Steady Streaming Ahead: LatAm OTT Trends

Over the past two years, the world has faced not only an unprecedented pandemic, but also rapid changes in the media industry. These changes range from conducting business deals through virtual means, such as Zoom calls, to the emergence of new streaming services and consolidation of platforms.

In Latin America, streaming services are competing for both new subscribers and time spent on their content. The audience in the region has access to a diverse range of offerings, from viewing on their preferred device to a user-friendly interface.

“Our global launch took place in 2016, which means we have been in the market for more than six years,” says Pablo Iacoviello, who serves as the director and country manager for Latin America at Prime Video. “It’s been an interesting and enjoyable journey, with a continued focus on remaining attuned to industry developments. The company strives to understand its users and provide the best possible product and service. Rather than prioritizing quantity, Prime Video values quality and seeks to establish a strong connection with its customers by offering a diverse and curated catalog. While content is undoubtedly critical, the company recognizes the importance of having a good product, effective distribution and successful marketing strategies.”

He explains that the company has made significant improvements to the interface, resulting in positive feedback from customers and users who find navigation much simpler. The company is currently negotiating agreements with telephone and cable operators in the region to provide more access to consumers. Through these partnerships, users can enjoy Prime Video, leading to growth and expansion for the company.

Following a successful roll out in the U.S., Disney+ launched in Latin America and has quickly become a preferred option for viewers in the region. The platform provides access to a broad range of content from a number of prestigious brands including Disney, Pixar, Marvel, Star Wars and National Geographic.

Natalia Scalia, the senior VP and general manager for direct-to-consumer at The Walt Disney Company Latin America, notes that the company rolled out Disney+ in November 2020 and, within just ten months, it introduced Star+ as a stand-alone yet complementary streaming service. “We’re always focusing on the consumer, attentive to their interests in order to offer quality entertainment.”

To acquire and retain subscribers, the quality of content that connects with the audience is paramount. According to Scalia, “a significant portion of our efforts is dedicated to comprehending which stories are significant and relatable to their viewers. As Disney+ and Star+ offer a variety of genre movies and series under the company’s renowned brands, it is imperative to identify content that resonates with the audience. Additionally, the platform provides an extensive selection of Latin American productions that cater to diverse age groups and interests.”

MARKET RELEVANCE
“We understand the importance of providing easy access to our services for Latin American audiences,” Scalia adds. “That’s why we have established a vast network of distributors to offer a range of payment methods, including options for those without a bank account. Additionally, we have introduced our most comprehensive offering, Combo+, which bundles Star+ and Disney+ at a discounted price. This option is designed to provide our customers with the best value for their money, as they can save more compared to subscribing to both services separately.”

HBO Max made its debut in the U.S. in May 2020, offering viewers a broad range of content from well-known brands such as HBO, Warner Bros., DC and Cartoon Network. Additionally, the streaming service boasts an impressive collection of Max Originals and third-party content. Since its launch, HBO Max has expanded its availability to over 60 countries, beginning with a global rollout in Latin America and the Caribbean. Subsequently, it launched in several European markets, including the Nordics, Iberia, the Netherlands and Central and Eastern Europe.

“HBO Max has positioned itself as a platform for everyone for high-quality entertainment from both international and Latin American creators across various genres and formats,” says Juan Solá, director of streaming for Latin America at Warner Bros. Discovery. “We continuously strive to enhance the subscription experience for our users by offering tailored plans and pricing options that cater to their individual preferences. Our partnership with regional associates has been integral to realizing this vision, and we remain committed to expanding the reach of our content to all fans. We provide our audience with multiple access choices to their favorite brands and franchises, ensuring that they can enjoy our content in every way possible.”

OPTIONS GALORE
Gonzalo Arrisueño Labarthe, the content director for Latin America at Telefónica, revealed that in early 2022, the company consolidated its services under the Movistar TV brand. “By combining pay-TV, VOD and streaming, the brand offers a complete television and content experience for our clients,” he says.

“Our customers can enjoy the ‘everywhere’ Movistar TV experience at any time and on any device. This ease of access to our content offering allows potential customers in the region to easily sign up for our service, just as they would with any OTT in the market. The difference with the latter is that not only Movistar TV offers a varied catalog of on-demand content, but also the main local and international linear pay-TV channels.”

The key differentiator for Movistar TV is the diverse catalog of on-demand content and a wide range of local and international linear pay-TV channels that are not typically available on other OTT platforms. “By offering both types of content, Movistar TV stands out in the market and provides a more comprehensive entertainment experience for their customers,” he says.

