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The Mexican subscription video-on-demand (SVOD) market has reached 7.4 million subscribers after growing 25% over the last year, according to The Competitive Intelligence Unit (CIU).

CIU figures show that the market is growing rapidly compared with the flat pay-TV sector which stabilised around the 20 million subs.

In fact, recent reports have pointed out that cord-cutting – along with rate increases - may be one of the main factors hindering pay-TV growth in the country.

According to The CIU report, the Mexican SVOD market had 7.4 million subscriptions by the end of Q2 2017 and will continue growing due to “the increasing Internet penetration, the service’s affordability compared to pay-TV and viewers’ preferences for original, exclusive productions and everywhere access”.

“The current competitive scenario has radically changed over the past two years, even over the past year,” said the report.

All the big SVOD players are now operating in Mexico, competing with several local services. Despite increasing competition, Netflix is the dominant service, with 63.6% of the country’s VOD subscribers.

América Móvil’s Claro video is second, with 24.9% of the subscriptions, “due to the platform’s addition to several Telmex telecom offerings,” with Televisa’s blim (6.9%), HBO Go (2.3%) and Fox Premium (0.9%) completing the top five.