Mexico. At the international level and in Mexico as well, the analysis and discussion continues on what should be the regulatory conditions of operation applicable to digital platforms of audiovisual content, in search of a leveling of the competitive terrain with respect to traditional ones such as broadcast and restricted television.
It is better to consider it as a long-lived but necessary process to reach a fertile territory for innovation and the development of new consumption alternatives. Also in our country and in tax matters, since last June subscriptions and transactions made through digital platforms are subject to the payment of VAT, as is the case with those made by physical means. In the following steps, you must determine what your investment obligations will be in local content, content classification, among others.
On the supply side, competition and variety increase, resulting in new and better alternatives for consumers in this market that, at the end of 2020, reached 11.1 million subscriptions in its subscription video on demand (SVOD) mode.
Even during the pandemic and the consequent lockdown, it has translated into greater dynamism in its demand for home entertainment content, with its annual growth rate in subscriptions doubling, which accelerated from 9.0% to 18.2%.
Thus, to date the universe of alternatives for consumers under the subscription modality exceeds the number of 30 available directly to the consumer or through other platforms that include them as additional channels to their main catalog of content. Even in the coming months this market structure will be strengthened with the addition of new players and the relaunch of existing ones.
For example, in June the HBO Max platform will be launched that will consolidate a diversity of premium creative products owned by WarnerMedia, in addition to integrating a new catalog of local and international original content, with the possibility of seeing the linear programming offered by this media conglomerate. This player already available in US territory decided to offer its entire roster of premieres for 2021 simultaneously on its streaming platform, to compete more assertively with those players already consolidated and growing evolution in subscribers, such as Netflix, Amazon Prime Video and Disney +.
Also in June, Star+ will arrive in Mexico, the new offer of The Walt Disney Studios that consolidates the content of 20th Century Studios, Searchlight, ABC, Freeform, FX and Hulu for mature audiences. With the inclusion in addition to live and on-demand sports, through ESPN, its offer will join Disney+ to compete in this segment of the market.
However, the closest enriched offer will be the relaunch in March of a comprehensive packaging of content for all audiences, with Paramount+ whose international streaming service will be available in the US, Mexico and the rest of Latin America, integrating the ViacomCBS catalog.
Thus, the identifiable trend points to investment efforts in content, advertising, user experience and consolidation of catalogs on a single platform, which large media conglomerates seek to compete.
Undoubtedly, here the big winner is the consumer who will have within reach a growing diversity of alternatives to meet the increasingly complex plurality of preferences and market segments.
Text written by Ernesto Piedras, from The Competitive Intelligence Unit, CIU.
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