FlixLatino is a Spanish-language online OTT service offering SVOD content for the U.S. Hispanic market and Puerto Rico. FlixLatino is part of SOMOS Next, which is part of SOMOS Group. SOMOS Next offers online content with its brands FlixLatino and FlixLatino Kids.

“FlixLatino offers the best in high-quality contemporary series and films from leading international and Hispanic production markets,” says Luis Guillermo Villanueva, COO of SOMOS Next. “We also include shows, documentaries and other formats. There’s also FlixLatino Kids, a separate, safe and controlled space with branded animation and violence-free content, focused on preschoolers.”

Villanueva states that in addition to the adult and kids’ content available on FlixLatino and FlixLatino Kids, respectively, there are linear streaming channels that serve in optimizing searching and consuming the company’s content.

CONTENT VALUE
“FlixLatino combines the highest quality, carefully curated content at an affordable price for different audiences,” he states. “We look at the Latin American market in terms of demographics, income and entertainment relevance (movies, series, documentaries and shows) on all connected devices. We believe that, currently in terms of both economic and technological impact on the industry, we are among the best options for consumers in terms of price, content, technology and versatility.”

Vrio houses brands like DIRECTV GO (DGO) and is a provider of entertainment and information subscription services offered through satellite and streaming in Latin America and the Caribbean.

“We’re part of Vrio, a leading digital entertainment service provider with over 10 million subscribers in LatAm and the Caribbean, offering quality content on DIRECTV, SKY and DGO, with top-tier sporting events, international content and exclusive programming,” says Patricia Monkowski, branding director at Vrio. “DGO is an online OTT subscription service offering access to varied live and on-demand content. It also provides satellite TV at no additional cost. The platform offers the best in live local and international television, with linear channels and on-demand content that users can enjoy anytime and anywhere, through mobile devices, tablets, computers and smart TVs, among others. It also offers the possibility of combining different plans with premium packages.”

Regarding DGO users in Argentina, Chile, Colombia, Ecuador, Peru and Uruguay, she explains, “41 percent have pay TV and use the streaming platform as an add-on, while 26 percent do not have pay TV, with DGO being the gateway to live content. In terms of age, on average, 30 percent of users are not older than 35.”

Prime Video has been producing original content since its debut in the U.S. and the rest of the world, including Latin America. Highlights include The Lord of the Rings: The Rings of Power and The Boys, as well as local productions such as LOL: Last One Laughing, Pan y Circo, El Presidente and the Oscar-nominated film Argentina, 1985.

SOLID OFFERINGS
“We have a catalog where [every new production] is a fantastic one,” says Prime Video’s Iacoviello. “We’re looking to expand our offer with global shows and local stories and projects, unique and complementary titles.”

Last year, MGM joined Prime Video and Amazon Studios as an asset of the company, bringing the James Bond film library. “MGM is an important partner for Prime Video,” he says. “Welcoming them into the family allows us to explore many opportunities. That talent attached to the MGM team is fantastic, and there are near limitless opportunities.”

Scalia at The Walt Disney Company Latin America says that, considering the company’s experience and audience diversity, they must offer variety in terms of content and formats, “so the audience can choose from dramas, comedies, sitcoms, thrillers, biopics and docu-realities. This variety can be found in our streaming services. The main difference between the two platforms lies in the type of content they offer: Star+ offers general entertainment and sports content that targets adults, while Disney+ offers content for all members of the family through its five iconic brands (Disney, Pixar, Marvel, Star Wars and National Geographic).”

Regarding the importance of Latin American productions, she comments that “they are at the core of our company, given that we started creating original content in the region more than 20 years ago. Our local productions have the power to connect emotionally with Latin American audiences due to the relevance of the issues they address. At the same time, they have great export potential.”

On Star+, highlights include El encargado, Santa Evita and O Rei da TV, and over at Disney+, productions like Papás por encargo and Siempre fui yo are standouts. In addition, live events such as the Tini Tour 2022, Premios Gardel and the next editions of Festival Internacional de la Canción de Viña del Marare are also part of the offer.

MEMORABLE BRANDS
Along with standout brands, HBO Max’s offerings include highlights like Friends, Game of Thrones,Big Bang Theory, Rick and Morty, House of the Dragon, Batman, Looney Tune sand DC League of Super Pets, as well as live sporting events like the UEFA Champions League (in Mexico and Brazil), and live coverage of special events like the Latin Grammy Awards.

