Cord-cutting erodes Mexican pay-TV sector | Media Analysis | Business
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As pay-TV prices continue to increase in Mexico, in Q1 2017 the market dropped almost all the subscribers gained in the prior year.

cord cutting 08 august 2017While over-the-top (OTT) represents a more affordable video option, analysts have pointed out most of the losses could be due to cord-cutting, as pay-TV subscribers start paying for subscription-video-on-demand (SVOD) platforms.

According to data released by Mexico’s telecom authority the IFT, March 2017 ended with 19.5 million pay-TV households, 0.3 million subs more than a year ago, but clearly down from the 20.23 million homes reached in December 2016.

“Penetration has remained flat, around 59% of homes throughout the year,” explained the IFT. “Satellite subscriptions accounted for 56%, while cable TV owned the remaining 44%.”

However, another recent report issued by the IFT highlighted that pay-TV prices, along with other telecom services, are continuing to increase in Mexico.

“When prices peak, the first telecom service to get unplugged is pay-TV,” said Jorge Bravo, analyst at MediaTelecom Policy and Law, speaking to the Mexican daily paper El Universal.

“If there is access to broadband, users have more options through OTT services which can deliver the same experience as pay-TV,” added Abel Hibert, another analyst and former IFT member quoted by the newspaper.