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Hot Topic—Over-the-top Video Services Market in Latin America : OTT Market Revenue in LATAM to Reach $783 million in 2018, Slightly Affecting Pay TV Revenues

  • November 2014
  • 51 pages
  • Frost & Sullivan
Report ID: 2488504

Summary

Table of Contents

Key Findings

•The over-the-top (OTT) services industry is still in an initial phase in Latin America. However, some consumers have begun to downgrade their plans or even cancel them entirely, by replacing or complementing them with an OTT service.
•One of the key drivers for the OTT market is the growing demand for access to entertainment at any time and on any device selected by the viewer.
•The personal computer remains the device that Latin American viewers most use to watch online content, although smartphones and tablets are very close to reaching the same level.
•Market participants such as TIM Fiber in Brazil, are anticipating the OTT services trend and engaging new kinds of viewers.
•The OTT services market is expected to reach xxmillion subscribers in 2018, thus having an impact of $xx million in the pay TV services market that year.

Objectives

•To provide sizing information on the users and revenue of the over-the-top (OTT) video services market
•To highlight consumer preferences inside this segment
•To provide benchmarking on the competitive landscape
•To provide insights of future trends and business models for the short term

Scope

•Geographic coverage: Latin America (Argentina, Brazil, Colombia, Chile, and Mexico)
•Forecast period: 2014–2018
•Base year: 2013
•Monetary unit: US dollars
The Latin American OTT services end-user survey within this study is an initiative to examine the adoption of OTT services from end-user perspectives, and the impact on pay TV services.
The analysis included is an independent, unbiased view of developments in the OTT video services market.

Survey Objectives

•To provide an understanding of the OTT services market from an end-user perspective
•To analyze the trends, expectations, and apprehensions in the OTT services market (the survey is not statistically relevant)

Primary Research

•This was a Web-based survey with xx respondents who were either pay TV or OTT service users, or both.
•The sample used for this research was the result of a sampling confidence level of xx% and an error margin of xx%.

OTT and Pay TV Subscribers

•Subscriber Forecast: These estimates were calculated based on the results from the survey (number of users that owned both OTT and pay TV services), as xx% of the total estimated OTT service subscribers.

OTT (New Users and Cord-Cutting) Revenue

•Revenue Forecast: These estimates were calculated based on the results from the survey (percentage of cord-cutting users and the average amount paid for OTT services).

OTT and Pay TV Revenue

•Revenue Forecast: These estimates were calculated based on the results from the survey (percentage of users who migrated to basic plans, and the average amount saved from that transition).

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