Overview

This report has been entitled “vides Streaming offer in Latin America, 2011-2016”. The following seven main Latin American markets have been included in the study: Argentina, Brazil, Chile, Colombia, Mexico Peru and Venezuela.

The report is made up of three chapters: Broadband and Pay-TV Evolution, On LineVideo Consumption Parameters and Video Streaming Offer Ecosystem. The so-called “Broadband and Pay-TV Evolution” chapter offers historical development figures and forecasts for each two services at a regional level. The chapter also includes information about the evolution of fixed and mobile (only Dongles) accesses, Connected Households, Households subscribed to Pay-TV services and penetration rates per Connected Household and Households subscribed to Pay-TV services. The evolution and development forecasts of both Broadband and Pay-TV account for two reference elements when analyzing development perspectives of Video Streaming options. Regional figures have been included in this chapter. Historical figures have been gathered from Dataxis’ Database. Forecasts may vary regarding those available in Dataxis’ Database since such figures are revised on a regular basis. The number of Connected Households accounts for a prepared indicator for this report.

Accordingly, the chapter entitled On Line Video Consumption Parameters analyzes the number of Internet viewers in Latin America, the percentage of those viewers who consume On Line Video and some indicators regarding such consumption (Number of videos and hours; total figures and per consumer). Internet Viewers and On Line Consumption calculations serve as parameters to understand Streaming Service Consumption proneness. Regional figures included in this chapter have been estimated for this report according to information disclosed by public sources and own methods.

The third chapter, Video Streaming Offer Ecosystem, analyzes two Streaming alternatives, according to their financing sources: On Line Video Financed through Advertising and On Line Video Financed through Users’ Payments. In the first case, a calculation of the total Advertising Investment in Latin America and the amount of the Advertising Investment assigned to On Line Video has been included. This chapter offers regional figures, drawn up for this report according to information disclosed by public sources and own methods. As for options that assume users’ payments, three models have been identified: VoD-focused OTTs, TV Everywhere focused on Pay-TV Operators and Tv Everywhere focused on Content Providers. As for OTTs, this chapter includes the profiles of 16 companies and total income forecast – in addition to income through subscription and monthly fees – and VoD-authorized accounts. Regional figures included in this chapter have been estimated for this report according to information.

Overview

Although in Western Europe, the vast majority of  TV sets are now HD, it is only recently that free to air HD programs have become widely available. A few years ago, only some premium pay TV channels were also available in HD, making HD an unattractive proposition. This report analyses

Dataxis has identified hundreds of free to air TV channels in the major countries of Western Europe (Norway, Sweden, Finland, Denmark, Netherlands, Belgium, Germany, Austria, Switzerland, UK, Ireland, France, Spain, Portugal, Italy and Greece). This is a revolution because HD is now a “must have” and the issue only when missing HD FTA channels will migrate and most importantly, how to get access to them.

Like Analog Switch Off was planed years in advance, an SD Switch off (SDSO) should also exist.

In this report, we will first describe the state of free to air HDTV in each Western European country.  We will then forecast the number of channels that we believe will turn to HD before the end of 2015.

There are several key issues of related to the transition to free to air HD.  This report will analyze some of them, in particular the impact of the transition on the all type of access operators.

Overview

This report also offers an Excel file that includes further figure detail per country. The following are the countries included in this report: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panamá, Paraguay, Peru, Dominican Republic, Uruguay and Venezuela.

55 Pay-TV operators relying on HD offers have been considered as a whole. HD subscriber figures have been gathered from Dataxis’ database. The survey of the 117 HD Channels – 80 Pay-TV and 37 FTA channels – was carried out based on public information offered by analyzed Pay-TV Operators.

Dataxis considers each channel as a single HD Channel. Such criterion was kept in the only case in which two broadcasting stations share the same channel –Fox and Nat Geo. Both News Corp.’s – since not in all cases they were offered under such modality. All Pay-TV Operators have been assigned the Channel where they are present and the universe of potential subscribers that such presence entails; both at a local and regional level. In turn, the Gender and Content Provider for each HD analyzed Channel have also been identified.

