Dataxis: Mexico to Reach 5 Million VOD OTT Subs by Year’s End

MEXICO CITY: Mexico is forecast to reach 5 million VOD OTT subscribers by the end of this year, surpassing such major Latin American markets as Brazil, Colombia and Argentina, according to a new Dataxis report.

According to Dataxis, the Mexican online-video-services market will reach $370 million in 2015 and up to $809 million in 2018, representing the biggest market in Latin America. The study also finds that Mexico is the only country in the region where pay-TV operators succeeded in splitting premium TV-everywhere services (such as DISH online or Sky Bluetogo Video Everywhere) and billing them separately.

The cutthroat competition in the broadband market is one of the drivers behind the increasing online TV services. According to Dataxis estimates, Mexico had 14 million broadband connections at the end of June. The country also has the most developed IP and TV everywhere multiscreen television platforms in the region, as well as the highest levels of investment.

Additionally, Dataxis reports that Mexico’s Clarovideo is the Latin American OTT company producing the largest amount of original content. At the beginning of January, Netflix had a 64 percent market share, while Clarovideo had 32 percent. By the end of June, however, Clarovideo reached a 39.7 percent market share, with Netflix falling to 55.7 percent.