2013 Latin America - Digital Media and Pay TV Market

Publication Overview

This market report provides a comprehensive overview of convergence, pay TV, and digital media across Latin America and the Caribbean. The countries covered in this report include: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, Venezuela and the small Caribbean island nations.

Researcher:- Lucia Bibolini, Henry Lancaster
Current publication date:- March 2013 (11th Edition)

Executive Summary

Amidst the global downturn, Latin America’s pay TV market booms

Convergence and competition

In Latin America, convergence has become a popular solution not only for companies, as a way to attract more customers, but also for regulators, as a way to promote competition. In most countries, the incumbents continue to dominate the fixed-line sector, with Local Loop Unbundling being rare in this region and wholesale activity not very well developed. In the broadband sector, most incumbents have secured a virtual monopoly in the delivery of ADSL access, and the only meaningful competition is across technologies, from cable modem and mobile broadband services.

The concern many governments face is the shortage of fixed line infrastructure, tied to the fear that operators will cease to invest in their network if they are forced to unbundle their local loop or lower wholesale prices. Of course, telecom companies have done their best to encourage this fear.

Regulators hoped alternative operators would build their own infrastructure to reach unserviced areas, thus increasing teledensity. New entrants have usually used fixed-wireless technologies such as WiMAX to offer broadband, telephony, and sometimes pay TV services, but their market share has remained small.

Triple play

Cable TV companies, meanwhile, have jumped onto the bandwagon, flaunting their ability to offer both broadband and telephony over hybrid fibre-coaxial (HFC) or fibre optic networks, thus being able to increase the country’s teledensity and broadband penetration, and create a more competitive environment thanks to their triple play solutions.

The incumbents, for their part, not to be outdone by any competitor, have launched their own triple play services, sometimes by acquiring existing cable TV operators, and sometimes by resorting to satellite TV or IPTV technology.

Triple play models in Latin America normally combine voice (traditional fixed-line telephony or VoIP), broadband (ADSL, cable, wireless technologies, or satellite), and pay TV (cable or satellite TV). One of the consequences of triple play is the start of competition between cable TV and telecom operators. This is, of course, beneficial for customers, who have a greater choice between service providers. But in many countries, issues of market balance and fear of losing market share to competition have led to lengthy regulatory battles, involving cable TV companies, telecom operators, and regulatory authorities.

The result of these battles has normally favoured triple play, and this has led to an increase in the number of cable modem connections. Between 2001 and 2007, ADSL was gobbling up most of the broadband market, but since 2008, cable modem has been regaining some of its lost ground.

Cable TV

Although some companies still offer analogue cable TV services, digital cable is becoming the norm in Latin America. Endemic cable TV piracy has been a powerful driver for the move to digital cable. Besides providing advanced services, the digital platform enables providers to prevent signal theft, forcing households to become paying subscribers if they wish to continue viewing cable TV.

Satellite TV

Latin America’s satellite TV sector was dominated for many years by DirecTV/Sky TV. Since around 2006, however, fixed-line incumbents and other new market entrants have been launching Direct-to-Home (DTH) services in several countries. The increased competition has driven significant growth in the satellite TV market.

Pay TV market growth

Thus, thanks to the success of triple play and satellite TV competition, the Latin American pay TV market has been performing remarkably well, not even slowing down during the recent global credit crunch – unlike the economic slump of 2001/02, which brought cable TV to its knees throughout the region. In fact, in most Latin American countries, pay TV has become the fastest growing telecom sector after mobile broadband.

Online video viewing

Online video viewing is also showing remarkable growth. According to ComScore, in 2011 consumption of online video grew faster in Latin America than in any other region worldwide. Reportedly, Brazilians watched 4.7 billion online videos in 2011, up 74% year-on-year. Mexico came second, with 3 billion videos viewed. Argentina occupied a distant third place, with 1.5 billion videos, and Chile was fourth, with 1 billion. Predictably, online video viewing in Latin America is driven by the youth market, with 15-24 year-olds accounting for 28% and 25-34 year-olds accounting for 30% of all online video consumption. Despite these strong growth figures, however, Latin America still only represents 9% of global online video consumption – a long way behind the leader, Asia, with 41.3%.

Smart TV sales

Smart TV sales in the more advanced Latin American markets are expected to escalate in the near future, especially in Brazil, where the forthcoming FIFA World Cup and Olympic Games are expected to drive substantial growth in digital and smart television technologies.