Overview

Dataxis estimated that the installed base of TVs with 3D capabilities in Latin America will total 14.7 million by 2016, a figure close to 10% of total digital televisions in use. It is also expected that 71% of these equipments are stationed in Brazil and Mexico. Since 2010, major manufacturers have developed their 3D offerings in the region and annual sales of 3D TVs are projected to continue their positive trend to over 4 million in 2016.

In October 2011, five manufacturers of technology offer in the region more than 60 different 3D TV models, most with LED and LCD screens. Samsung leads in this segment with an offer of 135 different screens, whereas models and sizes. In 2011 the supply 3D TV is heavily focused on large dimensions TVs, with over 70% of equipments with screens of 46”and above.

Dataxis notes that migration to 3D technology is attractive for equipment manufacturers, but not for content producers who are still reluctant to take part in an expensive business and uncertain return. Thus, the experimental status of content development, the concentration of available technology in high-end equipment, coupled with the need to purchase additional accessories restrict the widespread use of that option.

Overview:

Dataxis considers that Latin America will record a total of 13 million Households with Digital Terrestrial TV (DTT) by 2011 end; that is, about the 10% of Households with TV set in the region. Since 2010, DTT adoption has been accelerated in Latin America and such trend is expected to continue along time and to reach a total of 46 million Households by 2016 end; that is, about a 33% of total Households with TV set in the region. Therefore, in the medium term, DTT would account for the main TV reception option in Latin America.

Brazil will be the country recording the greatest Household-with-DTT rates in Latin America; about the 60% over the whole period. Mexico will be the second main market with the 30.8% in 2011 and a 19.8% in 2016. It is important to bear in mind that both countries concentrate most TV sets in the region, thus its relative weight. When analyzing DTT evolution over Households with Free-To-Air Reception, by 2016, DTT will account for the most popular TV reception option in a good number of the analyzed countries: Argentina, Brazil Chile and Mexico.

The Latin American FTA TV market’s main income source is raised from advertising. Although in all analyzed countries FTA TV absorbs most of the advertising investment, percentages vary in each country according to the competition between FTA broadcasting stations and the weight f other communication media. In 2010, FTA TV income from advertising of the 7 analyzed countries amounted to a total of USD 15,147.85 billion. Brazil was, by far, the country recording the greatest incomes – both due to FTA TV weight and the Real greatest relative value – and provided the 62.1% of the total.

Overview:

DVR was one of the first available tools to segment Pay-TV subscriber base within a Digital-like alternative competition environment. Although Pay-TV Operators introduced the first DVR Boxes in 2005, the service reached certain subscriber volume in 2008; basically, as a result of the accumulation of new Operators. Nevertheless, during such period, only DirecTV presented DVR as a differentiating element; especially in its Panamericana platform. In 2009, DVR growth pace was triggered in the whole region, simultaneously Digital offer maturity and HD content availability, which enabled the creation of new Pay-TV client and service categories.

As of 3Q11, there were 38 Pay-TV Operators who relied on active DVR Box offers in the seven main Latin American countries: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. Although DVR Operators universe accounts for just a small portion of Pay-TV Operators – including those with Digital services -, they concentrate the greatest subscriber percentage.

Overview:

In the United States, TV Everywhere (TVE) is a Pay-TV subscriber’s Identification Authentication process aimed at authorizing such subscriber to have access to certain “on line” content from different types of devices; which could also include out-of-home access. In other words, TVE in the United States only allows Pay-TV subscribers to have access to “on line” content and in turn, the variety of Content to be consumed according to the type of subscription the client relies on. TVE’s greatest ambition is to replicate traditional Internet Pay-TV offer, thus TVE’s main contents are Pay-TV channels.

In the United States, “On line” Video offers were encouraged by Free-To-Air (FTA) TV stations by loading recently broadcasted content in the Internet at no additional cost. The objective was to widen FTA TV traditional income model boundaries historically supported by advertising. This imperative generated stimuli to support any initiative to increase its product consumer potential.

