DirecTV Latin America dreams of being the new broadband giant 

DirecTV Latin America is changing its face at an accelerated pace. For some time now, its new products no longer carry the DirecTV name to go with the company’s strategic evolution. Notably its migration from satellite TV to OTT with brands DGO and Sky+ in Brazil. Since 2023, it has accelerated its entry into the broadband market, a historical deficiency of the company and a key factor to boost  OTT subscriptions. DirecTV competes in broadband in an original way: it has almost no fiber optic network of its own. It leases last-mile access from several carriers in the region. Although it only counts a handful of customers at Q1 2024, its potential rose to more than 42.3 million homes in 6 countries in just a few months. This is a huge fiber footprint, at the same level as América Móvil or Telefónica, and marks the size of its ambition. Dataxis forecasts that DirecTV could reach 5 million fiber customers in the next 5 years. DirecTV arrived in Latin America in 1994, and since then has gone through a merger with Sky Latin America, a bankruptcy (in which it divested itself of its local partners), and several changes in shareholders: Hughes, NewCorp, AT&T and Werthein. Although each owner put its stamp on the company, its focus remained the same through 2021. DirecTV used to focus on high-quality pay TV with exclusive sports content and was at the forefront of technological innovation. It was only with the arrival of the Werthein family that this logic changed, as the regional business was separated from the United States. This independence was not the only factor that made it possible to accelerate a new course. Since 2016, the satellite television business, DTH, has evaporated very quickly in Latam, losing 16.2 million accesses in total.  DirecTV no longer wants to be DirecTV  The DirecTV name is gradually disappearing from the company's communications, replaced by the DGO and DFibra brands, or Sky+ / Sky Fibra in Brazil. There may be a question of royalties on the brand, but the new names reinforce a change in direction. Although DirecTV Latin America is the last major bastion of DTH in the region, it is a collapsing business. DTH lost its magnitude or several reasons: it is no longer attractive to bundle with terrestrial broadband networks, satellite capacity and high-end set-top boxes have become expensive because they are denominated in dollars in a context of ARPU decline, and in, some countries, traditional TV does not have the tax advantages that digital services enjoy.  In this context, DGO / Sky+ serves a triple function for DirecTV. They are a TV Everywhere option for DTH customers, an added value to keep them...

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