Pay TV: Adapting to Wallet-Share Volatility
|The good news is that in many parts of the region there is still a substantial population that does not subscribe to either traditional pay TV or online streaming.|
Satellite fleet operators continue to add capacity serving Latin America, telcos continue to invest in IPTV platforms, and the major groups continue to aspire to becoming ‘digital services’ providers rather than just telcos. Part of the ongoing ‘data explosion’ is the constantly expanding variety of content formats and supply methods, and pay TV does not escape this trend. Nevertheless, TV is a non-essential service, and one of the first to get hit when times are hard. So it is that in the current economic climate some of those providing traditional pay TV services have been experiencing serious churn. The other side of the coin is that broadband continues to grow, meaning broadcasters and content developers have a lot to gain by making their content available online. Not only does this lead to consumers ditching their pay TV subscription, to become cord-cutters, but this part of the world – with a growing, young middle class – is the perfect setting for ‘cord-nevers’, who are living independently for the first time and find they can satisfy all their entertainment needs with an internet connection alone. This report considers how these trends are playing out in Latin America and discusses the ways in which the sector could continue to evolve.
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