Poor broadband limits OTT in LATAM | Media Analysis | Business
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Low broadband quality and penetration are limiting the impact of over-the-top (OTT) players on the Latin American pay-TV industry, according to OTI Telecom.

oti tv paga 08 mar 2018As high-speed broadband access is still limited across the region, particularly outside larger cities, OTT and subscription video-on-demand (SVOD) players are still not offering a clear alternative to pay-TV, says the Organización de Telecomunicaciones de Iberoamérica in its latest report.

The regional telecom organisation highlighted that the lack of cord-cutting is one of the main reasons for the higher dynamism of pay-TV in Latin America compared to other countries, particularly the US.

In fact, even though other reports have pointed to the market’s deceleration, OTI Telecom foresees a growing industry over the coming years, as service adoption will continue to increase.

According to the organisation, pay-TV contributes to a 15.7% of Latin America’s telecom revenues, which stood at over $37 billion during Q2 2017, the last quarter for which figures are available. Compared to Q2 2016, pay-TV revenues grew by 6%, more than broadband (2.7% growth) and mobile (5.3%).

The report highlights that pay-TV income has increased by 49% since 2013, far more than broadband (12.3%) and mobile (9.7%).

“Pay-TV revenues are on the up, despite a downturn in Q3 2015, mostly due to the macroeconomic situation in Brazil. The growing trend will continue as service penetration keeps increasing across Latin America,” said the report.