Report: LatAm OTT Revenues to Reach $3.59 Billion by 2021

LONDON: OTT TV and video are booming in Latin America, where revenues are expected to triple 2015’s figures to reach $3.59 billion in 2021, according to a new Digital TV Research report.

The Latin America OTT TV & Video Forecasts study notes that SVOD will remain the region’s largest OTT revenue source, contributing $2.09 billion by 2021. The report also estimates 31.87 million SVOD subscribers by that same year, up from only 12,000 in 2010 and 11.22 million at end of 2015.

The fast take-up of SVOD is expected to adversely affect download-to-own buying patterns, albeit less so than in the rental sector. The move towards SVOD services will stifle the pay-per-view or rental market as they provide similar consumer propositions. However, OTT TV and video rental/pay-per-view revenues will still expand rapidly, climbing from $100 million in 2015 and to $295 million in 2021.

Advertising on OTT sites will bring in $727 million by 2021, up from $266 million in 2015. Still, free-to-air catch-up viewing is unlikely to be as prevalent as it is in regions such as Europe.

Simon Murray, principal analyst at Digital TV Research, said: “2015 and 2016 are seminal years for Latin American OTT TV and video. Several high-profile platform launches from some very well-positioned companies have already taken place, with more still to come. Launched across the region in September 2011, Netflix is already established. However, substantial SVOD competition is now a reality from the likes of America Movil’s Claro Video, Telefonica’s Movistar Play, HBO Go, Televisa’s blim and Millicom’s Tigo Play.”