Piracy, OTT boom threaten LATAM pay-TV growth | OTT | News | Rapid TV News
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Pay-TV businesses in Latin America face a variety of threats, including high levels of economic inequality, strong free-to-air (FTA) TV offerings, growing take-up of over-the-top (OTT) services, and rising rates of pay-TV piracy.

television 15 june 2017This is according to the Pay-TV Innovation Forum, developed by Nagra and MTM.

However, some countries, such as Mexico and Peru, have reported significant growth in recent years, and the industry is expected to increase at a moderate rate in the near future.

“Industry executives acknowledge that content piracy has become a significantly bigger issue in the pay-TV industry over the last couple of years. Content piracy is getting worse. In the old days of Bit Torrent, we could at least easily measure the impact, but now it’s much harder as a lot of it has shifted into IPTV and OTT-based boxes,” says the report.

As for the over-the-top (OTT) sector, industry executives taking part at the pay-TV innovation Forum said it was rapidly developing and is challenging the pay-TV realm.

“Latin American pay-TV operators have recognised, and to a certain extent responded to, the growing pressures from OTT competitors by introducing their own OTT services,” said Simon Trudelle, senior director, product marketing, Nagra. “78% of major pay-TV operators in Latin America currently offer TV everywhere services, while 22% also offer standalone OTT services.”

As the market becomes more and more complex, improving the core pay-TV proposition will be key in the future, especially through advanced data and analytics.

“Pay-TV industry executives across Latin America remain focused on strengthening their core pay-TV propositions to deliver more interactive and seamless experiences across multiple devices,” said Jon Watts, managing partner, MTM. “In addition to this, advanced data and analytics are becoming a major area of interest and development for certain operators.”

“They believe that advanced data and analytics will add significant value by helping pay-TV businesses better understand their customers and deliver value through highly relevant, personalised content and user interfaces, targeted advertising, and improvements to sales and marketing as well as customer service,” added the executive.