Lack of broadband access, purchasing power paves Chivas’ OTT failure | OTT | News | Rapid TV News
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While most of live programming hadn’t gone over-the-top (OTT) in Mexico, Chivas is pioneering stand-alone football streaming, aimed at low broadband access and purchasing power.

ott datos mexico ciuAccording to an analysis of the Competitive Intelligence Unit (The CIU), those have been the main reasons that have driven Chivas de Guadalajara to partner first with Cinépolis Klick and Claro video and recently with Televisa’s pay-TV and OTT platforms.

The analyst points out to both market and technology barriers to have hindered Chivas TV success in Mexico. Despite of being one of the most popular football clubs in the country, up to 86% of Mexican homes are not in a comfortable position to pay Chivas’ subscription, said the report.

“Even though broad band access grew by 74% during last year, this has been mostly through mobile networks, through which video consumption is still expensive,” said the analysis note.

“Besides, platform users have consistently reported fails in the service,” continued the CIU, fails that have also happened to well-established streaming services such as Claro video, due to the difficulties of live over-the-top broadcasting.

“The technological progress opens great opportunities for the industry’s development, but it’s important to analyse the conditions of the potential consumers in order to implement a successful business model for the new platforms,” concludes the market analysis. “Not doing so can transform opportunities into risks.”
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