Digital terrestrial TV

Most Latin American markets have deployed Digital terrestrial TV (DTT). In South America, the preferred standard is the Integrated System for Digital Broadcast, Terrestrial, Brazilian version (ISDB-Tb), based on Japan’s ISDB-T. All South American countries have adopted ISDB-Tb except for Colombia, which uses Europe’s Digital Video Broadcasting (DVB) standard. Mexico and Central America, instead, have chosen the US standard, developed by the Advanced Television Systems Committee (ATSC).

Market Highlights

  • Brazil has removed limits on foreign ownership in the cable TV sector and has given the green light to all telcos to provide pay TV anywhere in Brazil.
  • In the pay TV sector, Argentina is a world leader, with penetration in the major cities only slightly higher than in the rest of the country.
  • In Mexico, cable operators report lower churn due to triple-play services.
  • Despite delays in the deployment of DTTV, Brazil intends to complete the switchover from analogue to digital TV broadcasting in 2016.

Data in this report is the latest available at the time of preparation and may not be for the current year. 

Table of Contents

  • 1. Overview Latin American Digital Media and Pay TV Market
    • 1.1 Social networking
      • 1.1.1 Argentina
      • 1.1.2 Brazil
    • 1.2 Online gaming
      • 1.2.1 Argentina
      • 1.2.2 Brazil
    • 1.3 Broadband TV (IPTV)
      • 1.3.1 Argentina
      • 1.3.2 Brazil
      • 1.3.3 Chile
      • 1.3.4 Panama
  • 2. Argentina
    • 2.1 Digital economy
      • 2.1.1 E-government
      • 2.1.2 E-education
      • 2.1.3 E-commerce
      • 2.1.4 Online banking
    • 2.2 Digital media
    • 2.3 Broadcasting
      • 2.3.1 Pay TV overview
      • 2.3.2 Cable TV
      • 2.3.3 Satellite-based digital pay TV developments
      • 2.3.4 Digital terrestrial TV
  • 3. Belize
    • 3.1 Pay TV market overview
  • 4. Bolivia
    • 4.1 Media convergence
    • 4.2 Broadcasting overview
  • 5. Brazil
    • 5.1 Media convergence
      • 5.1.1 Overview of media convergence
      • 5.1.2 Broadband TV (IPTV)
    • 5.2 Digital economy
      • 5.2.1 E-commerce
      • 5.2.2 S-commerce
      • 5.2.3 E-government
      • 5.2.4 E-health
      • 5.2.5 E-learning
      • 5.2.6 Smart meters/smart grids
    • 5.3 Digital media
    • 5.4 Pay TV overview
      • 5.4.1 Pay TV statistics
    • 5.5 Regulatory issues
      • 5.5.1 Pay TV law
      • 5.5.2 Incumbentfixed-line telcos in the pay TV sector
      • 5.5.3 Foreign ownership regulations
    • 5.6 Pay TV players
      • 5.6.1 Net Serviços de Comunicação
      • 5.6.2 Sky Brasil
      • 5.6.3 Embratel
      • 5.6.4 Telefônica Brasil
      • 5.6.5 Oi TV
      • 5.6.6 CTBC TV
      • 5.6.7 GVT
    • 5.7 Cable TV
    • 5.8 Multichannel multipoint distribution systems (MMDS)
    • 5.9 Satellite-based digital pay TV developments
    • 5.10 Digital terrestrial TV (DTTV)
  • 6. Selected Caribbean Countries
    • 6.1 Bahamas
    • 6.2 British Virgin Islands
    • 6.3 Dominica
    • 6.4 Grenada
    • 6.5 St Kitts and Nevis
    • 6.6 St Vincent and the Grenadines
  • 7. Chile
    • 7.1 Media convergence
      • 7.1.1 Overview of media convergence
      • 7.1.2 Triple play models
      • 7.1.3 Broadband TV (IPTV and TVoIP)
    • 7.2 Digital economy
      • 7.2.1 E-government
      • 7.2.2 E-commerce
    • 7.3 Digital media
    • 7.4 Broadcasting
      • 7.4.1 Pay TV overview
      • 7.4.2 Major pay TV players
      • 7.4.3 Cable TV
      • 7.4.4 Satellite-based digital pay TV developments
      • 7.4.5 Digital terrestrial TV
  • 8. Colombia
    • 8.1 Media convergence
      • 8.1.1 Triple play models
    • 8.2 Digital economy
      • 8.2.1 E-commerce
    • 8.3 Broadcasting
      • 8.3.1 Market overview
      • 8.3.2 Cable TV
      • 8.3.3 Satellite TV
      • 8.3.4 Broadband TV (IPTV)
