IPTV Takes “Backseat” in Latin America, Report Says

CAMBRIDGE: IPTV will struggle to find its footing in Latin America, according to Pyramid Research, taking a backseat to other platforms until 2012, when it will reach a 5-percent penetration of all pay-TV subscriptions.

Pyramid estimates that by 2014, the region will be home to more than 4.4 million IPTV subscriptions, reaching 2.6 percent of all households. The report, IPTV in Latin America: Not So Fast, explores the regulatory hurdles faced by IPTV and the progress telcos are making in introducing various pay-TV services. "IPTV is simply not living up to expectations in Latin America," the report contends.

At present, fewer than 0.1 percent of homes in the region have subscribed to IPTV. Derek Medlin, analyst at Pyramid Research and author of the report, notes: “As the market has evolved, it has become evident that there is significant demand for pay-TV, which is pushing telcos to seek alternative strategies to meet this demand. However, the reality is that the struggles on the front end have severely crippled adoption so far; regulatory issues are blockading IPTV altogether, or at least leading to deployment delays."

Medlin continues: “Recent initiatives from telcos and cable companies are catalyzing the market by thrusting a variety of pay-TV services into underpenetrated areas and market segments. As a result, adoption is taking off, making the low penetration levels an indicator of the growth potential, especially when gauged against the levels of adoption reached in other regions."