OTT SVOD paid accounts in Latam to reach close to 40 million by 2023

Dataxis Webinar-01

According to Dataxis, the number of OTT SVOD paid accounts in Latin America will exceed 21 million in 2018, while by 2023 it will reach close to 40 million. Netflix leads the market – with around 60% market share – but by 2023, it will decline its dominance due to the multiplication of players and the arrival of international competitors.
The data comes from the Webinar “OTT began the diversification in Latam“, presented by Carlos Blanco, Senior Analyst at Dataxis. At the end of 2017, Brazil had the highest number of OTT SVOD paid platforms (26), followed by Mexico (20) and Argentina (18).
Blanco highlighted that the revenues of these services have been growing very strongly, although they are far from being a proposal to replace pay TV services. In 2015, SVOD OTT revenues in the region were USD 500 million and by 2023, this figure will reach USD 3,500 million.
According to the presentation, the SVOD exhibits a high ARPU. In 2017, it was USD 6.70 in Latin America vs USD 23.10 in pay TV.
In Latin America, there is a growing tendency to the “account sharing”, which multiplies the universe of households with access to OTT services. This way, the ARPU is adjusted.
According to Dataxis, Latin America exhibits a mature broadband market with good penetration of ultra-broadband options. Thus, the focus of operators is now on improving connectivity at home.
In the mobile segment, 4G already appears as the dominant technology and by 2019, the arrival of 5G in the United States is expected. In this way, mobile becomes another important player for the distribution of OTT.