Pay TV in Latin America: is super-aggregation the way forward ?

In Chile, Claro VTR recently presented an unprecedented offer: starting March 1, its clients will have access to eight streaming platforms without an additional cost: Max (that launched in Latin America at the end of February), Prime Video, Universal+, Mega Go, Atresplayer, Cindie, Edye and Rivii. The firm presents a second alternative: in exchange for an extra $3,0, it will allow access to Disney+ , Star+ and Paramount+. Subscribing to the eight platforms’ basic plans separately would cost $35, while subscribing to the 11 separately would cost $50. Claro-VTR in Chile is showing how the super-aggregator role continues to expand and becomes a strategic shift for traditional Pay TV operators, and how a hard-bundle can become a joint go-to-market proposition. Cable operators and streaming platforms, previously perceived as competitors, now collaborate and join forces in search of strengthening their positions in the market, also allowing OTT players to reach more households and benefit from billing partnerships with Telcos. For OTT platforms whose costs have risen sharply with content investments and operational costs, the profitability of this strategy is questionable. Diversifying their content offers is now a necessity for Pay TV operators, as the video market keeps evolving towards streaming and as operators try to differentiate themselves without betting on their own content. How has the Pay TV market evolved in 2023 in Latin America and what are the main trends to expect for 2024 and beyond? Mexico consolidates its leading position on the declining Pay TV Latin American market Mexico has solidified its position as the largest Pay TV market in Latin America since it surpassed Brazil in 2016. This dominance is now reflected not only in subscriber numbers but also in revenue generation, with Mexico's global market estimated at USD $3.2 billion in 2023, overtaking Brazil's USD $2.9 billion for the first time. However this is virtually explicated by a two-faced phenomenon: on one side, the 15% Year-on-Year soar of the Mexican Peso against the US dollar, and on the other side, various Mexican Pay TV operators increasing their prices in 2023 such as Megacable. Indeed, with Pay TV ARPU levels being historically lower in Mexico than in its neighbouring Latin American countries including Brazil (Netflix averaging the same ARPU as Pay TV operators in Mexico), operators still had room to increase their prices and margin. Despite Brazil's larger population and TV household count, Mexico still boasts a significantly higher penetration rate, indicative of its strong market presence.  Brazil experienced a notable decline, shedding over 2 million subscribers in 2 years, primarily driven by sharp decreases in Cable and DTH services. Conversely, other countries managed to maintain relative stability or experienced lighter declines. However, the entire region witnessed significant...