In contrast, Video content for Pay-TV were included that easily in the “on line” offer; either OTT or TVE. In face of the advancement of Video consumption through Streaming, Pay-TV Content Providers were in a difficult position. Those companies raise incomes through an equation tied to the number of Pay-TV subscribers and, eventually, Advertising. Although this formula can be adapted to the “on line” world, advancement in that field assumes certain frictions in the relationship with Pay-TV Providers; its main clients. The thing is that given Pay-TV content access potential, OTTs will actually appear as equivalent replacements to traditional Pay-TV operators.

Overview:

This Report, entitled “Pay-TV in Latin America: Cable, DTH and IPTV. 2011-2016”, has been drawn up in June 2011. It analyzes the legal Pay-TV market in the seven main Latin American markets: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. The 2006-to-2016 period has been analyzed.

According to Dataxis analysis, Pay-TV market in the main 7 Latin American markets will record 67,25 million Subscribers in 2016. Such figure will account for a 48.1% penetration rate over total Households with TV set; more than three times rates recorded in 2006. Brazil, Mexico and Colombia seemed to be countries with the greatest evolution perspectives by 2016, due to its lower relative development rates. In turn, in the medium term, such three countries in addition to Argentina will be the four biggest Pay-TV markets in terms of client volumes. Such four markets would record an 87.4% of subscribers in 2016.

By 2016, the 90% of Pay-TV subscribers in the region was expected to be subscribed to some Digital alternative. Dataxis estimated that DTH would account for the greatest growth alternative in the region and that in 2016 it would concentrate a little more than half Subscribers. Dataxis identified Digital Cable as the second option of the
market in terms of Subscriber concentration in 2016; that is almost the 30% of the total. Dataxis highlighted that IPTV would record up to the 7% of Subscribers and that 2011 should account for a deployment year for the region.

Dataxis considered that between 2006 and 2010, a strong business concentration had been recorded. In 2010, the main 10 Pay-TV Groups of the region recorded the 73.7% of subscribers; 10.5 additional points as compared with 2006. In turn, the two Groups recording the greatest growth rates over such analyzed period had been DirecTV and América Móvil; number one and two respectively by Subscriber number.

Overview:

While most leading TV manufacturers are betting on 3D to become a key differentiator, in a market where severe price competition continues to undermine profits, most content providers and pay TV operators remain reluctant to invest in 3D. This situation has so far created a significant content gap.

This lack of content, along with the high price of 3D TVs, the necessity of wearing adequate glasses and the suspected health risks associated with the use of 3D, has resulted in modest 3D TV sales in 2010. Around 4 million 3D TV sets were sold in the world in 2010. In other words, 1.5% of global television sales were 3D. Each of the U.S. and Europe accounted for 30% of worldwide 3D TV sales.

For some, this sluggish start might well continue in the coming years. For others, with many TV manufacturers enhancing their offers, and with the recent launch of new 3D content, 3D might soon offer a different value proposition that could probably succeed in attracting large audiences.

Dataxis offers two separate 3D TV reports: the U.S. and Western Europe. The reports analyze the 3D TV experience and the initiatives taken by players within the two 3D TV ecosystems. The reports also explain the drivers and inhibitors of the 3D market and provide quantitative forecasts and conclusions about the evolution of 3D TV in both regions.

Overview:

While most leading TV manufacturers are betting on 3D to become a key differentiator, in a market where severe price competition continues to undermine profits, most content providers and pay TV operators remain reluctant to invest in 3D. This situation has so far created a significant content gap.

This lack of content, along with the high price of 3D TVs, the necessity of wearing adequate glasses and the suspected health risks associated with the use of 3D, has resulted in modest 3D TV sales in 2010. Around 4 million 3D TV sets were sold in the world in 2010. In other words, 1.5% of global television sales were 3D. Each of the U.S. and Europe accounted for 30% of worldwide 3D TV sales.

For some, this sluggish start might well continue in the coming years. For others, with many TV manufacturers enhancing their offers, and with the recent launch of new 3D content, 3D might soon offer a different value proposition that could probably succeed in attracting large audiences.

Dataxis offers two separate 3D TV reports: the U.S. and Western Europe. The reports analyze the 3D TV experience and the initiatives taken by players within the two 3D TV ecosystems. The reports also explain the drivers and inhibitors of the 3D market and provide quantitative forecasts and conclusions about the evolution of 3D TV in both regions.