Mexico. According to the most recent study by The Competitive Intelligence Unit, CIU, called the Convergent Ecosystem of Audiovisual Content, the preferences of Mexican consumers of audiovisual content have been transformed over time.
Although after the launch of television a diverse content offer was detonated from the definition of a variety of formats, programs and productions, today a greater abundance of platforms, devices and content generation is identified that integrates the same competitive ecosystem.
The emergence of new alternatives in the access and provision of audiovisual content, compared to traditional linear programming platforms (open and pay TV), which enable ubiquitous and on-demand consumption, as well as a better user experience, have triggered a growing competition to capture the attention of the audience.
Likewise, in this new competitive ecosystem in the audiovisual content market, a possibility of multiplatform consumption is identified, that is, access to the same program, series, film or live event is possible through free-to-air TV, Pay TV, Over-The-Top (OTT) platforms on demand or Internet TV.
Recent figures on the adoption of new platforms and diversification in access to content by Mexican consumers account for the growing preference for OTT services, such that there is an incessant and significant growth of these compared to free-to-air TV and Pay TV.
Thus, at the end of 2016, an accounting of 6.7 million subscriptions to OTT platforms is anticipated, equivalent to an annual growth of 39.6% and an adoption among households of 20.4%. If this incremental trend continues, it would be hastily approaching reaching the base of households that consume content on free-to-air TV (43.8% or 14.4 million) and even those with Pay-TV (58.5% or 19.2 million).
This is not an indicator of a decrease or partial replacement of the consumption of free-to-air TV content, but there is a diversification in its access through different platforms. Of the total number of households that consume free-to-air television content equivalent to 85.3% or 28.0 million, a proportion of 51.4% (14.4 million or 43.8% of households in Mexico) access these through broadcast television signals and the remaining proportion of 48.6% (13.6 million or 41.5% of total households) does so via restricted television platforms (satellite, cable or IPTV).
Additionally, a uniformity of consumer preferences for OTT platforms is identified between age groups. That is, adoption is identical between the generation of Millennials (21 – 30 years) and Baby Boomers (+50 years), which amounts to 20.4%.
On the other hand, segmentation by Socioeconomic Levels (NSE) identifies a similar context. The proportion of people making use of these services across all SSN ranges approximates the overall household adoption average of 18.8%.
This more homogeneous preference among consumers is attributable to the growing adoption of the internet among households, equivalent to 43.2%, as well as the ease of access and use of OTT platforms, with an offer of multi-device content, original productions, a wide catalog and affordable prices for consumers.
From all this, it is a fact that, in the face of this scenario of incessant growth in the adoption of OTT platforms and their increasing gain among the preferences of consumers of audiovisual content regardless of their age or NSE; these represent an alternative that competes with free-to-air and pay television.
This technological evolution and consumer preferences already shows signs of recognition by content generators and telecommunications operators, especially pay TV and main free-to-air television channels.
In this way, efforts have been focused to address it with competitive and attractive strategies for consumers, for example, by incorporating a complementary OTT content offer to its primary work of generation and distribution.
This circumstance has attracted the attention even of regulatory bodies around the world and has triggered a redefinition of the competitive ecosystem of audiovisual content, in which it is already considered that free-to-air TV, pay TV and OTT video platforms integrate the same market.
It is anticipated that our country will align not only in terms of market to this global trend of diversification in access to audiovisual content; but in the increasing regulatory experiences of convergence between platforms. It is a propensity towards which several countries of the world, specifically in Latin America and the European Union, seek to approach and to which Mexico should not abstract.
*Text written by Radamés Camargo, from The Competitive Intelligence Unit.
