satellite will continue to be the largest distribution platform for pay television, with revenues that would reach 13.1 billion in 2021, an increase from 12.6 million last year.

Cable television income barely grows in the next five years, going from 5.1 billion in revenue in 2015 to just over 5.6 billion in 2021.

Simon Murray, principal analyst at TV Digital Research, argues that “while digital TV revenues caught up with analogue cable in 2014, IPTV will overtake analogue cable in 2020. IPTV revenues will grow at the same rate as satellite and cable TV over this period.”

Brazil, with 7.3 billion expected for 2021, will continue to be the main country in terms of pay television revenues. They are followed at a certain distance by Mexico (3.4 billion) and Argentina (2.00 million). These three countries together would account for two-thirds of the market of the total of 19 countries included in the report. However, revenues will fall in Brazil, Puerto Rico and Venezuela.

The penetration of pay television will be 50.6% in 2021, compared to 45.0% at the end of 2015 and 28.7% at the end of 2010. This means that more than 14 million households have subscribed to a pay TV service between 2015 and 2021, reaching 82 million. This figure contrasts with the more than 27 million new pay TV subscribers between 2010 and 2015.

Brazil will provide 4.7 million new subscribers between 2015 and 2021 and Mexico 3.7 million. However, Brazil added 9.6 million new pay television subscribers between 2010 and 2015, while Mexico increased its base by 7.1 million.

Digital Tv Research predicts that pay television in Puerto Rico would reach 83% penetration in 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%.