Increased demand for value-added services, including high-definition and video on demand, is helping to drive the Latin American pay-TV market, new research says.
The number of subscribers in the region are expected to exceed 86 million by 2019, a 54% increase from 56 million in 2013, said Frost & Sullivan, hitting a household penetration rate of just less than 60% for all forms of pay-TV service delivery.
In terms of revenue, Frost & Sullivan said it expects the market to generate $30.9 billion in 2019, forecast growth of 51% from $20.4 billion in 2013.
The researcher said it expects Latin American operators to expand their lineups of HD channels and content at affordable prices.
“While some companies have already packed their portfolios with HD channels, others are speeding up the transition from standard-definition to HD to boost incremental revenues per user,” said Frost & Sullivan’s Renato Pasquini.
But, over-the-top services are expected to see strong growth as well, taking market share from pa TV and siphoning away some potential profits.
IPTV and cable TV providers likely will enhance VOD offerings though set-top boxes to push back, resulting in better services and lower price points for consumers in the region, especially in Brazil, Chile, Colombia and Mexico, said Pasquini.
And, just as operators in the United States have looked to bundled services as a way to lower service costs and improve customer loyalty and reduce churn, LatAm service providers will head along the same path, bundling voice, data, video and mobile services.