Lowering entrance barriers and technological convergence have driven competitivity across Mexico’s pay-TV market, resulting in three-digit investment growth.
Latin America’s leading pay-TV market has largely benefited from convergence, according to an analysis by The Competitive Intelligence Unit (CIU), as scale economies and infrastructure exploitation have strengthened the industry’s competitivity.
“Such competitivity boost has driven operators to allocate larger amounts of resources to improve quality and coverage across their networks,” pointed out the report. “Therefore, between 2013 and 2016, investments in pay-TV infrastructure have grown by 149%.”
Averaging a 36.7% increase per year, investments neared $1.5 billion during 2016, a third of the total investments in telecoms, claims the analysis.
“These conditions and market dynamics prove the competitivity of Mexico’s pay-TV industry, which has generated new income opportunities and increasing subscriptions,” concludes the report.
In fact, the latest figures published by the Instituto Federal de Telecomunicaciones (IFT) point to a market with 22.3 million subscribers and a 67% penetration rate, in which all the large players are growing.