Mexico. The Restricted Television and Audio Services (STAR) market is characterized by its upward dynamics in its hiring, as well as in its competitive configuration. The segment of video on demand platforms by monthly subscription (SVOD), is one that registers an accelerated pace of ownership and capture of new users, as well as an increasing weighting in the market compared to that reached by Pay TV by cable and satellite.
In Mexico, this market accounted for 29.1 million subscriptions, equivalent to an annual growth of 4.0%, as of the third quarter of 2018 (Q3-2018).
The fastest growing segment is that of SVOD, with 8.3 million subscriptions, 11.0% more than in a year earlier, while the satellite segment (11.1 million) registered a fall of 5.1% before the dissolution of the transitory rise that took place due to the transition to Digital Terrestrial Television in 2016 and the growing competition it faces with the offer of cable packaged services, as well as due to the accessibility and affordability of internet services and content. That of cable and other technologies (9.7 million) registered an increase of 10.2% attributable to the competitive advantage represented by its packaging with fixed internet and telephony services.
The growing access to the Internet among the Mexican population and the offer of ubiquitous original content, available on a variety of connected and on-demand devices has driven the preference for hiring SVOD platforms. Another relevant factor is the possibility that several users (2 - 4) can view content simultaneously, from the contracting of a single account or billing plan.
Thus, as of Q3-2018, the proportion of SVOD subscriptions amounts to a ratio of 28.5% of the total STAR to a few percentage points of that reached by restricted cable TV (33.3%), but still at a distance from satellite TV (38.2%). Under this rate of growth, SVOD platforms have managed to demonstrate their ability to capture a high volume of users that approximates those of traditional content distribution platforms.
Text written by Radamés Camargo of The Competitive Intelligence Unit, CIU.
