Amagi Report: Brazil, Mexico outpace US in CTV adoption
August 17, 2023
Amagi, a global leader in cloud-based SaaS technology for broadcast and connected TV (CTV), has announced that the eighth edition of its Quarterly Global FAST Report revealed a surge in CTV adoption rates across Brazil and Mexico, indicating a 94 per cent growth in CTV penetration in Brazil and a closely following 93 per cent in Mexico from Q1 2022 to Q1 2023.
Notably, both countries have outpaced the most mature Free Ad-supported Streaming TV (FAST) market globally, the US, which registered an 80.6 per cent adoption rate. With affordability, accessibility, and a diverse range of content options driving adoption, the LatAm region is witnessing sustained growth in the FAST sector — making it an attractive investment opportunity for broadcasters and platforms.
The report compares a wealth of data from Q1 2022 to Q1 2023, providing an overview of the evolving trends within the LatAm FAST market.
The survey encompassed approximately 800 households in Brazil and Mexico, representing diverse socio-economic backgrounds, with participants meeting the criterion of having watched TV at least once in the previous week.
Key Highlights from the Report:
- Affordability and Accessibility Drive FAST Adoption: The primary factors contributing to the rising popularity of FAST in LatAm are affordability and better accessibility. A study by Magnite reveals that 71 per cent of current pay-TV customers in LatAm are willing to switch to ad-based streaming models, while Comscore and IAB Argentina report a massive surge in CTV adoption rates, making FAST content more accessible to viewers.
- Remarkable Growth in HOV and Ad Impressions: The report highlights significant YoY growth in ad impressions (150 per cent), channel deliveries (45 per cent), and hours of viewing (HOV) (7 per cent) in the LatAm region. Notably, Peru (1,829 per cent), Chile (948 per cent), and Argentina (405 per cent) lead in HOV growth, while Argentina (657 per cent) and Peru (551 per cent) dominate ad impressions.
- Variety of Genres: LatAm audiences are showing a strong preference for a variety of content options. Music emerges as the favorite genre, experiencing an 88 per cent increase in HOV and a 70 per cent increase in channel deliveries.
- CTV Adoption and FAST Progression: Brazil and Mexico exhibit high CTV adoption rates (94 per cent and 93 per cent respectively) compared to the mature US market (80.6 per cent). Although SVoD remains popular, a steady increase in FAST adoption is observed in Brazil and Mexico.
- Economic Downturn Strategies: When faced with an economic downturn, Brazilian and Mexican households prioritise giving up TV subscriptions (34-43 per cent) but show a positive inclination toward transitioning to FAST (24 per cent in Brazil, 23 per cent in Mexico).
- Preferred Genres: General entertainment channels top the list of favourite genres among Brazilian (47 per cent), Mexican (53 per cent), and US (52 per cent) audiences, surpassing thematic channels, show-specific channels, and specialised news, sports, or weather.
“Latin America is experiencing a remarkable transformation in its media landscape, with FAST leading the charge. As affordability and accessibility become key drivers, Brazil and Mexico emerge as vibrant hubs for FAST adoption,” said Baskar Subramanian, CEO and co-founder of Amagi. “The data speaks volumes, showcasing the rising influence of CTVs, diverse genre preferences, and a steady progression toward FAST. Amagi is proud to be at the forefront of this transformation, empowering broadcasters and platforms to deliver captivating content to audiences across LatAm.”