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LatAm OTT worth $1.84bn by 2018

Latin America’s VoD OTT services generated $509.2 million (€445m) in 2014, according to data published today by Dataxis. By 2018 this figure will grow by 262 per cent reaching $1.84 billion.

The information included in Dataxis’ new report “OTT in Latin America” includes combined VoD OTT services’ revenues – in its different variants (by subscription, by transaction and Download-To-Own) – in the region’s seven largest markets: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.

Dataxis identified 86 VoD OTT platforms in the markets analysed by the end of July 2015. Brazil and Mexico are the countries with the largest number of platforms, 29 and 17 respectively.

By 2018 VoD services by subscription (SVoD) will account for 66.5 per cent of total revenues; transactional platforms (TVoD) will represent 18 per cent and DTO services the remaining 15.5 per cent. Mexico and Brazil will still be Latam’s largest VoD OTT markets. According to Dataxis, Mexico will capture 43.9 per cent of total revenues and Brazil 33.4 per cent.

SVoD services recorded 6.5 million paid accounts in 2014. Netflix led the market with nearly 3.9 million paid accounts at the end of 2014. However, its regional market share has declined in recent years as a result of competition, especially with Claro Video, which has positioned itself as the second largest VoD OTT service in the region.

Dataxis believes that the SVoD OTT market will expand rapidly and by 2018 will record 19.8 million paid accounts in Latam’s seven main countries.

The transactional market will start gaining traction in the region, growing from 9.4 million transactions in 2014 to 129.5 million by 2018. As a result of this expansion, Dataxis projects that TVoD revenues will exceed those generated by the DTO market for the first time in 2018.

In turn, DTO services sold 11.6 million movies and series in 2014. Dataxis believes that this figure will rise to 35.7 million by 2018-end. However, DTO’s market share of total revenues will decline over the years as a result of lower unit prices and the competition with other OTT VoD services.

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