      • 8.3.5 Digital terrestrial TV
  • 9. Costa Rica
    • 9.1 Digital Media
      • 9.1.1 Overview
      • 9.1.2 IPTV (Broadband TV)
    • 9.2 Broadcasting
      • 9.2.1 Cable TV
      • 9.2.2 Satellite-based digital pay TV developments
      • 9.2.3 Digital Terrestrial TV (DTTV)
  • 10. Dominican Republic
    • 10.1 Digital Media
      • 10.1.1 Overview
      • 10.1.2 Digital switchover
      • 10.1.3 Pay TV
      • 10.1.4 IPTV
  • 11. Ecuador
    • 11.1 Media convergence
    • 11.2 Broadcasting
      • 11.2.1 Pay TV overview
  • 12. El Salvador
    • 12.1 Digital media
      • 12.1.1 Overview of media convergence
    • 12.2 Broadcasting
      • 12.2.1 Pay TV overview
      • 12.2.2 Cable TV
      • 12.2.3 Satellite-based digital pay TV developments
      • 12.2.4 Digital terrestrial TV
  • 13. Guatemala
    • 13.1 Broadcasting
      • 13.1.1 Cable TV
      • 13.1.2 Satellite-based digital pay TV developments
  • 14. Haiti
    • 14.1 Digital media
      • 14.1.1 Overview
      • 14.1.2 Cable TV (CATV)
      • 14.1.3 Satellite TV
  • 15. Honduras
    • 15.1 Digital Media
      • 15.1.1 Media convergence
      • 15.1.2 Cable TV
      • 15.1.3 Satellite-based digital pay TV developments
      • 15.1.4 Digital terrestrial TV
  • 16. Jamaica
    • 16.1 Cable TV (CATV)
      • 16.1.1 Market overview
      • 16.1.2 Flow
    • 16.2 Digital Terrestrial TV (DTTV)
  • 17. Mexico
    • 17.1 Digital TV broadcasting
      • 17.1.1 Overview
      • 17.1.2 Cable TV (CATV)
      • 17.1.3 Video-on-Demand (VoD)
      • 17.1.4 Direct-to-Home (DTH) Satellite TV
      • 17.1.5 Pay TV statistics
      • 17.1.6 Digital Terrestrial TV (DTTV)
      • 17.1.7 Other developments
    • 17.2 Triple play and VoIP developments
  • 18. Nicaragua
    • 18.1 Broadcasting
      • 18.1.1 Pay TV
  • 19. Panama
    • 19.1 Media convergence
      • 19.1.1 Triple-play models
      • 19.1.2 IPTV (Broadband TV)
    • 19.2 Broadcasting
      • 19.2.1 Cable TV
      • 19.2.2 Satellite-based digital pay TV developments
      • 19.2.3 Digital Terrestrial TV (DTTV)
  • 20. Paraguay
    • 20.1 Convergence
    • 20.2 Broadcasting
      • 20.2.1 Pay TV
      • 20.2.2 Digital terrestrial TV
  • 21. Peru
    • 21.1 Media convergence
    • 21.2 E-commerce
    • 21.3 Broadcasting
      • 21.3.1 Pay TV overview
      • 21.3.2 Cable TV
      • 21.3.3 Satellite-based digital pay TV developments
      • 21.3.4 Digital Terrestrial TV (DTTV)
  • 22. Puerto Rico
    • 22.1 Digital Media
      • 22.1.1 Overview
  • 23. Uruguay
    • 23.1 Media convergence
    • 23.2 Broadcasting
      • 23.2.1 Pay TV overview
      • 23.2.2 Pay-TV statistics
  • 24. Venezuela
    • 24.1 Media convergence
      • 24.1.1 Triple play
      • 24.1.2 Broadband TV (IPTV)
    • 24.2 Digital economy
      • 24.2.1 E-commerce
    • 24.3 Digital media
      • 24.3.1 Social networks
    • 24.4 Broadcasting
      • 24.4.1 Pay TV overview
      • 24.4.2 Cable TV
      • 24.4.3 Satellite-based digital pay TV developments
      • 24.4.4 Digital terrestrial TV
      • Table 1 – Facebook users – top 7 countries in Latin America – 2011 - 2012
      • Table 2 – Argentina – B2C e-commerce spending – 2005 - 2013
      • Table 3 – Facebook users and penetration – 2008 - 2011
      • Table 4 – Pay TV (cable and satellite) subscribers and penetration rates – 1999 - 2012
      • Table 5 – Pay TV operators’ market share – 2011
      • Table 6 – Cablevisióncable TV subscribers – 2000 - 2012
      • Table 7 – Brazil – B2C e-commerce spending – 2005 - 2013
      • Table 8 – Pay TV operators by technology – 2012
      • Table 9 – Pay TV subscribers and penetration – 1999 - 2012
      • Table 10 – Pay TV market share by technology – 2000 - 2012
      • Table 11 – Pay TV operators – market share – 2000 - 2012
      • Table 12 – Net Serviços – payTV subscribers – 2000 - 2012
