Latin America. Nagra, in collaboration with MTM, published the Latin American results of the Pay-TV Innovation Forum, a global research program to explore the next phase of industry innovation.
Fourth research in a global series, "The Pay-TV Innovation Scenario in Latin America" outlines the main challenges and opportunities for innovation in the region, with the potential for strong growth, but still accounting for less than 10% of the industry's total revenue in households with subscription TELEVISION.
Despite limiting factors, such as poor broadband infrastructure, economic slowdown in some countries, piracy, and strong open channel activity, the pay-TV industry in Latin America has evolved significantly in the last five years and most of the segment's service providers have focused on expanding their core business and gradually expanding services. based on IP and OTT. Today, 75% of service providers have set-top boxes connected in IP, 70% services introduced multi-screen services and 16% have launched OTT services.
The latter technology was significantly less dominant, with only 14% of providers offering access to third-party OTT services, while none have commercially launched advanced services such as 4K video, content recommendations or voice control.
Against the backdrop of an already concentrated market, with 50% of all Pay-TV subscribers belonging to major international telecom groups, while telecom operators and small-scale pay-TV companies account for only 18%, the report highlights the critical factors that will shape the industry over the next five years. It also emphasizes the need for insights based on consumer data, flexible technology platforms, and strategic partnerships with suppliers.
"Despite the challenges it faces, the pay-TV industry in Latin America has been able to develop competitive services such as multi-screen and OTT to meet consumer demand and all signs indicate that this trend will continue," says Thierry Martin, Nagra's Vice President for the Southern Latin America region. "It is now important for service providers to come to accelerate the innovation process to keep up with consumer expectations. With this in mind, we expect the region to grow in investment in next-generation solutions in the same way that the industry faces increased international competition in OTT. "
"It will be fascinating to see the region's progress in the coming years as infrastructure, access to content and consumer behavior evolve," says Jon Watts, CEO of MTM. "There is no doubt that the region is preparing to break with the establishment of the new base technology for this innovation, and the growing consumer appetite for new services. The region has been strong in the challenges it faces and, with the right strategy and partnerships, can enter a new phase of growth over the next five years."
The report provides an analysis of the product and service portfolios of 44 pay-TV providers in the seven largest markets in Latin America, serving nearly 63 million households.
The final conclusions of the general programme of the Pay-TV Innovation Forum will be presented at the IBC Conference 2016 - International Broadcasting Conference in Amsterdam, which will take place between 8 and 12 September.
For more information about the survey and to download the regional white paper visit https://dtv.nagra.com/paytvif.
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