First spotted as a growing trend in the US, over two in ten Latin Americans are now cutting the cord, with 12% abandoning pay-TV for an over-the-top (OTT) video platform and 9% not subscribing to any traditional service but choosing a Netflix-like one.
These figures are from the latest regional report from Business Bureau, which sheds light on a hard-to-measure behaviour. "This report is only focused on OTT, video-on-demand (VOD) and TV everywhere markets, and includes 30,000 direct surveys in Latin America and updates every semester," explained Tomás Gennari, chief business intelligence officer at Business Bureau.
But these pan-regional figures mask the local figures which point to how rife cord-cutting is becoming. According to a recent report of The Competitive Intelligence Unit, OTT users have grown by 50% in Mexico during the last year, and nearly 35% of OTT subs have decided to stop paying for a pay-TV service.
"Looking to the Mexican and Brazilian markets, we can determine cord-cutting and cord-nevering are speeding up, especially regarding millennials, the age group between 15-24, in which cord-cutting is around 22%," said Tomás Ruiz Guiñazo, data analyst at Business Bureau.
In addition the report shows there is a strong link between homes with Internet and homes with pay-TV, as almost 80% of homes connected to the Internet pay for a premium TV package in Latin America.