      • Table 13 – Cable TV subscribers and penetration – 1998 - 2012
      • Table 14 – MMDS subscribers and penetration – 1998 - 2012
      • Table 15 – DTH subscribers and penetration – 1998 - 2012
      • Table 16 – Volume of e-commerce – 2001 - 2012
      • Table 17 – Pay TV subscribers and penetration – 2006 - 2012
      • Table 18 – Pay TV technologies – market share – 2006 - 2012
      • Table 19 – Pay TV operators – market share – 2006 - 2012
      • Table 20 – VTR – pay TV subscribers by technology – 2000 - 2012
      • Table 21 – Movistar – satellite TV subscribers – 2006 - 2012
      • Table 22 – Claro – pay TV subscribers – 2006 - 2012
      • Table 23 – Cable TV subscribers and penetration rates – 1995 - 2012
      • Table 24 – Colombia – B2C e-commerce spending – 2005 - 2013
      • Table 25 – Cable TV subscribers and penetration rates – 2000-2012
      • Table 26 – Major cable-TV providers – marketshare – 2005 - 2011
      • Table 27 – Satellite TV subscribers and penetration rates – 2000 - 2012
      • Table 28 – Satellite TV operators’ market share – 2004 - 2011
      • Table 29 – Pay TV subscribers – 2008 - 2012
      • Table 30 – Pay TV subscribers and penetration – 2004 - 2012
      • Table 31 – Pay TV technology market share – 2004 - 2012
      • Table 32 – Pay TV subscribers and penetration rates – 2003 - 2012
      • Table 33 – Cable TV subscribers – 1998 - 2013
      • Table 34 – Megacable TV subscribers – 2010 - 2012
      • Table 35 – Satellite TV subscribers – 1998 - 2013
      • Table 36 – Pay TV subscribers by technology, annual change and penetration rate – 1998 - 2012
      • Table 37 – Cable VoIP subscribers of major providers – 2006 - 2011
      • Table 38 – C&W – +TV Digital subscribers and homes passed – 2009 - 2011
      • Table 39 – Peru – B2C e-commerce spending – 2005 - 2013
      • Table 40 – Pay TV subscribers and penetration rates – 1998 - 2012
      • Table 41 – Pay TV operators’ market share – 2002 - 2012
      • Table 42 – Cable TV subscribers and penetration – 1997 – 2013
      • Table 43 – Liberty Cablevision subscribers – 2010 – 2012
      • Table 44 – Pay-TV subscribers and penetration rates – 2001 - 2012
      • Table 45 – Pay-TV operators’ market share – 2009- 2012
      • Table 46 – Venezuela – B2C e-commerce spending – 2005 - 2013
      • Table 47 – Facebook users and penetration – 2008 - 2012
      • Table 48 – Pay TV subscribers and penetration rates – 1997 - 2012
      • Table 49 – Major pay TV providers – market share – 2010 - 2012
      • Chart 1 – Evolution of pay TV in Argentina – 2000 - 2012
      • Chart 2 – Pay TV operators’ market share at a glance– 2011
      • Chart 3 – Evolution of pay TV in Brazil – 1998 - 2012
      • Chart 4 – Pay TV technologies at a glance – 1998 - 2012
      • Chart 5 – Pay TV operators’ market share at a glance – 2011
      • Chart 6 – Pay TV technologies – market share at a glance – 2006 - 2012
      • Chart 7 – Pay TV operators’ market share at a glance – 2012
      • Chart 8 – Evolution of cable TV in Chile – 2003 - 2012
      • Chart 9 – Pay TV subscribers and household penetration – 2003 – 2012
      • Chart 10 – Pay TV market share at a glance – 2009 - 2012
      • Chart 11 – Cable TV subscribers and penetration – 2003 – 2013
      • Chart 12 – Pay TV operators’ market share at a glance – June 2012
      • Chart 13 – Pay TV market share at a glance – 2012 (Mar)
      • Exhibit 1 – Net Serviços de Comunicação at a glance
      • Exhibit 2 – Amnet – historical

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Annual Publication Profile

Technologies

Broadcasting
Digital Media
Strategies & Analyses (Industry & Markets)
Telecoms Infrastructure

Number of pages 100

Status Archived

Last updated 13 Mar 2013
Update History

Analyst: Henry Lancaster

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