LatAm Poised for Boom in OTT TV & Video

LONDON: Revenues for OTT TV and video are expected to reach $2.91 billion in 2020, with Brazil and Mexico as key contributors, according to a new report from Digital TV Research. 

The $2.91 billion revenue forecast for 2020 marks a significant gain from the $37 million reported in 2010 and the $1.13 billion expected in 2015. Of the $2.126 billion in revenue to be added in the period between 2014 and 2020, Brazil is forecast to contribute $938 million and Mexico $437 million.

Simon Murray, principal analyst at Digital TV Research, said: “SVOD will remain the region’s largest OTT revenue source, contributing $1,745 million by 2020—up from next to nothing in 2010. Pan-regional services such as Netflix, Clarovideo and Movistar are making an impact and are adding a competitive edge to the SVOD sector.”

Digital TV Research's Americas OTT TV & Video Forecasts report estimates 24.05 million SVOD homes by 2020 in the region, up from 10,000 in 2010 and an expected 9.48 million by the end of this year. Of the 17.38 million SVOD additions, Brazil is set to supply 7.24 million and Mexico 3.32 million.

It is forecast that by 2020, 15.9 percent of TV households in LatAm will subscribe to an SVOD package, up from the 4.8 percent reported at end-2014. The highest SVOD penetrations are expected in Puerto Rico (22.5 percent) and Chile (20 percent).