In 2023, the commercial video market in the Latam region generated revenues of $33.8 billion, representing a 4.4% increase compared to the previous year. The segment continues its expansion process, and in 2023 managed to surpass the volume of revenues of 2019, going back to its pre-pandemic level. Linear TV is still the largest source of revenue in the video world, even though OTT services are driving growth. According to Dataxis' analysis, linear TV, pay TV, and streaming will maintain their leadership positions until 2029. Netflix, with its pure OTT model, captured 13% of revenues and is the holding company that dominates the activity. Revenues from OTT services accounted for 31% of the video business The specific weight of streaming services has tripled since 2019. OTT has been developing at a rapid pace through the subscription model, which accounted for 90% of the revenues in 2023. Competition in this segment is concentrated in a handful of players of international scale, which have gradually increased their prices since the end of 2022. Paradoxically, this price increase has allowed the development of a lower-cost offer that includes advertising (ad tiers), which will drive the expansion of the user base. In Latam, the development of the ad-based OTT model has been slower and its contribution should be around 10% of total revenues this year. Dataxis estimates that by 2029, OTT will account for 47.5% of total revenue generated by commercial video. While this is very rapid progress, linear options will still dominate. Although pay TV is expected to experience a significant decline, it will still capture 51% of the market’s revenues in 2023. Activity has declined due to a steady decrease in the number of subscribers, explained by several factors, including both new forms of consumption by users and operators' disinterest in maintaining their investments in the industry. Most of the new broadband entrants, dozens of players, do not have TV options, a business that is of no interest to them and that some wholesale options are trying to provide with relative success. The decline in the subscriber base has dragged down a number of other variables, such as subscription revenues, advertising and affiliate revenues that the networks collect. FTA TV advertising revenues remained at a relatively stable level, but still far from the pre-pandemic records. Since 2022, digital options have displaced it as the largest advertising vehicle. With some exceptions, the presence of FTA channels in the digital world is quite limited, via YouTube channels and excerpts for social networks. The growth rate of digital options is high in all markets in the region. However, some markets have moved ahead at a faster pace. The differences are related to the level of...