“Each of our offerings unfolds its own world, connecting its purpose with its specific audience, which in turn finds an entertainment experience that exceeds the limits on the screen, with titles that occupy an unparalleled place in the world of entertainment,” says Solá at Warner Bros. Discovery. “Our commitment at HBO Max is to continue offering content for all tastes, where each of our users has a story that represents and excites them. That is why we offer a combination of international content with local productions, developed in several Latin American countries, by very talented creators and artists who give voice to authentic stories, typical of our culture, exploring the particularities of each market.”

He highlights the true-crime doc Pacto brutal: El asesinato de Daniella Perez, which was made in Brazil and was widely successful in the region, becoming the most-watched Brazilian series on the platform. María Marta, el crimen del country “generated important conversations in Argentina 20 years after the events that inspired the production,” Solá adds. There’s also Las Bravas F.C., a successful Mexican dramedy that explores the world of women’s soccer.

Over at Movistar TV, the platform provides three core content options: VOD, live channels and transactional content, says Arrisueño Labarthe at Telefónica. “Movies have been quite popular on our VOD offering, with titles that go hand in hand with the nationality of each of our territories, accompanied by the most outstanding international blockbusters. Peruvian and Argentinean films stand with titles like ¡Asu mare! 3 and Encintados in Peru, as well as El amor menos pensado and Mamá se fue de viaje in Argentina. Regarding international content, our users view classics like Madagascar to the latest releases such as Top Gun: Maverick, Bullet Train and Spider-Man: No Way Home.”

Arrisueño Labarthe comments that episodic content also gains traction on the Movistar TV App, with series and shows like Matrimonio con hijos, Garfield y sus amigos and the Peruvian sports show Al ángulo, all which reflect its audiences’ viewing habits.

THE SECRET OF DIVERSITY
For FlixLatino audiences, Villanueva says movies are very popular. However, series also attract viewers, which generate lots of consumed hours on the service. Among the titles that stand out are Hasta que te conocí (U.S., co-produced by SOMOS Productions), Estoy vivo and La caza,Tramuntana (Spain), Loquito por ti (Colombia) and Family Secrets and Sweet Revenge (Turkey), among others.

“There are series originally produced in Spanish (including Mexican and Argentinean series, as well as those from other countries), and also from non-Spanish-speaking markets, like the popular Turkish series,” says Villanueva. “As for original productions, they are under consideration, but we undoubtedly benefit from the SOMOS Group’s expertise in the production of films, series and other content.”

For Monkowski at Vrio, one of their main strengths is the content offering, where the exclusive DSPORTS and OnDIRECTV channels stand out, with the possibility of accessing them via streaming on DGO.

“DSPORTS and DGO broadcasted all 64 matches of the 2022 FIFA World Cup in Qatar,” she says. “All of the content was available on DGO. In addition, the streaming platform offered Dimensión Qatar, an exclusive section with tools to enrich the subscriber’s experience: up-to-the-minute information, stats, live results, VOD content and access to a multi-camera systems and interactive menu. OnDIRECTV offers series, documentaries, movies and live concerts, which can also be viewed on-demand via DGO.”

Monkowski says that last year they added DNEWS, a Latin American news feed for the region, to DIRECTV and DGO’s programming. She also highlights several documentaries, including Las hermanas de Diego, about soccer star Diego Maradona.

ROOM FOR GROWTH
This year, Prime Video’s Iacoviello highlights the development of local productions and originals that have been one of the company’s fixtures, as well as closing deals with important creators and producers, with Diego Boneta’s Three Amigos, Mauricio Leiva and Daniel Krauze among them.

“I think the next few years are going to be interesting for the industry,” Iacoviello says. “We will continue with the same vision. We are attentive to the market, but our focus remains the same: our customers, understanding them, building the best service, and then letting the customer choose us. Fortunately, Prime is a super solid membership, and we are very comfortable with the value proposition we are giving to the customer.”

Scalia at The Walt Disney Company Latin America comments: “Disney’s direct-to-consumer business is doing very well. During the company’s fourth quarter earnings call on November 8, 2022, our streaming services (Disney+, ESPN+ and Hulu) have reached a total of over 235 million subscribers worldwide. In Latin America, we look to continue growing steadily just as we have since the rollout of our products in the region—Disney+ in 2020 and Star+ in 2021—following the trend seen in the company’s latest global quarterly reports.”

“It’s difficult to look ahead five years and anticipate the dynamics of the industry,” comments SOMOS Next’s Villanueva. “However, considering recent events, we are proud of our growth in both subscribers and subscriber loyalty, coupled with a solid balance sheet. We benefited from home entertainment during the pandemic and this trend hasn’t changed. Regarding the windowing within the digital environment, we have a clear vision of FlixLatino’s long-term competitive advantages.